No Credit Check Car Loans

Past Credit Problems Don’t Have to Prevent you Getting Access to Quality, Affordable Car Finance with Savvy.
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, updated on July 5th, 2023       

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No credit check car loans

No credit check car loans – the myth

Millions of Australians utilise car finance to get on the road, and past credit problems don’t necessarily provide a barrier. However, no credit check car loans are something of a myth. Reputable lenders do check your credit history when you apply for car finance, but that’s not the only qualifying factor. It’s essential to get the best advice and knowledge about car lending before you apply for a loan – because choosing the wrong loan provider can be extremely costly.

How Savvy can help

At Savvy, we help many Australian car buyers qualify for vehicle finance, and believe past credit issues shouldn’t be a barrier. That’s why we partner with a diverse range of car loan lenders and offer borrowers more than just a standard service. Going it alone can be challenging if you’ve had credit problems. Savvy can help you research financial products, understand lender requirements, and increase your chances of qualification – no matter what your history.

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Your no credit check car loans questions answered

So, a no credit check car loan isn’t possible, what other options do I have?

Bad credit car loans are offered specifically to borrowers who’ve experienced issues in the past. That means they’re the best place to start looking when you’re worried about a credit check.

How do I know I’ll get approved for a car loan with bad credit?

Lenders will perform a credit check, and it’s true that affects your chances of getting approved – but they’ll also look at other elements like your employment status and what you earn. It’s a massive bonus if you’re in stable employment because that’s a good signal to lenders that you’re a decent prospect. Generally, loan providers will check how long you’ve been in your current job, what you do for a living, and how much you earn. It’s not definitive, but having a regular ongoing job is positive.

How can a bad credit car loan help me?

The key to borrowing wisely is to limit the cost. No credit check car loan lenders are a myth; in reality, all lenders perform a credit check, and costs get based on risk. However, even when you’ve had issues in the past, you can still reduce your borrowing costs by providing information and security to the lender. Secured financial products like bad credit car loans lower the lender’s risks because your vehicle acts as collateral – and so interest rates stay lower.

Will getting a bad credit check govern which vehicles I can buy?

Savvy partners with some lenders that accept applications for vehicles anything up to 25-years old (at the time your loan term ends). Older cars may attract slightly higher interest rates, because the risk for lenders is greater than with a newer model. As well as that, maximum loan amounts primarily get based on your income, but lenders are more cautious if you’ve had problems paying off credit in the past. Bad credit car loans are very customisable, however, and you can also buy new or used vehicles, so the model or features of your choice might not be out of budget after all.

What’s my disposable income, and why is that important?

Work out all of your outgoings each pay cycle, and then compare that with what you earn. What’s left is your disposable income – and lenders pay close attention to that. Lenders do run a credit check, but keeping your loan amount within your financial means gives you a greater chance of success.

How do I repay a bad credit car loan?

Once approved for bad credit car finance, you’ll find the terms surprisingly flexible. Loans can be repaid over anything between one and seven years. You can opt to use a deposit, trade-in, or choose to borrow all of the cost of your new vehicle. To get a realistic idea of the repayment amounts involved, use our car loan repayment calculator – which lets you adjust the interest rate, deposit amount, loan term, and repayment frequency to calculate terms affordable for you.

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