Bad Credit Car Loans

No deposit required - 100% Online Application

  • Rates from 5.29% Good Credit (comparison rate 5.44% p.a.)
  • Up to $30,000 Car Loans
  • Any Credit Score – current Part IX’s and discharged bankrupts accepted

Creditworld is a credit broker and not a lender. Australian Credit Licence Number 397589.

Easy 100% Online Car Loans for up to $30,000

At Creditworld, we aim to take the hassle out of buying a car. With the help of our expert team, you can find and compare car loan rates quickly, and apply for car finance, so you can get on the road that much sooner.

Speedy online applications

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Quick outcomes

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Instant finance

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What you’ll get with a Creditworld Car Loan

  • Same day finance approvals
  • Borrow 100% of the car value, no deposit required
  • Private or dealer car sales
  • Cars can be up to 11 years old at the time of application
  • 2-7 year loan terms
  • Current Part IX’s and discharged bankrupts accepted

“Can’t fault the online process with Creditworld. We had our loan approved and found our new car shortly after.”

James and Veronica

Ulladulla, NSW

“Can’t fault the online process with Creditworld. We had our loan approved and found our new car shortly after.”

James and Veronica

Ulladulla, NSW

What is a car loan?

A car loan is a finance product designed specifically for car buyers. If you’re looking to buy a car, a car loan could allow you to spread the cost of the car you want, helping you out if you don’t have the funds to cover the full cost upfront. Depending on your circumstances, you could borrow between $5,000 to $100,000, to then pay it back over a period of one to seven years.

Secured Car Loans

Typically these loans are secured against the vehicle being purchased, but may be secured against other assets of value.

Unsecured Car Loans

An unsecured personal loan may cover home renovations or a holiday, but some may choose to cover the purchase of a car.

How does a Car Loan work?

When you apply for a car loan, you decide how much you want to borrow, and how long you will need to pay it back. As long as you meet the lender’s eligibility criteria, you will then be provided with the funds to cover the cost of the car you want to buy. You then repay the cost of the loan – plus any interest and fees – over the period set out in your loan contract.


Typically, car loans are secured against the vehicle being purchased. That means the car you buy acts as collateral against the loan, which can make it easier to get approved, while also helping to reduce interest costs. Unsecured car loans are usually personal loans that are designed for any purpose. To be approved for this type of loan, you will typically need excellent credit.


You can apply for finance on most types of vehicle. However, lenders may place certain restrictions on where a vehicle may be purchased, the age of the vehicle at the start and end of the loan, and the amount they will offer in relation to its value.

  • Place of Purchase: Some lenders only offer car loans on vehicles purchased at car dealerships or auctions. With that being said, there lenders who offer loans on private sales.
  • Vehicle Age: In general, the vehicle must be no more than 10-12 years old at the end of the loan term.
  • Grey Imports: Most lenders will not offer car loans on grey imports. These are vehicles that have been imported as used vehicles, that were not originally sold by the manufacturer in Australia.
  • Negative PPSR Reports: Vehicles with negative reports on the Personal Property Securities Register (PPSR) will not be considered for finance. Examples may include vehicles that have been reported written off, stolen or registered as having incorrect odometer readings.


While you may choose to place a deposit on the vehicle you are purchasing, it’s often not a requirement by lenders. As long as you can prove you have the ability to repay the loan and your credit is good, you can typically borrow the full cost of the car. However, you may find you get a better rate on your loan, or you get faster approval when you put down a deposit.

Secured Car Loans


For the most part, car loans in Australia are offered as secured car loans. Typically, these loans are secured against the vehicle being purchased, but may be secured against other assets of value.

  • Choosing a secured car loan can reduce the overall cost of the loan.
    With collateral on the loan, this lowers the risk for the lender. Which is why you will usually find lower rates on secured car loans vs. unsecured loans for cars. With a lower rate, you will pay less in interest, which can either lower the cost of the loan, or make the repayments more manageable.
  • Opting for a secured car loan can make it easier to get approved.
    Again, collateral means lower risk for the lender. This can make it easier to get approved for secured car loans compared to unsecured loans.


It is worth bearing in mind that by using your car as collateral, you risk losing the car if you are unable to repay your car loan. Before applying for any type of loan, make sure you can comfortably afford your repayments. Don’t borrow what you can’t afford to pay back.

Unsecured Car Loans


Unsecured car loans are typically unsecured personal loans that are offered for any purpose. So, while some applicants may apply for an unsecured personal loan to cover home renovations or a holiday, others may choose to apply for their personal loan to cover the purchase of a car.

  • With an unsecured car loan, the lender cannot repossess your car.
    Unlike secured car loans, these unsecured loans are not secured against any form of collateral. That means, if you fail to repay the loan, the lender cannot simply take your car to cover the shortfall. With that being said, there are still serious repercussions to deal with if you fail to repay an unsecured loan, which could be worse than losing your car.


In order to get approved for an unsecured car loan, you will need to have excellent credit and a steady income and employment history. You may pay higher rates on an unsecured car loan than a secured car loan, which will increase the overall cost of the loan and your repayment amount.

New Car Loans


Depending on the lender, what is classed as a ‘new car’ may be anything from brand new off the lot, up to two years old.

  • You could save with lower interest rates on a new car loan.
    As they are less likely to break down or be written off, new cars are generally seen as less of a risk to lenders. As a result, they often offer lower rates on new car loans than used car loans. That means, by opting for a new car loan, you could save on interest over the life of the loan.
  • You could benefit from more features on your loan.
    Knowing that buying a new car comes at a higher cost than buying a used car, lenders may offer additional features on new car loans as an incentive to apply, providing more flexibility for you as a borrower.


When considering a new car loan, look at the overall cost of the loan. New cars are more expensive than used cars, so you will need to borrow more to cover the cost. That may mean you will need longer to repay the loan, or you will pay more in interest on the higher amount borrowed.

Used Car Loans


As the name suggests, used car loans are designed to finance the purchase of used cars. Similar to new car loans, what is classed as a ‘used car’ may vary from lender to lender. You will also need to take into account the age of the car when purchased, and how old it will be at the end of the loan term once the loan has been paid off.


  • With a used car, you may need to borrow less.
    Used cars cost less than their newer counterparts. Depending on the make and model, a car may lose 10% to 15% of its value when driven off the lot. After a few years, that car’s value will be substantially lower than it was when new, making it more affordable to buy. This means you can borrow less, and potentially pay off the loan faster.


In terms of age, you will need to choose a loan that will be repaid by the time the car is 10-12 years old. So, if you were to buy a car that’s six years old and took out a four year car loan, that would be acceptable for more lenders. Opting for seven year car loan on a six year old car would not be a option.

Other Types of Car Loan


Aside from the standard car loans mentioned above, there are other ways to finance a car.


  • Car Lease: With a car lease, the lender purchases the vehicle and rents it to the borrower over a fixed period. At the end of the lease period, there may be the option to buy the vehicle, continue the lease, or return the vehicle.
  • Novated Lease: With a novated lease, an employee can buy a car, covering their repayments from their pre-tax salary. This can make it a tax-effective way to purchase a car, as long as their employer is on board.
  • Chattel Mortgage: Working in a similar way to a standard car loan, a chattel mortgage is a common type of business car finance in Australia. It can offer significant GST benefits, working especially well for companies that need to supply employees cars for business use.

What to look for in a Car Loan

As you compare car loans, you need to know what to look for. Here are some of the most important factors to keep in mind as you compare the options.

  • Loan Term & Amount: Think about how much you want to borrow and how long you will need to pay it back. Using a car loan calculator should help you play around with options. Compare car loans that will give you access to the funds you need, as well as the loan term required to pay it off.
  • Cost: One of the key factors on any loan is cost. You want to know how much your repayments will be, and how much the loan will cost overall. To do this, you will need to take into account interest and fees, which will vary depending on the type of loan, the length of the loan, and other factors such as your credit score.
  • Flexibility: Some car loans offer flexible features that allow borrowers to make extra repayments, to redraw those extra repayments, and to pay off the loan early. It’s also worth checking for flexibility on repayment frequency, to allow you to pay weekly, fortnightly or monthly, according to your budget. You may find loans that offer these features are more costly, so weigh up whether flexibility or cost is more important to you.
  • Accessibility: Each lender has its own application process. While some may offer superfast approvals and same-day access to funds, others may have a much longer application process to deal with. Faster approvals can sometimes mean higher rates and fees, so it’s up to you to compare the options and work out what will work out best for you.
  • Suitability: As you compare car loans, you will need to read the small print carefully. While this may be time consuming, it should allow you to choose the loan that best meets your needs.

Ready to Apply?

Car loans come in all shapes and sizes, and can suit the needs of almost any car buyer. The key to choosing the right car loan is understanding what you need from a loan, knowing what’s out there, and how to compare the options to choose the loan that will best suit your needs.


Helping to make that process as quick and easy as possible, Credit World takes the hard work out of finding a car loan. As experts in the field, the Credit World team simply needs to know what you want from your car loan, to then use their knowledge to provide you with a range of options from our panel of lenders.


From there, it’s just a matter of making sure you’re eligible, and then applying. Easy as that!

Top questions people ask us

How much can you borrow with a car loan?

While the average amount borrowed is around $30,000, car loans typically range from $5,000 to $100,000, depending on the lender. With that being said, the amount you will be allowed to borrow will be determined by your personal circumstances.

How long can you take to pay back a car loan?

Most car loans offer a loan term ranging between one and seven years, however, the average term is five years. The loan term is usually fixed at the start of the loan, which means there may be fees involved in paying the loan off early.

How much does a car loan cost?

The cost of your car loan will depend on a number of factors.

  • Fees: Car loan fees can be one-off, such as establishment fees, or ongoing, such as monthly fees. You may also have to pay additional fees if you make extra repayments, if you redraw on the loan, or if you pay off the loan early.
  • Interest: Most lenders advertise a fixed rate on their car loans. As interest is typically the biggest cost associated with car loans, it’s a good idea to look for low interest options.
  • Your Credit: While lenders may advertise certain rates on their car loans, they may adjust that rate according to the circumstances of each applicant. For example, a borrower with excellent credit would likely pay a lower rate than an applicant with middling credit.
  • Vehicle: The rate applied to the loan may also vary according to the vehicle being purchased. Whether the car is new or used, the age of the car, and other factors will determine how much you pay on your loan.


Before deciding on a car loan, it’s a good idea to look at the overall cost of each loan option. This should take into account how much interest you will pay, plus the cost of any fees.

How long does it take to get approved?

Approval times vary from lender to lender. While some lenders offer approval within a few hours of application, others may take days to finalise the contract. Your circumstances may also affect your approval time. If you have excellent credit, stable employment, and are looking to buy a new car, you may enjoy a much faster approval time.

Can you get preapproval on a car loan?

When you get preapproval on a car loan, you are provided with a pre-assessed borrowing limit from a lender. This allows you to shop around for cars knowing exactly how much you can afford to spend, giving you confidence to buy the car you want.

Can you apply for a car loan with bad credit?

Most lenders only approve applicants with good credit. But, that’s not to say you can’t get approved for a car loan with bad credit. Depending on your credit score, you may be able to apply for a standard car loan. Alternatively, a bad credit car loan could provide another solution.


When you apply for a car loan with bad credit, you will usually pay higher rates of interest, making the loan more costly. To be approved, you will also have to provide extensive documentation to prove your ability to repay the loan.


Bear in mind, you should only apply for a car loan if you think it’s likely you’ll be approved. If you apply and your application is declined, that will further affect your credit, making it even harder to get approved in the future.

Can you apply for a car loan when you’re self-employed?

Applying for a car loan when you’re self-employed means providing different documentation to the lender during the application process. This documentation is designed to prove your ability to repay the loan, despite your employment status.

What does the provider look at when you apply?

Each lender has a different application process, which means the information and documentation you will need to provide will vary from loan to loan.


When assessing your application, the lender will consider the amount you want to borrow, the age and type of vehicle you want to buy, and your personal credit history.

To be approved, you will typically have to prove you:

  • Have a clean credit history
  • Have been in regular, stable employment for at least two years
  • Are able to provide an address history for the past two years


To improve your chances of being approved, you may opt for:

  • A brand new or nearly new vehicle
  • A sale through a dealership or car franchise


Putting down a deposit may also increase your chances of approval, as this lowers the risk on the loan.

What happens after you’re approved?

Once you have been approved, you will receive a loan contract. It’s important you read through this contract carefully to make sure all details are correct – and that you understand what is expected of you.


Key points to check include:

  • The length of the loan
  • The amount borrowed
  • The initial and ongoing fees included in your loan
  • The rate of interest applied


Only sign the loan contract if you are sure all details are correct. There is no pressure on you to sign. You can choose not to sign if you decide the loan is not right for you.


Once you have signed the loan contract and returned it to the lender, the lender will arrange transfer of the funds, as agreed as part of the contract. If it’s a private sale, you may receive the funds into your bank account so you can pay the seller. If it’s a dealer sale, the funds will typically be transferred direct to the dealer. At that point, you can take possession of your car.

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