Minimum Credit Score for a Car Loan in Australia (2026)

Wondering whether your credit score is high enough for a car loan? There is no legal or industry-wide minimum credit score for a car loan in Australia. Each lender sets its own cut-off, and most do not publish it. The figure quoted most often is about 600 on Equifax's 0 to 1,200 scale, and at least one lender's published broker guide (Plenti, effective 13 April 2026) accepts car loans from an Equifax score of 525. Below that, specialist lenders judge the rest of your credit file rather than the number alone.

Your score also sets the price. In that same Plenti guide, the maximum rate for a new car runs from 10.49% p.a. at an Equifax score of 750 or more to 13.59% p.a. at 525 to 599. Be careful with older articles: Australia went from three main credit bureaus to two on 1 April 2026, and Experian's scores and bands changed.

Written by Inder Singh, Automotive Finance Specialist at New Choice Car Loans, a finance broker (Australian Credit Licence 494494), not a lender. Last updated: 1 November 2026.

Key takeaways

• There is no legal minimum score. Lenders set their own cut-offs, and the national credit law requires an affordability and suitability assessment, not a particular score.
• About 600 on Equifax is the most-quoted benchmark for mainstream car finance, but general guidance online ranges from 500 to 620, and most of it is not lender policy.
• One lender publishes a floor of 525. Plenti's broker guide (April 2026) sets a minimum Equifax score of 525 for car loans, with pricing tiers at 525, 600 and 750.
• Since 1 April 2026 Australia has had two main credit bureaus, Equifax and Experian (illion is now part of Experian). Both score from 0 to 1,200 with different bands, so one bureau's number cannot be read on the other's scale.
• Your score moves your rate: on Plenti's maximum rates, a $30,000 five-year new-car loan costs about $2,800 more in interest in the lowest tier than the top one.
• Unpaid defaults, recent arrears or payday loans can sink an application with an acceptable score.
• Checking your own score is free and does not lower it. A formal application is a hard enquiry, kept for five years.

Contents

1. Is there a minimum credit score for a car loan in Australia
2. Credit score ranges in Australia in 2026
3. What credit score do lenders accept for a car loan
4. How your credit score affects your car loan interest rate
5. What lenders see on your credit report
6. What moves your credit score up and down
7. How a car loan application affects your credit score
8. How to check your credit score for free in Australia
9. What to do if your credit score is low
10. Where a broker like New Choice Car Loans fits
11. Frequently Asked Questions
12. Sources

Is there a minimum credit score for a car loan in Australia

No. Australian law does not set a minimum credit score for a car loan, and no industry body publishes one. Each lender decides its own threshold, and its own way of using your credit report.

Why there is no single number

The rules for consumer car finance sit in the National Consumer Credit Protection Act 2009, usually called the NCCP Act. Sections 128 to 131 require a lender to make reasonable inquiries about your financial situation, take reasonable steps to verify it, and assess whether the loan would be unsuitable for you. A loan is unsuitable if you could not meet the repayments, or could only meet them with substantial hardship. Nothing in those sections mentions a credit score.

A score is a tool that lenders choose to use, and they use it in different ways. CreditSmart, the consumer education site run by the Australian Retail Credit Association (ARCA), says some credit providers may not look at the bureau score at all, while others build their own scores from the information they hold. Every lender still looks at your income, expenses and existing debts. ARCA puts it plainly: if a lender doesn't think you can afford the loan, it won't approve you even with a high score.

In practice, car lenders handle the score in one of three ways:

1. A few publish a floor, stating in writing the lowest score they will consider.
2. Many run automated credit scoring that rejects or refers applications below an internal cut-off they do not publish.
3. Specialist lenders often have no hard cut-off. They read the whole credit report and your bank statements, then price the loan for the risk they see.

The benchmarks you will see quoted

Search "minimum credit score for a car loan" and you will find a handful of numbers, each with a different origin.

These figures do not agree, and only one of them is a lender stating its own policy in writing. Several also predate the April 2026 change to Experian's scale, so a "625" quoted against an old Experian band means something different today.

How to read those numbers

The 600 figure appears in more places than any other, and it is usually an Equifax number. That fits the one published policy we could find: Plenti prices car loans in tiers by Equifax score, and 600 is where its middle tier starts.

Our view is that 600 on Equifax works better as a pricing and loan-size line than as a pass mark. At Plenti, falling below 600 does not end the application. It moves you into the lowest tier, adds 2.34 percentage points to the maximum rate for a new car, and caps the loan at $40,000. Falling below 525 is where that lender stops, and where specialist lenders take over.

So "what is the minimum?" needs four more details before it has an answer: which lender, which bureau's score, how much money and which car.

Credit score ranges in Australia in 2026

Australia has two main credit reporting bodies, Equifax and Experian. Both now score from 0 to 1,200, but they draw their bands in different places, so the same number can be "Average" on one and "Good" on the other.

What changed in April 2026

Experian completed its purchase of illion in late 2024. According to ARCA's CreditSmart site, from 1 April 2026 the two businesses have operated as a single Experian credit reporting body. The new Experian report carries the information illion held plus some of what Experian held before, including credit enquiries. Because the calculation changed, Experian scores changed too.

The Office of the Australian Information Commissioner (OAIC) now lists only Equifax and Experian on its page about getting your free credit report (updated 14 April 2026). Experian's own frequently asked questions say there are two main credit reporting bodies in Australia: Equifax and Experian.

If you checked an Experian or illion score before April and again after, a jump or fall may be the new model rather than anything you did. Finder's explainer on the 2026 changes (updated 12 October 2026) sets out the old and new Experian ranges side by side.

Equifax and Experian bands side by side

Both bureaus publish five bands. This table puts them next to each other, along with what a band position usually signals to a car lender. The meanings are indicative: they are drawn from the lender policies and guidance reviewed for this article, most of which are set on Equifax scores.

Sources: Equifax, "What is a good credit score?"; Experian, "Experian credit scores" (both accessed 1 November 2026).

The middle row shows the trap. An Experian score of 520 sits in Experian's "Good" band, while an Equifax score of 520 sits in Equifax's "Average" band, below Plenti's 600 line. Band names are not interchangeable between bureaus.

Old bands you will still see in articles

Many pages that rank for this topic still print the pre-2026 scales. If a number in an article does not match what your app shows, check which scale it uses.

Sources: Finder, "2026 credit score changes" (updated 12 October 2026); Canstar, "What is a good credit score?" (August 2025).

Experian's new bands below 800 match illion's old bands. The main visible difference is that the top band now runs to 1,200.

Why you cannot convert a score between bureaus

Each bureau builds its score from the data it holds, and lenders do not all report to both. CreditSmart notes that lenders subscribe to one or more credit reporting bodies, so the bureaus do not hold identical information about you. Each also uses its own model. There is no official formula to turn an Equifax score into an Experian one, and any online "converter" is guessing.

Practical rule: when a lender, broker or article quotes a minimum, ask which bureau it means. If they cannot say, the number is not much use to you.

Is 600 a good credit score in Australia?

It depends on the bureau. On Equifax, 600 is in the Average band (460 to 660). On Experian's 2026 scale, 600 is in the Good band (500 to 699). For car finance, 600 on Equifax is right on the line most often quoted for mainstream lenders, and at Plenti it is the start of the middle pricing tier.

Is 700 a good credit score?

Yes on both scales. On Equifax, 700 is Good (661 to 734). On Experian, 700 is the start of Very good (700 to 799). An Equifax score of 700 clears every mainstream benchmark quoted in this article, though it sits below the 750 that Plenti requires for its best tier.

What is the average credit score in Australia?

Equifax reported a national average score of 864 out of 1,200 in its 2025 credit scorecard (released 8 December 2025), up from 861 in 2024. That is in Equifax's Excellent band. Australians aged 18 to 30 had the lowest average, at 715. Equifax also reported that 52% of Australians improved their score over the year and 23% saw it fall.

An average of 864 can make a 600 feel alarming. It shouldn't. The average is pulled up by people with decades of clean repayments, and the figure that matters is where your score sits against the lender's tiers.

What credit score do lenders accept for a car loan

Most lenders do not publish a minimum score. The clearest public example in Australia, Plenti's broker guide, accepts car loans from an Equifax score of 525, prices in three tiers, and declines some applicants whose score is fine because of other items on their file.

Mainstream lenders

Banks and large non-bank lenders generally do not publish score cut-offs. What they publish is eligibility: age, residency, income, and the type and age of car. The commonly quoted benchmark for this end of the market is around 600 on Equifax, and the lenders that tier their pricing reward scores well above that.

Lenders also choose which bureau to use. Plenti's help centre says that if you apply for a NAB Car Loan through Plenti, it requests your credit report from Equifax, and the request appears on your report as a NAB enquiry. That is one reason the Equifax score is the one most car finance guidance refers to. It is not universal, so if you know which lender you are heading for, ask which bureau it uses.

Plenti's published credit tiers

Plenti is a lender on our panel, and its "Premium Auto Policy and Rate Guide" for brokers is publicly available. It is the most detailed published example of how a car lender uses a credit score in Australia. The figures below are Plenti's, effective 13 April 2026, with rates correct as at 9 April 2026 and subject to change. They are one lender's policy, not a market standard and not a New Choice Car Loans policy.

The guide sets the overall credit score minimum at 525 for cars and 600 for caravans, motorcycles and electric vehicles. Any applicant with an Equifax score under 600 is held to the $40,000 cap, and some combinations (such as boarders with a score under 600) are capped lower. The guide also lists a separate "asset backed" rate row without a score tier attached.

Rules that decline an application with an acceptable score

The score is only the first filter. The same guide lists credit rules that apply in every tier. Under it, an applicant needs:

• no bankruptcy, court judgments or unpaid defaults (non-financial paid defaults under $1,000 may be considered)
• no current arrears on any active credit, and no repayment history worse than 2 in the last 12 months, including closed accounts
• no accounts currently in financial hardship
• no more than 3 dishonours in any 90-day period
• no active debt collection
• no payday loan activity or enquiries in the last six months
• gambling transactions no more than 20% of net monthly income, and cash plus gambling no more than 50%
• a credit file at least 12 months old, gross income of at least $35,000, and an age of 21 or over

That list explains why people with a decent score still get declined. An Equifax score of 680 with a payday loan enquiry four months ago fails this policy. So does a 700 with a repayment that ran 60 or more days overdue in the past year. The score summarises your file, and the lender reads it line by line.

Thin credit files and no credit history

A thin file is a credit report with little or no recent activity. Plenti's guide treats a car applicant as thin-file if they are not a home owner and have had no active credit in the last 24 months. Those applicants go to Tier 3, need a score over 650, and must supply bank statements.

No history is not the same as bad history, but it still costs you something. A lender cannot see how you handle repayments, so it asks for other evidence and prices more cautiously. If you are new to credit, the bank statements you provide (regular income, rent paid on time, no dishonours) do much of the work a score would otherwise do.

Specialist and sub-prime lenders

Below the published floors, specialist lenders assess the application on the whole file. They look at why the score is low, how recent the problems are, what has happened since, and whether the repayments fit your budget. They charge more for the risk, and they often limit the loan amount or the age of the car.

Low scores do get approved. Savvy, a broker, reports that almost 1 in 10 of the car loan applicants it had approved in the 2025-26 financial year had a credit score of 460 or lower. That is one broker's data and says nothing about the rates those applicants paid, but it is evidence that a score under 500 is not automatically the end of the road.

Our pages on bad credit car loans and the complete guide to bad credit car loans in Australia cover this end of the market in depth.

Can I get a car loan with a 500 credit score?

Possibly, through a specialist lender. On Equifax, 500 is in the Average band but below Plenti's published floor of 525, so you would be outside that lender's policy. On Experian's 2026 scale, 500 is the bottom of the Good band, which is a different position altogether. Either way, the lender's decision will turn on what caused the score, your income and expenses, and the loan amount.

Can I get a car loan with a credit score under 600?

Yes, many lenders will consider it. At Plenti, an Equifax score from 525 to 599 qualifies for Tier 3, with a higher maximum rate and a $40,000 loan cap. Below 525, specialist lenders are the usual route. Expect to pay more than an applicant above 600 for the same car.

Can I get a car loan with a 300 credit score?

It is hard but not impossible. A 300 is well below every published floor we found except one broker platform: Driva says the minimum to get a loan through its platform is 280. At that level a lender will want to know exactly what happened, such as a recent bankruptcy, and will look for a smaller loan, a cheaper car and clear evidence that you can afford repayments.

How your credit score affects your car loan interest rate

Lenders price car loans by risk, and the credit score is one of the main inputs. In Plenti's April 2026 guide, the maximum rate on a new car is 10.49% p.a. for a score of 750 or more, 11.25% for 600 to 749, and 13.59% for 525 to 599.

Published rates by credit tier

Few lenders publish a rate grid by credit score. Plenti's broker guide does. The rates below are maximum customer rates. The guide allows the introducing broker to discount them by up to 2.00% p.a., and it adds 0.50% p.a. for loan terms longer than five years.

Source: Plenti, "Premium Auto Policy and Rate Guide", effective 13 April 2026; rates correct as at 9 April 2026 and subject to change. Rates are % p.a. The two oldest build-date columns are limited to 3, 4 and 5 year terms. These are not New Choice Car Loans rates.

The gap between Tier 1 and Tier 3 widens as the car gets older: 3.10 points on a new car, 4.20 points on a 2014 to 2018 car. The car's build date moves the rate as much as the score tier does.

What the gap costs on a $30,000 loan

The table below shows repayments on a $30,000 loan over five years (60 monthly repayments) at each tier's maximum rate. Figures cover interest only, exclude all fees, and assume the rate is fixed for the term.

Calculated with the standard amortisation formula. Your figures will depend on the rate you are offered, fees, term and any balloon payment.

On a new car, moving from Tier 3 to Tier 2 saves about $2,140 in interest over five years. On a 2014 to 2018 car, the same move saves about $3,010. If your Equifax score is sitting at 580 and you are not in a hurry, that is the size of the prize for getting it over 600.

Why the car matters as much as the score

Lenders price the security as well as the borrower. Plenti's guide limits the vehicle to no more than 17 years old at the start of the loan and 20 at the end, and adds a 2.00% p.a. loading where the car would be more than 15 years old at the end of the term. A newer, cheaper car on a shorter term can do more for your rate than a 30-point score improvement.

The market backdrop

Car loan rates move with funding costs. The Reserve Bank of Australia's cash rate target has been 4.60% since 30 September 2026, after increases in February, March, May and September 2026. Money.com.au cites RBA data showing an average rate of 9.40% p.a. on new fixed-term personal loans funded in July 2026.

Money.com.au also published the credit profile of more than 12,000 car loan requests made through its platform from January to September 2026: 49.6% had an Excellent score, 26.01% Very good, 13.47% Good, 6% Average and 4.93% Low. Those are requests rather than approvals, and the bureau is not stated, but they show that most people applying for car finance have scores well above any minimum.

Compare the comparison rate, not the headline rate

Moneysmart, ASIC's consumer site, notes that the rate you are offered depends on the loan's features, the term, your credit score and the car, and that fees such as establishment, broker and dealer fees add to the cost. The comparison rate rolls the interest rate and most fees into one figure, which makes offers easier to compare. Ask for it on every quote.

What lenders see on your credit report

Your score is a summary. Lenders read the report behind it, which under comprehensive credit reporting includes your repayment history for the past two years as well as defaults, enquiries and court records.

Comprehensive credit reporting in plain terms

Comprehensive credit reporting (CCR) means your report shows positive information as well as negative. Before CCR, a report mostly recorded problems. Now it also shows the accounts you hold, their limits, and whether you have paid on time each month. CreditSmart describes the effect as a more balanced picture: people who have had trouble but are now paying on time can show it.

For a car loan, this cuts both ways. A default from four years ago carries less weight next to 24 months of on-time repayments. A missed repayment last month is visible to the next lender, even without a default.

Repayment history and the 0 to 7 scale

Repayment history information appears on your report as a number from 0 to 7, showing the age in months of your oldest missed payment, according to the OAIC. It stays on your report for two years. You only count as having missed a payment if you pay more than 14 days after the due date.

This is the item Plenti's guide refers to when it rules out applicants with repayment history worse than 2 in the last 12 months. Two years of clean monthly entries is one of the strongest things you can bring to a car loan application.

How long things stay on your credit report

Source: OAIC, "What stays on a credit report?" (accessed 1 November 2026).

When a debt can be listed as a default

A default is more serious than a missed repayment. Under the OAIC's guidance, a credit provider can only list one if the payment is at least 60 days overdue and $150 or more, it has sent you a notice, it has sent a second notice at least 30 days later warning that it intends to report the debt, and it has waited at least 14 days after that second notice.

If you pay a default after it is listed, the listing stays on your report for the full five years but is updated to show it was paid. Some lenders treat paid and unpaid defaults very differently; Plenti's guide declines unpaid defaults but may consider small paid non-financial defaults.

Financial hardship arrangements

Moneysmart says that a financial hardship arrangement does not affect your credit score. The report shows the months the arrangement is in place, and that information is removed after 12 months. CreditSmart adds that hardship information cannot be used to calculate your score. The OAIC also says a lender cannot list a default while it is deciding your hardship request, or until 14 days after telling you it has refused it.

The catch is that lenders can still see the arrangement on your report, and some treat a current hardship arrangement as a decline: Plenti's guide requires no accounts in current hardship. If money is tight, asking your lender for hardship help is still the right move. It protects your score in a way that missed payments do not, and the record drops off after a year.

What moves your credit score up and down

Paying on time every month, applying for credit less often, and keeping credit limits lower are what move a score up. Missed payments, defaults and clusters of applications move it down. Nothing reliable moves it quickly.

What lifts a score

Moneysmart's guidance on improving your credit report and score comes down to a few habits:

• pay your rent or mortgage, utilities and credit card on time
• limit how many applications you make
• lower your credit card limits, or close cards you don't use
• check your report for errors and fix them

CreditSmart adds that the total amount of credit available to you is one factor in your score, so lowering limits can help, though it is only one factor among several.

What pulls a score down

The biggest negative is missed repayments, especially once they become defaults. Multiple applications in a short period also lower a score, according to CreditSmart, because each application is recorded as an enquiry and factored in for five years. Opening several new accounts lowers the average age of your accounts, which can move the score even when nothing else changes.

Buy now pay later counts as well. Moneysmart notes that applying for buy now pay later triggers a credit check. Since the June 2025 reforms brought it under the NCCP Act, providers must be licensed and repayment history can be reported. The bad credit car loans guide covers that change in detail.

Credit score myths

• Checking your own score does not lower it. CreditSmart says a check of your own score is a soft enquiry, which is recorded on your report but not shown to lenders and does not affect your score.
• Closing a card does not wipe its history. The account and its repayment history stay on your report, and CreditSmart says closing a card or paying off a loan will not automatically improve your score.
• Paying a default does not remove it. The listing stays for five years and is updated to show it was paid.
• A credit repair company cannot remove accurate information for a fee. Moneysmart says only incorrect information can be removed, and you can ask for that yourself, free.

Does a car loan build credit?

Yes. Under comprehensive credit reporting, each on-time monthly repayment on a car loan is recorded in your repayment history, which stays on your report for two years at a time. A car loan you pay reliably for 12 to 24 months is one of the more effective ways to rebuild a file after earlier problems. It also counts against you if repayments are missed, so it only helps if the repayment fits your budget comfortably.

How a car loan application affects your credit score

A formal car loan application creates a hard enquiry, which stays on your credit report for five years and is factored into your score. The bureaus do not publish how many points an enquiry costs; ARCA describes the impact as typically small and fading over time.

Soft checks and hard enquiries

A hard enquiry is what happens when you apply for credit. The lender requests your report, and the application is recorded with the lender's name, the date and the type of credit. Other lenders see it.

A soft check is different. CreditSmart says a soft check is triggered when you check your own score, or when a lender or authorised third party gets your credit information to give you a rate quote and flags it as a soft check. Soft checks are recorded on your report, but they are not shown to credit providers and do not affect your score.

How many points does an enquiry cost?

No one outside the bureaus knows, because they do not publish their models. CreditSmart says multiple hard enquiries in a short period can temporarily lower your score, and that the impact of enquiries is typically small and diminishes over time. Our article on so-called no credit check car loans makes the same point: any specific points-per-enquiry figure you read is an estimate, not a published rule.

What lenders react to is the pattern. One enquiry for a car loan when you are buying a car is normal. Five in two months tells the next lender that others have probably said no.

Several applications in a short period

Canstar's explainer on multiple loan applications makes the practical point: an application is generally recorded on your report whether or not you are approved, so a run of applications can look like a run of rejections. Plenti's help centre says the same thing about its own applications. The better approach is to compare products first, then apply once.

Pre-approval and quotes

Whether a pre-approval or quote affects your score depends on how the lender gets your information. A quote produced from a soft check does not. A conditional pre-approval that involves a full credit application usually does. Ask the lender or broker directly, before you hand over details, whether they will run a soft check or a hard enquiry.

How a broker application differs

A broker can narrow the field before any lender sees an application. At New Choice Car Loans, our published FAQ explains that we run a soft credit check first, which does not affect your score, and a hard credit check only happens once you decide to go ahead with a specific loan offer. That means one hard enquiry with the lender most likely to suit your file, rather than several applications in the hope that one sticks.

How to check your credit score for free in Australia

You can get your credit report free from Equifax and from Experian once every three months, and again if you have been refused credit in the past 90 days. Free credit score apps also exist, and checking your own score does not lower it.

Free credit reports from both bureaus

The OAIC says you are entitled to a free copy of your credit report from each credit reporting body once every three months, and also if you have been refused credit in the past 90 days or if information on your report has been corrected. It lists the contacts as Equifax (138 332) and Experian (1300 783 684).

Get both. The bureaus may hold different information, because not every lender reports to both, and you do not know in advance which one your car lender will check.

Free credit score services

Several services give you a free score, usually your Equifax or Experian score, through an app or website. CreditSmart lists ClearScore and Wisr among them. These services are free because they use your information to market products to you, so read the privacy policy and opt out of marketing if you prefer. Moneysmart's advice is to avoid any credit score service that asks for payment or card details.

Note that a free score app shows one bureau's number. If your app shows Experian and the lender uses Equifax, the number in the app is not the number the lender sees.

Which bureau does my lender use?

Ask. Lenders subscribe to one or more bureaus, and a lender may check one or both. Some lenders say so publicly, as Plenti does for NAB car loans (Equifax). A broker should be able to tell you which bureau each lender on its panel checks for the loan you are applying for.

How to fix an error on your report

Fixing an error is free. Contact the credit reporting body or the credit provider that listed the information. Under the OAIC's guidance, if they agree it is wrong they must take reasonable steps to correct it within 30 days (or a longer period you agree to); if they don't agree, they must explain why in writing and tell you about external dispute resolution. Moneysmart points to the Australian Financial Complaints Authority (AFCA), which offers free, independent dispute resolution.

Be wary of paid credit repair. Moneysmart warns that credit repair businesses can only have incorrect information removed, which you can do yourself at no cost, and advises checking that any credit repair business holds the required licence on ASIC's professional registers.

What to do if your credit score is low

Fix what is wrong on your report, deal with arrears, stop applying, then make one well-prepared application for a loan sized to your budget. Time does the rest: repayment history rolls over every two years and most negative listings drop off after five.

Get both reports and fix errors first

Order your free Equifax and Experian reports and read every line. Look for accounts you do not recognise, defaults you have already paid that are not marked as paid, and enquiries you did not make. Getting a wrong default removed can do more for your score than a year of careful behaviour.

Bring arrears up to date and lower your limits

If any account is behind, catch it up before you apply. Each month an account stays overdue adds to the repayment history entry lenders see. Then look at unused credit: a card you never use still counts towards the credit available to you, and lowering or closing it can help.

Stop the application spiral

If you have been declined, the worst next move is to apply somewhere else straight away. Each application adds an enquiry. Find out why you were declined first. Our guide on what to do after being declined for a car loan sets out a 30-day plan for exactly this situation.

Make the loan easier to approve

A lender's decision is about the score and the loan together. You can change the loan:

• borrow less, by saving a deposit or choosing a cheaper car
• choose a newer car where you can, since car age changes both pricing and eligibility
• pick a term that keeps repayments comfortable, remembering that longer terms cost more interest
• show stable income and clean bank statements for at least the last three months

Give it time

Credit reporting has fixed clocks. Repayment history shows two years. Enquiries show five years. Defaults show five years. Financial hardship information shows one year. If a default is four and a half years old, waiting six months may change your options entirely. If your problems are recent, 12 months of on-time payments on everything you have can move you into a better tier.

If you have been bankrupt or in a debt agreement

Bankruptcy and Part IX debt agreements have their own timelines and their own specialist lenders. Our roadmap to car finance after bankruptcy and Part IX covers both, and our bankruptcy car loans and Part IX debt agreement car loans pages explain what lenders on our panel look for.

The rest of the car loan process

Your credit score is one part of getting a car loan. Our guide on how to get a car loan in Australia covers the rest: how car finance works, what lenders check first, the application step by step, where to get a loan, the documents you need, how long it takes and what it really costs. If you already have a loan at a high rate and your score has improved, refinancing may be worth a look.

Where a broker like New Choice Car Loans fits

A broker does not lend money or set credit score cut-offs. It matches your file to a lender whose policy fits, and it is bound by the same responsible lending laws as the lender.

Responsible lending under the NCCP Act

Brokers are credit assistance providers under the NCCP Act. Sections 115 to 118 require a broker to make reasonable inquiries about your requirements, objectives and financial situation, take reasonable steps to verify it, and make a preliminary assessment of whether the loan would be unsuitable before suggesting it. The lender then makes its own assessment under sections 128 to 131. ASIC's Regulatory Guide 209, "Credit licensing: Responsible lending conduct", explains how ASIC expects both to meet those obligations.

In plain terms: a good credit score does not oblige anyone to approve a loan you cannot afford, and a low score does not stop a lender approving one you can.

What we do and what we don't

We work with a panel of lenders that includes mainstream and specialist lenders, among them Plenti, Pepper Money, Liberty, Finance One, Money3 and Wisr. We start with a soft credit check, which does not affect your score, and a hard enquiry only happens when you choose to proceed with a specific loan offer.

We cannot promise approval, and no honest broker can. We do not offer "no credit check" loans, because licensed lenders must assess your credit and your finances. We do not set interest rates. The Plenti figures in this article are that lender's published policy on the dates shown, used here because they are public and specific; your rate depends on the lender's assessment of your application.

Your next step

If you want to see where you stand, you can apply online for a soft-check assessment, use our car loan repayment calculator to test repayments at different rates, or read our FAQs. Our car loans page covers loan amounts and terms.

General information only. This article is general information, not financial advice, and does not take into account your objectives, financial situation or needs. Score thresholds, policies and rates quoted are from public sources on the dates shown and can change without notice. They are not New Choice Car Loans rates and are not a guarantee of approval. All applications are subject to the lender's credit assessment and loan suitability criteria. Terms, conditions, fees and charges apply.

Frequently Asked Questions

What is the minimum credit score for a car loan in Australia?

There is no legal or industry-wide minimum. Each lender sets its own. The benchmark quoted most often for mainstream car finance is around 600 on Equifax's 0 to 1,200 scale. Plenti's published broker guide (effective 13 April 2026) sets a minimum Equifax score of 525 for car loans. Specialist lenders may consider lower scores after reviewing your whole credit file and finances.

What credit score do I need for a car loan?

For mainstream lenders, aim for at least 600 on Equifax, and 750 or more for the best pricing tiers at lenders that tier by score, such as Plenti. Below 600, many lenders will still consider you at a higher rate or with a smaller loan limit. The number you need depends on the lender, the bureau it uses, the loan amount and the car.

Can I get a car loan with a credit score of 500?

Possibly, through a specialist lender. An Equifax score of 500 is in the Average band but below Plenti's published minimum of 525. An Experian score of 500 is the bottom of Experian's Good band. Approval will depend on what caused the score, how recent any problems are, your income and expenses, and the size of the loan.

Can I get a car loan with a credit score under 600?

Yes. Many lenders consider scores under 600, usually at higher rates. Plenti's April 2026 guide accepts Equifax scores from 525 to 599 in its Tier 3, with a maximum new-car rate of 13.59% p.a. and a $40,000 loan cap. Below 525, specialist lenders are the usual option.

Can I get a car loan with a 300 credit score?

It is difficult but not ruled out. A score of 300 is below nearly every published floor; one broker platform, Driva, says its minimum is 280. Lenders at this level look closely at the cause, such as a recent bankruptcy, and favour smaller loans, cheaper cars and strong evidence of affordability.

Is 600 a good credit score in Australia?

On Equifax, 600 is in the Average band (460 to 660). On Experian's 2026 scale, it is in the Good band (500 to 699). For a car loan, 600 on Equifax is around the line most mainstream benchmarks quote, and the start of the middle pricing tier in Plenti's guide.

What is a good credit score in Australia?

On Equifax, Good is 661 to 734, Very good 735 to 852 and Excellent 853 to 1,200. On Experian's 2026 scale, Good is 500 to 699, Very good 700 to 799 and Excellent 800 to 1,200. Because the bands differ, always check which bureau a "good score" refers to.

What credit score do banks use in Australia?

Banks and lenders get scores and reports from Equifax and Experian, the two main credit reporting bodies since April 2026. Each lender subscribes to one or both, and some build their own scores from the data. Plenti, for example, says it requests your Equifax report for NAB car loan applications. Ask the lender which bureau it uses.

What is the average credit score in Australia?

Equifax reported a national average of 864 out of 1,200 in its 2025 credit scorecard, released 8 December 2025, up from 861 in 2024. Australians aged 18 to 30 averaged 715. Experian scores use different bands, so the averages are not comparable.

Do lenders always perform a credit check when I apply for car finance?

Licensed lenders check your credit as part of assessing a car loan application, and the NCCP Act requires them to make reasonable inquiries about your finances and verify them. Be cautious of any offer advertised as "no credit check". A broker may start with a soft check, which does not affect your score, before a lender runs a hard check on your formal application.

Does applying for a car loan hurt my credit score?

A formal application creates a hard enquiry that stays on your report for five years and is factored into your score. The bureaus do not publish a points figure; ARCA describes the impact as typically small and diminishing over time. Several applications close together have a bigger effect and can look like repeated rejections to the next lender.

Will multiple loan applications affect my credit rating?

Yes. CreditSmart says multiple applications in a short period can lower your score, and each one is visible to other lenders for five years whether or not it was approved. Compare products first, check whether a quote uses a soft or hard check, and make one well-prepared application.

How does my credit score affect my interest rate?

Lenders price for risk, so lower scores usually mean higher rates. In Plenti's April 2026 guide, the maximum new-car rate is 10.49% p.a. for an Equifax score of 750 or more, 11.25% for 600 to 749 and 13.59% for 525 to 599. On a $30,000 five-year loan, the gap between the top and bottom tiers is about $2,800 in interest.

How can I check my credit score for free?

Request your free credit report from Equifax and from Experian, which you are entitled to every three months and after a credit refusal in the past 90 days. Free score services such as ClearScore and Wisr show a score in exchange for marketing. Checking your own score is a soft enquiry and does not lower it.

How can I improve my credit score?

Pay every account on time, catch up any arrears, apply for credit less often, lower unused credit card limits, and fix errors on your reports for free. Repayment history covers the last two years, so 12 to 24 months of on-time payments makes a real difference. Paying a default does not remove it, but it is updated to show it was paid.

Can I get a car loan with bad credit?

Yes, often through specialist lenders who assess the whole file rather than the score alone. Expect higher rates, possible limits on loan size or car age, and close scrutiny of your income and recent repayment history. Savvy reports that almost 1 in 10 of the car loan applicants it had approved in 2025-26 had a score of 460 or lower.

What happened to illion credit scores?

Experian bought illion in late 2024, and from 1 April 2026 the two have operated as a single Experian credit reporting body, according to ARCA's CreditSmart. Experian scores were recalculated and now run from 0 to 1,200, with new bands. If you used to check an illion score, check your Experian score instead.

Can I get a car loan with no credit history?

Yes, but expect more questions. With no history, a lender cannot see how you repay, so it relies on bank statements, income and rent records. Plenti's guide, for example, places thin-file car applicants (non-home owners with no active credit in 24 months) in its Tier 3, requires a score over 650 and asks for bank statements.

Sources

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This article is general information only and is not financial advice. New Choice Car Loans (ACL 494494) is a finance broker, not a lender.