2 out of 3 new Aussie car buyers rejected due to poor credit

By Tara McCabe · · 3 min read
Fact Checked
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Do you know what your current credit rating is? If not you may want to find out, especially if you’re in the market for a new set of wheels, because according to MyCRA Lawyers, more and more Aussies looking to take out a car loan are being rejected due to a poor credit rating.

In fact, CEO Graham Doessel reported that Aussie car sales in the new year are the lowest they have been in eight years, which is likely a result of stricter borrowing regulations enforced after the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Of course while that may be true, it doesn’t mean that you can’t take steps to protect your credit rating and make sure you keep your eligibility for a car loan intact. 

What can you do to keep your credit rating healthy?

If you know you have a car purchase coming up - whether it’s buying your first set of wheels or trading in a car that’s on its last legs - a little preparation can go a long way. Making sure you’ve got your credit in order can help you avoid being one of those Aussies rejected when it comes to the crunch.

You can access a free copy of your credit report once every year from the major credit reporting bodies in Australia. So first things first, get hold of your report and check there aren’t any errors and that everything is up to date. 

If you’ve discovered your credit score has seen better days, it’s time to start repairing it. To do this, you can:

  • Make sure you pay all your bills or even fines on time, as late repayments are recorded on your credit report. You could even set up a direct debit where possible, so that you don’t have to worry about penciling due dates into your calendar.
  • Cut down on the number of credit sources you have access to. Having a high overall credit limit available to you can damage your chances of getting a new loan, so if you’ve got old credit card accounts you don’t use, it’s time to close them down.

RELATED ARTICLE: Credit reporting changes will boost thousands of credit scores this February

Find the right car loan for your needs

After spending some time getting your credit score in order, the next step is finding the right car loan to apply for. There are a few things to keep in mind when choosing a car loan, especially if your credit history is still recovering:

  • Some lenders will offer you an interest rate that depends partly on your credit - the lower your credit score, the higher the interest rate you get. So be aware of this when you compare car loans, and look for one that will be a good deal for your situation.
  • If your credit history was damaged because you sometimes struggle to make repayments, consider taking out a longer loan. All other things being equal, spreading repayments out over a longer loan term will ultimately cost you a little extra in interest, but will mean lower monthly repayments, which can help you stay on top of them.
  • Secured car loans are more common, and generally have lower rates than unsecured loans. Most will use the car you’re purchasing as collateral, so it’s worth considering a secured loan to snag a lower rate.

Ready to start? Head over to compare car loans or get started with what’s on offer below. You’ll be putting the keys in the ignition and rocking out to R. Kelly before you know it!

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 91 car loans using the filters.
Last updated 5 December 2025 Important disclosures and comparison rate warning*

Car loan comparisons on Mozo

  • Promoted

    Low Rate Car Loan Excellent Credit

    • Fixed, Secured
    Interest rate from
    5.66 % p.a.
    to
    23.03 % p.a.
    Comparison rate from
    6.45 % p.a.
    to
    24.98 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $605
    Go to site

    Borrow up to $100,000. No monthly account or early repayment fees. Available for new or used vehicles. Fast, simple online application with loan approval in as little as 9 minutes according to Harmoney.

  • Promoted

    New Car Loan

    • up to 4 years old, Fixed, Secured
    Interest rate from
    5.99 % p.a.
    Comparison rate from
    6.34 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Fast online conditional approval. No monthly account fee. Unrestricted additional repayments. No penalty for early payout, and a fast application process. Borrow up to $125,000. Apply online in under 10 minutes.

  • Promoted

    Car Loan

    • Variable, Secured
    Interest rate from
    5.99 % p.a.
    Comparison rate from
    7.12 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Low variable car loan rate for purchasing new and demo vehicles from dealers. Personalised loan amounts between $5,000 and $150,000. Flexible repayment options. Choose between the 3 to 7 year loan terms. Good credit history. Stable employment history and Australian citizenship or PR required.

  • Promoted

    Used Car Loan

    • Fixed, Secured, No vehicle age limit, $5,000-$100,000
    Interest rate from
    5.95 % p.a.
    to
    18.99 % p.a.
    Comparison rate from
    5.95 % p.a.
    to
    21.78 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Get a competitive fixed interest rate on a secured used car loan of up to $100,000 depending on your credit score. No vehicle age limits. Easy online application. Fast pre-approval. Pre-approved funds held for 1 month. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

  • Promoted

    New Car Loan

    • Fixed, Secured, $5,000-$100,000
    Interest rate from
    5.95 % p.a.
    to
    18.99 % p.a.
    Comparison rate from
    5.95 % p.a.
    to
    21.78 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Get a competitive fixed interest rate on a secured new car loan of up to $100,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for 1 month. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

  • Promoted

    Car Loan

    • Fixed, Secured
    Interest rate from
    6.54 % p.a.
    Comparison rate from
    7.67 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $613
    Go to site

  • Low Rate Car Loan Excellent Credit

    • Fixed, Secured
    Interest rate from
    5.66 % p.a.
    to
    23.03 % p.a.
    Comparison rate from
    6.45 % p.a.
    to
    24.98 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $605
    Go to site

    Borrow up to $100,000. No monthly account or early repayment fees. Available for new or used vehicles. Fast, simple online application with loan approval in as little as 9 minutes according to Harmoney.

  • Unsecured Personal Loan

    • Fixed
    Interest rate from
    5.76 % p.a.
    to
    24.03 % p.a.
    Comparison rate from
    5.76 % p.a.
    to
    24.98 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $606
    Go to site

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

  • Debt Consolidation Loan

    Interest rate from
    5.76 % p.a.
    to
    24.03 % p.a.
    Comparison rate from
    5.76 % p.a.
    to
    24.98 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $606
    Go to site

    Roll multiple debts into one loan to streamline your finances with one set of repayments and one interest rate. Competitive fixed interest rates with no monthly or early repayment fees and flexible repayment options. Easy online application and funding in as little as 24 hours (subject to approval).

  • New Car Loan

    • up to 4 years old, Fixed, Secured
    Interest rate from
    5.99 % p.a.
    Comparison rate from
    6.34 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Fast online conditional approval. No monthly account fee. Unrestricted additional repayments. No penalty for early payout, and a fast application process. Borrow up to $125,000. Apply online in under 10 minutes.

Showing 8 results from 91 car loans. Use the filters to see more

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

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