cars, utes

Chris Reid Jun 30, 2023

When your car finally bites the bullet and is no longer able to take you from A to B reliably anymore, it’s time to dip into your savings and fork out for a new ride.

… But many of us simply don’t have the money in the bank to undertake such a quick fix.

Luckily, there are a few financing options available to us in this case, allowing us to sort things out and get back behind the wheel pretty quickly.

… But many of us might not have the best-looking credit score for whatever reason.

So what can be done? In this article, we’ll explore some of the ways you can counterbalance a less than favourable credit score when you’re applying in order to put you in a better position to get approval.

First off, though, let’s discuss what impact your credit score can have when applying for car financing.


How credit scores can affect financing a car


There are three core areas that will be directly affected by your credit score when you apply for a car loan.

First, some lenders won’t even consider your application should your score fall below a certain threshold (this will differ depending on the lender). There are in fact no actual industry standards set in stone that determine the minimum score a lender should accept, so you may find it a bit tricky to wade through all of the options to find the lenders that are willing to work with you no matter your score.

Next is the interest rate you’ll be seeing in the financing package. A higher credit score is accompanied by lower interest rates while conversely, a lower score brings with it a higher interest rate. In fact, Experian reports that the average interest rate for someone with a Super Prime credit score (781-850) is 3.24%, while on the other end of the spectrum someone with a Deep Subprime credit score (300-500) the average interest rate is 13.97%.

The final area your credit score may affect car financing is the terms of the contract. This often involves a much stricter set of rules that the borrower must follow in order to provide ample protection for the lender.


Checking your credit score


There are a few different places you can reach out to if you’d like to find out your credit score such as Experian and Equifax, both of whom will not only provide you with the score itself but also your credit report. This is a document that details any issues that are influencing your score.

Be sure to review the report extensively and make sure there aren’t any errors in there that need to be rectified, as this will help improve your score and help your financing application process and the interest rate you’re offered.

Plus, you can do things like make sure to pay off all bills on time, consolidate debts into one lower-interest loan, cancel credit cards you don’t need and lower the limits on the rest to further promote a better credit score.

There are also websites (Credit Savvy, Credit Simple, etc.) that offer free monthly credit score updates free of charge which also don’t have any negative impact on the score at all which can be a good way to keep track of whether the actions you’re taking are making a difference and how much.


3 things to help you secure car financing with a lower credit score


If you complete all of the steps to increase your credit score but it’s still not super-high, there are most definitely a few ways for you to help your chances for approval when you’re looking to apply for car financing.


Collate supporting financial documents


Banking and other financial documentation that shows you’re capable of making payments on time can be a helpful addition to your application. After all, just because there’s a black mark in your credit report from several years ago due to missed payment doesn’t mean you’re the same person as you were then - people change, so if you can prove that all the better.


Provide a higher deposit amount


Even if you have an unfavourable credit score, showing the bank you’re able to save up a substantial amount to bring as a deposit can most definitely work for you. It also helps to reduce the loan amount you need from them and, therefore, reduces how much your repayments are each week/fortnight/month as well.


Engage with a finance broker


Navigating through the hundreds of lenders and the thousands of car finance packages that are available out there is hard enough. Then you have to consider that you'll need to determine which of them are accommodating to your financial situation on top of it all if your credit score isn’t perfect, which is just another spanner in the works.

Or you can skip all of that and speak to a finance broker all about your situation. A good broker will reduce the amount of time it takes to find you something that works.

A great broker (that’s us) will not only know precisely which lenders and packages are available to you depending on your needs, but will also work tirelessly to make sure you get nothing but the very best possible result. They’ll (we’ll) be there for you every step of the way to clear anything up, and long after the loan has been approved and settled.


Speak with Stratton Finance today to make car financing a breeze


Whatever your credit score may be, we’re here to help you secure the most affordable car financing option available. With over 20 years’ experience in the industry, we’ve worked with countless Aussies just like you and continue to work tirelessly to achieve the best possible outcomes. Use our online finance quote tool to find out just how incredible your monthly repayments might look like!

If you’re unsure what your options are, please feel free to get in touch with our expert team on 1300 787 288 or, if you’d prefer, message us online.

Looking for more information?

We've made it easy for you to find everything you need here.

EXCEPTIONAL, as good as Customer Service gets

I’ll keep this simple, if you want the BEST advice, the BEST service and the BEST product for your c... Product Review

Can't Recommend Highly Enough!!

Have purchased two vehicles through Stratton Finance and each time the service has been fantastic. S... Product Review

Stratton Finance A++

I've purchased 3 vehicles using Stratton and every time it has been hassle free. Not hidden nasties ... Product Review

Meet our partners

We partner with industry leaders to streamline the process, ensuring we get the keys in your hands more swiftly and efficiently.

Pepper Money








Thorn Group

Bank of Queensland


Get Capital



Capital Finance

Angle Finance


Metro Finance

Let's get started

Obligation free and no impact to credit score