What Credit Score Do You Need to Buy a Car in Australia? (2025 Guide)

What Credit Score Do You Need to Buy a Car in Australia? (2025 Guide)

Looking to buy a car in 2025 but unsure if your credit score will help or hurt your chances? Here’s what you need to know before applying for an auto loan in Australia.

Minimum Credit Score for Car Loans

While there’s no “official” minimum, most lenders in Australia prefer a score of 600+. Here's a breakdown:

  • 800+ (Excellent): Easy approval + lowest interest rates
  • 700–799 (Good): Strong chance, competitive rates
  • 600–699 (Fair): Approvals likely, higher interest
  • Below 600 (Poor): Limited options, risk of rejection

How Credit Score Affects Your Loan

  • Interest rate: Lower score = higher interest
  • Down payment: You may need to pay more upfront
  • Loan term: Some lenders restrict long terms for lower scores

Tips to Improve Approval Odds

  1. Pay off credit cards to reduce utilisation
  2. Check your credit report for errors
  3. Avoid multiple loan applications in a short time
  4. Consider a guarantor if your credit is borderline

Alternative Options

  • Dealer finance: Often easier to get, but rates may be higher
  • Personal loan: If you're buying a used car
  • Credit unions: May offer better rates for members

Final Thought: Your credit score isn't everything — but it matters. Plan ahead and you’ll drive away with better terms in 2025.

Disclaimer: Loan eligibility depends on multiple factors. Check directly with lenders for the latest requirements.

Australian man holding car keys after loan approval

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