Car Loan with 600 Credit Score? Here's How to Get Approved (2026)

Having a credit score of 600 might make you feel like your financial options are limited, especially when it comes to securing a car loan. However, the reality is that obtaining a car loan with a 600 credit score is possible, and there are pathways you can take to increase your chances of approval. Let's explore how you can navigate the car loan landscape in Australia with a credit score of 600, while ensuring you find the best deal possible.

Understanding Car Loans with a 600 Credit Score

A credit score of 600 is considered to be below the Australian national average, which typically ranges between 620 and 750. This score puts you on the lower end of the 'fair' category, meaning you're not considered a high-risk borrower, but you may not qualify for the lowest interest rates available. Lenders assess your credit score to determine your creditworthiness and the likelihood that you will repay your loan on time. While a score of 600 may not open the door to premium rates, it does not shut out the possibility of getting a car loan entirely.

Car Loan Rates, Requirements, and Options

When you're applying for a car loan with a 600 credit score, it's essential to understand the rates, requirements, and options available to you. In 2026, the Australian car loan market is competitive, making it possible to find lenders willing to work with lower credit scores. Here's what you need to know:

It's important to note that lenders on Esteb and Co's panel, with access to more than 83 options, may offer more competitive rates or terms, depending on your overall financial profile and the vehicle you intend to purchase.

Steps to Secure a Car Loan with a 600 Credit Score

Here are the practical steps you can follow to improve your chances of securing a car loan with a 600 credit score:

1. Review Your Credit Report: Obtain a free copy of your credit report to ensure all information is accurate. Dispute any inaccuracies that might be affecting your score.
2. Improve Your Credit Score: Pay down existing debts, make all future payments on time, and avoid taking on new credit obligations before applying for your car loan.
3. Determine Your Budget: Calculate how much you can afford to borrow based on your income and existing financial commitments. Use online car loan calculators to estimate monthly repayments.
4. Save for a Larger Deposit: A higher down payment can lower the loan amount and potentially reduce interest rates, making you a more attractive borrower.
5. Pre-Qualify with Multiple Lenders: Use Esteb and Co’s network of over 83 lenders to compare pre-qualified offers without impacting your credit score.
6. Consider a Co-signer: If possible, enlist a co-signer with a stronger credit score to improve your loan terms.
7. Prepare Necessary Documentation: Gather documents such as proof of income, employment details, and personal identification before applying.

Expert Tips and Considerations

When navigating the car loan market with a 600 credit score, consider the following expert tips:

• Be Realistic About Your Vehicle Choice: Opt for a reliable but modestly priced vehicle to keep loan amounts and monthly repayments manageable.
• Negotiate Loan Terms: Don't hesitate to negotiate with lenders to secure better terms, such as reduced interest rates or fees.
• Understand All Costs: Be aware of additional costs such as insurance, registration, and maintenance, which can affect your overall budget.
• Monitor Market Trends: Stay informed about market trends and interest rate changes, which could impact your loan decision.
• Seek Professional Advice: Consult with a mortgage broker, like those at Esteb and Co, who can guide you through the process and find tailored solutions from their extensive lender panel.

Frequently Asked Questions

1. Can I get a car loan with a credit score of 600 in Australia?
   Yes, though you may face higher interest rates and stricter terms, it is possible to secure a car loan with a 600 credit score.
2. What is the average interest rate for a car loan with a 600 credit score?
   Interest rates typically range from 9% to 16%, depending on the lender and your overall financial situation.
3. How can I improve my chances of getting approved for a car loan?
   Improve your credit score, save for a larger deposit, and consider getting a co-signer to enhance your application.
4. What documents do I need to apply for a car loan?
   You'll need proof of income, employment details, identification, and possibly additional financial documents.
5. Can a mortgage broker help me find a car loan with a 600 credit score?
   Yes, mortgage brokers, such as those at Esteb and Co, can leverage their network of lenders to find competitive car loan options tailored to your needs.
6. Should I buy a new or used car with a lower credit score?
   Consider purchasing a used car to keep costs lower and make loan approval more likely.
7. Is it better to apply online or in person for a car loan?
   Both options have their advantages; online applications offer convenience, while in-person applications allow for direct negotiation with lenders.