What if I'm a single parent and my car loan application is rejected?

It can be really disheartening when a loan application is rejected, but this doesn't mean you have to give up. The best thing to do is take stock of why it was rejected, although many lenders won't necessarily tell you. You could try and give them a call to find out though. Too many credit applications in a short period of time raises red flags for lenders, so don't rush into applying anywhere else just yet. Call other lenders first to clarify their eligibility requirements to be sure you're eligible for a loan with them. Check your credit score to make sure it was good enough for a loan. Then cut back on any unnecessary costs that a lender might have seen and been concerned about: things like too many streaming services, expensive gym memberships and multiple takeout expenses.

Can I get a car loan if I'm receiving Centrelink payments?

Yes you can. Not every lender will accept Centrelink payments as forms of income however, so it's best to check eligibility before you apply anywhere. You will usually have to have another form of income alongside your Centrelink payments as well. But again, this can depend on the lender.

Will applying for a car loan impact my credit score?

When you formally apply for a car loan, the lender records a credit enquiry on your credit report, and that can lower your score - particularly if you apply to several lenders in a short period of time. Only a pre-qualification or rate estimate that the lender explicitly tells you is a soft check will leave your credit file untouched. If you apply and are approved for a car loan, you may find that your credit score goes down at first. As you pay off your loan on time, your score will bounce back up and may even improve. If you miss repayments however, your score will go down.

Compare single parent car loans and apply online

What type of car are you looking to buy?

20 of 108 results

Finder Score	Interest Rate (p.a.)	Comp. Rate (p.a.)	Application Fee	Monthly Fee	Monthly Repayment
9 Excellent IMB New Car Loan	9 Excellent	Interest Rate (p.a.) 6.24%	Comp. Rate (p.a.) 6.59%	Application Fee $250	Monthly Fee $0	Monthly Repayment $618.25	Borrow up to $125,000, pay no account-keeping fees and repay with fixed repayments while having the ability to repay early.	Go to site View details Compare product selectionCompare	loading
8.9 Great Stratton Finance New Car Loan	8.9 Great	Interest Rate (p.a.) 5.67% to 18%	Comp. Rate (p.a.) 6.1% to 23%	Application Fee $395	Monthly Fee $0	Monthly Repayment $617.41	Your own personal car loan broker can help you borrow up to $300,000 for your new car by choosing from a range of finance options.	Go to site View details Compare product selectionCompare	loading
9.4 Excellent OurMoneyMarket New Car Loan ($5,000-$100,000)	9.4 Excellent	Interest Rate (p.a.) 5.95% to 18.99%	Comp. Rate (p.a.) 5.95% to 21.78%	Application Fee $0 min.	Monthly Fee $0	Monthly Repayment $607.99	No monthly or early exit fees. Loan amounts range from $5,000 to $100,000. Eligibility: Applicants must have an Equifax credit score of 500 or above, an annual income of more than $25k, and must be an Australian citizen or permanent resident.	Go to site View details Compare product selectionCompare	loading
8.4 Great loans.com.au - New/Demo - Variable Rate	8.4 Great	Interest Rate (p.a.) 5.94% to 16.64%	Comp. Rate (p.a.) 7.07% to 17.76%	Application Fee $400	Monthly Fee $8	Monthly Repayment $628.05	Go to site View details Compare product selectionCompare	loading
8.7 Great Great Southern Bank Fixed Rate Car Loan	8.7 Great	Interest Rate (p.a.) 6.49% to 13.19%	Comp. Rate (p.a.) 6.63% to 13.34%	Application Fee $225	Monthly Fee $0	Monthly Repayment $619.78	The $225 establishment fee waiver is available for new or existing customers who submit a Great Southern Bank personal loan application between 30 April 2025 and 23 February 2027. Great Southern Bank may withdraw or amend this offer at any time without notice. Lending criteria, limits, conditions, and fees apply.	View details Compare product selectionCompare	loading
8.7 Great Driva Car Loan	8.7 Great	Interest Rate (p.a.) 6.57% to 36%	Comp. Rate (p.a.) 6.78% to 36%	Application Fee $0 - $500	Monthly Fee $0	Monthly Repayment $613.62	View details Compare product selectionCompare	loading
7.9 Great RACV New Car Loans	7.9 Great	Interest Rate (p.a.) 6.99% to 18.19%	Comp. Rate (p.a.) 7.57% to 18.29%	Application Fee $499	Monthly Fee $0	Monthly Repayment $632.86	Go to site View details Compare product selectionCompare	loading
8.9 Great Stratton Finance Used Car Loan	8.9 Great	Interest Rate (p.a.) 5.8% to 16.53%	Comp. Rate (p.a.) 6.23% to 17.85%	Application Fee $395	Monthly Fee $0	Monthly Repayment $618.61	Your own personal car loan broker can help you borrow up to $300,000 for your new car by choosing from a range of finance options.	Go to site View details Compare product selectionCompare	loading
8.4 Great loans.com.au - Variable Rate Used Car < 5 years	8.4 Great	Interest Rate (p.a.) 5.94% to 16.64%	Comp. Rate (p.a.) 7.07% to 17.76%	Application Fee $400	Monthly Fee $8	Monthly Repayment $628.05	Go to site View details Compare product selectionCompare	loading
9.4 Excellent OurMoneyMarket Used Car Loan ($5,000-$100,000)	9.4 Excellent	Interest Rate (p.a.) 5.95% to 18.99%	Comp. Rate (p.a.) 5.95% to 21.78%	Application Fee $0 min.	Monthly Fee $0	Monthly Repayment $607.99	No monthly or early exit fees. Loan amounts range from $5,000 to $100,000. No vehicle age limit. Eligibility: Applicants must have an Equifax credit score of 500 or above, an annual income of more than $25k, and must be an Australian citizen or permanent resident.	Go to site View details Compare product selectionCompare	loading
7.5 Great RACV Used Car Loans	7.5 Great	Interest Rate (p.a.) 7.99% to 17.99%	Comp. Rate (p.a.) 8.57% to 18.47%	Application Fee $499	Monthly Fee $0	Monthly Repayment $642.27	Benefit from no ongoing fees, 5-hour approval and a 21-day satisfaction guarantee. Interest rate discounts for members.	Go to site View details Compare product selectionCompare	loading
9.1 Excellent Verified Lending Used Car Loan	9.1 Excellent	Interest Rate (p.a.) 6.9%		Application Fee	Monthly Fee $0	Monthly Repayment $616.63	View details Compare product selectionCompare	loading
7.5 Great loans.com.au - New/Demo - Fixed Rate	7.5 Great	Interest Rate (p.a.) 7.19% to 15.99%	Comp. Rate (p.a.) 8.32% to 17.11%	Application Fee $400	Monthly Fee $8	Monthly Repayment $639.67	View details Compare product selectionCompare	loading
8.3 Great loans.com.au - Variable Rate Used Car < 3 years	8.3 Great	Interest Rate (p.a.) 5.94% to 16.64%	Comp. Rate (p.a.) 7.07% to 17.76%	Application Fee $400	Monthly Fee $8	Monthly Repayment $628.05	Go to site View details Compare product selectionCompare	loading
7.5 Great loans.com.au - Fixed Rate Used Car < 3 years	7.5 Great	Interest Rate (p.a.) 7.19% to 15.99%	Comp. Rate (p.a.) 8.32% to 17.11%	Application Fee $400	Monthly Fee $8	Monthly Repayment $639.67	View details Compare product selectionCompare	loading
7.5 Great loans.com.au - Fixed Rate Used Car < 5 years	7.5 Great	Interest Rate (p.a.) 7.19% to 15.99%	Comp. Rate (p.a.) 8.32% to 17.11%	Application Fee $400	Monthly Fee $8	Monthly Repayment $639.67	View details Compare product selectionCompare	loading
7.5 Great loans.com.au - Fixed Rate Used Car Loan (6 to 7 years)	7.5 Great	Interest Rate (p.a.) 7.19% to 15.99%	Comp. Rate (p.a.) 8.32% to 17.11%	Application Fee $400	Monthly Fee $8	Monthly Repayment $639.67	Go to site View details Compare product selectionCompare	loading
7.5 Great loans.com.au - Fixed Rate Used Car Loan (8+ years)	7.5 Great	Interest Rate (p.a.) 7.19% to 15.99%	Comp. Rate (p.a.) 8.32% to 17.11%	Application Fee $400	Monthly Fee $8	Monthly Repayment $639.67	View details Compare product selectionCompare	loading
8.6 Great Harmoney Car Loan Finder Award	8.6 Great	Interest Rate (p.a.) 5.93% to 20.79%	Comp. Rate (p.a.) 5.93% to 21.71%	Application Fee $275 - $575	Monthly Fee $0	Monthly Repayment $625.28	Get an instant quote, flexible terms and a tailored fixed rate with zero paperwork and no hidden fees. Most loans are funded within 24 hours.	View details Compare product selectionCompare	loading
7.1 Great NAB Unsecured Fixed Rate Personal Loan	7.1 Great	Interest Rate (p.a.) 7.5% to 22%	Comp. Rate (p.a.) 8.9% to 23.29%	Application Fee $250	Monthly Fee $15	Monthly Repayment $644.9	Go to site View details Compare product selectionCompare	loading

Showing 20 of 108 results

Finder Score for car loans

To make comparing car loans even easier we came up with the Finder Score. Interest rates, fees and features across 200+ car loan products and 100+ lenders are all weighted and scaled to produce a score out of 10. The higher the score, the more competitive the product.

Read the full methodology

Single parents may find it more difficult to be approved for a car loan because they're bringing in a single income and have dependents.
If you're a single parent in a good financial situation and in permanent employment, you can still get a car loan.
Single parents receiving support from Centrelink may find they can't use those funds to help them get a loan.

Why is it difficult for a single parent to be approved for a car loan?

There are a few scenarios where single parents might find it difficult to access car finance.

As single parents rely on a sole income, they may not meet the financial requirements set by lenders.

This might be because they're using one income but also have the solo financial responsibility of paying for the child(ren).

Another scenario is that as a single parent they may be working part-time in order to take care of their children.

Some single parents also receive Centrelink support and this can have an impact on whether they're eligible for a car loan, as lenders won't necessarily consider it as income.

On top of these scenarios, single parents will face the same blockers as any borrower: low credit scores, poor finances, other loans or lack of solid employment.

What car loan options do single parents have?

Loan type	Loan amount	Interest rate	Eligibility criteria	Find out more
Secured car loan	$3,000 - $100,000	5.67% p.a., up to around 27% p.a. for unsecured/marginal-credit products	Earn a regular income Have good credit Be employed	More
Short-term loan	$100 - $2,000	No interest - fees are capped at a 20% establishment fee plus 4% of the amount borrowed each month	Earn a regular income Have capacity to repay	More
Centrelink loan	$100 - $10,000	Varies	Earn a regular income Some types of Centrelink payments may not be allowed	More
No Interest Loan Scheme	up to $5,000 for vehicles (up to $2,000 for other essentials)	0%	Health Care or Pension Card Income under $70,000 single or $100,000 with a partner or dependants Family or domestic violence in the last 10 years 18 or over	More

How to compare car loans for a single parent

To put you in the best position for getting car loan approval, it's important to compare your options. Comparing can help you weed out loans you're less likely to be approved for, as well as help you find the best loan that you could be approved for.

Interest rate. The higher the interest rate, the more your repayments will be. Check whether the rate is fixed or variable and compare the rate on offer with other loans on offer.
Loan terms. This is how long you’ll have to repay the loan. You can usually choose betwee 1 and 7 years.
Repayment flexibility. Find out if you can make additional repayments without charge, if you can repay your loan early and if you can line up your repayments to match your pay frequency.
Fees. Most loans come with fees, but some loans charge less than others. Check for upfront fees like application fees, and ongoing fees like monthly or annual account-keeping fees.
Additional features. The loan may also come with additional features, such as extended warranty or a loan redraw facility.
Security. You can choose between a secured loan or an unsecured loan. A secured loan means you use your vehicle as collateral in case you can't repay the loan, but you get lower rates. This may increase your chances of getting a loan, but there are usually conditions on the type of vehicle.

What to watch out for

When comparing your car loan options, make sure you check the reputability of the lender. Some lenders may claim to help single parents or low-income earners and then charge extremely high fees and rates that can make it difficult to manage day-to-day finances.
Multiple credit applications in a short space of time will have an effect on your credit score, making you less likely to be approved for a loan. If you’re unsure of your eligibility with a certain lender, it is worth talking to them first.

How to apply for a car loan as a single parent

Once you have compared your options using the comparison table on this page and clarified your chosen lender's eligibility criteria, you can usually apply online. Alternatively, you might prefer to apply in person (if possible) or over the phone.

Before you apply you should gather all of the relevant documentation to help your application. This includes personal identification, bank statements and payslips.

Once you've applied, how long the decision takes will depend on the lender. It could be a matter of hours or it could be a couple of days.

Our expert says: Follow these tips when applying for your car loan

"Yes, it can be more challenging to get a car loan if you're on a single income with a dependent. But that doesn't mean you can't get a loan.

To make the process smoother, here are some tips:

1. Speak to lenders. That's right, you can call them up. Ask them about their eligibility criteria and see if they have stricter criteria around single income parents. Bring up any Centrelink support or work hours that you think might be a problem.
2. Consider securing the loan. You can choose to secure a loan against the vehicle. This means if you fail to repay the loan, the lender can repossess it. It makes lenders a little less uneasy about lending money.
3. Get your finances in check. Being a single parent does not mean you can't repay a loan. So be ready to show that. Organise your bank statements, close off any other debt facilities you might have and ensure your credit file is showing an Excellent score."

Rebecca Pike

Editor, Money

Frequently asked questions

It can be really disheartening when a loan application is rejected, but this doesn't mean you have to give up.
The best thing to do is take stock of why it was rejected, although many lenders won't necessarily tell you. You could try and give them a call to find out though.
Too many credit applications in a short period of time raises red flags for lenders, so don't rush into applying anywhere else just yet. Call other lenders first to clarify their eligibility requirements to be sure you're eligible for a loan with them. Check your credit score to make sure it was good enough for a loan. Then cut back on any unnecessary costs that a lender might have seen and been concerned about: things like too many streaming services, expensive gym memberships and multiple takeout expenses.
When you formally apply for a car loan, the lender records a credit enquiry on your credit report, and that can lower your score - particularly if you apply to several lenders in a short period of time. Only a pre-qualification or rate estimate that the lender explicitly tells you is a soft check will leave your credit file untouched.
If you apply and are approved for a car loan, you may find that your credit score goes down at first. As you pay off your loan on time, your score will bounce back up and may even improve. If you miss repayments however, your score will go down.

Sources

Thank you for your feedback!

Written by

Matt Corke

Head of Publishing Ventures

Add to Preferred Sources

Matt Corke is Finder’s head of publishing ventures. Prior to this he was head of publishing for Australia, New Zealand and emerging markets. Matt built his first website in 1999 and has been building computers since he was in his early teens. In that time, he has survived the dot-com crash and countless Google algorithm updates. See full bio

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8 Responses

TanyaSeptember 3, 2018

Hi,

Just wondering if I can go for a car loan. I just recently moved from Queensland to Northern Territory.

Finder

JeniSeptember 4, 2018Finder

Hi Tanya,

Thank you for getting in touch with Finder.

Even if you have just recently moved, as long as you meet the financial requirements set by lenders – let’s say Centrelink payments, that should be fine. In addition, a supplementary income is helpful to support your loan application. On this page, you’ll see a table with the list of banks/lenders that you may apply for a car loan. It is best to check the eligibility criteria to see what your chances are of being approved.

Please note that it’s important to call a few lenders to discuss your eligibility first. Having too many credit enquiries through multiple applications in a short period of time can affect your credit history and make you appear less appealing to lenders.

I hope this helps.

Please feel free to reach out to us if you have any other enquiries.

Thank you and have a wonderful day!

Cheers,
Jeni

EmsJuly 23, 2016

I’m single mother with 4 kids Centerlink is my main income and I also receive child support,I have $7000 saved in my bank to help with purchasing a car,would I be able to get finance for a car worth between 20,000 to $25,000,
What would be best option

Finder

MayJuly 24, 2016Finder

Hi Ems,

Thanks for your inquiry and welcome to Finder.

Since you’re on Centrelink payments, most lenders would require you to have an additional source of income to support your loan application.

Nonetheless, though we’re not sure if you’ll be approved for a loan or not, as a single parent, your options would either be secured personal loan, unsecured personal loan, or a payday loan.

Hope that helps.

Cheers,
May

TrishJanuary 4, 2016

I am a single mother of 3 on a single parenting payment from Centrelink, am I able to get a loan for a car I have someone who is willing to go guarantor for me on a loan

Finder

ElizabethJanuary 4, 2016Finder

Hi Trish,

Thanks for your question.

You can find lenders that consider Centrelink applicants which includes short-term lenders and banks), you can also find a guide on guarantor personal loans, our guide on joint application personal loans.

You can select the “Go to site” button of your preferred lender to proceed with your application. You can also contact the provider if you have specific questions. A gentle reminder, please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply.

I hope this information will be of use.

Thanks,

Elizabeth

CharlenaDecember 13, 2014

Wondering if a singel mothers with two children can apply for a car loan.

Finder

ShirleyDecember 15, 2014Finder

Hi Charlena,

Thanks for your question.

If the source of your primary income is not from Centrelink and you are currently employed, then you may be eligible for most loans featured on this page.

It’s advisable that you get in touch with a few of the lenders first to discuss your options and eligibility.

Cheers,
Shirley

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