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Can I get a car loan on Centrelink?

There’s always a degree of uncertainty involved in applying for a loan of any kind – even when you think your application is solid, it’s ultimately up to the lender.

When you’re receiving Centrelink payments, this can add an extra layer of apprehension.  The question is always “Can I get a car loan on Centrelink?”

But there is good news!  There are lenders out there who will approve your car loan application 
even if you are on Centrelink.

hen a lender is considering whether to loan you money, they consider how likely you are to pay the money back.  If they decide it’s too risky, they’ll reject your application rather than take the chance of losing the money.



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But how do they decide if you’re likely to repay? 

Lenders will look at your income to determine whether you can afford to make the repayments.  They’ll often have an income level you need to reach and may or may not consider Centrelink payments as valid payments to get to this mark.  (Unfortunately Jobseeker and Youth Allowance payments are viewed as temporary assistance programs, so don’t count as income.)


If your income has reached the minimum threshold, they will also consider what you’re asking for.  If you have a low income and are applying for a loan with high repayments, you are less likely to be successful.


Of course, this is just one of the factors that lenders look at.

Having a good credit rating will make it easier to get a car loan while on Centrelink.  This means having low debt and good financial standing.  Good banking conduct also improves your chances of success. 


Another way to increase your chances of finding a car loan while on Centrelink by getting a guarantor.  

A quick side note:
We know this isn’t an option for many people and that’s fine – we’re experts in this field for a reason and can help you find a car loan even if a guarantor isn’t an avenue open to you.


When you’re on Centrelink, some lenders consider it too risky to loan you money – having a guarantor on the loan is a way to reduce this risk to the lender, making you a more appealing prospect.  

It works as a backup system.  Plan A is for you to pay back your loan as agreed and the guarantor doesn’t do anything beyond putting their name down.  But if you can’t pay off your loan, Plan B comes into play and the guarantor is legally obligated to pay off the loan or it impacts their credit history as well as yours.

Obviously, finding a guarantor isn’t as simple as grabbing the first person you see with a good credit history – they have to be willing to take on the debt in the case that you can’t pay it back.

All told, there’s more than one way to go about getting a car loan while you’re receiving Centrelink payments.  It’s something we have a lot of experience with – we know what lenders are looking for.  Give us a call today on 1300 138 273 and we’ll help you get behind the wheel sooner.

“Can I get a car loan on Centrelink?” – Yes you can!