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Centrelink Car Loans Melbourne - We can show you how.

Sometimes a new car will be a planned purchase you’ve been mulling over for months.  Other times, an accident or mechanical issue could send your car to the big carpark in the sky, and leave you needing to find a new vehicle in a hurry.  Even cheap second-hand vehicles are expensive – and paying cash just isn’t an option for many people.  


You might have heard that you can’t get a car loan if you’re on Centrelink payments – but that’s just not the case.  Phew!  Centrelink car loans Melbourne are possible.


There are plenty of lenders out there who will approve Centrelink car loans to Melbourne drivers – and we know just which lenders to look at.


Some lenders see that you are receiving Centrelink payments and assume that means you have a low income and will struggle to make your repayments.  If you’re asking to borrow an amount of money that you can reasonably afford to repay and you have a good credit history, why shouldn’t you be approved for a loan!?


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There are two main criteria for being approved for a Centrelink car loan in Melbourne:


1. Income

Most loans will have a minimum income threshold you’ll need to reach before you’re considered eligible.  Most Centrelink payments will count towards this amount, except for Jobseeker and Youth Allowance, as they’re considered temporary assistance and not your “regular” income.


This is where the amount you’re asking to borrow and your potential repayments come into play.  Depending on your income, you might be able to pay back a lower amount, but not larger repayments.  The amount of money you’re asking to borrow needs to make sense given your income, so if you’re asking for more than you can afford, you’re unlikely to get approved for your Centrelink car loan in Melbourne.  This will impact the type of car that’s within reach, so it’s important to have a clear idea of your budget going in.


 2. Creditworthiness


This is all about demonstrating that you’re a responsible person who will pay back their loan.  It works on the theory that the best indication of future behaviour is past behaviour, so a good credit history is taken as a sign you’ll hold up your end of the bargain in the future.


Someone with a good credit history will:

  • Not use their credit card often, or pay it back within the interest-free period,

  • Have few outstanding loans,

  • Pay their utility bills and phone plans on time.


This is often represented as a credit score.

While getting a Centrelink car loans Melbourne is certainly easier with a good credit history, options are also available if you have a bad credit scoreContact us for more information and assistance from a professional broker to help get the funds you need.