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Can I get a car loan on Centrelink?

May 15, 2021 | Insights

Can I get a car loan on Centrelink?

Yes, it is possible to get a car loan when you are on Centrelink. Centrelink payments come in many forms and several of them may be considered by lenders in assessing your eligibility for a car loan.

Government Centrelink payments that may be considered when assessing your suitability for a car loan  include:

  • Parenting Payment;
  • Family Tax Benefit;
  • Aged Pension;
  • Disability Pension; and
  • Carer’s Pension.

Each of these Centrelink payments can be regular and long term. Many lenders may view them as a regular income. Make sure to check out your own Centrelink details to make certain you know what type of payments you are receiving.

While many types of Centrelink payments can allow you to qualify for a car loan, JobSeeker and Youth Allowance payments can be a little more complicated. Because both of these payments are considered to be short term and technically a form of unemployment benefit, lenders may not regard them as regular income. With that being said, if you receive additional income on top of these Centrelink payments, such as Family Tax Benefit, you may be eligible to apply for a car loan on Centrelink.

Applying for a car loan on Centrelink

Now that you have an idea of whether you may be eligible or not to apply for a car loan on Centrelink, you may need to know how to apply for a car loan.

Like all loans, you will most likely want to have your finances in order. Your lender may want to see that you have no dishonoured payments on your bank accounts or that your accounts have not been overdrawn, preferably for the last six months or more.

The good news is that being on Centrelink doesn’t necessarily contribute to a bad credit history. With good banking habits, there could still be a chance to have a loan approved, even if you have a bad credit history and are receiving Centrelink payments.

If your credit score and history are a bit of a mystery to you, check out canstar.com.au to find out more information  and some tips on maintaining or improving your credit score.

Make sure you know exactly what vehicle you would like to purchase and that it is within your means. This may make it easier to keep up with the repayments.

Next, you may want to find a lender that could be willing to approve a loan while you are on Centrelink payments from the Government. A good lender should be flexible and willing to discuss your options with you to work out the best deal for you, so make sure you take your time to talk to a lender or broker on the phone to go through all your options.

Finance One is a non-bank lender that provides opportunities for everyday Australians to rebuild their credit rating and improve their lifestyle.

If you’re having trouble getting a loan through a bank or larger lender, get in touch to find out how we may be able to help. Normal lending criteria, terms & conditions and fees & charges apply.

Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information.


Article by: Clea Sherman

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