Make sure you have a good credit score before applying

Updated 16 Jul 2021

The relationship between a car loan and credit score is pretty straightforward. Car financiers want to minimise risk as much as possible, so they would rather approve borrowers who have proved that they can be good with their money. If you do have bad credit, you can still get approved for a car loan, but it's likely that you'll be given a higher interest rate.

And even if you do have a not-so-great credit score, you can still try to obtain a car loan with a decent interest rate, as long as you're employed with a steady job and are working on repaying your debts.