If you’ve got a bad credit score, getting a car can seem impossible. It often feels as though banks and traditional lenders often say “no” before you’ve even had a chance to explain your situation. But don’t worry, there are other ways to get behind the wheel, and one of those is rent-to-own.

At RentBuyIt, we know that life happens. People lose jobs, bills pile up, and credit scores drop as they get more and more into debt. That doesn’t mean you don’t need a car to live your life. You’ll need one to get to job interviews, do the shopping, run errands, and visit family and friends. That’s why we offer rent-to-own options that work for people in all kinds of financial situations.

But how does bad credit actually affect your chances of getting a rent-to-own car? Let us explain.

What Is Rent-to-Own?

Rent-to-own is a flexible way to get a car if you are unable to get one through traditional financing methods. You pay in regular instalments, and if you stick to the plan, you can own the car at the end of the term.

How Does Credit Work?

Your credit score is a number that indicates to lenders how well you’ve managed money in the past and whether you’ve repaid money you’ve borrowed on time. It’s based on things like your payment history, debts, and whether you’ve ever missed bills or defaulted on loans.

Bad credit doesn’t necessarily mean that you’re irresponsible; it just means that you may have had some tough times, and let’s face it, anyone could lose their job and be unable to pay the rent and other bills. Unfortunately, a low credit score can make it challenging to get approved for loans, credit cards, and even rental agreements.

How Bad Credit Affects Rent-to-Own Car Applications

1. You Might Need to Provide More Information
If you have bad credit, rent-to-own providers might ask for extra details about where your money comes from and your living situation. This helps them understand and assess your current circumstances, not just your past financial troubles.

2. You May Be Asked for a Larger Initial Payment
Depending on your situation, you might be asked to make a higher upfront payment to reduce the provider’s risk. This isn’t always the case, but it’s something you should be aware of.

3. The Type of Car You Can Rent Might Be Limited
You may not be able to access newer vehicles with advanced features straight away. Some providers might start you with a more affordable vehicle that fits your budget and proves your ability to make regular payments before giving you the opportunity to upgrade. If you do successfully pay on time and decide you want a different vehicle, you may need a fresh rent-to-own vehicle contract that reflects the increased costs for a more expensive model.

4. It Can Still Be a Path Forward
Here’s the good news: unlike many banks, bad credit car finance companies like us often work with people who have a low credit score.

Can Rent-to-Own Help Rebuild Credit?

It can, indirectly. While most rent-to-own car providers don’t report payments to credit bureaus, staying on top of your regular payments can help you build good budgeting habits. If you use your car to get to work, run your business, or improve your lifestyle, that stability can help you get back on your feet financially.

Tips for Getting Approved with Bad Credit

Be Honest and Upfront: Don’t try to hide the fact that your credit history may not be glowing. At RentBuyIt, we understand if you’ve come across hard times, and we are open to helping you get back on the road if you can prove that making regular payments is within your means now.

Show Proof of Income: Regular income is a big factor in getting approved, even with bad credit. Your income doesn’t need to be from full-time employment; we accept proof of money from Centrelink and your pension, albeit this can only be 50% of your total income.

Start Realistically: You can always upgrade later. Proving that you can handle payments on a more affordable car is a great first step.

Stay Consistent: Make your payments on time and keep communication open with your provider.

Having bad credit doesn’t mean you’re out of options. Our rent-to-own car plans are designed to be flexible and accessible, even if your credit score isn’t perfect. We help customers across Australia get back on the road, including those in Melbourne, Brisbane, Adelaide, and the Gold Coast.

Start your application today and get back on the road in just a few days!