Pepper Money Review | Lenders

Best for

Open to customers of all credit scores, often accepting credit scores from 250

No minimum time in current employment - provided industry is consistent, Pepper can accept customers that have only just started in their role

Draw backs

Very limited willingness to accept past credit events (e.g. late payments, defaults etc.) even though they technically accept applicants of all credit scores

Can be slower to approve and settle - with approvals sometimes taking ~1-2 days to come through, and even longer for settlements

Pepper Money overview

Pepper is a global non-bank credit provider, offering a wide range of loan options for auto (including a pepper money ev loan), equipment and a personal loan product after diversifying from their original specialty of home loans. Once listed on the Australian stock exchange, the group offers relatively competitive rates to a fairly broad range of customer types.

Pepper has a long history and a solid reputation, but it’s worth noting that Pepper is particularly strict on past credit events, such as late payments or defaults.

How to apply for a Pepper Money car loan

On paper, Pepper is a specialist lender open to customers of all credit scores and income levels. This means you can apply to Pepper with a bad credit history and won’t be automatically knocked out, and there’s no minimum amount of income you need to earn per year.

In practice however, Pepper has fairly strict lending criteria which means even though you won’t be knocked out based on your score or income alone, other factors like defaults, late payments, ability to service the loan or other poor conduct might make you ineligible.

Pepper does have more favourable employment policies than most other lenders and doesn't have a minimum time in current employment (provided that you have not changed industries recently).

Are you interested in financing an electric car? Click here to see your EV loan options.

Driva tip: If you select Pepper Money finance as your preferred loan option, a Driva lending specialist will assess your application based on your financial situation to ensure you’re likely to be approved before lodging it. This protects your credit score.

See if you qualify for a Pepper loan in minutes

Find my rates

Fixed rates from:

9.44% (10.92% comparison rate*)

Loan amounts:

$5,000 - $100,000

Loan terms:

1-7 years

Loan types:

Consumer and commercial loans

Min. credit score:

N/A

Min. income:

N/A

Co-applicants?

Yes (if residing at the same address)

Fees:

Establishment fee: $449 dealer sale, $600 private sale
Monthly: $8.90
Early termination charges: $150 flat fee plus $650 variable fee (reduces as you pay down the loan)
Brokerage up to $1,500

*Last updated 15/04/24

Big no-no's (automatic declines)

Any payday loans or enquiries within the last 6 months (loans under $5k)

If you’ve been self-employed for less than two years

Other hot tips

Visa holders are accepted with Pepper - so long as the visa lasts longer than the loan term!

Pepper Money - Frequently Asked Questions

How does Pepper Money decide what rate to charge me?

For their secured car loan product, Pepper looks at three key factors when determining what interest rate to charge:

The age of the vehicle being purchased
Employment status
Living situation (e.g. renter vs. owner)

Unlike many other lenders, Pepper does not provide more favourable rates for people with better credit scores (i.e. no risk-based pricing).

With Driva, the hard work of figuring out exactly what interest rate Pepper will give you is done for you. Just enter some basic personal information to see what these tailored interest rates (and comparison rates) are from Pepper (and the other lenders on our panel) without impacting your credit score. You can then play around with vehicle age in the rate calculator to determine how it impacts your rate.
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Learn: what other lenders look for when pricing your loan

Does Pepper Money charge fees?

Like all lenders, there are some fees associated with a Pepper loan.These include: Establishment fees: $449 for a dealership, $600 for a private saleMonthly fees: $8.90 Early termination fees: $150 flat fee plus a $650 variable fee (which reduces over the life of the loan) Don't forget that every lender charges fees and that these charges (including any money that lenders pay to Driva) are already built into the monthly repayment quoted.

Like all lenders, there are some fees associated with a Pepper loan. These include:

Establishment fees: $449 for a dealership, $600 for a private sale
Monthly fees: $8.90
Early termination fees: $150 flat fee plus a $650 variable fee (which reduces over the life of the loan)

Don't forget that every lender charges fees and that these charges (including any money that lenders pay to Driva) are already built into the monthly repayment quoted.

How does Driva get paid by Pepper Money?

We get paid for sending Pepper high-quality customers that have been pre-vetted to ensure they meet all policies before they are lodged. This payment generally includes two components:

Brokerage: up to $990
Commission: Up to 2% of the amount financed

As with all lender fees, these are not payable from you to Driva directly and are not required to be paid upfront. Instead, Pepper incorporates this payment into your total loan amount, which is paid off over the life of the loan.

Driva’s rate quotes for Pepper Money are higher than what I’ve seen elsewhere!?

All car loan brokers have access to the same rates, and Driva can match the rate you would receive from Pepper by going directly. This means that if you’ve spotted a lower rate for a Pepper loan somewhere else, it could be because you’re seeing generic comparison rates that have not factored in the age of the vehicle or your living situation.

If you still think our rates are higher than you’re seeing them elsewhere, we’re confident we’ll be able to beat it. Email us at contact@driva.com.au.

Who owns Pepper Money?

Pepper Money Limited is owned by Pepper Global Topco Limited, an entity incorporated in Jersey that holds 60.59% of the shares of Pepper Money Limited and its controlled entities. Pepper Money is also listed on the Australian Securities Exchange under the code PPM. This structure reflects the company's global reach while maintaining strong ties to the Australian financial market, a combination that Driva finds advantageous for providing diverse and competitive lending options to our customers.

What bank does Pepper Money use?

Pepper Money operates independently from traditional banking structures, as they are not a deposit-taking institution. Instead of relying on customer deposits, Pepper Money's loans are funded through debt capital markets, marketplaces for money invested in lending. This unique approach allows Pepper Money to offer flexible and often more personalised loan products. As a non-bank lender available on Driva's platform, Pepper Money offers an alternative avenue for financing that may suit various individual needs and preferences.

What does Pepper Money do?

Pepper Money is a leading Australian non-bank lender, with its head office located in Sydney. They offer a range of first charge and second charge mortgage products, focusing on customers who might not fit the traditional lending criteria of high street banks. As part of the global Pepper Group, Pepper Money draws on international expertise to offer innovative and competitive lending solutions.