Many people often dream of owning or riding a motorcycle, yet one of the biggest reasons that most of them fail to fulfill that desire is that they lack sufficient financing to purchase one. After all, while motorcycles are significantly cheaper than new cars, most of them cost thousands of dollars, which is still above what most people can afford to pay, at least all at once.
For instance, a brand new Harley-Davidson can set you back over $20,000. However, if you are desperate to get one but don’t have enough cash saved up, have a bad credit history, or just don’t want to take out too much cash at once, then you can always consider taking out bad credit motorcycle loans.
How Good of a Credit Score Do I Need for a Motorcycle Loan?
If you want to secure motorcycle financing with bad credit, then the first thing to keep in mind is that there is no set minimum or fixed standard credit score requirement. On average, a good FICO credit score is set somewhere between 670 and 739, whilst an acceptable VantageScore is around 601 to 660.
In this regard, most lenders typically use VantageScore, which was created by the three main national credit bureaus, Experian, TransUnion, and Equifax. There are some online lenders that are open to granting even a 550 credit score motorcycle loan since each one comes with their own approval criteria.
However, do keep in mind that the lower your credit score, the harder it will be for you to secure a bad credit motorcycle loan amount that is large enough to finance a purchase entirely. Plus, your monthly payment and level of interest will also be determined by your credit score, which is why it is often best to try and improve it before applying for motorcycle financing with bad credit.
Where Can I Get a Motorcycle Loan for Bad Credit?
Credit Unions
Credit unions tend to have lower average APRs because, unlike most traditional lending institutions, they are owned by their depositors, not by shareholders. And as a result, credit unions are typically focused on serving their membership first and foremost.
They are also willing to lend to those with poor credit scores, but the only problem is that most credit unions tend to have specialized membership requirements that you must meet in order to qualify for bad credit motorcycle loans.
Banks
You can easily apply for motorcycle financing from a local bank, as they often provide borrowers with reasonable terms and rates that can help to make the repayment process more manageable.
Plus, the benefit of borrowing from banks is that, since they will report your loan payments to the credit bureaus, this can often help you to keep improving your credit rating, as long as you make your repayments on time. The only problem is that not all banks are open to lending motorcycle loans to borrowers who already have bad credit.
Third-Party Online Lenders
If you can’t access a credit union and are unable to secure approval from a bank, then using online loan marketplaces can be a great way to secure no credit motorcycle financing.
This is because they tend to set their own borrowing conditions, so even with a less than stellar credit history, you should be able to get a motorcycle loan with bad credit guaranteed. Plus, you can apply for these loans online, which means that you can also expect to receive your funding significantly faster than borrowing from traditional financial institutions.
Things I Should Know Before Taking Out Bad-Credit Motorcycle Loans
Find and Compare Different Loan Options Available
If you need to secure motorcycle financing with bad credit, then it is important to search for reliable lenders and compare the different loan options and providers available to you.
Take your time to review their loan agreement conditions, especially the interest rates, fees, and repayment terms, as well as past customer testimonials, to find the one that seems most fair and trustworthy.
Be Clear on Your Level of Affordability
You must remain fully aware of your financial limits in terms of how much you can actually afford to borrow and repay on time.
This also means being honest about what kind of motorcycle you can afford to purchase, as there are times when it may be more prudent to apply for used motorcycle financing rather than try to buy a new motorcycle. You can review your income and put together a budget so that you don’t fall behind on your monthly payments and risk falling into debt.
What Are My Other Options for Motorcycle Financing?
Dealer Financing
Applying for dealer financing is a viable solution that would involve borrowing directly from the motorcycle dealer or manufacturer. In most cases, they will either send your loan application to a lender on your behalf or they will provide you with in-house motorcycle financing.
The latter is often an option that is suited to people with bad credit, but the downside is that it often comes with higher interest rates than traditional bank loans. If you choose this option, you should pay as much of a down payment as you can because it shows the dealer that you can afford to pay the balance. Plus, it can often help to significantly lower your monthly installment costs.
Personal Loans
If you do not like what your dealer has offered, you can try to apply for a personal loan online to make big purchases, in your case, buying a motorcycle. You can find, compare, and apply for personal loans through an online lending service like iPaydayLoans, as we can easily match you with a personal loan lender for bad credit that will not require you to put up any collateral to approve your application.
You can usually complete the loan application online, and should you be approved, you can expect to receive your funding in as little as 24 hours. The only downside is that since they require no form of security, this makes them riskier for lenders, which often translates into a slightly higher annual percentage rate for borrowers that can range between 5.99% and 35.99%.
 | Why Us | |
|---|---|---|
| How much can I borrow? | $50-$35,000 | No hidden fees or charges |
| I have bad credit. Can I apply? | Yes | Bad credit is considered |
| Over how long can I spread the repayments? | 1-36 months | Fast decisions |
| Are credit checks involved? | Yes | Soft credit checks only |
| Chances of getting approvals | Good | 256-bit encryption protocol |
| How to apply? | Apply online | Easy application |
Tips for Increasing My Chances of Getting Online Loans
1. Review Your Credit Report for Discrepancies
Review your credit report and keep an eye out for any mistakes or discrepancies that may be negatively impacting your credit rating. For instance, the same debt could have been listed more than once or there may be some accounts being incorrectly reported as late.
If you notice that the information is inaccurate, you should dispute it with the relevant credit reporting company by explaining in writing what you think is wrong and including documents that support your claim.
2. Make Your Repayments on Time
It is important that you build a good credit history by making repayments on time, especially if you happen to have active credit lines with traditional banks or credit unions. You can also take part in credit-building programs like Experian Boost that allow you to submit your utility payments to the credit bureaus in order to help raise your FICO score.
3. Limit the Number of New Credit Applications
You should avoid opening new credit lines, as submitting multiple applications to various financial institutions at once will often involve each institution carrying out a hard credit check on your report, which can damage your credit score.
If you intend to secure a bad credit motorcycle loan, it’s best to stick with your current credit lines and also avoid closing any that are currently active, even if it's a credit card that you are no longer using.