Motorbike Finance For Bad Credit

Updated: November 24, 2023 Author:

Key Takeaways

  • Most of the time, you can get motorbike finance even with a bad credit rating
  • Paying off a motorbike loan on time will help you to fix your credit score
  • Not paying the loan can make your credit score worse.
  • If you have bad credit, explore your options and shop around to find the best finance deals.

    I know that the thought of applying for finance can be nerve-wracking if you have bad credit. But you needn’t worry, even people with frightful credit scores still have a good chance of getting motorcycle finance. The great news is that there’s no minimum credit score for motorbike finance, usually because the loan is secured on the bike. The downside? You may face higher interest rates if you have a poor credit history. 

    If you love cruising on two wheels, easy rider style or want to reduce your bills each month – then buying a motorbike is the perfect option. They’re cheaper to buy and run, so they don’t suck as much money from your budget as a car. You can look forward to cheaper insurance, lower maintenance and fuel costs, not to mention, stress-free parking. Just make sure you dress up warm in the winter!

    Treating yourself to a shiny new motorbike could be the ideal small loan solution to help get your credit rating back on track. But, at the risk of sounding like a killjoy, I must tell you that, just like any credit – it also comes with risks. I’ll tell you more about them below. 

    Is It True That Motorbike Finance Can Improve My Credit Score?

    Indulging in a new motorbike can certainly help you get back on the road to financial freedom. If you’re struggling to repair your credit score, taking out small, affordable loans and paying them back on time is the perfect way to show lenders that you are trustworthy and reliable. That said, motorcycle finance isn’t a quick fix, but your score will slowly improve as you pay the debt off. 

    But let’s push the brakes for a second. I must tell you that motorbike finance, like any kind of credit, can also seriously dent your score if you miss payments or default on the loan. Also, if you buy through Hire Purchase, you can potentially wave goodbye to your new bike if you don’t keep up with payments. 

    One more thing you need to know is that too many hard credit checks from lenders in a short space of time look bad on your report. So don’t apply to loads of creditors at once. Ideally, you should only make one or two applications.

    What Are My Motorbike Finance Options With Bad Credit?

    I’m happy to tell you that even with a substandard credit history, you still have many ways to fund a new scooter or bike. Just because you have a bad score, it doesn’t mean you don’t have options. Don’t settle for the first deal you find – take your time and do a little research to find the best solution.

    With that in mind, I’ll guide you through the ways people usually get finance for a new car, van or motorbike. 

    With a Personal Loan 

    A personal loan can be an excellent way to buy a bike if you can score a decent interest rate. They’re a good choice because you don’t need to save a deposit and you will own the bike outright – with no worries of repossession. You do have to worry about your credit rating, however, which will take a beating if you don’t pay the loan. 

    Through a Hire Purchase Contract (HP)

    Hire Purchase is when you get to enjoy using a new car or bike as you pay for it. You need a deposit, usually 10 per cent, to start the contract, and then you pay monthly instalments over a set period. With HP, the loan is secured against the motorbike, so you don’t own it until after the last payment. I must also warn you that your shiny new wheels are at risk if you don’t make the payments. 

    With a Personal Contract Payment (PCP) 

    Personal Contract Payment is almost the same as Hire Purchase, only the monthly payments relate to the bike’s value. So, you still have to pay an initial deposit, but at the end of the contract, you must pay a “balloon” payment to keep the bike. You can also return it or trade it in for a new deal. 

    Paying Outright With Cash 

    I know that saving isn’t everyone’s cup of tea, but in the worst-case scenario, if you can’t get credit, it might be your only option to get on the road. As gruelling as it may seem, you can’t deny that saving is flexible, rewarding and doesn’t have steep interest rates. The best thing about it? There’s zero risk to your credit rating.  

    With the Help of A Guarantor 

    As I mentioned, even the worst creditors among us can usually get motorbike finance, but if for some reason you can’t, then consider applying with a cosigner. Lenders are much more willing to trust you with a cosigner on board. Who knows? If you’re lucky, you may even get better interest rates. You can still improve your credit rating with a Cosigned loan, but I’ll warn you that you and your guarantor’s credit score will take a hit if you don’t make the payments.  

    A Few Golden Rules About Applying for Motorbike Finance With Bad Credit

    No one likes being knocked back for credit, especially if you’ve set your dreams on a new motorbike. Also, the last thing you want is a failed finance contract hanging around on your credit report like a bad smell. So, to get the best deal and boost your credit rating, stick to these golden rules when you apply for credit:

    1. Don’t swipe at the first option – Shop around and get the best deal for your needs. 
    2. Don’t make multiple applications – Applying many times in a short period can make your credit score worse. 
    3. Check your credit report before applying – Are your details up to date, and are you on the electoral roll? 
    4. Set a realistic budget – Only borrow what you can afford. 
    5. Choose bad credit specialists – If you have an unquestionably bad credit rating, look for lenders specialising in poor credit ratings.
    6. Stick to your side of the contract – If you don’t make payments as agreed, you can say goodbye to improving your credit score and, depending on the finance deal, maybe even your bike. Set up Direct Debits so you never miss a payment.