Motorbike Loans for Bad Credit

Updated: April 02, 2024 Author:

Having bad credit can feel like you’re financially shackled. You can feel stuck in your situation, even if your finances are improving. If you need a motorbike, then finding a loan to get it can be tough.

This is where motorbike loans for bad credit come in. They’ll help you get moving in more ways than one.

Why Bad Credit Is a Problem for Motorbike Loans

Our credit ratings generally range from 0 to 999 (depending on the credit agency), and anything 720 and under can be considered poor. If you’ve missed payments or had defaults, then your score could be much lower than this. That presents a challenge when it comes to approaching lenders.

Your credit rating acts as a risk assessment. The lower it is, the higher the risk you are deemed to lenders. Due to this, they’ll either refuse to provide credit to you or do so with strict borrowing terms to limit their risk.

Due to this, those wanting a motorbike with bad credit must be careful. You need to do your research and apply to the right lenders. Not doing so can damage your credit rating further while also wasting your time.

How to Get a Motorbike Loan for Bad Credit

If you try to get a standard loan with a financial institution, you’ll likely get rejected. You need to apply to lenders that specialise in bad credit and won’t immediately turn you away if they feel you may struggle with repayments.

Even with these lenders, you shouldn’t simply apply without looking at their terms and lending limits. However, if you do a little research, then you’re likely to find a lender that can offer you what you need to get your motorbike. 

Motorbike Loans for Bad Credit: How Do They Work?

Motorbike loans work much like traditional loans, but it helps to know the steps. This will allow you to be comfortable with the process and ask any questions you may have.

Application – The first step is to fill out your application, which will include your details and consent for a credit check. During this application, there will likely be less emphasis will be placed on your credit check, and they will be more focused on your overall financial situation and affordability.

Approval – After the application is submitted, the lender will evaluate your financial profile. This is usually a quick process. If the lender is unsure of your affordability, they may ask for additional documentation to prove what you’ve told them.

Terms and Conditions – If approved, then you’ll then be given an offer outlining the terms. With bad credit, these terms may be worse than advertised, as you’re perceived to be a higher risk. Make sure to review these terms, and don’t just accept them just because you’re desperate.

Funding – If you agree to the terms, you’ll then be provided with the funds. This is almost always a direct deposit to your bank account. This allows you to get the motorcycle you need and get moving.

Repayments – You’ll now need to adhere to the schedule of payments you agreed to. Making payments on time will help to improve your credit rating and help open up better financing options in the future. 

Benefits of a Motorbike Loan for Bad Credit

Motorbike loans with bad credit may come with higher interest, but they do offer some key benefits. Here’s why they may be your perfect lending solution right now.

Accessibility – Bad credit lenders are more lenient when it comes to your financial situation. This makes these loans more accessible. They give you an oppourtunity to get that motorbike that may otherwise be closed to you.

Speed – The time from initial application to getting your funds is often quick with these loans. This is perfect for those desperately in need of transportation. It allows you get back travelling in no time at all. 

Opportunity to Rebuild Credit – When you have bad credit, you can feel stuck in your situation. Bad credit loans give you an opportunity to rebuild your financial standing. Next time you need a loan, you may be able to look at more traditional options.

Ownership and Freedom – Without a loan, you may be looking at needing public transportation or paying high leasing rates for a bike that isn’t yours. There are other ways to get motorbike finance, such as HP and PCP, but a loan allows you to own your bike outright straight away with no strings attached.

Motorbike Loan with Bad Credit Tips

While motorbike loans for bad credit often give you a lifeline, there are a few important tips you need to consider. Here are a few things to keep in mind. 

Know Your Credit Score – You need to know how bad your situation is. If your credit score is on the floor, you may need to set more realistic expectations. If it’s better than you expect, then you can perhaps increase your budget. 

Don’t Apply to Anyone – A part of knowing your credit score is knowing which lenders to apply to. For those with bad credit, applying and getting rejected by traditional lenders further negatively affects your credit rating. Only apply to lenders that specialise in bad credit loans

Be Realistic About Your Budget – With higher interest rates, you want to double-check that you can afford the payment terms. It may be a wise idea to reduce your motorcycle budget to get a loan that’s a little more affordable. 

Shop Around – Don’t just apply to the first bad credit lender you see. Make sure you look at a few options and find the one that is best for you. This will allow you to choose a lender that is more likely to accept your application and give you the terms you want. 

Consider Alternatives – Do you really need the loan, or are there alternatives you can look at? Public transportation, lending from family, buying a cheap motorbike outright, and leasing are all potential alternatives. 

Consider a Guarantor or Secured Loan – If your bad credit loan gets rejected, then guarantor loans and secured loans are possible alternatives. These come with their own downsides but present a lower risk to lenders. 

Don’t Be Afraid to Refinance – If you keep making your payments on time and your credit score improves, don’t be afraid to refinance. This can allow you to clear your original loan and get a new lending solution at lower interest rates.