How To Get A Motorcycle Loan With Bad Credit?


For those who are extremely passionate about bikes, owning a great new bike gives them a feel of freedom. However, having a poor credit can obstruct their way of getting a new bike if they are totally unaware of how they must secure a motorcycle loan. Due accounts, collections, judgments, credit card bills etc. are forbidden while applying for a recreational loan. The reason behind this is any loan company will consider you as a high risk applicant after knowing about your financial instability in the past few years.

Is a motorcycle loan possible with bad credit?

The simple one word answer to this question is yes. It is a common question asked by all those, who intend to apply for a motorbike loan, in spite of having a bad credit. Besides, there are many other things, which one needs to consider before getting one. The foremost factor that you need to look into is how genuine the creditor is. There are a number of phony financers, who ensure that they take complete advantage of your unstable condition and get their hands on your vehicle. Therefore, it is suggested that you choose a reputed moneylender after carrying out proper research.

If you are someone, who has a poor credit and want to apply for a motorcycle loan, it is highly suggested that you pay zero attention to anyone who asks you to pay extra document fees, GAP insurance or extended protection. This is a trick to fleece more money from you and against this a false assurance is given that if you pay for all add on products only then your loan will be approved. You will definitely have to pay a higher rate of interest, but paying for any add on products is not necessary to get the approval for your loan.

Options for securing loan with poor credit:

It is beneficial to get in direct touch with the motorcycle advance lender than contacting any agent for obtaining a loan. One of the best benefits of doing this is that you will not have to pay any commission to the middle man. Usually, these middle men intend to make good money and hence they will suggest you loan plans that have extra fees involved, which is definitely not a good loan for you. Below mentioned are some options, which you can consider while applying for a poor credit motorcycle loan:

  1. Online motorcycle loaners: By selecting this option of acquiring an advance you can be rest assured that in the entire deal no middle man is involved and you are directly in contact with the main lender. It is definitely better to contact the lender directly as he will not suggest you a loan, which you will actually fail to, pay in the future, instead he will offer you comfortable options.

  2. Credit Union: This is the second best option, as obtaining loan from your credit union is easier and you have greater chances of approval. This is because they have very little percentage of their entire loan portfolio in bad credit motorbike loan. This way they have control over losses because unlike other motorbike loan lending firms they also finance other things besides motorcycles. So, they might approve your finance application, which the other dealers may not entertain.

  3. Local Banks: There is no doubt that local banks are strict as compared to Credit Unions, but there is a chance of getting a poor credit motorbike loan approved from them. However, just like your credit unions, local banks too do not have their entire segment of loans in motorbikes. Thus, there are enough chances of your loan getting approved from them. In some cases, the less experienced staff of the bank can prove beneficial to you and you can secure a better loan deal. Well of course before checking with the local bank it is recommended to contact either an online motorbike loaner or a credit union.

  4. Personal Loans: At times, a lot of people having poor credit opt for a personal loan. This option should only be taken if it is the last resort. The reason is personal loans at times have high interest rates and is in the range of 30%. This is totally not a good deal for you as a motorcycle buyer, as again you will pay a lot more money for your bike than what you should actually pay.

Tips for getting approved for a poor credit motorcycle loan:

  1. Don’t simply trust the dealership financing

There is no doubt about the fact that motorcycle dealers have a lot of financing contacts to suggest you, but definitely it is nowhere close to the number of lenders available nationally. Generally, any poor credit applicant will ask the dealer to submit the loan application to their source, and if they are getting declined they assume there is no way out to get a loan. This is a completely wrong approach.

Dealers generally submit your application to a loan company with which they have strong personal contacts. You are however totally unaware of this fact and thus assume that if you are getting declined you have no further scope to apply for a loan, which is incorrect. You must check with any online companies or your credit union, which focus on applicants with bad credit, before making any decision.

  1. Don’t let go too soon

Once you are denied an advance by a lender just don’t let it go. Surely you will feel the sense of rejection, but if you do not have a proper approach you will possibly never get a loan with bad credit. Try and elaborate as many options as you can. There is definitely a perfect bad credit loan waiting for you.

  1. Focus on lenders who specialize in poor credit

Whatever type of loan you are trying to obtain, the market always has a segment of such lenders, who focus on applicants with poor credit. If you research properly you will surely find those lenders. Especially for two wheelers there are several such loaners, who are offering poor credit motorbike financing. Well, without trying hard to find them you will never be able to find the right and suitable loan for you.

  1. Pay the down payment

If you assure the financer that you are ready to give some portion of the amount as down payment, it will clearly prove that you are actually interested in making the deal successful. A lot of motorbike buyers ignore this fact. Also, the more money you pay as down payment there are more chances for your loan to get approved. The down payment can encourage the financer to view your loan application in a different way.

  1. Don’t ignore the benefits of insurance

Motorcycle buyers generally overlook the benefit of insurance. Generally, the insurance protects the bank or the lender in the event of a collision or theft, yet many lenders may tell you that having a full coverage is not essential. However, if you actually have one it makes a very good impact on the lender. This is a nice way of letting them know that you are interested in protecting your investment.


In simple words, if you are going to apply for a bad credit motorcycle loan, you are assured that it is absolutely possible. Of course it will require a bit of your time and energy. It is essential that you don’t get frustrated, if your application is rejected by a lender. You must work hard on the option of getting advance online or through credit unions. 


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