- Upgrade – Best for Bad Credit
- LendingPoint – Best for Fast Funding & Below-average Credit
- Universal Credit – Best for Comparing Multiple Offers
- Upstart – Best for Quick Approvals
- Avant – Best for a Range of Repayment Options
- LendingClub – Best for Online Experience
Bad credit motorcycle loans can help you finance a motorcycle purchase with a less-than-perfect credit history. Various lenders offer these loans and typically the best bad credit motorcycle loans are unsecured personal loans.
The best bad credit motorcycle loans should offer flexible repayment terms, a straightforward application process and affordable interest rates. Before you make the decision to finance your new bike, understand the options available and what best fits your needs.
- Upgrade – Best for Bad Credit
- LendingPoint – Best for Fast Funding & Below-average Credit
- Universal Credit – Best for Comparing Multiple Offers
- Upstart – Best for Quick Approvals
- Avant – Best for a Range of Repayment Options
- LendingClub – Best for Online Experience
- Summary: Best Bad Credit Motorcycle Loans
- Tips for Comparing Bad Credit Motorcycle Loans
- What Are Bad Credit Motorcycle Loans?
- How Bad Credit Motorcycle Loans Work
- Pros and Cons of Bad Credit Motorcycle Loans
- How To Get a Motorcycle Loan With Bad Credit
- What To Do if You Can't Qualify for a Bad Credit Motorcycle Loan
- Methodology
Best Bad Credit Motorcycle Loans of 2024
Summary: Best Bad Credit Motorcycle Loans
Tips for Comparing Bad Credit Motorcycle Loans
Finding the best bad credit motorcycle loan for you is about more than just comparing interest rates—you also need to consider your financial situation.
- Check interest rates. Lenders typically charge higher rates to borrowers with poor credit scores to offset their risk. Still, rates can vary significantly from one lender to another, so shop around to save money over the life of your loan.
- Evaluate loan terms. Loan terms can affect the cost of the loan, with shorter terms typically costing less in interest than longer terms but with higher monthly payments. Choose a term that fits your monthly budget without stretching the loan out unnecessarily.
- Consider additional fees. Factor in additional fees that may be associated with the loan. Depending on the lender, this may include origination fees, prepayment penalties or late payment fees.
- Calculate monthly payments. Before committing to a loan, ensure the monthly payments are within your budget. Consider using a personal loan calculator to determine how much you can afford to borrow.
- Research the lender’s reputation. Read reviews and customer testimonials to see if the lender has a history of treating borrowers fairly. A lender with a good reputation will provide better customer service and is more likely to work with you if you run into difficulties during the repayment period.
What Are Bad Credit Motorcycle Loans?
A bad credit motorcycle loan is financing designed for borrowers with low credit scores who want to buy a motorcycle. Lenders that offer these loans consider factors beyond credit scores, such as income or employment stability, in their approval process.
Many of these loans are personal loans, and the best personal loans can be used for a wide range of purposes—including purchasing a motorcycle—and come with flexible qualification requirements and terms.
Common sources of bad credit motorcycle financing include:
- Banks and credit unions. Some traditional lenders offer unsecured personal loans you can use to purchase a motorcycle. However, these institutions may have higher requirements than alternative lenders, making it more difficult to qualify with bad credit.
- Online lenders. Various online lenders specialize in bad credit loans, but you may face higher interest rates or unappealing loan terms.
- Dealerships. Motorcycle dealerships can offer financing for customers with less-than-perfect credit. Since these loans are usually secured by the motorcycle, it may be easier to qualify and rates may be more competitive than elsewhere.
- Manufacturers. Many motorcycle manufacturers can also offer financing directly to customers. As with dealership loans, manufacturer financing is secured and may be easier to qualify for than bad credit loans.
These loans often come with higher interest rates and more limited repayment terms since they’re easier to qualify for. This is because lending to individuals with poor credit is riskier than lending to more creditworthy applicants. You may also face higher fees and other costs when getting motorcycle loans for bad credit, making it important to consider all of your options.
How Bad Credit Motorcycle Loans Work
Bad credit motorcycle loans work similarly to other types of financing, with the primary difference being the accommodation for individuals with less-than-ideal credit. Once you choose a motorcycle, apply for financing through a financial institution or lending platform that lends to applicants with bad credit. The lender will assess your credit history and other factors like your current income and employment stability.
If the loan is approved, you’ll receive the funds to purchase the motorcycle. If it’s a secured loan, the bike will serve as collateral for the loan. You must then make monthly payments to repay the loan amount, plus interest, over a predetermined period.
While on-time payments can help improve your credit score, late or missed payments can further damage it. Make sure you understand the loan terms and can meet the repayment schedule before agreeing to the loan.
Pros and Cons of Bad Credit Motorcycle Loans
Getting a bad credit motorcycle loan may seem like your only option to get that bike, but it’s not a good idea for every consumer. Understand the pros and cons of bad credit motorcycle loans before committing to financing.
Pros
- Flexible approval criteria. Lenders of bad credit motorcycle loans often consider factors beyond credit scores, such as income and employment stability, in their approval process. This can improve the chances of loan approval, particularly for borrowers with unreliable credit histories but stable income and employment.
- Opportunity to increase your credit score. Timely repayment of a bad credit motorcycle loan can help rebuild credit. Each on-time payment is reported to credit bureaus and can gradually improve your credit score.
- Path to ownership. With a bad credit motorcycle loan, you’ll own the motorcycle outright once you pay off the loan.
Cons
- Higher interest rates. You’ll likely face higher interest rates on motorcycle loans if you have bad credit. This can significantly increase the total cost of the motorcycle over the life of the loan.
- Additional fees. Bad credit motorcycle loans may come with extra costs, such as origination, prepayment or late payment fees.
- Potential for negative credit impact. While timely motorcycle loan payments can improve your credit score, late or missed payments can damage your credit.
- Risk of repossession. Since the motorcycle usually serves as collateral for financing, failure to keep up with payments can result in the lender repossessing the bike.
- Limited repayment terms. Loans for bad credit may come with less flexible repayment terms than those available to more qualified borrowers. This can increase monthly costs and make it challenging to keep up with payments.
How To Get a Motorcycle Loan With Bad Credit
Getting a motorcycle loan with bad credit might seem daunting, but there are ways to get a loan. Follow these steps to apply:
- Review your credit report. Before applying for a loan, check your credit score and review your credit report for errors. Contact the credit bureaus to correct any mistakes you find.
- Save for a down payment. With a down payment, you can reduce the amount you need to borrow. The larger the down payment, the lower the loan-to-value (LTV) ratio and the higher likelihood you’ll be approved.
- Research potential lenders. Some lenders specialize in borrowers with bad credit and focus on other factors when making lending decisions. Research these lenders’ loan terms and customer reviews to identify options that meet your needs.
- Prequalify where possible. Many lenders offer a prequalification process to help you check your approval odds and possible interest rate without a hard credit inquiry. This can provide valuable insight and show you which lenders will most likely extend a loan.
- Apply for a loan. Once you identify a lender that meets your needs, complete the formal application process. If the lender allows it, apply with a co-signer or co-borrower to help you qualify.
- Review the loan offer and close. If approved, review the loan offer carefully. Make sure you understand the interest rate, repayment terms and any additional fees before accepting the loan.
What To Do if You Can't Qualify for a Bad Credit Motorcycle Loan
If you can’t qualify for a bad credit motorcycle loan, consider whether you need a motorcycle before taking any other steps.
If you still want to finance a motorcycle purchase, there are several steps you can take. Ultimately, choose financing that best fits your borrowing needs, budget and long-term goals. Here’s what to do if you can’t qualify for a bad credit motorcycle loan:
- Improve your credit score. Paying off any outstanding debts, making all of your current payments on time and keeping your credit utilization rate low can all help improve your credit score over time.
- Save a larger down payment. A larger down payment could make lenders more inclined to approve your loan. Although this can delay your purchase, it could lead to more favorable loan terms and lower monthly payments.
- Consider applying with a co-signer. If you have a trusted family member or close friend with good credit, they might be willing to co-sign your loan. This means they agree to take responsibility for the loan if you default.
- Explore other financing options. There may be other types of financing available which can be easier to qualify for, such as in-house financing from dealerships.
- Reconsider the type of motorcycle you’re buying. Opting for a less expensive bike can decrease the amount you need to borrow, improving your approval odds.
Methodology
We reviewed 18 popular lenders based on 14 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose lenders that have a minimum credit score requirement of 600 or lower and ranked them based on the weighting assigned to each category:
- Eligibility and accessibility. 30%
- Loan cost. 25%
- Loan details. 20%
- Customer experience. 15%
- Application process. 10%
Within each category, we also considered several characteristics, including loan amounts, repayment terms, APR ranges and applicable fees. We also looked at whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.