Key Takeaways
Is your low credit stopping you from getting that motorcycle you've always wanted? Do you have difficulty locating motorcycle loans for people with bad credit? Don't worry. We've got an answer for you. We'll go through the numerous options for bad credit motorcycle loans that may help you if you're in desperate need of a bike.
The table below shows the different lenders that offer bad credit motorcycle loans.
| Lender | Starting APR | Loan term |
|---|---|---|
| USAA Bank | 5.99% | Up to 72 months |
| PenFed Credit Union | 6.49% | Up to 60 months |
| Consumers Credit Union | 5.40% | Up to 60 months |
| Motorcycle Lender | 7.49% | Up to 60 months |
Financial institutions typically need a credit score of at least 620 for motorcycle financing. However, some lenders will work with you if your credit score is below 620. Credit unions and smaller banks are more likely to deal with people with lower credit scores. Having proof of a reliable revenue stream is also beneficial. Lenders may contact your employer or request recent pay stubs if your credit score is borderline.
A credit score of 720 or better is typically required to qualify for the best loan terms and pricing. However, some borrowers with credit issues still qualify for a cheap interest rate due to a lender's particular incentives.
Here are some bad credit motorcycle lenders offering you the loan at different interest rates.
Consumers Credit Union offers you loans for both new and used motorcycles. A one-time $5 contribution to the Consumers Cooperative Association and a balance of at least $5 are required to join the credit union.
The interest rates start from 5.4%.
They do not have minimum credit score requirements
There is no maximum loan amount; they are ready to offer your loan amount per your need.
As they do not have a minimum credit score requirement, customers find it easy to take loans from Consumers Credit Union even with bad credit.
| Pros | Cons |
|---|---|
| Competitive APR | References are required for applying for the loan |
| Variety in their loan terms | There is a membership fee |
| Your locality is not a restriction for getting loans | |
| No minimum credit score requirements |
USAA is a financial institution that caters to military personnel. You must be a current service member, veteran, or enlisted person in the United States armed forces, or the spouse or child of such a person, to qualify for a motorcycle loan from them.
Loan rates start from 8.34%.
There is no minimum credit score requirement.
To qualify for 12-to-48-month loan terms, you require financing for at least $5000; for 60-month loan terms, you require a financed amount of $10000. If the loan term is 72 months, you require a financed amount of $15000 and greater with an approved credit.
Military personnel finds it useful to be a member of USAA as they do not require a minimum credit score to be qualified for a loan.
| Pros | Cons |
|---|---|
| No minimum credit score requirement | The maximum loan amount is $20000 |
| Low APR | Must receive a USAA membership to qualify |
| Loan terms of up to 72 months | Require a 90% or lower loan-to-value ratio |
Federal Credit Union is an open-charter group with some of the most accommodating membership criteria for joining. You can open a PenFed account with as little as $5 if you have a valid SSN or Tax ID number.
Rates start from 6.49%.
| Pros | Cons |
|---|---|
| Easy to be their member | Has a membership fee |
You may be able to locate a lender who is willing to work with you if you visit the Motorcycle Lender. This online financing organization specializes in bad credit motorcycle loans.
Starting from 7.49%.
Established in 2002 as a subsidiary of Horizon Digital Finance, LLC, myAutoloan is a privately held online marketplace for financing vehicles. In particular, what separates myAutoloan from other motorcycle finance deal providers is that they handle all the hard work for you, regardless of your credit history.
In fact, according to myAutoloan, you can get up to four offers in just a few minutes. Although they advise their customers to work on raising their credit ratings first, they do offer motorcycle loans for people with poor credit.
Loan rates start from 2.59%.
A minimum credit score of 575 is required to get a loan.
They provide loan amounts up to $100,000.
Customers who used myAutoloan for a motorcycle loan with poor credit were satisfied with the service and recommended the company to others because of the quick and easy application procedure and the variety of loan options available.
| Pros | Cons |
|---|---|
| Allows co-signers | Not available in all states |
| Good customer reviews | |
| Has many lender partners |
LightStream, a Truist-owned online lender, provides borrowers with personal loans for various needs, including those associated with motorcycle purchases and refinancing. LightStream was our runner-up pick for best motorcycle lender because of how quickly they funded our loan and how they were up forward about their interest rates.
Their loan rates start from 2.99%.
The minimum credit score requirement is 660.
They offer loan amounts up to $100,000.
Customers believe that LightStream is one of the most affordable lenders.
| Pros | Cons |
|---|---|
| Low-interest rates | Credit score requirements are a bit high |
| No excessive fees |
With its innovative use of AI technology, Upstart is one of the first lending platforms of its kind. The company was founded in 2012 by three ex-Google employees, Dave Girouard, Paul Gu, and Anna M. Counselman, to expand people's access to affordable credit, including bad credit Harley Davidson loans.
Oan rates start from 7.26%.
The minimum credit score required is 580.
They offer loan amounts up to $50000.
We've heard nothing but reviews about Upstart from our happy customers. In 32,135 evaluations on Trustpilot, it has received 4.9 out of 5 stars, making it nearly flawless.
| Pros | Cons |
|---|---|
| Low APR | No co-signer option |
| Easy application process |
If your credit score isn't very high, you should still shop around for the best interest rate and terms on loan by talking to multiple lenders.
Some options available for bad credit motorcycle financing are mentioned here.
According to the NCUA, credit unions typically provide lower average APRs on loans of all kinds compared to banks. Since credit unions are not-for-profit organizations, they often accommodate members with less-than-perfect credit and ask for no more than a small initial investment to become members.
An online lender could be a good alternative to a credit union for a loan. They operate purely online or over the phone, saving on rent, utilities, and other costs associated with a physical storefront.
Some banks are more receptive to customers with less-than-perfect credit and offer motorcycle loans. Check out their options if you do your regular banking with a traditional bank and are interested in a motorcycle loan for convenience.
Automobile lots don't often lend money, but they may be able to point you in the direction of a lender that would work with people who have bad credit. Bring your preapproval offers with you to the dealership if you locate the motorcycle of your dreams there and see if you can get better interest rates from the lenders in the dealership's network.
To encourage customers to purchase their bikes, many motorcycle producers have set up in-house financing organizations that offer low-interest loans and cash-back refunds. However, only those with excellent credit are eligible for these motorcycle loans. Borrowing money for a motorcycle with bad credit may be more challenging if you have one.
There are "buy-here, pay-here" stores that offer in-house financing and usually charge high-interest rates, sometimes up to the maximum allowed by law. One should avoid it if at all possible.
If you have searched for lenders ready to offer bad credit motorcycle loans but failed to get the loan due to poor credit scores, you can try the following.
If a bike is necessary for your current situation, you can buy a low-cost used bike by paying cash. Later, when you receive the loan you want, you can purchase the motorcycle of your dreams.
If your credit score isn't high enough to qualify for a bad credit motorcycle loan, you may want to work on improving it. Be sure to review your credit report in detail, challenging any inaccurate information and working to improve your credit score.
If you have any pending debts, clear them soon, as they can affect your credit score. This can thereby stop the lenders from offering you loans.
Requesting a co-signer with excellent credit can help you get a motorcycle loan quickly. Though, proceed with caution. Your credit scores will take a hit if you and your co-signer end up being late on payments.
You might be planning to buy a costly bike and not have the needed funds. If you did not get the loan amount as per your need, you have to lower your expectations. Choose a less expensive motorcycle and then apply for a smaller loan amount. This can increase your chances of getting the loan.
Despite a low credit score, you can still buy a motorcycle. If you take the time to compare several motorbike loan providers, you may rest assured that you obtained the best price available on your new ride.
Motorcycle loans for bad credit are available, so you need not drop your idea of getting a motorcycle. Before taking a loan, you should have a better idea of whether you can make the monthly payments. By making on-time payments, you can improve your credit score, which will be useful for taking loans in the future. Shop around and choose the right lender who offers you the best rate.
Yes! The lenders we have mentioned will work with people with low credit scores.
It's important to note that the majority of them have a required minimum credit score. So, it's important to figure out which works best for you.
The standard minimum credit score for getting a motorcycle loan is roughly 620. However, some lenders are ready to offer loans to those with credit scores lower than 620.
Remember that a credit score of 720 or above is required to qualify for the best prices.
Definitely! A 550 credit score might still get you a loan, but with a high-interest rate. We recommend that you work to raise your credit score before applying for a bad credit motorcycle loan.