How To Get A Motorcycle Loan With Bad Credit

Whether you use it for a short commute to work or for weekend adventures, a motorcycle is a fuel-efficient and overall entertaining vehicle to own. Moreover, it’s possible to buy one using financing products like bad credit motorcycle loans. Here are some strategies you can use to pay for your new set of wheels.

The Benefits Of A Bike Loan              

A motorcycle loan can help you cover your vehicle’s selling price as well as the various fees and accessories that come with it. Although motorbikes typically cost less than a car, they can still run tens of thousands of dollars. In addition, you’ll need to pay for the following expenses before you can hit the road.

• Helmets and riding gear: Before you can use your bike safely on the road, you must equip yourself with some safety gear. At the bare minimum, you’ll want to get a helmet and bike before also considering riding boots. If you opt for quality brands, you may need to budget a thousand dollars or more for this equipment
• Licensing fees and insurance: The cost of registering and licensing your motorcycle differs from state to state. Additionally, if you don’t have a valid motorcycle license, you’ll need to complete a vehicle training course certified by your state. This could cost anything from $200 to $500 

The price of owning a bike may seem like too much at first glance, but the good news is that you can finance these expenses. Moreover, for individuals struggling with weaker borrowing histories, a loan designed for borrowers with bad credit can help finance the purchase. Let’s take a look at the application process and what’s required before you apply.

What FICO Score Is Required To Finance A Motorcycle?       

Most lenders will assess your creditworthiness based on your FICO score. You can check yours by obtaining your free annual report. There are several categories of ratings you’ll want to be aware of.

 The table below shows the various score ranges along with their respective categories. 

*Your chances of approval depend on various factors and can’t be accurately predicted until you apply. 

If your rating is below 580, you may not be able to secure a bike loan from a traditional lender like a bank or vehicle dealership. However, there are several other alternatives you’ll want to consider. Let’s take a closer look at some of them below. 

Where To Get A Vehicle Loan With Bad Credit          

If your FICO score is less than 580, you can still apply for motorcycle financing and stand a reasonably good chance of approval. Here are some of the financing options you’ll want to consider:

• Banks: As mentioned above, it’s not easy to secure bank financing if your rating is less than fair. Still, if you’re a long-standing bank customer, you may be able to obtain vehicle financing at a higher APR
• Credit unions: These organizations are like banks, except that you sign up for membership akin to a gym or social club. As nonprofit organizations that are governed by members, credit unions typically have less stringent lending practices if you meet eligibility requirements like residency, employment, or other criteria. This can be a valuable solution for individuals with weaker credit histories
• Dealer financing: Many auto dealers finance the bikes they sell and even approve bad credit borrowers. However, the interest rates offered to borrowers who can’t demonstrate a strong credit history will likely be higher compared to other lending alternatives
• Personal loans: This type of lending product is an excellent choice for anyone with poor credit because online lenders cater specifically to customers with low FICO scores. Quick application times and generous loan amounts (up to $50,000 in some cases) are further benefits of a personal loan

Improving Your Credit Can Boost Your Chances Of Approval               

No matter what type of financing you opt for, you’ll find that the cost of your loan decreases if you have a good credit rating. You can use some of these easy tips to boost your numbers before you apply. 

• Make your payments on time. Late payments cause your score to drop while well-managed accounts cause it to rise
• Keep your card balances low. Whenever the outstanding balance on your card exceeds 30% of your available balance, your FICO numbers will start to drop. Keeping your balances down will help boost your rating. Moreover, you’ll save money on interest payments
• Don’t close your accounts. If your credit accounts are in good standing, you’ll want to keep them open because the length of your financial history helps boost your score

The Bottom Line    

Financing a motorcycle with bad credit is more than possible, even when the additional cost of accessories and licensing is included in the total. Ultimately, understanding your FICO score and comparing all the lending solutions available for borrowers with weaker creditworthiness will help you secure the best deal that matches these constraints.