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Motorcycle loans with poor credit are more expensive, but they are widely accessible from banks, credit unions, and online lenders. A FICO® Score below 580 is considered “very poor” credit by Experian, and a score between 580 and 669 is considered “fair.” Making on-time motorcycle loan payments could raise your rating. Here are some options for obtaining a motorcycle loan with bad credit and bad credit motorcycle financing companies.
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Note from the Editor: This article’s content is solely based on the author’s opinions and suggestions. It might not have received approval from any of our network partners through reviews, commissions, or other means.
Motorcycle loans with poor credit are more expensive, but they are widely accessible from banks, credit unions, and online lenders. A FICO® Score below 580 is considered “very poor” credit by Experian, and a score between 580 and 669 is considered “fair.” Making on-time motorcycle loan payments could raise your rating. Here are some options for obtaining a motorcycle loan with bad credit and bad credit motorcycle financing companies.
| Lender / Marketplace | Starting APR | Terms (Months) |
| Consumers Credit Union | 4.90% | Up to 60 months |
| USAA Bank | 5.49% | Up to 72 months |
| PenFed Credit Union | 5.99% | Up to 60 months |
| Motorcycle Lender | 6.99% | 36 to 60 months |
Bad credit motorcycle lenders
The aforementioned lenders accept borrowers with bad credit and provide motorcycle loans with some of the lowest starting APRs. Before applying, estimate your potential monthly payment using a motorcycle loan calculator.
Loan terms up to 60 months (five years) are available from Consumers Credit Union for both new and used motorcycles, with rates starting at 4. 90%. Simply donate $5 once to the Consumers Cooperative Association and maintain at least $5 in your account to join the credit union.
USAA is a bank that serves members of the military. You must be a U to apply for a motorcycle loan with them. S. a member of the armed forces, a veteran, a pre-commissioned officer, or their spouse or child USAA motorcycle loans start at 5. 49% APR for up to 72 months (six years).
PenFed Credit Union. Pentagon Federal Credit Union offers motorcycle loans starting at 5. 99% APR for up to 60 months. Given that it is an open-charter organization, its membership requirements are among the most lax. You need to maintain a $5 minimum balance in your PenFed account and have a Social Security number or tax identification number in order to join.
Motorcycle Lender. The Motorcycle Lender, a bad credit motorcycle loan specialist online, might be able to point you in the direction of a lender who will work with you.
Types of bad credit motorcycle financing
Even if your credit score is in the lower tiers, compare offers from several lenders before selecting a bank, online lender, credit union, or dealership or applying for a personal loan.
The best |
Credit unions
In comparison to banks, credit unions routinely have lower average APRs on all types of loans, according to the National Credit Union Administration (NCUA). In comparison to banks, credit unions offered personal loans at an average national rate that was more than a percentage point lower in March 2021. Since they are nonprofit organizations, credit unions frequently accept members with bad credit, and some, like Consumers CU, only charge a small membership fee.
Online lenders
An online lender could be a fantastic choice if you don’t want to borrow from a credit union. They don’t have as much overhead as physical stores do, and all of their transactions are made online or over the phone.
The middle ground |
Banks
Not all banks offer motorcycle loans, and not all banks will work with borrowers who have credit issues. It might be convenient for you to obtain a motorcycle loan from a traditional bank if you use one for your regular banking needs.
Dealership financing
Dealerships hardly ever make loans themselves, but they could assist you in finding a lender with a bad credit history. Bring any preapproval offers with you if you find the ideal motorcycle at a dealership, and inquire with the salesperson about whether any lenders in their network can match your current offer.
Manufacturer financing
Through their own financing companies, motorcycle manufacturers provide exclusive low-APR motorcycle loans and rebates. For instance, Yamaha Motor Finance and Harley-Davidson both have Eaglemark Savings Bank. But only those with the best credit ratings are eligible for these kinds of motorcycle loans. One may find it more difficult to obtain a motorcycle loan with bad credit.
The bad |
In-house financing
This kind of financing, also known as “buy-here, pay-here” businesses, is typically expensive and may even offer the highest legal interest rate. It’s best to steer clear.
other types of financing |
You might have other options even if getting a motorcycle loan is not an option:
A personal loan with bad credit might be simpler to obtain than a motorcycle loan with bad credit. You might end up paying more in interest and fees as a trade-off. For instance, a personal loan from LendingClub carries an origination fee that ranges from 1% to 6% of the borrowed amount, while the majority of motorcycle loans don’t.
If you intend to make several sizable purchases over time, a home equity line of credit (HELOC) might be the best option, but keep in mind that you are using your house as collateral. This means that if you don’t make payments, the lender might take possession of your house to settle the debt.
What to do if you can’t get bad credit motorcycle financing
Pay with cash. If you have money on hand, think about buying a cheap used bike. You might be able to find a good bike for less than $2,000 depending on where you live.
Improve your credit first. You might need to take some time to improve your credit score if it is too low to qualify for a motorcycle loan for people with bad credit. Examine your credit report carefully, contest any errors, and work to improve it.
Get a cosigner. Consider getting a cosigner with good credit if you need a loan right away for a motorcycle. Proceed with caution, though. The debt will be legally your cosigner’s responsibility, and any late payments will lower both of your credit scores.
Tackle your debt. A member of the National Foundation for Credit Counseling could help you come up with a battle plan to take down your debt and set up a realistic budget.
Is a bad credit motorcycle loan worth it?
Bad credit isn’t a permanent barrier to owning a motorcycle. If you compare motorcycle loan options, you’ll have more companies to choose from and be sure you’re getting the best deal on your new motorcycle.
The data in this article is correct as of the publication date.
Compare Motorcycle Loan Offers Loan type:
Obtaining a motorcycle loan is very similar to obtaining a car loan. Obtain preapproval, evaluate offers using a loan calculator, and accept the most advantageous one.
Although a motorcycle lease is an alternative to higher loan payments, keep in mind that it might end up costing you more overall.
FAQ
Can I get a motorcycle loan with a 500 credit score?
Although there is no minimum credit score needed to qualify for a motorcycle loan, a higher score may make it simpler to get better rates and terms.
Is it easy to finance a motorcycle with bad credit?
Motorcycle loans with poor credit are more expensive, but they are widely accessible from banks, credit unions, and online lenders. A FICO® Score below 580 is considered “very poor” credit by Experian, and a score between 580 and 669 is considered “fair.” Bad Credit Motorcycle Loans. Lender / MarketplaceStarting APRTerms (Months)Motorcycle Lender6. 99%36 to 60 months.
What is the lowest credit score to buy a motorcycle?
You’ll need to have good to excellent credit to be eligible for a loan. That indicates that your score should be between 670 and 850, according to Equifax. 5 You’ll need to work with a different lender if your credit score is below that range.
Can I get a motorcycle loan with a credit score of 550?
For a motorcycle loan, lenders typically require a minimum credit score of around 620. However, we were able to locate some with even lower minimal standards. Keep in mind that you need to have a credit score of at least 720 in order to receive the best interest rates.