Bad Credit Motorcycle Loan

Information current as of

Need (want) a motorcycle but your credit isn't the best? Your insurance and interest rates are higher for motorcycles than regular vehicles anyway, due to their dangerous nature, but if you have bad credit you can be in a difficult position for obtaining a loan. We can help.

The bad credit motorcycle loan exists to help those who are financially disadvantaged get another chance at owning the bike of their dreams, and getting a chance to rebuild their credit report by making timely payments. Borrowers suffer from higher interest rates, but depending on the terms of the loan, you can often refinance these loans after a period of making payments on time and in full. Failure to make timely payments will result in even higher interest rates, penalties and fees, potential repossession of the motorcycle (its used as collateral), and the possibility of not getting another loan in the near future.

Just because you have poor credit doesn't mean you can't get the motorcycle want, but it will mean a higher interest rate and stiffer terms in the loan. Lenders will evaluate your credit score to see whether your quality for bad credit loans or regular loans. You can obtain a free copy of your credit report (but not the FICO score) from each of the three main reporting agencies from annualcreditreport.com.

Who Qualifies for a Bad Credit Motorcycle Loan

US or Canadian citizen, at least 18 years of age. Must have an income source and not currently be involved in a bankruptcy case.

Advantages of a bad credit loan

• Gives the borrower an opportunity to obtain the motorcycle they want.
• Person can use this opportunity to rebuild their credit rating by making timely payments.
• Borrower can regain some control of their financial status by acting responsibly.
• Available for new and used motorcycles, regardless of type.

Disadvantages to watch out for

• Failure to pay will often result in higher interest rates, loss of the motorcycle and/or the inability to obtain another loan in the near future.
• Some borrowers are naturally more reckless with money due to the nature of the purchase, which can worsen the credit situation if a loan is obtained by an irresponsible person.