Motorcycle Financing With Bad Credit

Buying a new motorcycle can be a life-changing experience. However, if you have bad credit, your loan options become more limited and expensive. According to the credit reporting company Experian, a FICO® Score lower than 580 is “very poor” credit. A credit score between 580 and 669 is “fair.” 

In this article, we take an in-depth look at motorcycle financing if you have bad credit, the financing options you have available, and crucial considerations to help you make an informed decision.

Types of Lenders

Even with bad credit, various types of lenders will likely be willing to offer you a loan. Before committing to a loan, do your homework to ensure that your interest rates are as low as possible and that you are comfortable with the loan terms.


If you are looking for a motorcycle loan, it might be worth approaching the bank where you have your checking and savings accounts and finding out what offers are available. However, most banks don’t offer loans to clients with bad credit.

Credit Unions

Credit unions often offer relatively low average annual percentage rates (APRs). Unlike banks, credit unions are nonprofit organizations, and their loan offers are generally available to individuals with poor credit scores. If you need motorcycle financing with bad credit, approaching a credit union might be your best option.

Dealership Lending Networks

The dealership where you want to buy a motorcycle might be a viable financing option. Dealerships are not credit providers, but they often have a network of bad credit lenders who offer auto loans. After collecting offers from credit unions or party lenders, send them to the dealer and ask if one of their lender partners can offer better terms.

Manufacturer Financing

Many high-end motorcycle manufacturers have in-house financing companies that offer low APR rebates and loans to clients. Examples of these financing companies include Yamaha Motor Finance from Yamaha and Eaglemark Savings Bank from Harley-Davidson. 

Generally speaking, these lenders only offer loans to clients with very good or exceptional credit scores.

Online Lenders

Online lenders can be a viable motorcycle financing option if you have bad credit. These lenders don’t have the same overheads as brick-and-mortar credit providers, and their loans are typically available to bad-credit applicants. Online lenders often offer fixed rates, and you can complete the entire application processes online, which is convenient. 

Other Financing Options

Bad-credit motorcycle buyers often consider in-house financing, or buy-here, pay-there companies. However, this type of credit is usually expensive and not ideal. 

You can also look at a bad credit personal loan instead of a bad credit motorcycle loan. You can expect to pay a higher interest rate and fees with a personal loan. 

If you own property, you can consider a home equity line of credit (HELOC). When taking out this type of secured loan, you use your property as collateral. If you default on your repayments, the lender might be eligible to repossess your property to pay the debt.

Other Options for Buyers with Bad Credit

Motorcycle financing with bad credit might not be an option. For example, interest rates might be too high for the loan offers to make financial sense. In this case, you have several other options to make the motorcycle purchase possible: 

●        Improve your credit score: Examine your credit report for incorrect information and dispute inaccuracies. You can also become an authorized user of someone else’s credit card with a good history. 

●        Pay off your debt: Paying your card debt or other revolving credit can quickly change your credit utilization rate, making it easier to get motorcycle financing. 

●        Ask someone to cosign: If you have a friend or a family member with good credit, ask them to cosign your loan. Keep in mind that your cosigner will have a legal obligation for the debt, and a default on loan repayments can reduce their credit score. 

●        Pay cash: Paying cash eliminates the cost of credit, such as interest and fees. If you are eager to get your hands on a new bike, consider selling another vehicle or high-ticket items you don’t use. 

Contact Law Tigers for Motorcycle Accident Claims

Once you become a motorcycle owner, your next challenge is staying safe on the roads. However, if you are the victim of a motorcycle accident resulting from a third party’s negligence, you might be entitled to compensation. 

At Law Tigers Motorcycle lawyers, we can help you navigate the claims process. Call us today at 1-800-529-8443 to schedule a consultation with a motorcycle attorney near you.