Bad Credit Motorcycle Loans
Don’t let a bad credit history prevent you from buying the motorcycle of your dreams. Before you start shopping for a motorcycle loan, it’s important to know your credit score. If your credit score is in the “very poor” range, or a FICO Score below 580, or “fair” with a score between 580 and 699, you may be looking for a bad credit motorcycle loan.
We’ll talk about how to find a lender that offers motorcycle loans for bad credit and what to do if you don’t qualify.
Bad credit motorcycle lenders
Your credit score plays a big part in determining your creditworthiness for a motorcycle loan. The higher your credit score, the more likely you are to qualify for a lower APR and favorable terms. Lenders consider borrowers with low credit scores to be at a higher chance of defaulting on the loan and will charge a higher APR to offset the risk.
Here are some lenders that offer motorcycle loans to consumers with bad credit.
| Starting APR | Loan terms | Minimum credit score | |
|---|---|---|---|
 | 8.65% | Up to 60 months | 550 |
 | 5.99% | 24 to 72 months | 600 |
 | 8.49% | 24 to 84 months | 580 |
 | 6.70% | 36 or 60 months | 300 |
Consumers Credit Union offers loans for new and used motorcycles with terms up to 60 months (five years) and APRs starting at 8.65%, which includes a 0.25% rate reduction for automatic payments. To get a motorcycle loan, you must become a member of the credit union by paying a one-time $5 fee to the Consumers Cooperative Association and making a minimum $5 deposit into your account. Read our full Consumers Credit Union review.
myAutoLoan is a lending marketplace that will provide up to four motorcycle loan offers from partner lenders. If you are looking for a bad credit motorcycle loan, start by getting prequalified, which won’t hurt your credit score. This company prefers borrowers with credit scores of 600 or higher, but the lenders that extend loan offers will have the final say. Read our full myAutoLoan review.
Upgrade is a lending marketplace that offers personal loans up to $50,000 that you can use for any purpose, including buying a motorcycle. The APR includes an origination fee — a one-time administrative fee — of 1.85% - 9.99% of your total loan amount. You can select payment terms that fit your budget and timeline, and there is no penalty or fee for paying off a loan early. Read our full Upgrade review.
Upstart offers unsecured personal loans from $1,000 to $50,000 to borrowers with all types of credit. In addition to your credit score, Upstart also considers other factors such as education and employment. While you may qualify for a loan with bad credit, you’ll likely have to pay a higher interest rate. Plus, Upstart charges an origination fee of 0.00% - 12.00% that is deducted from your loan proceeds. Read our full Upstart review.
Types of bad credit motorcycle financing
As with any financial product, it’s important to compare offers from a number of lenders, including banks, online lenders and dealer financing.
- Credit unions: The National Credit Union Administration (NCUA) reports that credit unions routinely offer lower average APRs than banks on a wide range of loan products. Credit unions are nonprofits and are generally more willing to work with those who have poor credit. Many credit unions only require a nominal fee to join.
- Online lenders: Online lenders make it easy to apply for a loan from the comfort of your home. Since they don’t have as much overhead as brick-and-mortar businesses, they are sometimes able to pass the savings on to their customers (but namely to those that have good credit or better).
- Banks: Some banks may not offer motorcycle loans or may not be willing to work with someone with poor credit. But if you already use a traditional bank for your day-to-day finances, it’s worth asking about suitable loan options.
- Personal loan: It may be easier to get a bad credit personal loan than a bad credit motorcycle loan. However, you may pay a higher interest and more in fees, since most personal loans are unsecured. Many personal loan lenders, like Upgrade, charge an origination fee based on the amount borrowed. Many motorcycle loans don’t have an origination fee but are likely to require a down payment.
- Dealership financing: Many motorcycle dealerships partner with a network of lenders and may be able to help you find a lender that works with bad-credit borrowers. After receiving preapproval offers from other lenders, you can ask the dealer if their lenders can offer you a better deal.
- Manufacturer financing: Motorcycle manufacturers sometimes offer special low-APR financing deals, but these are usually reserved for borrowers with excellent credit. It may be harder to find a bad-credit motorcycle loan with the manufacturer’s financing company, like Yamaha Motor Finance or Eaglemark Savings Bank, the financing arm of Harley Davidson Financial Services.
- Buy-here, pay here: Also known as in-house financing, buy-here, pay-here financing is usually the highest-cost option and may include the maximum legal interest. It’s best to find another option or postpone your motorcycle purchase until you can qualify for another type of bad-credit motorcycle loan.
What to do if you don’t qualify
If you want to buy a motorcycle but your credit score is too low to qualify, you still have options.
Pay cash
If you have cash on hand, consider buying a used motorcycle that costs less than a new one. Depending on where you live, you may be able to find a used bike for around $3,000. By paying cash, you can avoid interest and fees and start riding sooner.
Improve your credit
Before applying for any new financing, it’s important to tune up your credit score. Check your credit report carefully and dispute any incorrect information. If you don’t have much of a credit history, follow these tips on building your credit score. If you’ve had some bumps along the way, you can improve your credit score by reducing debt and paying bills on time.
Use a cosigner
Consider asking someone with good credit to cosign your motorcycle loan. Your cosigner should understand that they are legally responsible for the loan if you fall behind on the payments. Any late payments will hurt both of your credit scores.
Frequently asked questions
There’s no minimum credit score required to get a motorcycle loan — but the better your credit score, the lower the APR you will qualify for with less interest paid over the life of the loan. The best APRs are usually reserved for borrowers with excellent credit. If you have a poor credit score, you can expect to pay high APRs.
A down payment of 10% to 20% will reduce the amount you borrow and may make it easier for you to get approved for a motorcycle loan with bad credit. You can use a motorcycle loan calculator to see the difference in monthly payments with and without a down payment.
Harley Davidson Financial Services (HDFS) doesn’t disclose credit score requirements but says that it considers “many factors” when determining your creditworthiness. HDFS does allow joint applications, so if you think you won’t qualify on your own, you may want to consider applying with a trusted co-borrower with strong credit.