Best Motorcycle Loans For Good & Bad Credit

What is a motorcycle loan?

When you take out a motorcycle loan, you do not actually quite own the motorcycle outright, the bank does. The bank is essentially putting a lien on the motorcycle, and if you cannot pay, they can simply take their property back.
If you are looking to avoid this potential situation, no matter how unlikely it is, you can obtain an unsecured personal loan on your own and then use the funds to purchase a motorcycle. This way, if you should ever happen to default on the loan, then you can retain possession of the bike. This does not mean that there may not be consequences for defaulting on the loan. When you qualify for an unsecured personal loan, you are simply asking the lender to trust you to pay back the loan based on your previous track record, credit score, and your income. If you default on an unsecured personal loan, you can face dire consequences including destroying your credit history and potentially being sued.
Aside from secured motorcycle loans and unsecured personal loans, there are other financing options available to purchase a motorcycle. Typically, both motorcycle dealers and manufacturers offer their own types of financing. Those may be good options for you to explore, however, be aware of gimmick financing deals or finance options that include many additional "dealer" fees. It may be a better option to prequalify for a personal loan before you start to motorcycle shop so that you can set a budget and easily compare rates with the rates that the dealers and manufacturers offer.

What are current motorcycle loan rates?

Current motorcycle loan rates vary greatly depending on the lender and what the borrower qualifies for. There are many credit unions that are offering extremely low-interest rates on motorcycle loans if you are a member. However, if you are not a member of a credit union, then you can expect motorcycle loans through online lenders to start somewhere between 3.5% and 4.5%. Again, these rates are for secured motorcycle loans and the lowest rates are reserved for borrowers with the best credit scores and can vary.
When it comes to using an unsecured personal loan to finance your motorcycle purchase, rates can range anywhere from 3.5% to 36% depending on your credit score.

What is the best way to finance a motorcycle?

The best way to finance a motorcycle depends on your financial situation. If you have excellent credit, then you should have plenty of options. You should compare what a dealer can offer verus what your bank or credit union can offer. In some cases, your bank or credit union may even finance a private party purchase. Similar to a car loan, most lenders will have requirements to qualify for the loan. They may also have requirements the motorcycle must meet. If the motorcycle you want to purchase does not meet the requirements you may need to use a personal loan.

Is it worth getting a loan for a motorcycle?

If you truly are looking to purchase a motorcycle, then yes, it may be a good idea to get a motorcycle loan. Motorcycle loans are a great way to fund your purchase upfront and pay off the bike over time. If you have enough cash on hand to pay for the motorcycle yourself, paying cash is almost always the cheapest way to finance any large purchase.

What is a good credit score for a motorcycle loan?

If you want access to lenders who offer the lowest rates and the best incentives, then you should have a minimum credit score of 680. Some lenders who offer lower rates and zero-fee loans require a higher credit score to qualify. However, if you simply just want to qualify, then a minimum credit score of 600 may be required by most online lenders for a motorcycle loan. If you do qualify for a motorcycle loan with a credit score of 600, you may be subject to higher interest rates and more fees.

What is the lowest credit score to buy a motorcycle?

Ideally, you should have a minimum credit score of 600 to qualify for a motorcycle loan or an unsecured loan to pay for a motorcycle purchase. There are some lenders who may work with someone with a score as low as 560, however, the interest rates and fees that may come with that loan may become extremely expensive. If you are looking for lenders with the best rates, then a credit score of 680 or above is ideal.

Is a motorcycle loan a personal loan?

Yes, a motorcycle loan is considered a secured personal loan. If you fail to make your payments and eventually default on the loan, then the lender has the right to seize the motorcycle and sell it to recover its losses.

Is motorcycle financing hard to get?

No, motorcycle financing is not hard to get. There are plenty of lenders who work with people to purchase motorcycles whether it is a bank, credit union, online lender, dealership, or manufacturer. As long as you have a decent credit score and the income to make the monthly payments, there are plenty of finance options out there.

How do I finance my first motorcycle?

Depending on your credit situation, you can either get a loan from your bank or credit union, an online lender or work with the dealer or manufacturer to finance your first motorcycle. If this is your first motorcycle and you lack a credit history, you may need to find a co-signer who is willing to help you finance your motorcycle purchase.

Can you get a personal loan for a motorcycle?

Yes, there are both secured and unsecured personal loan options available to help with the purchase of a new motorcycle. Getting a personal loan for a motorcycle may be a smart way to make your purchase because you can pre qualify before you shop to know what your budget is going to be.

Can you finance a motorcycle with a 500 credit score?

Even with a credit score of 500, you may be able to finance a new motorcycle, however, you may have better chances working with the dealership or manufacturer than working with a bank or credit union. Online lenders may still be an option, however, most lenders start their minimum credit score requirements at around 600.

Can you get a motorcycle loan with a 620 credit score?

Yes, there are some lenders who can offer a motorcycle loan to someone with a credit score of 620. You may need to pay higher interest, however, if you are looking to purchase a new bike, then you should be able to with a credit score of 620 as long as you have the income.

What is the minimum down payment for a bike?

Some dealers and manufacturers would like to see a 15% to 30% down payment on a new bike purchase, depending on the cost of the bike and your credit score. When it comes to using a personal loan, down payment requirements vary by lender. In most cases, personal loans do not require a down payment.