Bad Credit Bike Loans

Perhaps you’ve defaulted on payments before, gone bankrupt, or faced any financial difficulty that took its toll on your credit rating. This can severely hurt your chances of securing loans in the future. In fact, you might have applied for bad credit personal loans guaranteed approval, but were rejected because of your bad credit.

This may lead you to abandon hope of getting that motorcycle you’ve been meaning to buy, but perhaps there’s still a way. And yes, we’re talking about bad credit bike loans, so let us help you make an informed decision regarding them.

What Are Bad Credit Bike Loans?

This type of personal loan is a means of funding for those who have a hard time receiving it due to their bad credit history, whether that be the product of credit defaults, bankruptcy, or part IX debt agreement. The loan amount is repaid with interest over a loan term that can range from 1 to 7 years, but 2 to 3 years is more common.

You can expect bad credit bike loans, like other quick cash bad credit loans, to have higher interest rates than other types because lenders are taking quite the risk, and high interest rates compensate for that risk. Aside from higher interest rates, additional fees may include monthly fees, default fees, and maximum establishment fees.

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Besides, you’ll have to consider whether to choose a fixed or variable interest rate, as you’ll find both for motorbike loans, bad credit. Of course, you can use a $5000 loan bad credit to buy new or used bikes, and you can deal with private sellers or dealers too.

Tip: To find the best loan offers, compare interest rates, loan fees, loan terms, comparison rates, and repayment amounts and schedules.

Can I Apply for a Bad Credit Bike Loan?

To qualify for a bad credit bike loan, you have to fulfil the following criteria:

  • Be 18 years old or over
  • Be an Australian citizen or permanent resident
  • Have a sufficient, steady source of income
  • Have no other personal loans or outstanding debts
  • Have a checking account from a UK based bank

How Do I Increase My Chances of Getting a Bad Credit Motorcycle Loan?

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Certain aspects draw lenders’ attention when they evaluate applications for bad credit motorcycle loans.

Capacity

Capacity refers to your ability to pay back a specific bike loan. Bad credit loans providers assess your income and expenses. Consequently, if you say “I need $30000 loan“, they may realize this is more than you can afford. They’re legally obliged to reject your loan application so as not to put you in further debt.

Character

This is tricky because your character is concerned with your intention to repay a loan. Of course, bad credit certainly doesn’t help, but we understand that financial difficulties happen and that you deserve to be given the benefit of the doubt, regardless.

Collateral

If this is a secured personal loan bad credit, the lender will ask you to use the motorbike as security or collateral. This has a couple of implications. If you fail to repay the loan, the lender can claim ownership over the property presented as collateral (the motorbike in this case). Then, the lender can sell this property to pay off the defaulted payments. Many bad credit loans require a collateral to secure a loan.

no credit check bike loans

This also means that the lender is taking less of a risk and will, thus, charge less interest on this secured loan than on an unsecured one and grant you a longer loan term.

Capital

This capital can be in the form of a deposit on the bike, demonstrating to the lender that you have savings. Accordingly, you have the means to repay the loan too. Moreover, it’d be easier to secure a loan since you’re not expecting the lender to provide 100% of the motorbike’s costs.

Conditions

If you receive a bad credit bike loan and repay your loan on time, you may be upgraded to the correctible credit category and slowly improve your credit score. This will be a good way to improve a loan bad credit history.

bad credit motorcycle loans

This will provide you with the conditions necessary to secure a better loan. As mentioned, your loan may have high interest rates, so you could potentially hire a broker to refinance your initial loan into a lower interest loan.

Guarantor

Adding a guarantor to your loan application can make all the difference. If a family member with better credit is willing to be your guarantor and pay the loan should you default on a payment, this further reassures the lender that they’ll receive their owed money.

How Much Is a Bad Credit Bike Loan?

The loan amount is determined according to your financial situation, salary, expenses, savings, and more. It may be up to $5000 and even $10000 depending on your ability to fulfil specific criteria.

Should I Choose a Bike Before Applying for a Bike Loan?

motorbike loans bad credit

There isn’t a definitive answer to this. If you have no idea how much money you’ll be able to borrow, you might not know which bikes are within your range, so you wouldn’t know where to look. However, if you have a bike in mind, let your loan providers know to discuss your options with them.

Do I Need to Purchase the Bike From the Loan Providing Service?

No, you’re allowed to source your own bike, but the loan service may provide a collection of bikes for you to choose from, if you want, with competitive rates and specs.

Are No Credit Check Motorcycle Loans Available?

bike loans bad credit

Perfect Payday matches you with a lender. And it’s according to the lender’s assessment policy that a credit check is conducted or not. Thus, we can’t guarantee that no credit checks will be done on people requesting bad credit personal loans, but we do promise to consider factors other than your credit score when evaluating your circumstances.

Conclusion

Overall, you can consider quick cash bad credit bike loans to buy a new or used bike if you have a less-than-ideal bank history, through a dealer or private seller. Of course, bad credit implies high interest rates and on unsecured loans more than secured loans.

To secure a bad credit bike loan, make sure you fulfil the eligibility criteria and work on improving your loan application as we’ve illustrated. You might just find yourself hitting the streets on your new wheels! If you’re asking yourself whether we also can provide no credit check boat loans, check out the previous link in order to learn more.

Of course, we also provide vehicle loans. If you are looking for a no credit check car loan Australia, you can apply here. That includes truck loans, if you are in need of no credit check truck loans.

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

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