Bad Credit Bike Finance

Motorbikes are cool, cheaper than driving a car, take up less space, and get you to places quicker. They fill in on everything you could want from an easy mode of self-transportation.

However, motorcycles are rather expensive to get in Australia. So if you don’t have $5000 upwards to spend in one go, you might need to start looking into getting a loan or paying in instalments.

These options become slimmer, however, when you have bad credit. Having a poor credit history will make things much harder as interest rates offered to you will be higher, and some people won’t offer you loans at all.

This is where lending services come in. With a lending service, you can get bike finance, even with bad credit.

What this article covers:

What is a Bad Credit Bike Loan?

bad credit bike finance

A bad credit bike loan is a personal loan awarded to those who are interested in getting a motorbike but have trouble getting loans due to their poor credit history. With such loans, the average repayment term is 2 to 3 years, but it can be anywhere from 1 to 7 years.

Like with other unsecured bad credit personal loans, you can expect the interest rates to be on the higher side. This is because the lender is willing to accept the risk of giving you a loan despite your bad credit.

Although the rates will surely be high, they’ll differ from one lender to another, so you can still choose the best one for you. Your interest rates will depend on factors like your credit history, income, employment stability, and banking conduct.

You may also face additional fees such as default fees, maximum establishment fees, and monthly fees. These are common when applying for small loans, like payday loans. On top of that, you’ll need to make a decision between having your interest rate fixed or variable.

Qualifications to Apply for a Motorcycle Finance on Bad Credit

There are a few criteria you must fulfil to qualify for bad credit bike finance:

  • You must be at least 18 years old
  • You must be a citizen of Australia or a permanent resident
  • You must have a steady source of income that must also be considered sufficient
  • You must have a checking account in a bank
  • You must have no other personal loans or outstanding debts

Tips to Make Getting Approved for Bike Finance Easier

You might have a bad credit history due to having unpaid defaults, discharged bankruptcies, or repossessions. It could also be for having made too many loan enquiries or because you don’t have any credit history at all.

All of these situations can affect your chances of getting approved for a loan, so here are a few ways you can increase your chances of getting second-chance loans.

bike finance bad credit

1. Do What You Can to Improve Your Credit Score

While lending services don’t conduct credit checks on you, the direct lenders you match with might. It won’t work in your favour if a check reveals that you have uncleared loans. 

Clean up where you can before applying by paying your outstanding loans on time and reviewing your credit reports for mistakes. Also, make sure not to apply for multiple loans at the same time.

2. Make Inquiries and Get Quotes

If your credit history is poor because you don’t have enough financial activity, then your situation is fixable. Most lenders will still be sceptical of giving you an urgent loan because they don’t have enough insight into your financial behaviour, so they don’t know how you’ll pay them back. However, some of them won’t care.

In this case, when you apply for motorbike finance, make sure to make inquiries about different lenders and choose one who you know won’t mind your situation.

3. Make an Effort to Save Money

Instead of applying for loans and wondering how you’ll pay them back, you can improve your saving habits and try to set aside a budget for repaying loans. While it won’t be easy, it’ll save you the hassle of being in debt for a long while.

Over time, doing so will help you pay loans faster, which will improve your credit score. Accordingly, you’ll be most likely to get approved for a bike loan.

4. Try Not to Miss Your Repayment Dates

It goes without saying that if you have a history of poor repayments, then lenders will find it harder to approve giving you loans. You should do your best to pay off all your loans when they’re due.

Even if you’re applying for loans as small as $500, $1000, $1500, or $2000, lenders will want to make sure you’re financially responsible before giving you money. 

5. Have a Cosigner With a Better Credit Score

bad credit bike loan

A cosigner is someone who agrees that in the case of your default on payments, they’ll pay what you owe in your stead. If your cosigner has a good credit score, then lenders will be more likely to give you loans because they can trust that your cosigner will pay, even if you don’t.

It’s better if your cosigner is someone you trust and who trusts you as well, such as a family member or close friend. 

Remember that having a cosigner doesn’t mean you shouldn’t try to make your repayments. The loan is ultimately still your own, and even if they pay it off, you’ll still be a defaulter, further sullying your records.

6. Choose a Loan Amount You Can Pay

Lenders will most likely conduct a credit check on you before agreeing to give you a loan. As such, they’ll see your income and expenses.

If you try to take a $25,000 loan, for example, and it isn’t an amount you can feasibly pay back based on your income and expenses, your application will be rejected because, legally, no lender can accept it knowing it’s going to put you in more debt. The same goes for all types of loans, like payday, boat, same-day, holiday loans, and more.

Steps to Get Bike Finance with an Online Lending Service

If you choose to finance your motorbike with online lending services, you can skip out on the long lines and endless cycle of applying only to hear a no. Online lending services will do that for you. All you have to do is follow the following steps.

Step One: Find a Lending Service and Choose Your Loan Amount

You can find a lending service with a simple google search, but you should try to get one that offers you the best loans you can get on bad credit, like OrangeLoans. When you find a site you like, put a loan amount into the loan calculator, and choose how long you want to take to pay it back. Once you’re done, click on the apply button.

bad credit motorbike loan

Step Two: Fill out Your Online Application with the Necessary Paperwork

Clicking the button to apply will take you to the application page, where you’ll need to put in your name, a copy of your driver’s license, your bank account details, verification of a regular source of income, and proof of being at least 18. Some lenders might request more paperwork, especially in the case of large, unsecured loans.

Step Three: Wait for Your Match

With your application filled out, all you have to do is wait. The lending service will take things from there and look for a lender. When they find you a suitable match, the lender will go over your application and approve it.

Once you sign your contract, the lender will reach out to you and send you the money you need. This way, you can find someone to loan you money to pay for your motorbike without stress.

The Benefits of Using Online Lending Services

There are many ways out there to get the financing you need to buy your motorbike, including online lending services. Here are a few reasons why you should opt for them.

Flexibility

Online lending services want to make sure that the loan process is as easy as possible for you. This is why they provide online applications, and some services adjust the repayment methods according to your needs.

For instance, if you’re able to make extra repayments this month or increase your repayment amount, you can reach out to the lender and make it work.

Legitimate Lenders

bad credit motorbike finance

Another difficulty that you’ll run into when looking for a loan for your motorbike is finding legitimate lenders. Unfortunately, scammers are more common than you think, and you might stumble upon them.

Luckily, online lending services only associate with reputable and trustworthy lenders so that when they match you with someone, you can trust that they’re legitimate.

Frequently Asked Questions

What Happens If I Can’t Make My Repayments?

If you find yourself struggling to meet your repayment date, don’t stay quiet and let it pass. Try to reach out to your lender at least 24 hours before the payment is due and inform them of your circumstances. They may be able to extend the repayment date for you. 

If you consistently miss your repayment dates and have a backlog of payments owed, then your motorbike may eventually be repossessed and sold to try to mitigate the lender’s loss.

How Long Does the Process Take?

Usually, online lending services match you with a lender as quickly as possible (in less than a day). After you’re matched, if you choose to go forward with them, then you’ll be in contact with them directly. The process from that point forward is dependent on you and the lender.

Can I Get a Loan for a Car with Bad Credit?

Yes, you can take out a loan to buy or repair a car, but it can’t be a luxurious one. Generally, you can get easy loans of up to $15,000 with online lending services, and they can be for anything from a new car to student loans.

How Much Is the Loan Amount?

bike loans bad credit

The loan amount depends on factors such as your salary, savings, expenses, and the kind of bike you plan to get. Also, it depends on how much the lender is willing to pay you. Most probably, you might be able to get $5000-$10,000.

Conclusion

Having bad credit can be very restrictive, but it doesn’t have to affect your chances of getting loans with online lending services. They bring you quick and easy access to all the financing solutions you need right at your fingertips. Accordingly, your bad credit won’t stop you from getting bike finance.

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