David Allan

Expertly compared by David Allan

Products Updated May 10, 2018

Bike Loans With Bad Credit

If you have a history of adverse or bad credit and now require a bike loan to buy a bike then our experts can help. They have access to a wide range of lenders who are willing to loan against motorbikes despite your credit history or low credit score.

1 providers expertly compared:

Learn More
All credit types
Rated 5.0/ 5

CarFinance247 Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £250,000

Representative APR
6.9%

Loan Term
1 - 7 years

Loan Type
Vehicle Finance Broker

Status
Homeowners & Tenants

Finance for cars, motorbikes, vans and motorhomes. We make the process hassle-free & provide the customers with a helping hand throughout. Our aim is to get the best possible finance deal, whilst providing an efficient service of the highest quality.

Representative Example

How to get Bike loans with bad credit

Expect to pay higher rates if you have poor credit

Expect to pay higher rates if you have poor credit

Do you want to purchase a new motorbike but you are struggling to find a suitable loan? If you have bad credit, then you may struggle to get a motorbike loan from a bank or building society, and you may also have been refused by the lender usually promoted by the motorbike seller. This can leave you with few options for raising the loan, and so you may need to do a little more research than others in order to find the perfect loan for your bad credit and your ability to repay the loan. You may try by researching companies offering motorbike loans for a range of people who can't get the standard loan.

What sort of people are accepted?

There are a range of people who suffer bad credit ratings which rules them out of the traditional bike loan from the bank. These include those who are discharged bankrupts (those where a length of time has lapsed after being declared bankrupt) and those with previous IVA agreements; people who have defaulted on previous loans, or have had homes and personal items repossessed by CCJ orders; the self-employed, or those who cannot prove their earnings such as the recently returned ex-pat, and those who have had credit card defaults which have caused them to receive a very harsh credit rating. All of these people struggle to raise a bike loan, and this means that there options are limited. However, there are companies available who are willing to offer loans to all of these individuals, and often provide fast turn-around application and agreement times.

Researching loan companies

If you want to buy a bike with bad credit, then the best thing to do is start looking for companies offering motorbike loans to those who are not eligible for bank or commercial company loans. When you are looking at the companies, and comparing the types of loans which are available to you, it is important to consider several different elements. Firstly, you should look at the agreement process, and see what it entails. Some lenders fast-track bad credit loans, or require that you submit your application alongside a guarantor, who will establish that you are able to repay the loan. Secondly, you should look at the relationship between the lender and the bike seller. Some traders only want to deal with customers who have loans from well-established lenders, and may also be reluctant to trade with buyers who are not eligible for their own loan agreements. Thirdly, you need to consider whether the lender will be able to offer you a reasonable interest rate on top of the total loan debt. Buying a bike using a high-interest rate loan is not going to help you to recover your bad credit, as it may force you into defaulting on this loan, meaning that you lose the bike and your current credit rating.

Despite the risks involved with taking out a motorbike loan with bad credit, if you can manage to meet the payments on the loan, you may find that your credit score improves, opening up further loans in the future. You could improve your finances with a bad-credit specific loan, and you may also be able to own your own bike, which can stand as security for later, large

 

FAQ's

I have a bad credit, do I need a credit check to get a loan?

Yes. However, any history of adverse or bad credit will be taken into consideration by the lender. The lenders on our panel are used to dealing with customers will a low credit score.

I have settled CCJ's can I still get a loan?

Yes. The lenders on our panel accept past and settled CCJ's on credit file.

I am a discharged bankrupt, will this effect my loan?

Being a discharged bankrupt may limit the amount of lenders that are open to you. However the lenders on our adverse credit panel will be happy to consider you application. They will consider your credit record as a whole.

I have missed loan payments in the past, how will this effect my chances of getting a loan?

Missed loan payments will limit the amount of lenders who will be willing to accept your loan application. However, the lenders on our adverse credit panel will still consider your application.

Do I need to show proof of income to get a loan?

Yes. You will need to show adequate proof of income. This may be in the form of payslips if you are employed, or SA 302 forms if you are self employed either as a sole trader or company director.

How much will I be able to borrow?

Most unsecured loans have a maximum lending limit of £25,000. If you are looking for a larger loan then you may wish to consider a secured loan or homeowner loan as they are also know as. A secured loan will require security such as your home in order to take out the loan.

Will taking out a loan help build my credit rating.

If you make your loan repayments on time each and every month then yes this will positively effect your credit rating and increase your credit score.

Can I get a loan while self employed?

Yes. Being self employed is not a problem as long as you can show proof of income from your business as either a sole trader or company director. Many lenders will request to see SA302 documents from HMRC which show your income for the financial year. You may also be asked to provide business accounts or verification from your accountant.

Can I get a loan from a direct lender?

Yes. Our adverse credit panel consists of both direct lenders and brokers. If you are unsure of who may be the most suitable direct lender, then we recommend you use the services of a broker who will be able to assess your application and place your application successfully with a lender.

I have defaulted on some past loan payments can I still get a loan?

Yes. There are a number of lenders who will consider your application if you have missed previous loan payments or even have CCJ's on your credit file.

We are independently reviewed by our verified customers and web users:
Rating: 4.6 / 5 with 27 votes

Lending Expert is a credit broker and comparison website, we're not a lender.

We bring together the very best financial providers and products from across the market place.

Warning: Late repayment can cause you serious money problems.
For help, go to moneyadviceservice.org.uk