Best Bad Credit Motorcycle Loan 2025 – If buying a motorcycle outright isn’t possible, financing it through a loan can be a practical alternative. Some motorcycle manufacturers offer low-interest financing options, which may be worth exploring if you meet their eligibility requirements. You can also consider a personal loan, either secured or unsecured, from a bank, credit union, or online lender.
To make the best choice, take time to understand how different types of motorcycle loans work. Comparing loan offers from multiple lenders can help you secure a lower interest rate and choose the option that best fits your financial situation.
First Tech
First Tech Federal Credit Union may not be the best option for financing older motorcycles, but it is a strong choice if you’re looking to finance a new or fairly recent used bike. Whether you’re applying for a new loan or looking to refinance, First Tech offers some of the lowest interest rates available, especially for newer models.
One advantage is that you can finance up to 100 percent of the motorcycle’s value, which provides flexibility if you don’t want to make a large down payment. While this is slightly less than what you might find with auto loans, it’s fairly standard in the motorcycle loan market.
To access a loan through First Tech, you must become a member. Membership is open to anyone through a one-time $8 donation to the Financial Fitness Association, along with a $5 deposit to open a savings account with First Tech.
Pros:
- Competitive rates, especially for new motorcycle loans
- Minimum loan amount as low as $1,500
- Solid customer satisfaction rating (4.6 out of 5)
Cons:
- Will not finance motorcycles older than five years
- Membership with the credit union is required to qualify
Upgrade Personal Loan
Upgrade, founded in 2017, offers online and mobile banking services with a strong focus on accessible personal loans. Since its launch, the platform has provided over $3 billion in credit to more than 10 million applicants, making it a growing presence in digital lending.
Upgrade is a helpful option for borrowers with less-than-perfect credit, even though its maximum APR tends to be higher than those offered by some competitors. Loan amounts start at just $1,000 and go up to $50,000, giving borrowers flexibility based on their needs. Repayment terms range from two to seven years.
The platform charges an origination fee between 1.85 percent and 7.99 percent of the loan amount. Borrowers may also incur a $10 fee for late payments or failed transactions. However, there is no prepayment penalty, so you can pay off your loan early without added cost.
In addition to personal loans, Upgrade offers a mobile app that makes it easy to track balances, make payments, and manage account information. Borrowers also have access to Upgrade’s Credit Health tool, which helps monitor credit scores throughout the life of the loan.
Pros:
- Accepts borrowers with lower credit scores
- Loans can be used for business-related expenses
- Offers direct lender payoff for debt consolidation
Cons:
- High maximum APR compared to some lenders
- Charges fees for origination, late payments, and failed transactions
Universal Credit
Universal Credit is an online platform that connects borrowers with personal loan options through its lending partners. It offers loan amounts ranging from $1,000 to $50,000, with repayment terms of three, five, or seven years.
This platform is especially useful for borrowers who may have less-than-perfect credit, as it provides more flexible approval criteria compared to some traditional lenders. However, there are a few important details to keep in mind.
Universal Credit loans come with relatively high annual percentage rates, which may result in higher borrowing costs. In addition, the platform applies an origination fee between 5.25 percent and 9.99 percent on every loan. This fee is taken from the loan amount before funds are disbursed, so it’s important to calculate how much you actually need and adjust your request accordingly.
On the upside, borrowers can receive funds as soon as the next business day. There is also no penalty for paying off your loan early, which can help reduce the total interest paid over time.
Pros:
- Easier approval for borrowers with lower credit scores
- Fast funding, often available by the next day
- No fees for early repayment
Cons:
- Higher interest rates than many competitors
- All loans include a 5.25% to 9.99% origination fee
LendingClub
LendingClub, founded in 2007, is one of the most well-known peer-to-peer lending platforms. As a marketplace lender, it connects borrowers with investors and has funded over $55 billion in personal loans. The platform has served more than 3 million customers and operates in nearly every U.S. state, with the exception of Iowa and U.S. territories.
While LendingClub does have a higher range of annual percentage rates and does not offer a discount for automatic payments, it remains a solid option for borrowers who need flexibility with loan amounts. You can borrow as little as $1,000, which helps avoid taking on more debt than necessary. The maximum loan amount is $40,000, which is higher than what some other platforms allow.
Loan terms range from two to seven years, offering moderate flexibility compared to other lenders. LendingClub applies an origination fee between 2 and 6 percent, which is deducted from the loan before it is disbursed.
One standout feature is the platform’s balance transfer loan option, designed specifically for debt consolidation. LendingClub can make direct payments to more than 1,700 third-party creditors, saving you the hassle of managing payments on your own. You can also choose how much of your loan should go toward each account.
Pros:
- Offers direct payments to third-party creditors for debt consolidation
- Allows co-applicants
- Available to borrowers with fair to excellent credit
Cons:
- Charges origination and late payment fees
- Limited options for loan terms
- Higher interest rates compared to some competitors
Roadrunner
Getting approved for a motorcycle loan can be more challenging if you have a low credit score. However, Roadrunner Financial offers a more accessible path for borrowers with less-than-perfect credit. The platform considers applicants with credit scores starting as low as 550, making it a useful option for those who may not qualify elsewhere.
With Roadrunner, you can pre-qualify without affecting your credit score. This allows you to view potential rates and loan terms before committing to a full application. If the terms meet your needs, you can use your loan offer at the dealership, which gives you added flexibility and may help with price negotiations since you are not limited to dealer-arranged financing.
Loan amounts start at $2,000, and the minimum annual income requirement is also $2,000, making it relatively accessible for many buyers. However, it’s important to note that Roadrunner does not currently offer refinance loans and may not support purchases from private sellers, as this information is not clearly disclosed.
Pros:
- Accepts credit scores as low as 550
- Loan amounts start from $2,000
- Pre-qualification does not impact your credit score
- Minimum annual income requirement is only $2,000
Cons:
- Refinance loans are not available
- May not support financing for private-party motorcycle purchases
How Do Motorcycle Loans Work?
Motorcycle loans are designed to help you purchase a bike when paying the full cost upfront is not possible. These loans allow you to borrow a specific amount from a lender and repay it over time in fixed monthly installments, including interest.
The terms and interest rates of a motorcycle loan depend on several factors. These include the lender, the loan amount, your credit score and income, and whether the loan is secured by the motorcycle or is unsecured.
Secured vs. Unsecured Motorcycle Loans
Secured motorcycle loans typically come with lower interest rates. This is because the lender uses the motorcycle as collateral, reducing the risk involved. These types of loans are often available through banks and credit unions. Some secured loans may require a down payment, which can lower your loan amount and the total interest paid.
In contrast, unsecured loans do not require collateral. Instead, approval is based on your credit profile. Because the lender takes on more risk, the interest rates may be higher. Unsecured loans are commonly offered by online lenders, and many allow you to pre-qualify without affecting your credit score.
How long are most motorcycle loans?
Most motorcycle loans range from 24 to 72 months (2 to 6 years).
Can I get a long-term loan with bad credit?
Yes, some lenders offer long-term loans to borrowers with bad credit, but the interest rates may be higher.
Which loan company is best for bad credit?
Roadrunner Financial and Avant are among the best options for borrowers with credit scores as low as 550.
