What Credit Score Do You Need to Finance a Motorcycle?

Whether you want a motorcycle for your primary commuter vehicle or are looking for an exciting weekend hobby, financing is one of the most common ways to purchase a bike.

Applying for a motorcycle loan can be a bit different, especially if it’s going to be a secondary vehicle. Before you apply, it’s important to learn how lenders will evaluate you and how your credit score can impact the process.

The good news is that there isn’t a universal minimum score requirement. Your credit history plays a major role in the process and will be used to determine whether you’re approved. If you’re approved for a motorcycle loan, lenders also use your score to determine your interest rate.

What credit score do you need to finance a motorcycle? Find out more about motorcycle loan credit score requirements.

What credit score do you need to finance a motorcycle?

There is no single answer because every lender sets its own standards. Most lenders prefer borrowers to have a score in the mid-600s or higher to qualify for favorable rates. However, some lenders finance borrowers with lower scores in the mid-to-high 500s.

Keep in mind that a lower score means less favorable terms. You may even need to put more money down to buy the bike you want.

If your score is below 580, it can be tough to get financed for any vehicle, especially a motorcycle. Keep in mind that your credit score is only part of the decision-making process. A few other factors that lenders take into account include:

• Income
• Employment history
• Existing debt
• Debt-to-income ratio
• Loan amount
• Down payment

Even if your score isn’t perfect, you may be able to qualify for a motorcycle loan with a strong down payment.

Minimum credit scores by lender type

While there are no universal score requirements, there are some trends among different types of lenders.

For example, most dealers work with at least a few lending partners. If you apply through a dealer, they can compare options through their network of lenders, which could help you find a favorable deal. Some dealers even have options for people with lower scores.

Traditional banks and credit unions are other options to consider. Banks tend to prefer “safe” borrowers with strong credit profiles. A local credit union may be slightly more flexible, but the rate may not be as good if your score is on the low end.

Online lenders have become a mainstream choice in the last few years. Shop for online lenders if you are looking for something fast and convenient.

How your credit score affects your interest rate

Your credit score determines whether you get approved and how much you’ll pay over the life of the loan. Borrowers with higher credit scores usually receive lower interest rates, lower monthly payments, and more favorable repayment terms.

If you have a lower credit score but still get approved, it could result in higher interest rates and larger monthly payments.

Can you finance a motorcycle with bad credit?

Yes, depending on what “bad” means to you. Can you finance a motorcycle with a score under 500 and no cosigner? Probably not. Could you finance a motorcycle with a score of around 580 and a strong down payment? Most likely, depending on your income and the cost of the bike.

A lot of factors are at play when you apply for motorcycle financing. Improving your credit first can improve your odds and lead to better loan terms.

Types of motorcycle financing

There are several common types of motorcycle financing options.

Dealership financing

Working directly with the dealer is convenient, and it allows you to compare options from multiple lenders. However, dealers may pressure you to add on products, like extended warranties.

If your preferred lender isn’t one of the dealer’s go-to partners, you might want to skip this option and work directly with the bank or credit union you prefer to use.

Banks and credit unions

Banks and credit unions can be great choices, especially if you already have an account with one of them. If you have a qualifying credit score, you could receive an offer for a favorable rate as well. When you apply for a loan, there is a grace period before your credit is affected so that you can compare rates.

How to improve your credit before financing a motorcycle

If you aren’t in a hurry to buy now, take some time to boost your score first. Here are a few simple ways to improve your odds of approval:

• Check your credit report for errors: Request a free copy of your credit report, check for errors, and dispute any mistakes that are impacting your score
• Pay down existing debt: Reduce your debt-to-income ratio and eliminate recurring monthly payments to strengthen your score
• Build payment history with credit-building tools: Tools like Kikoff make it easy to add positive payment history to your report, which boosts your score over time

These steps can make you a stronger applicant and unlock lower interest rates, which could save you thousands over the life of the loan.

Meeting motorcycle loan credit score requirements

Do you need help qualifying for a motorcycle loan? Focus on building a stronger score with tools like Kikoff. Our platform includes free resources, as well as free and paid tools that can add positive history to your credit report. Sign up for a Kikoff account today.