Wondering how to get a motorcycle loan with bad credit in Canada? Many banks, credit unions, and online lenders offer low motorcycle loan rates for individuals with fair to bad credit ratings. Explore many options for finding the perfect motorcycle loan for you.
Don’t let poor credit scores prevent you from enjoying the open road on your motorcycle. Receive low monthly payments and affordable APRs by contacting motorcycle manufacturers and a local motorcycle financing company in Canada.
Keep reading to learn the tips for securing the best motorcycle loan.
Tips for Getting a Motorcycle Loan with Bad Credit
If you have poor credit, you may think motorcycle loans are unavailable to you. However, many financial institutions and online lenders frequently offer motorcycle loans to individuals with less-than-perfect credit.
Follow the tips below to increase your chances of receiving financing for your next motorcycle purchase:
Large Down Payment
Consider paying 25-50% of the total value of the motorcycle as a down payment. High down payments signal financial stability and reliability to lenders offering motorcycle loans. The higher the down payment, the lower the monthly payments and interest rates.
Credit reports may not accurately depict your financial standing. High down payments showcase your willingness to pay off the motorcycle loans and confirm your financial strength. If you can’t afford to pay at least 15% of your down payment, save more money before seeking motorcycle loans.
Explore Your Options
Online lenders offering low-rate motorcycle loans exist abundantly on the internet. Before filling out the first loan application you find on the internet, consider the many institutions offering motorcycle loans.
Options for how to get a motorcycle loan with bad credit include:
- Online lenders
- Motorcycle manufacturers
- Motorcycle dealerships
- Credit unions
- Personal loans
Shop around various marketplaces until you find a monthly payment and interest rate suited to you. Speak with your existing bank as well since they thoroughly understand your financial situation. The financial departments of motorcycle dealerships work with customers to find the most affordable financing options for you.
Improve Your Credit Score
High credit scores improve your chances of securing low monthly rates for your motorcycle loan. Spend 30% of your total credit limit every month and always pay the entire balance of your credit card each month.
Other strategies for improving your credit include:
- Never “max out” your credit card
- Avoid closing credit card accounts
- Always make payments on time and in full
- Inquire about increasing your credit limit
Explore websites such as Experian and Equifax to resolve credit score errors. Unauthorized accounts opened in your name or incorrect information posted to your account may impact your credit score.
Trust Canada Powersports Financing for All Your Motorcycle Loan Needs
Canada Powersports Financing teaches customers how to get a motorcycle loan with bad credit. Our agents work diligently to provide affordable loan options for motorcycle enthusiasts.