Searching for a motorcycle loan? Below we’ve highlighted some helpful tips and tricks to boost your chances for loan approval! 

Show lenders you’re not a risk 

Lenders are always looking at your ‘risk’ as a borrower or the likelihood that you’ll default on the motorcycle loan. Demonstrate that you’re an excellent borrower by having a good credit rating, solid savings, and minimising your existing debt. 

Having stable employment or a reliable source of income also puts lenders’ minds at ease. You will stand a better chance of obtaining approval if you can demonstrate uninterrupted employment over a long period of time. 

It’s all about making sure lenders know that you’re able to pay back the loan plus interest without a problem. You could also get a better deal on your motorcycle loan when you show lenders that you’re not a risk. 

Improve your credit score 

If your credit score has seen better days, take the time to improve your credit score. Here are a few ways to boost your credit rating: 

  • Correct any errors on your credit report. Request your credit report from a credit bureau and study it carefully. If you find any mistakes, have them corrected immediately. 

  • Pay your bills, loans, and credit cards on time. Late payments not only decrease your credit rating, but it shows lenders that you’re not responsible when making payments. 

  • Settle any outstanding debt. Prioritise paying off overdue debt before applying for a motorcycle loan. 

  • Limit your loan applications. Every loan application causes a hard enquiry on your credit which decreases your credit score. Having too many loan applications in a short period could affect your credit rating significantly. 

You won’t be able to boost your credit rating overnight. But if you’re not in a rush to buy a new motorcycle, doing the suggestions above is a great way to get good bike finance. 

Figure out a reasonable budget 

Going above your means could hinder your motorcycle loan application. You need to choose a figure that’s realistic and suits your means. Look into your finances to figure out how much you can comfortably afford. Remember, applying for a bike loan that’s way above your means could increase the chances of rejection. 

Aside from the total cost of the bike loan, you should also consider the potential repayments. Using an online motorcycle loan calculator, you can easily estimate your loan repayments. These calculators are great when you’re figuring out a budget. 

Compare loans from different lenders 

Shop for the best deal. Ask lenders about their interest rates and loan products. You could also bargain for a better deal. Talking to different loan providers can give you a better idea of what finance solutions are on the market and help you negotiate a better loan. 

Take note, many financiers offer a low rate but fail to mention ongoing fees. This means you could end up paying more for a loan even if it has lower interest rate because of the high fees. 

Get help from an expert broker like Aussie Bike Loans 

Applying for a loan with Aussie Bike Loans is the easiest and most convenient way to get a motorcycle loan. Instead of shopping around and comparing loans yourself, Aussie Bike Loans will do all the heavy lifting for you! We’ll talk to our network of lenders and find a motorcycle loan that suits your needs. 

All you need to do is apply online or get in touch by calling 1300 889 669. Getting the perfect bike loan isn’t difficult with the right help! 

FAQ 

Can you get a loan to buy a bike? 

If you want to buy a bike, but don’t have enough funds, you can apply for a motorcycle loan. These loans are a type of personal loan that’s used exclusively for buying motorcycles. 

Which finance is best for a bike loan? 

It depends on your financial situation and what you want out of your loan. A secured bike loan may offer lower rates and better loan features. However, if you fail to make repayments, your motorcycle could be repossessed.  

An unsecured loan, on the other hand, doesn’t require any assets to be put up as collateral. However, these loans could have higher rates and less favourable terms. 

What is a good credit score for a bike loan? 

A credit score of 600 or above gives you a good chance of getting approved for a loan. You can improve your chances for loan approval by improving your credit score. 

How to calculate repayments on a bike loan? 

Use an online motorcycle loan calculator to see what your potential bike loan repayments would look like. This calculator is based solely on the data you input. 

What is a good interest rate for a bike loan? 

The average interest rate on a bike loan is somewhere between 6% and 7% (as of writing). The interest rate you get depends on a few factors such as your credit score, the amount you want to borrow, how long your loan term is, and more. It’s best to consult a broker for more information about bike loan interest rates. 

How to calculate total bike finance interest? 

An online motorcycle loan calculator is a useful tool not only for figuring out possible repayments but also for calculating the overall interest on a loan. 

How much to finance a motorbike? 

It depends on what motorbike you’re buying and the interest rate of your car finance. Usually, if you have a high interest rate or a long loan term, you’ll be paying more over the life of the loan. 

Can you get a bike loan with bad credit? 

Yes, you can still get a bike loan even if you have poor credit. There are loans specifically for people with bad credit scores called bad credit bike loans or second chance bike loans. Get in touch with Aussie Car Loans for more information.