Written by If you’ve struggled with credit in the past, you’ll know that it narrows your options when it comes to financing. However, there are still lenders out there who may be ready to work with you, which is where Savvy can help you out.
Whether you have a couple of old defaults on household bills or are coming out of bankruptcy, we’ll walk you through the process from bike loan application to approval with one of our flexible lending partners. It’s never been easier to apply for finance.
What is a bad credit motorbike loan?
A bad credit motorbike loan is the same as any other regular motorbike loan in terms of how it works: you borrow a sum to help you purchase a motorbike and repay it with interest and fees over your chosen term.
The only difference is that it comes with broader eligibility criteria to include people who’ve struggled with their credit in the past, which isn’t the case for most loans. Because of this, bad credit loans come with higher interest rates and fees, as well as lower maximum loan amounts and terms.
Above all else, though, these loans open doors for borrowers in this position when the big banks aren’t able to lend a hand.
Can I get a motorbike loan if I have defaults on my file?
Yes – we work with lenders who can approve applications from people with defaults on their file. However, whether these defaults are accepted will come down to the following:
The type of default
There are two main types of default: non-finance and finance. Non-finance defaults are for things like utilities, phone bills and equipment hire. These generally aren’t as much of an issue for lenders, with some potentially allowing unpaid non-finance defaults with no limit on the number.
Finance defaults are on credit products, such as other loans, credit cards or buy now, pay later (BNPL) arrangements. Lenders tend to place more restrictions on these defaults, such as not having any in the six months before your application and no more than one or two over the previous two years.
Paid or unpaid defaults
Defaults can also be listed as paid or unpaid. While unpaid defaults aren’t necessarily a barrier to approval (as we spoke about in the section above), showing your lender that you’ve paid off your past defaults will boost your chances of approval. This is especially the case if they’re paid finance defaults.
Can I get a motorbike loan if I have defaults on my file?
Yes – even with a prior bankruptcy or Part IX debt agreement, we may still be able to help you get approved for the loan you need. Here’s how it works:
Bankruptcy
You can’t be approved for a loan if you’re currently bankrupt. However, you may be able to apply as soon as one day after you’ve been discharged and be approved (provided you meet your lender’s criteria). If you have multiple past bankruptcies, though, you’ll probably be ineligible until at least one is removed from your file.
Part IX debt agreements
Unlike bankruptcy, you can be approved for a motorbike loan if you’re still under a Part IX. However, you’ll typically need to display a good repayment history for up to two years before your application if you’re looking to be approved.
By getting a free, no-obligation quote through Savvy, we can discuss your potential motorcycle finance options before you formally apply.
How much can I borrow?
The maximum amount you can borrow on your loan with bad credit is limited to about $75,000, although some lenders will set a lower limit than this. The amount you’re approved for depends on a range of factors specific to you, though, such as:
- Income: the more you earn, the more you’re likely to be able to borrow
- Employment: lenders will look for applicants with a stable employment history, rather than constant job and pay changes
- Expenses: of course, bills, groceries and other costs eat into your available cash, so they’ll factor them into your borrowing power
- Dependants: as a parent or guardian, you’ll know that kids cost a fair bit, so lenders will ask for the number of dependants in your care
- Nature of your bad credit: not all bad credit is made equal; lenders are likely to be more comfortable with a few old defaults on your phone bill than a more recent finance default
- Value of your bike: your loan will have to meet the value of the motorcycle you’re buying (you may be able to borrow more if you include on-road costs like insurance and stamp/motor vehicle duty)
Why compare leisure loans with Savvy?
Once you tell us about yourself and the loan you're after, we'll compare offers for you and prepare your formal application.
We're partnered with some Australia's leading lenders to bring you a range of competitive offers to compare in one place.
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Motorbike loan eligibility and documentation
Top tips for increasing your motorbike loan approval chances
Common bad credit motorbike loan questions
How long will it take to get approved for my loan?
When you apply with Savvy, we can help you receive formal approval as soon as within one business day, allowing you to drive away on your new set of wheels in just 48 hours! However, factors such as when you apply (the earlier in the day and week, the better), the complexity of your profile and how long it takes your bank to transfer the money can all impact the speed of approval and settlement.
What is a comparison rate and why is it important?
A comparison rate is a rate that incorporates both the interest and unconditional fees included in your loan deal. For example, establishment and ongoing fees would be added to this rate. The main benefit of the comparison rate is to give you a more accurate indication of the cost of your loan than just checking the interest alone.
How can I check my credit?
You can check your credit file for free every three months by requesting a copy of your report from one of Australia’s three credit reporting agencies: Equifax, Experian or illion. This will show you your score, as well as any defaults, bankruptcies or debt agreements. Checking your report allows you to keep track of your score, as well as pick up on any errors on your file that need fixing.
Can I get a loan with no credit check?
No – all lenders in Australia must conduct a credit check during the loan assessment process to make sure you can afford what you’re applying for, in line with responsible lending obligations. It’s important to keep in mind, though, that lenders who specialise in bad credit are willing to look past your bad credit in many cases, provided you can show that you can comfortably afford the loan you want.
Can I be approved if I receive Centrelink payments?
Yes – we work with lenders who can accept Centrelink payments as part of your income. Stable and reliable benefits such as single parent or carer payments, age, disability support or veterans’ pensions and family tax benefits may all be counted towards your income. Speak with one of our friendly consultants if you receive a Centrelink benefit.
What can I do if my bike doesn’t meet my lender’s eligibility criteria?
If the bike you want to buy is too old or not in good enough condition to be accepted for a secured loan, you can opt for an unsecured loan instead. These allow you to choose any bike you like but at the expense of potentially lower borrowing power and higher interest and fees.
Will I have to buy by motorbike from a dealership?
No – we can help you purchase your new or used motorbike from a dealership, private seller or even an auction. It doesn’t have to come from a dealership to qualify for finance with one of our lending partners.
What types of motorbikes can I buy?
We can help you purchase a wide range of different motorbikes, including:
- Adventure bikes
- Cruiser bikes
- Off-road bikes
- Quad bikes
- Scooters
- Sport bikes
- Touring bikes
