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 apply for a leisure loan with Savvy?
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How to apply for your motorbike loan with Savvy
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Fill out our simple online application form
Start by telling us about what motorbike you’re after and some information about yourself, like your employment, income, credit score and more.
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Supply any required documents
In some cases, if we need more information to verify parts of your application (such as your income), we may ask for a few more documents. You can submit these through our portal.
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Speak about your finance options with us
From there, your consultant will compare the best offers available for your profile. We’ll give you a call and, if you’re happy with the top choice, we can take the next step.
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Have your formal application prepared and receive approval
Your consultant will put together your application to meet your lender’s specifications and submit it to them. Approval can come as soon as one business day after.
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Signed, sealed and your motorbike delivered
After approval, we’ll send you all the forms to sign, which you can do electronically via our portal. We’ll handle the settlement of the bike and, once that’s done, it’s all yours!
Motorbike loan eligibility and documentation
Eligibility
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Age
You must be at least 18 years of age
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Residency
You must be an Australian citizen or permanent resident (or, in some cases, an eligible visa holder)
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Income
You must be earning a stable income which is enough to comfortably support your repayments (this can start from as little as $20,000 to $26,000 per year)
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Employment
You must be employed and earning a consistent income from your job
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Credit score
You must meet your lender’s requirements related to your credit score
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Motorbike
Your motorbike must meet your lender’s requirements related to type, age and condition
Documents
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Driver's licence
Front and back (or another form of government-issued ID)
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Payslips
Your last two consecutive payslips (or your last tax return if you're self-employed)
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Savvy forms
Your Savvy application, consent form and credit guide (supplied by your consultant)
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Motorbike details
Information about your motorbike, such as its model and age, is handy to have
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Bank statements
90 days of bank statements may be requested, but not always
Top tips for increasing your motorbike loan approval chances
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Pay a deposit
By putting down some of your savings towards the purchase, you’re reducing the risk taken on by your lender and boosting your chances of approval as a result.
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Pay off unpaid defaults
If you have unpaid finance defaults, paying them before you apply could end up being the difference between approval and rejection.
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Avoid job or living changes
Lenders look for stability in your life, which points to a consistent budget. This means avoiding potential job changes or moving house (where possible).
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Don’t apply for more than you can afford
One of the simplest ways to help you avoid rejection is to only apply for an amount you can comfortably manage. Your Savvy consultant can help you work this out.
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Apply with a co-borrower or guarantor
If you want to share the use of the bike with a partner, sibling or friend, you could apply as co-borrowers, while adding a parent as guarantor adds an extra layer of security.
