Motorcycle Loans: How to Apply for A Loan

You are looking forward to buying a brand new or used motorbike and need financing? Well, motorcycle loans are the best option you should go for. It is very different from auto loans in many ways. I will take you through what motorcycle loans are and how you can apply for one from one of the best lenders near you.

What are Motorcycle Loans?

They are loans that are offered by some banks, online lenders, credit unions, dealerships, and motorcycle manufacturers to finance the purchase of a motorbike either brand new or used. This type of loan is different from car loans in terms of interest rates. Motorcycle loans can be secured or unsecured depending on the lender.

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Types of Motorcycle Loans

Looking at it, there are two types of motorcycle loans as I mentioned earlier. They are the:

1. Secured Motorcycle Loans and
2. Unsecured Motorcycle Loans

Secured Motorcycle Loan

This refers to the type of motorcycle loan where the motorcycle is used as collateral for the loan. This means that the lender would take ownership of the motorcycle if you default the loan.

Secured Motorcycle loans usually have lower interest rates compared to unsecured ones because the lender takes on less risk by having your motorcycle as collateral. Secured Motorcycle loans are mostly offered by banks and credit unions for motorcycle financing. You may be required to make a down payment by some lenders.

Unsecured Motorcycle Loan

This refers to the type of motorcycle loan that relies on your credit score to provide you with the loan. This means that the loan is not secured against your assets. These types of motorcycle loans are often offered by online lenders, which usually allow you pre-qualify for a loan to see the amount, rate, and term you may qualify for without affecting your credit score.

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Types of Motorcycle Loan Lenders

1. Banks
2. Credit Unions
3. Online Lenders
4. Motorcycle Dealerships
5. Motorcycle Manufacturers

How to Get A Motorcycle Loan

There are many ways you can acquire a motorcycle loan to finance the motorcycle of your dreams.  Follow the guidelines below to get a motorcycle loan:

1. Compare Offers
2. Choose A Good Offer with Suitable Terms and Interest Rate
3. Submit Application

Compare Offers (Different Motorcycle Loans)

To get a motorcycle loan, it is advisable to first compare different loan offers from multiple lenders to know which one has the most suitable interest rate and terms than the other.

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Choose A Good Offer

After comparing the motorcycle loan offers from different lenders, choose the offer that has good terms and better interest. You can decide to go with a secured loan or an unsecured one after making your choice. Note that not all lenders offer unsecured motorcycle loans.

Submit Application

It is now time to submit your motorcycle loan application to the lender you chose earlier. This typically requires you to submit the application with documentation like W-2s and pay stubs. The application will trigger a hard credit pull. Depending on the type of loan you applied for, the lender will make a hard credit pull. If everything goes right and your loan is approved, you will receive the funds within one to five business working days.

Top 10 Motorcycle Loans Lenders

Here is the list of the top 10 motorcycle loan lenders with the best rates and terms I have carefully picked for you. Compare them and make choose one.

1. LightStream
2. SoFi
3. Upstart
4. USAA
5. First Tech Credit Union
6. PenFed
7. Discover
8. Prosper
9. Avant
10. LendingPoint

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LightStream

• Fixed APR: 2.49% – 19.99% APR
• Min. credit score: 660
• Loan amount: $5,000 to $100,000
• Loan terms (years): 2, 3, 4, 5, 6, 7*
• Time to fund: As soon as the same business day
• Fees: None
• Discounts: Autopay
• Eligibility: Available in all states except RI and VT
• Customer service: Phone, email
• Soft credit check: No
• Loan servicer: LightStream
• Min. Income: Does not disclose
• Loan Uses: Credit card refinancing, debt consolidation, home improvement, and other purposes

APPLY HERE

SoFi

• Fixed APR: 4.74% – 19.28% APR¹⁰
• Min. credit score: Does not disclose
• Loan amount: $5,000 to $100,000
• Loan terms (years): 2, 3, 4, 5, 6, 7
• Time to fund: 3 business days
• Fees: None
• Discounts: Autopay
• Eligibility: Available in all states except MS
• Customer service: Phone, email
• Soft credit check: Yes
• Min. Income: Does not disclose
• Loan Uses: Solely for personal, family, or household uses.

APPLY HERE

Upstart

• Fixed APR: 4.37% – 35.99% APR⁴
• Min. credit score: 580
• Loan amount: $1,000 to $50,000⁵
• Loan terms (years): 3 to 5 years⁴
• Time to fund: As fast as 1 business day⁶
• Fees: Origination fee
• Discounts: None
• Eligibility: Available in all 50 states
• Customer service: Phone, email
• Soft credit check: Yes
• Min. Income: $12,000
• Loan Uses: Payoff credit cards, consolidate debt, take a course or Bootcamp, relocate, make a large purchase, and other purposes

APPLY HERE

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USAA

• Fixed APR: 7.24-17.15% APR⁴
• Min. credit score: None
• Loan amount: $2,500 to $20,000
• Loan terms (years): 1 to 7 years
• Time to fund: As fast as 1 business day
• Fees: None
• Discounts: Autopay
• Eligibility: Available in all 50 states
• Customer service: Phone, email
• Soft credit check: Yes
• Min. Income: Not disclosed
• Loan Uses: Payoff credit cards, consolidate debt, take a course or Bootcamp, relocate, make a large purchase, and other purposes.

APPLY HERE

First Tech Credit Union

• Estimated APR: 6.70 – 18.00% APR
• Min. credit score: 660
• Loan amount: $600 to $50,000*
• Loan terms (years): 2 to 7 years
• Time to fund: 1 to 4 business days after verification
• Fees: None
• Discounts: Autopay
• Eligibility: Does not disclose
• Customer service: Phone, email
• Soft credit check: No
• Min. Income: Does not disclose
• Loan Uses: Debt consolidation, home improvement, transportation, medical, dental, life events

APPLY HERE

PenFed

• Fixed APR: 4.99% – 17.99% APR
• Min. credit score: 660
• Loan amount: $600 to $50,000*
• Loan terms (years): 1, 2, 3, 4, 5
• Time to fund: 2 to 4 business days after verification
• Fees: None
• Discounts: None
• Eligibility: Does not disclose
• Customer service: Phone, email
• Soft credit check: No
• Min. Income: Does not disclose
• Loan Uses: Debt consolidation, home improvement, transportation, medical, dental, life events.

APPLY HERE

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Discover

• Fixed APR: 5.99% – 24.99% APR
• Min. credit score: 660
• Loan amount: $2,500 to $35,000
• Loan terms (years): 3 to 7 years
• Time to fund: As soon as the next business day after acceptance
• Fees: Late fee
• Discounts: None
• Eligibility:  Available in all 50 states
• Customer service: Phone
• Soft credit check: Yes
• Loan Uses: Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding

APPLY HERE

Prosper

• Fixed APR: 6.95% – 35.99% APR
• Min. credit score: 640
• Loan amount: $2,000 to $40,000
• Loan terms (years): 3, 5
• Time to fund: As soon as one business day
• Fees: Origination fee
• Discounts: None
• Eligibility: Available in all states except IA, ND, WV
• Customer service: Phone, email
• Soft credit check: Yes
• Min. Income: None
• Loan Uses: Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes

APPLY HERE

Avant

• Fixed APR: 9.95% – 35.99% APR
• Variable APR: N/A
• Min. credit score: 550
• Loan amount: $2,000 to $35,000**
• Loan terms (years): 2 to 5 years
• Time to fund: As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
• Fees: Origination fee
• Discounts: Autopay
• Eligibility: Available in all states except CO, IA, HI, VT, NV NY, WV
• Customer service: Phone, email
• Soft credit check: Yes
• Loan servicer: Avant
• Loan Uses: Debt consolidation, emergency expense, life event, home improvement, and other purposes
• Min. Income: $1,200 monthly

APPLY HERE

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LendingPoint

• Fixed APR: 9.99% – 35.99% APR
• Min. credit score: 580
• Loan amount: $2,000 to $36,500
• Loan terms (years): 2, 3, 4
• Time to fund: As soon as the next business day
• Fees: Origination fee
• Discounts: Autopay
• Eligibility: Available in all states except NV and WV
• Customer service: Phone, email
• Soft credit check: Yes
• Min. Income: $20,000
• Loan Uses: Home improvement, consolidating debt, credit card refinancing, relocate, making a large purchase, and other purposes

APPLY HERE

EndNote on Motorcycle Loans

Motorcycles loans are quite different from auto loans. They usually have high-interest rates than auto loans but are still the right choice to go for if you are looking for a means to finance your motorcycle purchase. Take your time and compare the offers, choose one that is flexible for you and apply for your motorcycle loan today.

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