Is a motorcycle loan possible for military personnel with bad credit?

While many lenders are hesitant to lend to people with bad credit or a poor credit history, this is not the case with all lenders. Some lenders give motorcycle loans to people with bad credit because they are not as focused on your past history. They use other ways to decide if your credit is worth a loan, like looking at your employment history and debt-to-income ratio.

Military personnel with bad credit hoping to get a motorcycle loan need not worry because it is possible. This is what you need to know to try to get the loan.

Why have motorcycles become so popular?

Military personnel may appreciate the feeling of freedom a motorcycle allows while riding by making them feel less restricted. The market for motorcycles has increased in recent decades because they are less expensive than cars.

They are more popular than cars among many military men and women because they are cheaper to drive, look great, and are exciting to drive. They are easier to repair and park, can stop anywhere, and are more flexible in traffic.

While motorcycles are less expensive, motorcycles are still considered a major purchase, so military personnel typically still need a military motorcycle loan. The loan allows them to make monthly motorcycle payments instead of providing the cash up front for the large purchase.

Buy new or used

Military personnel who have decided to try to get a motorcycle must first decide if they want something used or new. It will cost more to buy something new and the price is on average $12,000. With a military loan, you’ll only get up to $4,000, so you’ll need to be prepared to pay the rest in cash up front or ask them to withdraw the rest of your monthly military pay.

Another option for military is to get something used with your motorcycle loan. Bikes in excellent condition are on sale all the time for a great deal where the loan can cover the entire bike or most of it.

What does the setup loan cover?

The great news about installation loans is that military personnel decide what will be covered. Some choose to use it as part payment for a new bike, some choose to buy a used bike with it, and others use it to repair bikes. Repairs can pile up on bikes because they sometimes need new tires, brake pad replacements, and engine oil changes.

Others use their loan to upgrade their bike by getting a custom seat or windshield more suited to their height.

Another option is to use the loan for motorcycle clothing and safety equipment. While it may seem like wearing leather jackets and boots is for looks, it is actually designed to protect against wind chill and falls from the bike. They even keep riders cooler in hot seasons with their breathable lining. The loan can be used for protective clothing or other safety equipment such as a helmet and knee or elbow pads.

How to get the loan

Having collateral to back the loan amount is the only guaranteed way to get loan approval. Most people don’t have collateral because if they did, they wouldn’t need the loan.

The key is to find a lender that works with all people knowing that most will have financial problems at some point. Many lenders would prefer to see that you are paying your bills now and that you have a steady job that will allow you to make monthly payments.

Since bad credit scores are only one aspect of your financial history, lenders want to know more about your current situation. While they may review your application information more thoroughly than someone with good credit, that doesn’t mean you won’t be approved.

Being a member of the military provides a qualification that not everyone has because you have a steady job with a regular income. Then, they’ll review your debt-to-income ratio to make sure you don’t have more debt than your income can handle. Once all of these items meet the lenders’ requirements, they will likely offer you a better rate just for being a member of the military.

While it may seem impossible to get a loan for military personnel with bad credit, it is possible to get one if you can prove your income and if your debt-to-income ratio is acceptable. If those items don’t meet your standards, work to improve these items and catch up on all bills, and then you can try to apply again in the future.