A motorcycle loan is a type of financing that can be used to buy or refinance a new or used motorcycle. The loan amount and interest rate you qualify for can depend on your credit history and income. Some lenders may require excellent credit or a high debt-to-income ratio, while others offer unsecured personal loans that aren’t tied to collateral.

If you have excellent credit, you should be able to find competitive rates and terms on a new or used motorcycle purchase. If your credit score needs work, you can improve it by paying down outstanding debts and disputing errors on your credit report. Checking your own credit can help you spot mistakes before a lender does, which may prevent your application from getting denied.

Credit unions and banks are usually the best sources for motorcycle financing. Many of them offer flexible loan terms and low or no fees. They may also have more relaxed loan requirements, such as allowing lower-than-perfect credit or extending the repayment period for people who are behind on payments. However, you should be aware that credit unions typically have a lower minimum loan amount than banks.

You can also get a motorcycle loan from the dealership or manufacturer directly. This option is often more expensive than a loan from a bank or credit union because the dealer might add on extra fees and charge a higher interest rate to make up for it. However, some manufacturers have their own in-house finance department that can provide a better deal than the dealership.

While it’s possible to get a motorcycle loan with bad credit, you may face higher interest rates. Lenders consider your creditworthiness by looking at your credit report, and they’ll estimate how much you can afford to pay back based on your debt-to-income ratio. If your credit is poor, you may need to put down a down payment on your motorcycle or pay for it with cash.

Some lenders, such as Credible, offer online prequalification for a motorcycle loan to help you shop for the right amount and repayment term. This can save you time by ensuring that you only apply with lenders who will approve your application. Credible also lets you compare motorcycle financing options based on interest rates, loan fees and other factors.

Before you choose a lender, look at the minimum and maximum loan amounts it offers, as well as the fees associated with those rates. It’s important to understand how those fees will affect the total cost of your loan, so you can budget accordingly. You should also review the lender’s application process and loan terms, including whether they have a minimum credit score or income requirement.