Cheap bike loans

Taking out a personal loan for a bike could be a good decision if you want to invest in a certain standard of bike but don’t quite have the funds saved up just yet. It may also be an alternative to using your credit card to make the purchase, as personal loans can often have more competitive interest rates than credit cards.

When you make a bicycle finance comparison, you may find that using a low interest loan to buy your bike could allow you to access the money you need straight away, while keeping your repayments affordable.

A personal loan calculator could help give you a rough idea of what your repayments might look like, depending on how much you want to borrow.

Could you save money by using a personal loan to buy a bike?

There are a few ways that taking out a personal loan to buy a new bike could potentially save you money. These include:

• Quality over quantity: If you’re in need of a new bike right away, but you haven’t quite saved enough to buy one that was built to last, you could potentially end up saving money by using finance to buy a higher quality one. Reason being, if you use all that’s in your bank account to buy a bike of subpar standards, you might end up having to replace it sooner than you’d like, potentially costing you more money in the long run.
• More affordable transport alternative: Bikes aren’t only a fun way to get around, they can also be more cost-efficient compared to some other transport options. If you’re looking to start riding to work instead of driving, for example, you might notice a reduction in your running costs and other expenses. A personal loan could help get you on your new bike faster, meaning the savings you could make on fuel and other ongoing vehicle costs could come sooner too.
• More options lead to more opportunity: Taking out a personal loan to buy a bicycle can generally open up your options, depending on your borrowing capacity and personal circumstances. Electric bicycles, while sometimes more costly, can be even more versatile than a standard road or commuter bike. You may see even more savings from an electric bike as it has the ability to take you further, replacing even more car trips. Electric bikes can even open up employment opportunities for certain individuals, as delivery services continue to experience increased demand.

When it comes to applying for a personal loan, eligibility criteria can differ between lenders.  However, most lenders will require that you:

• are at least 18 years of age
• are an Australian citizen, permanent resident or have a valid visa
• are employed or receive regular income
• earn a minimum income
• have a good credit score

Can you get a personal bike loan if you have a bad credit score? 

If you have a bad credit rating, that doesn’t necessarily mean you won’t be able to access a personal loan to buy a bike. 

Bad credit bike loans are generally available from selected specialist lenders, though you may need to pay a higher interest rate, and there may be other limitations involved.

If you're having problems with your credit history, consider contacting a qualified financial adviser.