Bike loans

• using a Personal Loan to pay for a bike can offer you more favourable interest rates but it depends on your credit rating and eligibility
• before you take out any type of loan or credit you need to be sure you can afford the repayments
• there are also bike finance options available which may be a suitable alternative to a Personal Loan.

Whether you like to cycle into the office on a morning or you like a Sunday afternoon ride out in the countryside, a bike loan can be used to fund whatever type of bike you like. A bike loan is simply a Personal Loan being used to pay for a bike.

Bikes can be expensive. No matter what type you like to ride, taking out a Personal Loan for one can help you to spread out the cost.

While some finance companies provide pay monthly or lease hire options for push bikes and motorbikes, a Personal Loan gives you the flexibility to shop where you like for your new wheels. They also mean you can steer clear of any balloon payments at the end of a lease or having to put down a deposit beforehand.

You should only get a bike loan (or any type of loan) if you’re sure you can afford to repay it. Before you apply for a loan, go through your budget so you know exactly how much you need to borrow.

Bike loans are unsecured, which means you do not provide an asset as security. When you apply, your application is assessed on your income, outgoings and credit history. An example of a secured loan is a mortgage. For a mortgage, in addition to a usual credit assessment, you also provide an asset as security (for example your home) . You should always think carefully before securing other debts against your home. Your home may be repossessed if you don't keep up repayments on your mortgage.