Written by: Adam West
Edited by: Lillian Guevara-Castro
Reviewed by: Ashley Fricker
If you’ve decided that an all-terrain vehicle (ATV) or utility task vehicle (UTV) fits into your lifestyle, financing the purchase is probably your best bet. But if you’ve got a bad or limited credit history, chances are slim you’ll qualify for a traditional loan. Lenders typically want to see a good credit score of 670 or higher before they’ll offer you financing.
The popularity of ATVs and UTVs has grown tremendously in recent years, and with that growth has come an increase in options for financing them. In addition to dealer and manufacturer financing, there are also loans for bad credit.
Best ATV & UTV Loans For Bad Credit
Lenders that specialize in bad credit loans have developed alternative ways to identify a creditworthy loan applicant. They’ve created algorithms that let them use factors other than credit scores to help determine if a loan is worth making.
This can mean looking at your income compared to expenses, whether you own or rent, and how much overall debt you have. The bottom line is that even with bad credit, you may qualify for a personal loan that you can use to purchase a new or used ATV/UTV.
Many bad credit lenders operate as part of large networks that specialize in alternative financing options. This means a single online application can place your ATV or UTV loan request in front of dozens of lenders willing to consider your application. And, if you receive more than one offer, you can choose the best from among them.
1. Avant
- Personal loans of $2,000 to $35,000
- Compare rates in 2 minutes without affecting your credit
- Best for low origination fees for bad credit
- 550 minimum credit score required
- Powered by Credible
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $2,000 to $35,000 | 9.95% - 35.99% | 12 to 60 Months | See representative example |
If you’re interested in buying a brand-new ATV or UTV, you may need a larger loan than other lenders offer. Avant has loans of up to $35,000 available for qualified applicants.
Avant will consider your loan request even if you have bad credit. Loan terms vary between one and five years, and your annual percentage rate won’t exceed 35.99%, depending on your credit and income.
2. Upstart
- Personal loans starting at $1,000
- Find loans you prequalify for, complete your application, and close your loan
- Loans for 300+ FICO Scores
- Checking rates doesn't impact your credit score
- Powered by Credible
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $1,000 to $50,000 | 6.40% - 35.99% | 3 or 5 Years | See representative example |
Upstart has particularly lenient approval criteria, only requiring a credit report and score, a minimum income of $12,000 per year, no current delinquent accounts, and fewer than six inquiries on your credit report in the last six months.
The lender you’re matched with may have other criteria, but this is what Upstart requires to submit your loan request to its lender network, which uses advanced algorithms to increase approvals by up to 44% compared with traditional lending models.
- Personal loans from $500 to $35,000
- All credit types are considered and welcome
- Simple, no credit impact form
- Helping consumers since 2001
- 4.7 out of 5 Trustpilot rating with 2,000+ reviews!
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $35,000 | 5.99% - 35.99% | 60 Days to 72 Months | See representative example |
The 24/7 Lending Group lending network offers personal loans to bad credit borrowers in amounts of up to $35,000, depending on your credit profile and other factors. There is no application fee, and your secure online application is available for the entire lending network to review.
You’ll need an active checking account to receive a loan, and the funds could be deposited in your bank in as little as 24 hours. You must be employed to receive a loan offer.
4. CashUSA.com
- Loans from $500 to $10,000
- Receive a loan decision in minutes
- Get funds directly to your bank account
- Use the loan for any purpose
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $10,000 | 5.99% - 35.99% | 3 to 72 Months | See representative example |
CashUSA is an online marketplace of lenders that accepts applicants of all credit types. Loan amounts of up to $10,000 and terms as long as 72 months are available, based on your credit profile and qualifications.
The exact details and specific terms of the loan will depend on the lender and will be part of any loan offer that’s made. If you accept a loan offer from a CashUSA lender, you can expect to receive the funds in your account as soon as the next business day.
- Small personal loans starting at $100
- Receive an approval decision in as little as 2 minutes
- Funds can be deposited into your account in one business day and used for any purpose
- No hidden fees
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $100 to $20,000 | Varies | Varies | See representative example |
As the name implies, SmartAdvances.com specializes in providing personal loans to people with bad credit. A personal loan from one of the lenders in this network can be used for any purpose, including ATV financing or UTV financing.
Loans of up to $20,000 are available, depending on your financial circumstances and ability to repay. By filling out a single application you could see loan offers from multiple lenders and choose the one that works best for you. You may qualify for a recreational loan with a low rate, flexible terms, and no prepayment penalty.
Can I Finance an ATV With Bad Credit?
Your ability to get any loan is restricted when you have bad credit. However, financing a new or used ATV is possible, even with a low credit score.
Lenders that specialize in bad credit loans will consider factors such as how much of a down payment you’ll be making, and what the book value of the vehicle is. Other factors that come into play include your income and any other debt you may have.
This debt-to-income ratio is one of the biggest determining factors in whether a borrower defaults on a loan. If you have good earnings, low debt, and can show a consistent work history, lenders will be more likely to offer you financing — even if you have bad credit.
Financing a new or used ATV is possible, even with a low credit score.
A lender could also consider a lien, in which case the vehicle’s title will be in the lender’s name until you pay off the loan. This type of loan is common for new vehicle purchases, and a dealership may even offer this financing directly or through a manufacturer’s lending program.
Again, much of the decision in offering a loan to a borrower with bad credit depends on how much the borrower is willing to put down, and how much risk the lender is willing to take on.
Another way to finance a Powersport vehicle is to take out a home equity loan. These are low-rate loans secured by your home.
Of course, this depends on whether you have equity in your home. But if you own a home, you may very well have equity, given the dramatic increase in home values the past year.
How Many Years Can You Finance a UTV?
With some new UTVs costing as much as or even exceeding the price of a new car, it only makes sense that loan terms would be similar. There was a time not too long ago when a five-year vehicle loan was the maximum you could expect. These days, loans of six years — that’s 72 months — are common.
Many lenders that specialize in loans for ATVs, UTVs, and other off-highway vehicles offer standard loan terms of 36 to 60 months. For loan amounts that exceed $15,000 or so, it’s not hard to find loans that can stretch to 72 months.
Of course, as with any loan, the longer you take to pay it off, the more you’ll be paying in interest.
Balancing a reasonable monthly payment amount against the length of time you want to be making payments is a personal choice. Often, it comes down to choosing the most affordable payment — one that you know you can comfortably make each month.
For example, a $15,000 loan spread over five years at 5.99% would mean monthly payments of around $290. But that same loan spread over just three years means payments of more than $450.
Check out an ATV loan calculator to find out how much your monthly payments will be and how much you’d be paying in interest for various loan terms.
Do I Need Insurance on an ATV?
Of course, making the financing payments on your ATV or UTV isn’t the end of the ownership expenses. There’s also the maintenance and upkeep, the fuel costs, and, of course, insurance.
In some states, insurance on your off-road or off-highway vehicle is required by law, while in others it’s just a good idea.
Whether you need to have insurance on your ATV or UTV also depends on where you’ll be riding it. If you ride exclusively on private land you may not be required to have insurance, but if you plan to ride on public land or in state parks, some states do require that you carry at least liability coverage.
Insurance requirements vary by state, your loan, and where you’ll be riding your new ATV.
Insurance may also be required as a condition of your loan, depending on the type of financing plan you get and the lender’s requirements. If you do need to carry insurance because of a lender’s requirement, the terms and type of insurance needed will be clearly spelled out in the loan agreement.
The cost of ATV or UTV insurance can vary widely depending on the type of vehicle it is, how often it’s ridden, your experience and driving record, and even the top speed of the vehicle. As usual, it is worth shopping around for insurance among different carriers. And be sure to check those insurers that specialize in covering your specific vehicle type, as they can have more options and better pricing.
Is an ATV Loan Considered an Auto Loan?
An ATV loan is not the same as an auto loan though it may work similarly. This goes back to whether you have a lien on the vehicle, which means the loan is secured by the title.
If you stop making payments on the loan, the lender can seize the vehicle and sell it to recoup its money. This makes the loan less risky for lenders and, therefore, easier to get approved for when you have bad credit.
But if you use a personal loan to finance your new ATV, the loan is unsecured, which means the lender can’t seize the vehicle, even if you stop making payments. That’s why unsecured personal loans generally require higher credit scores to get approved.
If you can secure a financing plan directly from a dealer or manufacturer, they will likely use the ATV as collateral.
Finance the Toy of Your Dreams
Choosing to purchase an ATV or UTV is an exciting decision, but it also comes with important considerations. And if you’re entering into it from a position of having poor or no credit, how you choose to finance your purchase is perhaps the biggest consideration of all.
Personal loans for bad credit, like those we’ve outlined here, are a great place to start, and just may be your best option for getting the toy of your dreams.
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