Did you know that your credit history plays an important role when taking out a bike loan? It could affect your chances of approval and interest rates. Lenders often do a credit history check to review the financial habits of potential borrowers. One of the things they look out for is applicants with a busy credit history. 

What is a busy credit history? 

If you apply for multiple loans or credit cards within a short period, your credit history is considered ‘busy’. But why is a busy recent credit history a bad thing? To lenders, applying for too many loans at once or in quick succession raises red flags casting doubts on your creditworthiness. 

Too many loan applications on your credit history could give lenders the impression that you’re not financially responsible. It may also look like you’re ‘overshopping’ and make lenders think you’re a default risk. Putting in multiple credit applications, even if you don’t accept the credit offer, can make you seem less creditworthy.  

Also, when you apply for a loan, the lender performs a hard check on your credit profile which could knock your credit score down a few points. This could make applying for a new loan even more difficult. Even if the result is not an outright credit rejection you can end up paying a higher interest rate. 

Best ways to avoid a busy credit history 

To prevent a busy credit history, you need to avoid applying for multiple loans or lines of credit back-to-back. Before you apply for a loan, research the lender’s loan products carefully. Review interest rates, comparison rates, and loan features to see whether it’s the right finance for you. 

If you want to get the best rate without applying for a loan, the best thing to do is talk to a finance broker (like us!). Our expert brokers at Aussie Bike Loans can advise you on your options and put in an application for the best loan deal. Instead of applying to multiple lenders, we’ll provide you with options so you can choose one that fits your exact needs. 

Get in touch with our expert brokers by calling 1300 889 669 or schedule an appointment. You can also get a quick quote online and we’ll get back to you as soon as possible! 

How to improve credit history 

If you already have a poor credit history, hope is not lost! You can still recover from having bad credit. It may take a while, but you can fix your credit history by simply not applying for loans or pre-approved loans and credit cards. 

Depending on the sort of finance you are looking for, improving your credit history could take a few months to a year. Patience is key. As long as you maintain healthy spending habits and avoid opening unnecessary lines of credit or debt, you could see improvement in your credit history. 

Loan options for those with a bad credit history 

There are loans available for those with low credit scores called ‘bad credit loans’ or ‘second chance loans’. If you need a loan and don’t have time to fix your credit history, these loans could be beneficial. To learn more about them and your options, talk to our finance brokers at Aussie Bike Loans! 


What is credit history? 

Your credit history is a record of your past debts, payments, and other financial information. It will show information such as outstanding debts, timeliness of payments, lines of credit, loan applications, and bankruptcies. 

How to check my credit history? 

You can check your credit history by requesting a credit report from credit reporting bodies such as Equifax, Experian and illion. 

Is a three-year credit history good? 

A three-year credit history is adequate, however, it’s always better to have a longer credit history. Lenders review a potential borrower’s credit history to see how well they manage their debts and identify whether they have healthy spending habits. 

Can you completely clear your credit history? 

You can’t wipe out your credit history. Late records of late payments, for example, can’t be that scrubbed from your credit report even though you’re currently paying your bills on time. You can only have information struck from your credit history if it’s incorrect. 

How do I clean my credit history? 

Look over your credit report and see if there’s any incorrect information. If there is, contact the credit reporting agency and ask them to rectify the mistake.  

Can I recover from having a bad credit history? 

Yes, you can! It may take a while depending on how bad and extensive your credit history is, but it’s entirely possible to get a good credit history in time. A few ways you can recover your credit history is by practising healthy spending habits, staying on top of your debt, and only taking out loans you can confidently pay back. 

How long does a bad credit history last in Australia? 

Between one to seven years depending on the infraction. Repayment history and current consumer credit obligations usually last for two years. Serious credit infringements will be on your record for seven years. Bankruptcy and debt agreements can last between two to five years. 

How long does it take to build a good credit history? 

If you don’t have credit history, it could take six months to a year to build one that’s adequate. Typically, lenders prefer a credit history of four to six years. However, some lenders may accept a credit history of less than three years depending on other factors. 

How to get loans with a bad credit history? 

If you have poor credit history, you can get a second chance loan or bad credit loan designed for those with low credit scores. Or go to loan brokers like Aussie Bike Loans for assistance in finding the best loan for you.