Are bad credit motorcycle loans possible? This is a question I am asked over and over again, whether it is just meeting a person on the street or though e-mail from a person that found my motorcycle financing website. Well the short answer is yes bad credit motorcycle loans are totally possible even if you have a bankruptcy on your credit report. However, there are certain things you need to consider before looking for a bad credit cycle loans because you can be taken advantage of just because you have poor credit.
First off understand that over and over again in the world of motorcycle loans, I see cycle buyers with bad credit tend to focus more on desperation for getting approved for motorcycle financing rather than making a good decision for there financial future. As a result, when the typical motorcycle buyer with poor credit is approved they are often stuck with hefty fees, and backend products that leave them paying much more for their motorcycle than they should.
If you have bad credit and need a motorcycle loan, the best advice I can give you is do not let someone tell you that you have to pay document fees, extended protection, Gap insurance or other add on products to get approved. Sure you may have to sacrifice for a higher interest rate on your bad credit motorcycle loan, but you do not have to get taken to the cleaners with a bunch of other fees.
It is the above reasons that it is important to try to sometimes go straight to the lender and find a lender that will finance bad credit motorcycle loans I am not going to tell you that it is easy to get approved like if you had good credit but if you work a bit you can find motorcycle lenders specializing in bad credit. Here are some options you may want to consider.
1. Online Motorcycle Lenders: The nice thing about working with online motorcycle lenders is that you are going directly to the lender and there is no middle man involved with placing you in a loan that may put you in a bad situation. Going directly to the lender for bad credit motorcycle loans is always better in my opinion because the lender does not want to place you in a loan you will default on. On the other hand, going through a middle man you will find the middle man will want to place you in a situation where they will make the most money which could be a very bad loan for you.
2. Credit Union: Your local credit union may buy bad credit motorcycle loan more often than the average loan at a dealer because the credit union only has a small percentage of its overall loan portfolio in bad credit motorcycle loans. This allows them to control losses a bit better than a dealer because they have other thinks finance not just motorcycles. So they may approve bad credit motorcycle loans a dealer will not touch.
3. Personal Loans: Many people with poor credit tend to many times go for personal loans. I only recommend this option as a last resort, but I would much rather a bad credit applicant get the credit straight before getting a personal loan. The reason being is personal loans typically have very negative terms for motorcycle buyers and they can sometimes have interest rates in the 30% range. This is not a good situation for a motorcycle buyer.
4. Local Banks: Sometimes local banks can be an option for finding bad credit motorcycle loans, but typically they are stricter than Credit Unions. So check with your online motorcycle lender or credit union before going to a local bank. But similar to a credit union, local banks probably do not have a ton of their loans in motorcycles so this helps you chances of getting approved sometimes. Many times the less experience a bank has with motorcycle loans the better for you because they can sometimes evaluate bad credit motorcycle loans the same way as a car loan which typically is much more lenient.
So in a nutshell, if you are looking for bad credit motorcycle financing it is totally possible. It will require you to do a little more research than the typical person with good credit, but your efforts will be well worth it when you are riding your new motorcycle. The best thing for you to consider is not getting frustrated if one lender turns you down, because there is definitely a bad credit motorcycle loan out there waiting for you. You just have to start online or at your local credit union to get going in the right direction to financing your motorcycle.
Make your dreams come true with Bad Credit Motorcycle Financing
They are much harder to get than a car loan. This is particularly true if you happen to be in a position where your credit is poor and traditional financing is unavailable to you. Rest assured there are finally options out there utilizing guaranteed motorcycle loans. You can finally secure the financing that you need to make the dream a reality if you are capable of doing just a little bit of research. All it takes is just a little bit of your time and you will be well on your way.
So you want to get yourself that motorcycle you have had your eye on for a while but do not happen to have the cash laying around to buy one up front, or the credit history to get motorcycle finance using conventional means. When it comes to motorcycle loans, having bad credit is something rough to deal with because while Buy Here Pay Here (BHPH) car lots are fairly common, it is much more difficult to find motorcycles, much less the exact one that you want at these types of car dealerships and even more difficult to get the financing through their in house financing without first already having a huge down payment.
Besides from the Buy Here Pay Here (BHPH) car dealerships you do not really have that many options available to you. The biggest problem is that most of these dealerships simply do not have any motorcycles and most motorcycle shops usually are not interested in doing in-house financing. However, rest assured there are indeed some other options for getting guaranteed motorcycle loans even with bad credit. The first thing that you are going to want to do is to know exactly what your credit score situation looks like before you decide to pursue financing.
When it comes to motorcycle financing, your credit score very well may not be the deciding factor for a loan approval. Things will likely depend a lot more on how recent your bad credit is. If you happen to be in a position where you have recent bad credit it is going to negatively impact your credit score more so than something that happened years ago. By recent, we are talking about anything outstanding that occurred within the past year. So the first thing you are going to want to do is check out your credit report and see if there is anything that you can clear up. Usually, if you have the cash in hand when calling any lenders that you owe money to, then you are going to have a great opportunity for getting the debt completely removed from your credit profile.
Another thing that is going to be taken into consideration by a bad credit motorcycle financing lender is going to be what your income situation looks like. Truth be told, when it comes to anything financial, even with motorcycle financing, bad credit is something that is going to appear to be more or less irrelevant if you happen to have a very large income. If you and your partner for example make $45,000 a year or more combined, then you are going to see that getting any type of financing is going to be easier regardless of your credit situation. This is due to you being seen as a much lower risk to the creditor since that can rest assure din the knowledge that you should be capable of making your monthly payments in a timely manner, particularly if you have enough finances to cover your existing bills already.
Are you in the market for a motorcycle, but have bad credit and need a high risk motorcycle loan? Well don’t worry the goal of this article is provide you everything you need to know about getting approved for a high risk motorcycle loan.
First you must understand how motorcycle lenders go about classifying you as high risk. On the average, when a motorcycle lender is looking to approve any motorcycle financing they have a much higher cut off in the credit score range than an auto lender. This exists whether you have good or bad credit.
So with that said an auto lender may approve a FICO credit score of 610 as not a high risk, but a motorcycle lender would most likely classify a FICO credit score of 610 as a high risk motorcycle loan and may not offer an approval on it.
There are two reasons for this:
1. Motorcycles are much harder to repossess in good condition than an automobile. As a result of this simple fact, if you default on your motorcycle loan it is a higher risk to the motorcycle lender than an automobile lender because it is much harder to repossess a motorcycle in good condition than a car.
With all the new motorcycle riders entering the industry there is a high incident of some form of minor or major damage on many motorcycles, which translates in to a lower amount per unit a lender gets when they repossess a motorcycle for a customer that chooses to get bad credit over paying for their motorcycle loan. The damage could be from the repossession agency or the actual owner but the simple fact is motorcycle fetch much less at repossession auctions than automobiles.
This simple fact is one reason good and poor credit motorcycle loans are offered at much higher interest rates than a car and has an overall lower approval percentages when compared with cars.
2. The average motorcycle tends to depreciate very fast. Since motorcycles have higher accident rates and there are many people who once they crash do not pay off their loan, this results in higher defaults for motorcycle lenders. This is another reason motorcycle loan rates are higher and motorcycles are hard to get approved for.
Ok, now that you have a background in how a motorcycle lender views a motorcycle loan, let’s look at how you can get approved for a high risk motorcycle loan.
Step one is to really understand your credit report and credit score. Sure if you are looking for high risk motorcycle financing, you probably have had some credit issues in the past. But you never know how those credit issues played out on your credit report until you get a copy of it.
Take a look and make sure everything reported on your credit report is actually true. See every year 1000s of people just like you find creditors made errors on their credit report, which negativity impacted their credit score. If your FICO score shows a 610, but there is 1 error on your credit report you could easily raise your FICO credit score to 625 or higher by getting the error fixed. Always get errors fixed on your credit report before you submit a high risk motorcycle loan application.
Step two is to clean up your credit card debt. I know you are probably thinking I can not do this, but it can make a huge difference in helping you get approved for high risk motorcycle financing. See motorcycle lenders do not like to see your personal credit cards maxed out. Therefore, before you submit your application for motorcycle financing you should try to pay down your credit card debt. Even if you have to do it for the short term it can help you tremendously with getting approved.
For instance, if you have a 610 FICO credit score you will probably be declined if you have all your credit cards maxed out. However, if you are able reduce your credit card debt by 50% you stand a much better chance of getting approved for a high risk motorcycle loan. This is a simple concept but you will be surprised by how many motorcycle buyers fail to do this and never get approved.
Step three and the final step is too finally submit your motorcycle loan application. There are many lenders that specialize in high risk motorcycle loans. I recommend tying about 2 or 3 online motorcycle lenders and then move to your local credit unions or financing provide by the dealership such as Suzuki Finance, Honda Financing, Kawasaki Credit Card or the Polaris Star Card.
If your car insurance is due for renewal and you are considering buying another policy then this article will provide you with important facts that you should know about. Car insurance policies are getting increasingly expensive and you should do all that you can to reduce your costs. How much you have to pay for your car insurance is dictated by a variety of factors as they apply to you and your vehicle.
In this article we will examine coverage limits, your age, gender and marital status, your location and insuring other household members. All of these factors will have a great influence on how much you will have to pay for your policy.
Coverage limits are generally dictated by the price that you are willing to pay for your insurance. A higher level of coverage will generally result in higher premiums. The best way to find a good value policy is to comparison shop. Nowadays it is generally accepted that the best way to do this is by using a car insurance comparison website.
Your age, gender and marital status will have a great effect on the auto insurance rates that you are offered. Insurers rate drivers using a variety of criteria, if you are a young single male driver you will usually have to pay higher rates. If you are a middle-aged female married driver then your rates will be lower. Insurers calculate the best car insurance rates for you by comparing levels of risk. Those groups which are statistically more likely to be involved in an accident have to pay correspondingly higher rates.
Location plays an important part in deciding how much your premiums will cost. Drivers who live in an urban environment will usually pay more than those from a rural area. This is because drivers who live in cities and heavily populated areas are more likely to be involved in an accident, or to have their car stolen or vandalized. Insurers generally offer better rates if you’re able to demonstrate that you keep your vehicle in a garage at night. You may also be able to improve the security arrangements of your automobile by fitting an alarm, immobilizer and steering wheel lock.
Insuring other household members will have an influence on the cost of your policy and the best car insurance rates that you offered. If you have teenage family members living with you and they are added to your policy, then your costs will increase. This may still work out cheaper than if your teenage driver were to have a separate policy in their own name.
In conclusion, there are a variety of different factors which can affect your ability to be offered the best insurance rates. Some of these are coverage limits, how old you are, whether you are male or female and whether you are married or single. Your rates will also be affected by the area where you live and whether other household members are included in your policy.