How To You can get a motorcycle loan with bad credit.
People all over the world enjoy motorcycle riding.Maintaining and owning a motorcycle can cost a lot.If you need a motorcycle loan with bad credit in order to keep your favorite ride, a few basic steps can have a big impact.
Step 1: Talk to your dealer.
Some dealers are more accommodating than others to low or poor credit scores.You will need a dealer that is willing to work with your credit to get you a loan.Some dealers have relationships with lenders that are ready to work with you.You need to speak with the finance team at the dealer to find out if they can help.Inform them of your situation.You will not get an accurate picture of how likely you are to be financed if you don't give your exact credit situation to the finance team.You don't need to apply for financing to find out if you will get the loan or not.The finance manager should be able to tell you how likely you are to get the loan.
Step 2: Find a lender.
It might be tempting to apply wherever you can in order to get your application accepted.Applying to many lenders at the same time can hurt your credit score.Not every lender is ideal for a motorcycle loan.Only those that specialize in personal loans or motorcycle loans can apply.Bad credit is one of the key terms to look for.If it has been discharged for two or more years, it won't be a factor.Loans made to people with bad credit can have higher interest rates.Before accepting a loan, be aware of the conditions.
Step 3: Inform your lender if you have a co-signer.
A co-signer to a loan is someone who will take on the payments if you can't.If your co-signer has a better credit score than you, this can help you get a loan.Your co-signer should have good credit.Your lender will be more likely to receive your payments if you have a co-signer.
Step 4: You can show your payments on a motorcycle.
Consistency can be demonstrated if you have made payments on another motorcycle.If you can show that your previous motorcycle payments were always on time, you will be more likely to get the loan.
Step 5: Make a bigger down payment.
Without a loan, try to save as much money as possible.If you put a larger amount of money down on your motorcycle, you will show that you are serious about the investment.Larger down payments will be viewed favorably by the lender.Paying off a majority of the cost will save you money on interest when you take out a loan.
Step 6: The basic requirements should be met.
You will need to meet some basic requirements if you want your credit score to be good or bad.The requirements are used by the lender to gauge your ability to repay the loan.Valid forms of identification include a driver or motorcycle license.Must be at least eighteen years old.To pay the payments, you should be earning enough discretionary income.If you can show you earn enough to cover the monthly payment, you will have a better chance of getting the loan.Have been employed for at least six months.Your payments are more likely to be on time if you have a stable source of income.If you are self-employed, you may need to provide a profit and loss statement or a gross earnings statement for the past year to prove that you have worked in your industry for at least two years.
Step 7: Speak to your lender.
Having a bad credit score leaves most of the application process up to luck, but a little communication goes a long way.If you had a one time reason for your poor credit, such as a medical emergency, explain this and assure your lender that this expense was unavoidable and is in the past.Do you know your level of income?It's not always necessary to show how much you make, but showing that you can pay your loan is important.Take your last two years tax returns with you.Let them know how stable you are.Let your lender know that you have lived and worked in the same place for a while.You are more likely to pay back the loan on time if you have stability.Explain the process of filing for bankruptcy.If you filed for bankruptcy because of a medical bill, you should explain why.
Step 8: Actions can be taken to protect your lender.
Showing that you are willing to work to protect your lender's investment will go a long way in their consideration of your application.Allow them to automatically take payments from your account if you want to work with them.This shows you are sure that the funds will be there and that you won't miss a payment.Inform them that you will be purchasing full coverage insurance, extended warranty, and a GAP policy.GAP policies can help protect the value of your motorcycle in the event of an accident.Replacing and repairing parts covered by an extended warranty will help protect the value of the motorcycle should it fail.
Step 9: Make sure to check for errors.
The people who calculate your credit score can make mistakes.These mistakes can cause your score to appear lower than it really is.If you suspect errors, check your credit score and dispute them.There are online services that allow you to dispute any errors you may have found.If you find disputes with more than one, make sure they are addressed.If you fix errors in your credit score, you will get an accurate picture of where you stand.
Step 10: Try to work out a deal.
Despite missed payments or late payments, you can still negotiate with your creditor to have these events changed in order to improve your credit score.Ask your creditor if you can pay off the full amount on a delinquent loan in order to have it labeled "paid as agreed" instead of a missed payment.Write a letter to your creditor to highlight your positive payments if you only have one or two missed payments.Late payments can affect your score negatively.
Step 11: Credit cards can be used effectively.
Credit card use can increase your credit score if you use them correctly.Take the following steps to increase your credit score.If you don't have a credit card, use it.If you don't qualify for a regular credit card, you can get a pre-paid card.Higher interest rates and additional fees are what these will charge.You should keep the amount charged on your credit card low.Your credit score will be hurt if you have charges that are maxed out.Don't use your credit card too much.You can use 30% of your card's maximum limit a month if you divide it by three.Try to pay it off in full every month.If you use your card too much in a month, you will be seen as a reckless spender.You should increase your limit.The maximum limit should be increased if you use your card frequently.Don't increase your spending amount.Ten to thirty percent of your card's limit is ideal.Don't close any cards.Any credit scoring system will frown on the closing of a card.You can use your card to pay a small monthly bill which is easy to repay.