GETTING APPROVED FOR BAD CREDIT MOTORCYCLE LOANS
Whether or not you get approved for your motorcycle loan as well
as the interest rates and terms you receive if you are approved
are all going to depend on your credit history and how you
handle your debts. Getting approved for the loan amount you want
can be difficult and frustrating for people with poor credit.
There are things you can do that will help you get approved for
a motorcycle loan with bad credit.
Be open about your situation
Communicating with any potential lender is very important when
it comes to achieving bad credit financing. Lenders are not
going to know your full-story just by looking at your credit
report. You need to explain the reason for your credit issues
and let them know that they are in the past.
For example, perhaps you had a major life changing event like an
ill family member that resulted in you being late on some bills.
You want to show the lender that you are now current on all of
your bills again.
Another good tip is to document your income. You can do this by
bringing in your past six months of pay stubs as well as your
previous two years tax returns. It is not required for
motorcycle buyers to submit income verification, so it will show initiative
on your part to the lender.
Living in the same house or apartment for several years will
also add stability. In addition, having a steady job for
multiple years will also help your case. Highlight these facts.
If your are looking to achieve approval for a loan after
bankruptcy, make sure you explain your reason for filing
bankruptcy. This is particularly true if
your bankruptcy was a result of a divorce, a failed business
venture, or extensive medical bills.
Protect the lender and your investment
A sure way of gaining trust of lenders that you are going to
make your payments is to enroll in their automatic payment
system. This type of payment system will deduct money from your
bank account the same time every month.
Another wise idea is to let your lender know that you are going
to be taking out GAP insurance protection as well as full
coverage and theft protection and that you will be utilizing and
extended warranty. Doing all this will protect the lender in the
event of a total loss or help you sell your bike if you can no
longer pay for it.
Residual values are highly considered by lenders because
if an account goes into repossession the lender wants to be able
to resell the motorcycle for the maximum value. Doing all of the
above will help build the residual value of your bike.
Having a co-signer and/or trade-in
Having a co-signer is not a requirement when applying for a
motorcycle loan. However, having a co-signer with good credit
will definitely increase your chances of approval.
Having a trade-in is important particularly if you made all of
your payments timely with your trade-in motorcycle. You may have
had problems with some of your other bills but lenders will like
if you can show that you have paid your past motorcycle loan in
a positive manner.
Paydown your credit cards
Your credit cards and total debt are going to be looked at
very closely during approval consideration. Therefore, you
should do what you can to paydown your credit cards as much as
possible. Try and paydown at least 30% of your total unsecured
Get a copy of your credit report
Almost 75% of all Americans have some sort of error/outdated
information present on their credit reports. You don't want any
erroneous data to hurt your chances of approval. Therefore it is
very important that you get a copy of your credit report before
you apply to make sure that the information on your credit is
100% accurate and current.
We offer a wide range of
credit motorcycle loan programs. The rates we offer are the
most competitive online.
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