Acheiving Bad Credit Motorcycle Loan Approval

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 debt.

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 bad credit motorcycle loan programs. The rates we offer are the most competitive online.

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