A famous quote says “A thing of beauty provides joy forever”.
While many people would find beauty in their homes, gardens, flowers, poems, books etc., others find that elusive virtue of beauty in a motorcycle.
Like with all other things, possessing that dream bike can become a matter of obsession: it can become all-possessing especially when one does not have the cash to pay for it. True, the possibility of a taking a loan can be pursued, but what if you have bad credit hounding you as well? Motorcycle loans for people with bad credit can be very difficult to obtain. At the same time, note the adjective used – difficult, not impossible.
Misleading Motorcycle Loans
A cursory glance on the internet can throw up a list of motorcycle vendors who promise to let you buy that dream bike, even if you have a bad credit rating. However, a closer look at these sites reveals the difficulty of obtaining a loan when you have bad credit.
Some vendors do have tie-ups with teams of financial specialists who can give an approval for financing motorcycles for people with bad credit; however, the terms of repayment can be quite high. Given these circumstances, what can be done to ensure that you can successfully tackle the problem of bad credit, get the loan and purchase the bike of your dreams?
This can be achieved using a few steps that can yield big results.
Bad Credit Tips for Buying a Motorcycle
Check Your Credit Report:
Ensure that you check your credit reports to eliminate the possibility of any incorrect or negative items. An error can denote a liability greater than you actually owe.
Big Down Payment:
Instead of walking up for a loan as soon as you spot your chosen bike, earn and save as much money as you can so that you can afford to pay off a sizable down payment. Usually, a bigger down payment can improve the chances of obtaining a loan approval. Equally, it reduces the amount you will have to pay back over monthly installments.
Online Motorcycle Lenders:
These lenders provide the advantage of not having middlemen to deal with. While middlemen can put you in a situation where they can sponge off you, a lender will want to see you repay the money borrowed, rather than losing out, should you default on the loan.
Set the Score Right:
Avail of some good personal finance strategies to get yourself out of your bad credit score. Using modest new lines of credit can improve your score too.
These may provide loans for people with bad credit as only a small percentage of their overall portfolio comprises bad credit motorcycle loans as opposed to dealers. Since they can control losses better, they provide a higher opportunity for getting an approval on the loan.
Consider Informal Loans:
Avoid the established credit financing agencies and banks that in all possibility would reject your application for a loan.
This involves using smaller investors who can make some interest while providing you with money so as to make upfront payments for your dream bike.
Bad Credit Loans:
Yes – bad credit loans do exist as some moneylenders do provide these to borrowers, in return for higher rates of interest. If you do happen to go in for this, ensure that you read and understand all the terms and conditions thoroughly, so as to avoid any unpleasant situations later.
Consider a Co-signer:
As a last resort, if you have someone who can vouch for you, it can enable you to circumvent the possibility of getting your loan application rejected.
Loans and Bad Debts
Benjamin Franklin, one of the Founding Fathers of the United States and American author, said, “He that sells upon credit, expects to lose 5% by bad debts. Therefore, he charges, on all he sells upon credit, an advance that shall make up that deficiency”.
Given the fact even people with good credit end up repaying a higher amount than the actual credit they availed, your situation can only be considered as being slightly worse. But like the proverbial pot of gold at the end of the rainbow, you can always look forward to purchasing that motorcycle you desire, for all your efforts.