How to Get a Motorcycle Loan With Bad Credit

Thứ bảy - 27/04/2024 01:09
Motorcycle riding is enjoyed by many people throughout the world. However, maintaining and owning a motorcycle can be costly. For those who need to get a motorcycle loan with bad credit in order to keep their favorite ride, a few basic...
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Motorcycle riding is enjoyed by many people throughout the world. However, maintaining and owning a motorcycle can be costly. For those who need to get a motorcycle loan with bad credit in order to keep their favorite ride, a few basic steps can have a big impact and help cash-strapped cyclists to find personal finance solutions.

Method 1
Method 1 of 3:

Increasing Your Chances of Getting the Loan

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Method 2
Method 2 of 3:

Working With Your Lender

  1. Step 2 Communicate with your lender.
    It may seem like having a bad credit score leaves most of the application process up to luck, but a little communication goes a long way. Discuss some of the following points with your lender:[11]
    • 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.
    • Prove your level of income. Showing exactly how much you earn isn't always required, however, doing so will show that you are serious and capable of paying your loan. Bring in the last two years tax returns or your last six pay stubs to share.
    • Let them know how stable you are. If you have lived and worked in the same place for a period of a few years, let your lender know this. Stability indicates that you are more likely to fully pay back the loan on time.
    • Explain any filing for bankruptcy. If you did file for bankruptcy you should explain why, especially if it was due to a major life event such as a medical bill.
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Method 3
Method 3 of 3:

Improving Your Credit

  1. Step 3 Use your credit cards effectively
    . Credit card use is a great way to positively increase your credit score, so long as you use them properly. Try taking the following steps to increase your credit score by best managing your credit cards.[15] [16]
    • If you do not have a credit card, obtain one and start using it. Sometimes you can get a prepaid credit card if you do not qualify for a regular credit card. These will often charge higher interest rates along with additional fees.
    • Keep the amount charged on your credit card low. Having charges that are maxed out, or close to it, will hurt your credit score.
    • Don't overuse your credit card. Using 30% of your card's maximum limit a month is acceptable, so take the card limit and divide it by three to get the amount you can spend per month. Try to pay off that balance in full every month. Using your card too much in a month, even if you pay it off, will only give the impression that you are a reckless spender.
    • Increase your limit. If you do use your card often, increase the maximum limit. You must be careful to not also increase your spending amount. Strive for ten to thirty percent of your card's limit a month.
    • Don't close any cards. Closing a card will look bad to any credit scoring system. Instead, keep your card working for you by using it to pay for a small monthly bill which is easily repaid.
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Warnings

  • If you avoid all debts and have a zero credit score, you could be in just as much trouble as someone with bad credit. It can take months to raise a zero credit score, so plan ahead.
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  • Avoid payday loan lenders. These are a poor choice for a motorcycle loan and will almost always have extremely high interest rates.
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