Bad Credit Motorcycle Loans are still available; simply apply for free to see how much you qualify for.
Motorcycles have no doubt carved a niche as a great form of recreation and reliable transportation. The gas and maintenance expense are much lower compared to cars and trucks. This is why many people like you want to get their hands on one of these Hot Rods!
If you’ve been yearning for too long to get your hands on one of these babies, but credit issues are giving you the d r a g — then this highlight will reveal to you a few bad credit motorcycle loan options for you to explore…
You should seriously ask yourself “Can I really afford the luxury at this time?”… And that’s what many lenders will consider a motorcycle purchase – a Luxury – not a necessity. So if you’re currently having trouble handling your basic & necessary bills, then a motorcycle purchase may not be the best idea at this time.
Motorcycle Loan Structure
Motorcycle loans for bad credit are usually structured with a shorter term and higher interest than ordinary loans. Lenders won’t want to stretch things out too long because of the high risk factor associated with bad credit motorcycle loans. They also charge more interest because of the anticipated risk factors of default associated with bad credit loans.
Ways to Get the Money
One way to get the money is via a personal loan or home equity loan. If you own a home and have some equity built-up, this process is basically pulling money out of your home in the form of a loan. This is a funding process that many people just like you have used in order to get money for a desired purchase.
Another way to get a loan for your motorbike is from a Credit Union. Usually they will be more apt to provide you with a loan over Banks. If you have a good relationship with a Credit Union, this would be a good place to request a potential loan for your motorcycle purchase.
Online Lenders can also be the road to Guaranteed loan for a Motorcycle. Although not very easy to locate, there are a few lenders around starting to really focus on providing motorcycle loans. They are realizing that this is a hot niche that cannot be ignored.
With bad credit motorcycle loans, Your motorcycle will likely be used as a form of collateral for your loan. Therefore, if you default on payment it will be repossessed. This may not sound too good but at least it lowers the risk factor in the eyes of lenders – making them more comfortable with lending you the money you need.
So again, be sure that you can handle your basic bills well enough, so that you won’t default on a loan that you are fortunate enough to get.
Also to gain confidence with lenders, let them know that you will be willing to get GAP (Guaranteed Auto Protection) Insurance – which actually protects the loan in the unfortunate event that the bike is Totaled. This would basically eliminate any additional charges – your motorcycle insurance company would have required you to pay – IF you only had full coverage insurance. Here is more info on the GAP Insurance.
Review Your Credit Report
What you need to do before going full speed with this motorcycle thing – is to review your credit report – if you haven’t done so within the past 6 months. Removing errors and other negative marks can only help you to secure a more affordable motorcycle financing situation.
More Tips for Fast Approval
As added strength, if you can come up with a down payment of at least 10% – 20% of the cost of your motorbike, this can boost added confidence with Lenders to go ahead and ‘Green Light’ your loan request. In addition, to lower your cost on
bad credit motorcycle loans, you might also want to consider a used or “Pre-Owned Motorcycle”. Keep your options open and shop around.