How can I get a motorcycle loan with bad credit?
In this day and age, almost everybody has debt and millions of people have poor or bad credit. If you're one of these people, you might think it's next to impossible to find lending for things like, you know, a new motorcycle. But luckily for the millions of Americans who are being put at a disadvantage with bad credit ratings due to mistakes they've made in the past, it is possible to find reputable lenders who offer bad credit motorcycle loans.
So what is a bad credit motorcycle loan?
When shopping for a motorcycle loan, your first choice will be to choose between a secured motorcycle loan or an unsecured motorcycle loan. With a secured motorcycle loan, you have to put up some property as collateral and you can receive a loan based on that. Typically, if you have collateral, most lenders will gladly issue the loan because they accept very little risk.
With an unsecured bad credit motorcycle loan, much of risk falls on the lender. If you have a bad credit history, this can scare many lenders away pretty fast. But, your credit rating isn't everything. There are many lenders that specialize in issuing motorcycle loans to people with bad credit who will take other factors into consideration. They'll look at whether you have a full-time and steady job. They'll want to make sure you earn enough to cover the monthly payments for the loan. And they'll want to ensure that your most recent credit history has been satisifactory.
Face it, if you're currently missing payments on bills, you're not working, or if you don't earn enough to cover the loan, you're going to have a tough time convincing a lender to fork over the cash for your new motorcycle. But, even if you have bad or very bad credit due to mistakes you've made, as long as you can show the lender you have the ability to repay the loan, chances are you can find a company to issue the loan.
Now, why would these lenders take a chance on people with bad credit? The answer to that is simple: If they think they can make money, they're going to do it. The way they make money is by offering these bad credit motorcycle loans with exorbitant interest rates. Some lenders also charge additional fees on top of the interest rates for these bad credit loans.
One piece of advice for anyone shopping around for bad credit motorcycle loans is this: Shop around! A mistake many people with bad credit make is that they jump at the first loan they get approved for, regardless of the interest rate or fees. By shopping around and comparing rates, you can end up saving yourself thousands of dollars over the course of the loan.