How to get Bike loans with bad credit
Expect to pay higher rates if you have poor credit
Do you want to purchase a new motorbike but you are struggling to find a suitable loan? If you have bad credit, then you may struggle to get a motorbike loan from a bank or building society, and you may also have been refused by the lender usually promoted by the motorbike seller. This can leave you with few options for raising the loan, and so you may need to do a little more research than others in order to find the perfect loan for your bad credit and your ability to repay the loan. You may try by researching companies offering motorbike loans for a range of people who can't get the standard loan.
What sort of people are accepted?
There are a range of people who suffer bad credit ratings which rules them out of the traditional bike loan from the bank. These include those who are discharged bankrupts (those where a length of time has lapsed after being declared bankrupt) and those with previous IVA agreements; people who have defaulted on previous loans, or have had homes and personal items repossessed by CCJ orders; the self-employed, or those who cannot prove their earnings such as the recently returned ex-pat, and those who have had credit card defaults which have caused them to receive a very harsh credit rating. All of these people struggle to raise a bike loan, and this means that there options are limited. However, there are companies available who are willing to offer loans to all of these individuals, and often provide fast turn-around application and agreement times.
Researching loan companies
If you want to buy a bike with bad credit, then the best thing to do is start looking for companies offering motorbike loans to those who are not eligible for bank or commercial company loans. When you are looking at the companies, and comparing the types of loans which are available to you, it is important to consider several different elements. Firstly, you should look at the agreement process, and see what it entails. Some lenders fast-track bad credit loans, or require that you submit your application alongside a guarantor, who will establish that you are able to repay the loan. Secondly, you should look at the relationship between the lender and the bike seller. Some traders only want to deal with customers who have loans from well-established lenders, and may also be reluctant to trade with buyers who are not eligible for their own loan agreements. Thirdly, you need to consider whether the lender will be able to offer you a reasonable interest rate on top of the total loan debt. Buying a bike using a high-interest rate loan is not going to help you to recover your bad credit, as it may force you into defaulting on this loan, meaning that you lose the bike and your current credit rating.
Despite the risks involved with taking out a motorbike loan with bad credit, if you can manage to meet the payments on the loan, you may find that your credit score improves, opening up further loans in the future. You could improve your finances with a bad-credit specific loan, and you may also be able to own your own bike, which can stand as security for later, large