| Are you in the market for a motorcycle, but have | | | | motorcycle lender views a motorcycle loan, let's look |
| bad credit and need a high risk motorcycle loan? Well | | | | at how you can get approved for a high risk |
| don't worry the goal of this article is provide you | | | | motorcycle loan. |
| everything you need to know about getting | | | | Step one is to really understand your credit report |
| approved for a high risk motorcycle loan. | | | | and credit score. Sure if you are looking for high risk |
| First you must understand how motorcycle lenders | | | | motorcycle financing, you probably have had some |
| go about classifying you as high risk. On the average, | | | | credit issues in the past. But you never know how |
| when a motorcycle lender is looking to approve any | | | | those credit issues played out on your credit report |
| motorcycle financing they have a much higher cut off | | | | until you get a copy of it. |
| in the credit score range than an auto lender. This | | | | Take a look and make sure everything reported on |
| exists whether you have good or bad credit. | | | | your credit report is actually true. See every year |
| So with that said an auto lender may approve a | | | | 1000s of people just like you find creditors made |
| FICO credit score of 610 as not a high risk, but a | | | | errors on their credit report, which negativity |
| motorcycle lender would most likely classify a FICO | | | | impacted their credit score. If your FICO score |
| credit score of 610 as a high risk motorcycle loan and | | | | shows a 610, but there is 1 error on your credit |
| may not offer an approval on it. | | | | report you could easily raise your FICO credit score |
| There are two reasons for this: | | | | to 625 or higher by getting the error fixed. Always |
| 1. Motorcycles are much harder to repossess in good | | | | get errors fixed on your credit report before you |
| condition than an automobile. As a result of this | | | | submit a high risk motorcycle loan application. |
| simple fact, if you default on your motorcycle loan it | | | | Step two is to clean up your credit card debt. I know |
| is a higher risk to the motorcycle lender than an | | | | you are probably thinking I can not do this, but it can |
| automobile lender because it is much harder to | | | | make a huge difference in helping you get approved |
| repossess a motorcycle in good condition than a car. | | | | for high risk motorcycle financing. See motorcycle |
| With all the new motorcycle riders entering the | | | | lenders do not like to see your personal credit cards |
| industry there is a high incident of some form of | | | | maxed out. Therefore, before you submit your |
| minor or major damage on many motorcycles, which | | | | application for motorcycle financing you should try to |
| translates in to a lower amount per unit a lender gets | | | | pay down your credit card debt. Even if you have to |
| when they repossess a motorcycle for a customer | | | | do it for the short term it can help you tremendously |
| that chooses to get bad credit over paying for their | | | | with getting approved. |
| motorcycle loan. The damage could be from the | | | | For instance, if you have a 610 FICO credit score |
| repossession agency or the actual owner but the | | | | you will probably be declined if you have all your |
| simple fact is motorcycle fetch much less at | | | | credit cards maxed out. However, if you are able |
| repossession auctions than automobiles. | | | | reduce your credit card debt by 50% you stand a |
| This simple fact is one reason good and poor credit | | | | much better chance of getting approved for a high |
| motorcycle loans are offered at much higher interest | | | | risk motorcycle loan. This is a simple concept but you |
| rates than a car and has an overall lower approval | | | | will be surprised by how many motorcycle buyers fail |
| percentages when compared with cars. | | | | to do this and never get approved. |
| 2. The average motorcycle tends to depreciate very | | | | Step three and the final step is too finally submit |
| fast. Since motorcycles have higher accident rates | | | | your motorcycle loan application. There are many |
| and there are many people who once they crash do | | | | lenders that specialize in high risk motorcycle loans. I |
| not pay off their loan, this results in higher defaults | | | | recommend tying about 2 or 3 online motorcycle |
| for motorcycle lenders. This is another reason | | | | lenders and then move to your local credit unions or |
| motorcycle loan rates are higher and motorcycles are | | | | financing provide by the dealership such as Suzuki |
| hard to get approved for. | | | | Finance, Honda Financing, Kawasaki Credit Card or the |
| Ok, now that you have a background in how a | | | | Polaris Star Card. |