5 Steps To A Better Motorcycle Loan With A Better Credit Score

It is common knowledge that motorcycle lenders base high importance on your FICO credit scores when approving motorcycle loans. However, what many people overlook is that their FICO credit score can highly impact the term on their motorcycle loan along with the interest rate that is assigned to the motorcycle loan.

In order to gain better motorcycle loan rates it is important that you think of your FICO credit score as a picture of how risky you are to the lender. Your FICO score is essentially a benchmark which lenders use to grade you and assign a risk to you when applying for a motorcycle loan. Since factors about your credit change on a daily basis so can your FICO credit score.

The below 5 steps are designed to help ensure you improve your creditworthiness as your credit score changes. Ultimately these steps should help you obtain better motorcycle loan rates in the future.

Watch Your Debt- Keep your account balances below 30% of your available credit limit. This is especially true with your credit card because many motorcycle lenders see credit card debt as more risky. If you have a credit card with a $5,000 limit, you should try to keep the balance owed below $1500 when you apply for a motorcycle loan.

Make Your Payment On-time – Paying your current credit bills on-time is one of the biggest factors that contributes to a higher FICO score. Typically when motorcycle lenders see potential customers that do not pay their bills on-time then they either decline them or issue a motorcycle loan at a much higher interest rate. Late payments, collections and bankruptcies have the greatest negative effect on your credit score and how lenders rate you when getting a motorcycle loan.

Establish Credit Early – Time is very important part of improving your FICO score. Therefore, it is recommended that you start building credit early. Getting one or two credit cards can significantly help build credit. However, the key to this strategy is keeping your purchases small and frequent and paying off the balance every month on time. When establishing credit you should also keep the oldest account on your credit report open in order to lengthen your period of active credit use. The length of your credit history can make a big difference in getting approved for a motorcycle loan.

Avoid Excessive Credit Inquiries – A credit inquiry normally happens when you apply for credit. If you have a large number of credit inquiries in a short time period many motorcycle lenders see this as a negative since it affects your FICO score. Therefore, when you are applying for credit or shopping for motorcycle loans be careful how many times your credit is accessed. Be advised that sometimes motorcycle dealerships will pre-screen you by asking you for your driver licenses and social security number. Normally this results in a credit inquiry on your credit report. Be prudent in shopping for credit and motorcycle loans.

Check Your Credit Regularly – In today’s age it is easy to get online to check your credit. Checking your free credit report regularly is very important because it can help you uncover inaccuracies that are affecting your FICO credit score. Don’t let your credit health suffer due to inaccurate information. If you find an inaccuracy on your credit report contact the creditor associated with the account or the credit reporting agencies to correct it immediately.

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How To Get Approved For A High Risk Motorcycle Loan And Financing

Are you in the market for a motorcycle, but have bad credit and need a high risk motorcycle loan? Well don’t worry the goal of this article is provide you everything you need to know about getting approved for a high risk motorcycle loan.

First you must understand how motorcycle lenders go about classifying you as high risk. On the average, when a motorcycle lender is looking to approve any motorcycle financing they have a much higher cut off in the credit score range than an auto lender. This exists whether you have good or bad credit.

So with that said an auto lender may approve a FICO credit score of 610 as not a high risk, but a motorcycle lender would most likely classify a FICO credit score of 610 as a high risk motorcycle loan and may not offer an approval on it.

There are two reasons for this:

1. Motorcycles are much harder to repossess in good condition than an automobile. As a result of this simple fact, if you default on your motorcycle loan it is a higher risk to the motorcycle lender than an automobile lender because it is much harder to repossess a motorcycle in good condition than a car.

With all the new motorcycle riders entering the industry there is a high incident of some form of minor or major damage on many motorcycles, which translates in to a lower amount per unit a lender gets when they repossess a motorcycle for a customer that chooses to get bad credit over paying for their motorcycle loan. The damage could be from the repossession agency or the actual owner but the simple fact is motorcycle fetch much less at repossession auctions than automobiles.

This simple fact is one reason good and poor credit motorcycle loans are offered at much higher interest rates than a car and has an overall lower approval percentages when compared with cars.

2. The average motorcycle tends to depreciate very fast. Since motorcycles have higher accident rates and there are many people who once they crash do not pay off their loan, this results in higher defaults for motorcycle lenders. This is another reason motorcycle loan rates are higher and motorcycles are hard to get approved for.

Ok, now that you have a background in how a motorcycle lender views a motorcycle loan, let’s look at how you can get approved for a high risk motorcycle loan.

Step one is to really understand your credit report and credit score. Sure if you are looking for high risk motorcycle financing, you probably have had some credit issues in the past. But you never know how those credit issues played out on your credit report until you get a copy of it.

Take a look and make sure everything reported on your credit report is actually true. See every year 1000s of people just like you find creditors made errors on their credit report, which negativity impacted their credit score. If your FICO score shows a 610, but there is 1 error on your credit report you could easily raise your FICO credit score to 625 or higher by getting the error fixed. Always get errors fixed on your credit report before you submit a high risk motorcycle loan application.

Step two is to clean up your credit card debt. I know you are probably thinking I can not do this, but it can make a huge difference in helping you get approved for high risk motorcycle financing. See motorcycle lenders do not like to see your personal credit cards maxed out. Therefore, before you submit your application for motorcycle financing you should try to pay down your credit card debt. Even if you have to do it for the short term it can help you tremendously with getting approved.

For instance, if you have a 610 FICO credit score you will probably be declined if you have all your credit cards maxed out. However, if you are able reduce your credit card debt by 50% you stand a much better chance of getting approved for a high risk motorcycle loan. This is a simple concept but you will be surprised by how many motorcycle buyers fail to do this and never get approved.

Step three and the final step is too finally submit your motorcycle loan application. There are many lenders that specialize in high risk motorcycle loans. I recommend tying about 2 or 3 online motorcycle lenders and then move to your local credit unions or financing provide by the dealership such as Suzuki Finance, Honda Financing, Kawasaki Credit Card or the Polaris Star Card.

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Aprilia RS 125 Finance – How Should You Finance a Motorcycle Purchase?

If you are after an Aprilia RS 125, finance can seem like a superb idea when you are there in the showroom, surrounded by beautiful machines and dreaming of your first blast on a deserted road. The important thing to remember is that finance companies can only exist by making money. They make money by lending you money.

If you purchase a bike outright at $4000, buying it on finance could mean you end up paying $5000 for it. It will also mean that you are paying for your bike for several years during which time you might want to move onto something else. You also need to be aware that if you can’t keep up with finance payments, your bike could get repossessed.

Having debts hung around your neck is never fun. Even if you can keep up with your payments the thought of owing so much can be quite stressful. Nobody can predict what financial position you will be in a few years from now (what happens if you can’t work or get fired?) and overstretching yourself on a financing plan today could put you in a terrible position tomorrow. Bad credit history can follow you around for a long time and affect you when you try to get a mortgage or bigger loans down the line.

Getting quotes for Aprilia RS 125 finance (or finance for any other motorcycle) can seem overwhelming. Ultimately, you need to ask how much you will repay. If it seems reasonable, establish how much you will be paying each month and how many months you will be paying the loan off for.

Ultimately, Aprilia RS 125 Tuning does not recommend getting your motorcycle on finance. Aprilia RS 125 finance is a bad idea for young people and it can land you in a pretty bad situation. If you are itching to get a bike, cut back on what you don’t need, work harder and start saving. The reward and feeling of throwing down cash for your new bike and owning it outright will be sweet.

Why not learn more about Aprilia RS125 Finance. The lessons you learn here will apply to any other motorcycle you’ve got your eye on!

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Things to Help in Financing a Motorcycle Purchase

Financing a motorcycle purchase may be a lot easier than you may think. With the rising cost of fuel and the general cost of living, many are finding it an affordable alternative and an efficient source of transportation.

Credit usually plays a key role in any kind of lender provided funding, but even those with less than desirable scores are finding this an great opportunity to finally own. You can also help things along by checking your credit report for accuracy to ensure there is no false or inaccurate information. Getting inaccuracies cleared up and corrected may help improve your overall score.

While excellent credit is not always necessary to obtain the funding needed for buying, it can help you to receive a much lower annual percentage rate on your loan, and even reduce your lower monthly payment, if you are on a monthly plan. You lender can walk you through the processes to help you better understand.

Some key things to remember is to shop around to find the best possible deal on the bike you want. You do not necessarily need to limit yourself in selection. You can actually shop around from new dealers, used, private owners, or even auctions. There are so many options available to you, even if your credit is less than perfect, so you do not need to feel that you have to settle if you do not find the bike you want right away.

Shop around for lenders as well. There are many types of lenders that will have differing options and rates. Some may be willing to work with your financial situation and give you lower monthly payments. You, of course, will want to get the best deal, lowest payment, while at the same time try to keep your interest rates within reason.

Keep your options open when it comes time to finding the right lender. There are some types of lenders that offer credit card style payment plans for your purchase, however the interest rates can quickly skyrocket after a few months, or if a payment is behind. Do not discount purchasing a used bike. They can end up saving you a lot of money in the long run as well as having a much more competitive market of bikes to choose from.

Do not be afraid to ask questions regarding regarding the lending processes, fine print, and any penalties linked to your loan. Make sure you read and fully understand you contract before agreeing. If there is something you do not fully understand, you can always consult a lawyer or even another banking institution for clarification on terms you may not fully understand.

Financing a motorcycle purchase can be a very rewarding and credit building experience. Before making any kind of commitment, you can always ask to review the contracts and policies before signing any kind of paperwork. Ensure you understand the terms and rates, and you can be well on your way to owning the bike of your dreams. It certainly is a great alternative in affordable transportation.

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