Many people these days have bad credit. In fact, recent statistics peg as much as 25% of the American public as falling into the bad credit category. No one wants bad credit, and no one anticipates it, but it does happen. Riding a motorcycle can be particularly therapeutic — a great way to escape fiscal, filial, and occupational stress. But if your credit score is around 620 or below, you may find yourself asking the question: can I buy a motorcycle with bad credit?
The answer is yes, you can. However, the bad credit motorcycle financing process may prove more challenging than it would otherwise. Let’s look at a some steps you can take to optimize your buying experience.
Repair Your Credit Score
Try to bring your credit score up as much as possible. Get a copy of your report from the credit bureau and analyze it. Make sure that everything on there is supposed to be on there. If there is something in error, call the company and have it removed. The bureaus are obligated by law to investigate claims of inaccuracy on your record. Don’t let a bankruptcy or unpaid bill which never happened kill your chances of financing a motorcycle. There are many other ways to boost your credit, including secured credit cards, on-time automatic bill payments, and a multitude of other methods which are beyond the scope of this article.
Cosigners and Down Payments
Try to find a someone to cosign your motorcycle loan. This will help in case the lender will not let you get a loan in your name alone. Try to save up as much money as possible for a down payment. Try to find a couple of dealers that specialize in working with bad credit loans. This will give you a few options if needed. Remember that most lenders and dealers will require you to have your motorcycle insured. Credit can play a factor here, increasing your rates. This is especially true if you need sport bike insurance, for which rates are notoriously high.
There are a few things to consider when getting a loan. Since you do have bad credit usually, a lender is taking a risk on lending you money, so the company will want to charge you a higher interest rate. Do not let the dealer talk you into getting a larger loan for a better motorcycle. If you cannot afford it, do not get it. Sometimes the interest rate of the loan can change or fluctuate. On the bright side, you will have the bike that you have always wanted.
Do not be afraid to shop around. That dream motorcycle is only a loan away from being yours.