Is your credit situation less than ideal? You could have a chequered financial past, forgot to pay some debts or just ran into bad luck. Maybe you’ve toyed with the idea of purchasing a motorcycle but don’t have the funds to do so. You’ll have to find a motorbike loan, but most of the places you’ve turned to for credit told you no. So how can you raise your chances? Here are some top tips and hints to help you find a second chance at motorbike finance.
Check your credit history
Your credit history is the first port of call for lenders to check if you’re eligible for a loan. Did you know you can check your own credit history? It makes sense to get a complete picture of your financial position before setting a solid budget. Bad credit histories mean statements on there that show financial institutions you are a statistically higher risk borrower. However, credit histories might have inaccuracies. Black marks against you from default-happy utilities companies or flat-out mistakes might be on there. It’s your responsibility to fix them up, so try to obtain your own credit report before looking for a bike loan.
Research – a lot
You’re reading this on a computer or a mobile device – finding out what kind of loan products are out there is easy as one click or tap away. Gather a list of potential bad credit motorcycle finance lenders and brokers to see what they offer. Find out if they have good deals, are reputable and most importantly, are licenced by ASIC and relevant authorities. Read our top tips on getting best motorcycle finance here.
Save or pay down debts
Bad credit motorbike finance does mean higher than normal interest rates, but you should aim to save for a deposit on your bike if possible. Conversely, you should pay off other debts more so than usual. This strengthens your financial position and shows lenders you are a lower risk than your credit history might let on. Savings and disposable income means you can take on a bike loan without much trouble.
Set a comfortable budget
Lenders will balk if you walk in and demand lots of money for a motorbike you clearly can’t afford. Set a reasonable budget that covers your definite needs. Having “wants” and “nice to haves” is great; if it falls within your spending limit. Using your brokers and lenders list from your research phase, use their online loan calculators (if they have one) so you can get an idea of what you can afford.
Just be honest
If you have bad credit, don’t try to run away from it. First off – you can’t; credit histories are there for a reason. You have to give your prospective lender or broker every reason to trust you. Don’t fudge your numbers or give incomplete information. Lenders or brokers who specialise in bad credit bike loans want to help you. Give them every reason to by being up front!