|By David Pilley on February 3, 2011
A lot of people take out loans to purchase cars. Even with a poor credit score, many are still successful in getting a reliable vehicle. Known to fewer people is the motorcycle loan. I think fewer people know about getting a loan to purchase a motorcycle simply because fewer people ride motorcycles than drive cars. While a car is seen as a necessity to get people to work or anywhere else around town, a motorcycle is viewed more as a leisure activity. A married man with two kids is less likely to have a motorcycle than a single man. Therefore, you might think it would be more difficult to obtain a loan for a bike. Even with bad credit, though, it is still possible to get one.
Just like with a car loan, your credit score is not the sole factor in getting approved. Placing a piece of property as collateral may be a good start. Everything you have has a monetary value determined by the market. If you secure your loan with a piece of property, like electronics or a musical instrument, you will be in less debt if you default on the loan. Selling unwanted property could also give you the amount of cash you need to get a head start on paying back the loan.
Selling some of your old stuff will also give you the option to make a down payment. Having the ability to make a larger down payment will be helpful to you because you will have a smaller amount to pay back in the end. Not only will you have less on the principal, you will also have less interest. If you’re worried about a high interest rate, you could consider the option of a cosigner. Having a cosigner with a higher credit score will be a sign to the lender that you have a better ability to pay back the loan completely and on time.
Just like with any loan, you should never settle for the first offer. Shop around and look at varying amounts and interest rates before making your purchase. One online option is E-Loan. The website has multiple sources, so you will be offered many different quotes for a possible motorcycle loan. Powersportstv.com is another site you can visit for a loan. This website not only offers loans for new and used motorcycles, but you can also search for ATVs, watercraft, or snowmobiles. A third option you could search is American General Financial Services. This site can secure your private information, so you do not become a victim of identity fraud.
Personally, I’m not a motorcycle person. But if you are, you can be assured of a deal on a motorcycle loan, even if you have poor credit. Search online or in person for information about different models and different prices.