Published: 25 Jan 2020
You probably want to buy a motorcycle but don’t have enough money to do so. Don’t be sad – you’re not alone. According to theguaranteedloans.com, getting a loan to finance for the purchase is probably one of the avenues you should consider.
To get a loan from a bank or credit union, you need to have good credit. If you don’t have a good credit standing, finding a loan from these institutions could be a challenge. Fortunately, you can still finance your motorcycle through online lenders, dealership, or personal loans.
Seeking a Loan from a Bank or Credit Union
The first thing that you should do if you intend to borrow from banks and credit unions is to check whether your credit score is good enough. You can do this by checking credit report websites or buying from private providers. Normally, you will be considered if your credit score is above 620.
If you qualify for bank loans, look for a bank that offers motorcycle loans. The rates will usually be better than that of a personal loan. Moreover, getting a loan from a bank you are used to doing business with will even be better because they might offer more competitive rates.
Getting a Loan When You Don’t Have Good Credit
If you don’t have the required credit score to secure a loan from banks, you can directly finance the purchase of your motorcycle from dealers or manufacturers. The interest rates will vary depending on the dealer or manufacturers.
They will also require a down payment to show commitment in paying the balance of the loan. The problem with this route is that you might not get the type of motorcycle you want to purchase. Most dealers and manufacturers will only offer loans for their products or what they manufacture.
You can also get a loan from third-party lenders who offer loans to poor credit or subprime credit individuals. You can also get a loan from third-party lenders. Just make sure to consider different lenders and pick the most suitable option for you. Online lenders allow you to consider multiple loan possibilities, making them ideal if you are looking for multiple lenders.
A personal bank loan or a credit union is also a possibility. Your bank can consider your application, especially if you have previously taken a mortgage with them. The only problem with this form of loan is that they are relatively expensive, hence you should only consider them when you have no other options. You will also not qualify for higher loans if your credit score is low. This might force you to settle for a cheaper motorcycle than you wanted.
What to Keep in Mind
Once you have successfully acquired a loan, you should then make arrangements to pay your loan as quick as possible. If you delay, the interest rate might skyrocket. It’s ideal if you can afford loans with a short payment period since they are usually cheaper.
Long-term loans, on the other hand, are more expensive since you will pay an overall higher amount over the many months you will be servicing your loan.
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