Motorcycle Loans
Steps For Finding A Thin Or No Credit Motorcycle
Loan
by Jay Fran
It is no secret that thin or no credit can hurt just like bad
credit when shopping for motorcycle loans. The main reason for
this is that lenders all have a variety of strategies on how
to approach motorcycle loans in their loan portfolios. Some
lenders see motorcycles loans as a risky but feasible business
investment, while other lenders label motorcycles loans as a
high risk money losing investment. Overall, the general perception
of most lenders is that a motorcycle is a "toy" and
therefore motorcycle loans are much more risky than other types
of loans. This "toy" labeled perception from lenders
is a critical component which makes shopping for a motorcycle
loan much more difficult for motorcycle buyers with thin or
no credit.
The first step to get approved for limited or no credit motorcycle
loans, is to look online. The reason for this is that many online
lenders are very competitive with offering motorcycle loans
and some of them specialize in limited or no credit motorcycle
loans.
If you have searched online and are still having trouble getting
approved due to limited or no credit, it is critical that you
begin to understand the impact of your FICO credit score. Essentially,
a FICO credit score is the number one variable most lenders
use in approving you for a motorcycle loan. The FICO credit
score is a computer generated score which is comprised of your
credit payment history, amount owed, length of credit, amount
of new credit and types of credit.
Since many people with limited or no credit do not even have
a FICO credit score associated with their credit file their
motorcycle loan applications are sometimes automatically declined
by lenders. Therefore, the first step to getting approved for
a limited or no credit motorcycle loan is to start building
credit history. In order to get a computer generated FICO credit
score with your credit file you must have at least one credit
account that has been open for at least 6 months and has been
updated at least once in the previous 6 months.
This requirement can make it tough for young motorcycle buyers
or immigrants who wish to establish a credit score since some
lenders will not extend credit to people with a thin file. However
in today's age, there are credit card companies willing to give
newcomers a credit card with a small $500 limit to get started.
As a result, if all else has failed and you have limited or
no credit a great way for you to begin building your FICO credit
score is to get a low credit limit credit card and begin using
it regularly for small everyday purchases. The key to this strategy
is keeping your purchases small and frequent and paying off
the balance every month on time. Always try to avoid maxing
out the credit cards or even using more than 30% of the available
credit limit. To make this easy some small purchases can even
become automatic by putting things like monthly cable or telephone
bills on automatic credit card payment.
The bottom-line is that finding a limited or no credit motorcycle
loan can be challenging, but working smarter by shopping for
a motorcycle loan online and also beginning to build a credit
history can take a lot of pain out of the process.
About the Author
Jay Fran is a successful author and publisher at Motorcycle-Financing-Guide.com,
a national guide to compare motorcycle lenders. http://www.motorcycle-financing-guide.com/no-credit-motorcycle-loans.html |
