If you are planning on buying a motorcycle soon, you might find that you will need financing. It is important that you think about what is needed for financing before you start applying as this can help you get approved faster. Here are some tips for being approved when you apply for a motorcycle loan.
Visit a Local Credit Union
A good place to start when applying for a motorcycle loan is a credit union, whether it is one you are a member of or one you haven't been to before. Credit unions are great because they are usually more community-oriented than regular banking institutions. If you belong to the credit union, you have an even greater chance at approval since they already have an inside look at your financial history. Credit unions also sometimes provide competitive rates for motorcycle and vehicle loans that you can't get elsewhere.
Know Your Credit Rating
Before you start filling out applications and deciding on the type of financing you want, it is a good idea to get your credit score and report. You need to know where you stand so that you can explain the situation to the bank or credit union. This may help keep you from being denied right away if you have a valid reason for your current credit rating and can show that you not only have enough income, but have been working on taking care of your debt as well. If something was fraudulent on the report, contact the bureau to have it removed and let the financier know that you are in the process of doing this.
Provide Proof of Income and Residence
The person financing the motorcycle, whether it is a bank, credit union or the dealership itself, need to know you can pay back the loan regularly. This requires showing you have enough stable income each month to pay the loan. Provide your most recent pay stubs and your employee's contact information so they can be contacted. If you are self-employed, providing a combination of bank statements and previous year's tax returns should be enough.
They also want to know that you can be contacted at your home if needed, so you should have a permanent residence. Some lenders prefer that you have lived in the same residence for a certain period of time to show stability.
If you have been denied financing, consider offering a larger down payment or getting a co-signer for the loan. Contact a business, such as New Horizons Credit Union, for more information.Share