Bad Credit Finance or 2nd chance loans are obtainable as car loans, but what if you want to finance your motorbike?
Most lenders have strict criteria when it comes to financing Motorbikes. These items are treated more as a ‘want’ rather than a ‘need’ (such as a motor vehicle.) Unfortunately when it comes to Motorbike Loans, if you have had bad credit or default history, many find it difficult in obtaining an approval.
For most, exploring suitable motorbike finance is a time consuming and somewhat frustrating process.
By following these simple steps you will increase your chances on how to finance a motorbike with bad credit.
Use a Broker
Professional Finance Brokers understand lenders guidelines. It’s their job to source the best answer based on your profile and loan amount. Motorbike Loan Brokers can help present your application correctly and as deal with lenders on a daily basis they form good working relationships, they can communicate with the lender to help them gain a better picture of previous problems and the reasons behind them.
Don’t assume the broker and lender will know the reasons behind bankruptcy, defaults or poor previous credit. You need to be open and honest with the broker to help them understand the reasons why. Show the broker positive points so they can help package the loan application correctly. (For instance, you may have been made redundant from your employment and were struggling with bills, but now you’ve gained a better paying job and have caught up on your debts).
Provide as much information to the broker as possible. Payslips, Bank Statements showing income deposits or Tax Returns will help the lender determine your average monthly income. A rental ledger or a Mortgage Statement can also help the lender determine your ability to repay the loan.
Don’t Apply Too Many Times
Making mass applications will not help you. Every time a lender performs a credit check they leave a mark on your credit file. Too many ‘marks’ can adversely affect your ability to gain credit and if you already have a questionable credit history this will make lenders apprehensive to provide any funding.
Deposit or Guarantor
Having a deposit or trade in can go a long way to gaining a suitable approval from the lenders. Borrowing less means lower risks to the lender and they are more likely to grant an approval. Having a Guarantor can also assist reduce the lenders risk as there are two avenues of repayment.
Know Your Borrowing Capacity
Make sure you can comfortably afford the repayments set by the lenders. Usually a 2nd chance motorbike loan gives many the opportunity to rebuild their credit history and many lenders will offer different loan terms and conditions. By making sure the approved motorbike loan is suitable to your budget and lifestyle needs will allow you to enjoy your new bike without worrying about meeting monthly repayments.
How can iCREDIT help?
We are not reliant on one lender. It is our job to compare and negotiate your motorbike loan to deliver an affordable and suitable loan approval.
We provide same day approvals, ‘real’ people you can talk to, flexible repayments, obligation free applications.