Many people that have bad credit and that are pursuing a loan for a motorcycle, make a big mistake. It’s a simple one really, but it makes things much harder to be able to get approved.

Using the wrong type of financing company!

Overcoming credit problems is tough and if you want to buy a motorcycle, you’ve got to use the right kind of lender. There are prime and sub-prime loan companies. Many people apply with prime lenders, when they should be applying with sub-prime companies, when they have a low credit score. You’ll get an easier approval, better terms and buy more bike by using the right kind of lender, based on your individual credit situation. Everyone has a unique credit history, unique income amount and set of circumstances.

Fortunately, there are specialized lenders that help people that have bad credit to get approved for motorcycle loans with reasonable interest rates and terms. Payments are very affordable through these types of companies. Not everyone can qualify for a loan though, so you should be aware of what guidelines that you will need to follow.

Credit Guidelines to Buy a Motorcycle with Bad Credit…

Adequate income. You must make over $1500.00 per month, or about $350.00 weekly. That’s gross income, before taxes. If you have child support, alimony, disability or other income that is not a part of your weekly pay, then that income can be included. Ideally, an income of at least $2200.00 per month will provide you with a larger loan.

Debt to Income Ratio. Sub-prime motorcycle loan companies are looking to make sure that you can afford your payment easily, so they also want to make sure that you have a reasonable debt to income ratio. This is the difference between what you make each month and how much you pay in other bills. Usually no more than 20% of your income can go to a motorcycle loan.

Bankruptcy. Any bankruptcy that you’ve had must be discharged. Whether that be a Chapter 7 or a Chapter 13, your bankruptcy needs to be completed with no further payments or obligations due to the courts or other creditors. Note: If you’re BK has been dismissed, you will be automatically declined for credit, most everywhere until your credit has been re-established.

Co-signers. Whether or not you need a co-signer for your motorcycle finance will depend largely on your monthly income. While it can help to get approved for more bike, it’s rarely required. In fact, many lenders won’t even consider an applicant with a co-signer for a motorcycle.

Down payments. It’s a good idea if you can put some money down, but no money down finance is doable if you use the right kind of lender. Choosing the right lender based on your needs is critical for getting the most favorable terms.

We’ve got some great companies that can help you with your credit problems. Whether you want a motorcycle for pleasure, or if you need one for a less expensive way to get around (after all, they can really help you save on gas money), there’s help for getting approved. Even some good buy here pay here arrangements are a good deal considering the amount that you’ll save on fuel.  See what you can get approved for!