When it comes to buying a motorcycle with bad credit, there are a few standard options. While some may choose buy here pay here finance, there are other options to consider, as well. Each option has its advantages and disadvantages, however that’s a decision for you to make. To help you make an educated decision, here is an outline of their major benefits and “not so” benefits.
Buy Here Pay Here Financing
This type of program is also called “in house motorcycle financing”. When you want a motorcycle and have bad credit, you have two goals. Your primary goal is to get approved for a loan to purchase a nice bike, which you can enjoy. The second goal is to rebuild your credit, which is where buy here pay here motorcycle financing fails to do you any good. In-house financing works like a rent-to-own place. You know those types of places. You do get a loan for a bike, but it cannot help you rebuild your credit. Since motorcycle dealerships that offer in house finance are not real financial institutions that report to the credit bureaus, they won’t be helping your FICO (credit score) out at all.
Local Credit Unions
IF you are a member of a local credit union through civil service or your job, this may be the best approach to getting approved. Of course, how beneficial to you this option will be depends largely on the severity of your credit issues. Many credit unions can approve loans that even finance companies at dealerships won’t approve. Your having a good standing checking or savings account at the credit union can make a difference. Also, if you’re a member of the military that can make a difference also, especially if it’s a military CU.