Ah- the thrill of the open road! If you plan on financing a motorcycle, however, you probably have plenty of questions regarding the credit score requirements and financing process. Now is a great time a buy a motorcycle. Several new bikes have hit the market and spring incentives are in place. But if you are like many Americans, your credit may have a few dings and you may wonder how to go about financing a motorcycle.
Tips for Financing a Motorcycle
Before you head to the dealership and start shopping, pull a copy of your credit report. There are plenty of websites that allow you to check your score and report for free. Check your report over for any unusual activity that you do not recognize. If you notice any inaccuracies, report them to the credit agencies. Fixing errors on your report can result in a boost of your credit score.
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Most lenders require a credit score of 620 in order to get motorcycle financing. If your score is below 620, you may still be able to find a lender to work with you. Often credit unions and small banks will work with individuals with lower credit scores, especially if you can document that your score results from a life crisis, like unusual medical bills. It also helps to be able to document a source of steady income. If your credit score is borderline, the lenders may ask to see your recent paystubs or contact your employer to verify your income.
To receive the lowest interest rates, you should have a credit score of 720 or higher. Sometimes, however, lenders will offer special incentives that allow individuals with some credit dings to still get a very low interest rate.
If you are not able to obtain financing based on your credit score, you may want to ask your spouse or relative to co-sign with you. This may mean that both of your names are on the title of your new bike. It also means that your co-signer is responsible financially in case you default on the loan, so be certain to make your payments on time.
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Shop around for great rates and incentives, know your credit score, and have financing lined up so that you can negotiate a great price on your bike! Ride safely, and if you are ever involved in a motorcycle crash, contact an experienced motorcycle accident lawyer at Kass & Moses.