| Motorcycles and Twowheelers: Buying motorcycles - "Tips For Finding A Motorcycle Loan With A Better Credit Score" Monday, 6 February, 2012 | Home | Suggest a Link |
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It is common knowledge that motorcycle financing companies base high importance on your FICO credit scores when approving motorcycle loans. However, what many people overlook is that their FICO credit score can dramatically impact the term on their motorcycle loan along with the interest rate that is assigned to the motorcycle loan.
In order to gain better motorcycle loan rates, it is highly important that you think of your FICO credit score as a picture of how risky you are to the lender. Your FICO credit score is essentially a benchmark which motorcycle financing companies use to grade you and assign a risk to you when applying for a motorcycle loan. Since factors about your credit change on a daily basis, so can your FICO credit score.
The five tips below are designed to help ensure you improve your creditworthiness as your credit score changes. Ultimately, these tips should help you obtain better motorcycle loan rates and loan terms in the future.
Watch Your Debt - Keep your account balances below 25-30% of your available credit limit. This is especially true with your revolving credit card, because many motorcycle financing companies see credit card debt as more risky. If you have a credit card with a $500 limit, you should try to keep the balance owed below $150 when you apply for a motorcycle loan.
Make Your Payment On time - Paying your current credit bills on time is one of the biggest factors that contributes to a higher FICO score. Typically when motorcycle finance companies see potential customers that do not pay their bills on time then they either decline them or issue a motorcycle loan at a much higher interest rate. Late payments, collections and bankruptcies have the greatest negative effect on your credit score and how lenders rate you when getting a motorcycle loan.
Check Your Credit Regularly - In today's age it is easy to get online to check your credit report. Checking your free credit report regularly is very important because it can help you uncover inaccuracies that are affecting your FICO credit score. Don't let your credit health suffer due to inaccurate information or errors on your credit report. If you find an inaccuracy on your credit report contact the creditor associated with the account or the credit reporting agencies to correct it immediately.
Avoid Excessive Credit Inquiries - A credit inquiry normally happens when you apply for credit. If you have a large number of credit inquiries in a short time period many motorcycle finance companies see this as a negative since it affects your FICO credit score. Therefore, when you are applying for credit or shopping for motorcycle loans it is very important you consider how many times your credit is accessed. Be advised that sometimes motorcycle dealerships will pre-screen you for a loan by asking you for your driver licenses and social security number. Normally this results in a credit inquiry on your credit report. Be prudent in shopping for credit and motorcycle loans.
Establish Credit Early - Time is a very important part of improving your FICO credit score. Therefore, it is recommended that you start building credit early in life. Getting one or two credit cards can significantly help build your credit. However, the key to this strategy is keeping your purchases small and frequent and paying off the balance every month on time. When establishing credit you should also keep the oldest account on your credit report open in order to lengthen your period of active credit use. The length of your credit history can make a big difference in getting approved for a motorcycle loan.
Whether interest rates are high or low or it's the end of a model year with lots of incentives, motorcycle buyers tend to make the same mistakes when shopping for a motorcycle loan. Here are four common mistakes motorcycle buyers make with motorcycle loans.
Many motorcycle buyers enter the showroom looking for a motorcycle before they determine how much money a motorcycle lender is willing to loan to them for the purchase of a motorcycle. There is no need to shop for a $20,000 Harley Davidson motorcycle, if a lender is only
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Have you checked out the price of a new bike lately? It wasn't that long ago when you didn't have to fork out that much dough for a new car. In fact, many bikers will remember when you didn't have to pay much more than that for a modest house. The prices for houses and cars have shot up over the years. And, so have the prices of motorcycles. The point is, the price of a new bike can take a good-sized bite out of any budget. Buying a used motorcycle is one way to
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Before the 1920s it was an easy decision, a foot-powered push scooter or none at all. But once Gino Tsai from Shanghai, Taiwan developed the Razor scooter it changed everything. His motor scooters became popular so quickly there were people waiting in line for six months before they could get one.
In the 1950s companies like Vespa in the UK started selling the first of their gas motor scooters. It was a big hit at the 1950 Motorcycle Show and quickly became a big hit in the UK as well. Vespa sold over 125,000 in the UK between the years of
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With the depreciation on motorcycles being so enormous after they are driven off the showroom floor, the potential for a buyer owing more on their motorcycle loan than the bike is worth it quite high. Owing more on your bike than it is worth is often referred to as the world of “up side down”.
Many people finding themselves in this situation discover that financial lessons are sometimes the hardest and most expensive to learn. Motorcycle loans of more than 48 months (especially without a down payment) put you in the position of owing more than the value of the bike.
Let’s
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Vespa scooters are one of the oldest names in the scooter business. They have been manufacturing motor scooters since 1946 and their models are in great demand world wide. There are several popular Vespa motor scooters that range in size from 50cc to 200cc.
The Vespa Granturismo has a 200cc engine which is the biggest, fastest and most powerful Vespa ever made. It has a 4-stroke 4-valve engine that is liquid-cooled. With its powerful engine it has the ability to pull away from almost any kind of traffic you could encounter. Even with its larger and more powerful engine it
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