No Credit Motorcycle Loans A Bit More Difficult In The Near Future

By Author: Jay Fran
Total Articles: 2
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In the past year and beginning of the New Year it is not a secret that the banks are having some major issue with respect to loan losses. But these losses are not only affecting the banks mortgage business. In fact it has been noted that many banks may be selling off their auto loan businesses and motorcycle loan businesses just to raise capital. This will result in a tougher motorcycle loan market for the New Year.

If you are a motorcycle buyer in the New Year expect the ease of motorcycle financing to not be so easy anymore. There will be lenders still offering motorcycle loans but these loans will be much more restrictive than in the past. Expect higher interest rates and if you have had credit issues your loan may be a little harder to obtain. Therefore, it is important to get your credit cleaned up if you have had any issues in the past. Also try to minimize the outstanding debt you have showing on your credit report. This will help you when bank look at your credit report and determine if you are a good or bad credit risk.

There is some hope for borrowers on the horizon. Fair Isaac is in the process ...
... of developing a new credit scoring model that will be more favorable to those who are current on their payments even though they may have had some issues in the past. These changes will probably slowly flow into motorcycle loans, but it may take some time. Normally lenders do not adapt to the latest and greatest models right off the bat.

Online motorcycle loans may fair better than traditional banks. The reason being is that many of the online lenders do not have the substantial overhead that the local and big banks have. So they are more able to adjust to the changing circumstances. Also online motorcycle lenders did not face the huge exposure in the mortgage market because online motorcycle lenders are traditionally more specialized.

If you have bad credit and are declined for a motorcycle loan do not get discouraged. Often new motorcycle buyers find themselves discouraged by a decline. But in the New Year declines will be more frequent so you will likely have to submit applications with different banks and lenders. Owning a motorcycle is one of the best experiences so make sure you get to enjoy this lifestyle.

With internet motorcycle loans it makes it easy to compare motorcycle loans. You simply with a few click can fill out an application an almost get an immediate response. This helps you especially if some motorcycle lenders decline you and other accept your loan application. You do not have to drive from bank to bank and find out which lenders will accept your application and which will not.

A trend for the New Year will be that lenders may force you to have a down payment before allowing a loan. In the past, zero down payment loans were common but this will likely not happen all the time in the New Year. This is a reflection of motorcycle lenders having a tougher time raising funds for a decent price.

With disposable income per household decreasing lenders are keeping a close eye on motorcycle financing. Also losses are likely to increase with the economy slowing so it is important to remember that lenders may require motorcycle insurance. You should try to get a motorcycle loan quote before you get a loan or purchase a bike. Some motorcycle insurances are running really high these days and this will help you determine if you can afford the bike and insurance.

Do not get frustrated when applying for your motorcycle loan. Just try to remain positive and work with as many banks as you can to get your loan. Having some money down may help your case with the bank so make sure this is known by the bank up front. If you do not get approved just be persistent and remain positive. You deserve the motorcycle.