Tips on getting a good bike loan

Nowadays, by the mere mention of any kind of a loan people shiver and turn their heads away. They are left behind with the impression that it is a never ending circle they can be stuck in. Yes, any kind of a loan is risky and hard to hold on to, but for most of the people which live their lives with lungs full and indulge themselves from time to time, this shouldn’t represent an obstacle or a blockage, but a method to help them fulfill their dreams. The procedure of applying for a bike loan does not differ much from the car loan application. The main difference is the risk that banks put on it. Motorcycles are more often crashed or stolen than the cars are, therefore banks are often setting higher demands before the approval. This way they are securing their loan. Applying for a bike loan can be stressful and tiring, but there are ways to make this process much easier. Here are some tips you should keep your mind on.

Check your credit report

You need to keep your mind on the fact that you are NOT applying for a personal loan or a car loan. These are similar to the bike loan, but you need to remember that this is a HIGH RISK loan. If you are stuck with some high credit debt or you have any inaccurate information in your credit report you WILL be declined. Then the banks will often offer you personal loans which have higher interest rate and higher taxes. If you have any debts make sure you repay them. It is also advisable to keep some money on your opened accounts. Lenders (banks) love unused money. Run a thorough check of your credit report and if you find any inaccuracies make sure you report them on time, so they can be fixed before you turn in your application for a bike loan.

Be aware of your budget and it's limits

I am well aware of that most of you motorcycle lovers would lie to ride Dodge Tomahawk V10 (>550 000 $), but your budget limitations are such that you couldn’t even afford a Vespa Scooter. Be aware of your limits. Before applying for a bike loan chose wisely. It is not only important to buy the motorcycle that you want, but also a motorcycle that you can afford. If you go way over your head, you will get stuck with monthly payments that will overwhelm and burden your budget significantly. This is a high risk loan so often the penalties for skipping payments can be severe (as in larger interest rates or tax penalties). If you want to buy a better bike but currently cannot afford that loan amount, it is advisable to wait a while and save up money. This way you will be much closer to that awful “NEEDING-GETTING’’ scale.

Understanding the loan procedures

People who are getting a bike loan for the first time and have no experience in that procedure will be exposed to the risk of getting a lame deal. You should not be afraid to ask around and spam with questions considering the loan. The information you collect and experienced advices that you adhere will help you greatly along the way and will liberate you from the stress and fear of the unknown. The lack of information can and most probably will lead you to increasing your monthly payment due to higher interest rates. It is important to stick to your budget limit and thus avoid loaning more money than you ACTUALLY NEED.

Keep your eyes open for other factors as well

There are various factors that can help you on our choice of the right bike loan that will most fit your budget. For instance, laziness is your worst enemy. Before submitting a form of application for a bike loan, you need to check AT LEAST three of your nearest banks for quotes. By this “at least three” I meant that is recommended to check more, and not only banks, but community lenders, credit unions and credit card companies as well!!! There are three important factors for a loan:

1      Interest rate

2      Monthly payment

3      Loan length

You know you got the best deal when you have the loan that has the lowest interest rate, low monthly payment and shorter term of repayment. This way you will not end up overpaying your bike. Compare quotes, negotiate and inform yourselves on time. After all it is one of your greater milestones in life. Consider these options and study them well, and in no time, you will have the most fulfilling satisfaction of boasting to the car drivers who will envy you for your parking options.