Here are our top 5 tips on getting your bike loan approved, even with bad credit!
- Review your Statement and Credit History
You need to look at your bank statements and credit history and try to clear up any errors. Errors may end up costing you more in the long run. For example, overdrawn accounts.
- Be honest with the financier
Don’t cook your own books. Don’t hide bad credit from lenders as it is inevitable that they will find out. You are better off giving them all of the relevant information up front.
- Prove you can pay the financier back
Using your statements and possibly proof of another loan that you have paid off successfully, you will have to prove to your prospective lender that you can pay your bike loan back.
- Speak to a finance professional
It is always worthwhile speaking with a finance professional that will be able to help you compare and save when it comes to your bike loan.
- Pay down your other high interest debts first
If you can, consolidate or pay down your other outstanding debts fast and get rid of them to free up some expendable cash to be able to be taken into account with your new loan.
Here are some frequently asked questions about bike loans….
What are the Interest Rates?
If lenders and bike dealerships have deemed you to have bad credit or as a high risk, you may still be approved through one of our Ask 4 Finance bike loans. We have a wide panel of lenders so we may still be able to get your bike loan approved at a reasonable interest rate. Worst case scenario, we will work hard to get you the best bike loan approval possible, from there it is your choice as to if you are happy to go with the approval that we are able to get for you. Some interest rates can be noticeably higher than the usual market rates on offer to those who are in a prime borrowing position.
Can I get a bike loan if I have declared bankruptcy?
Yes, if you have been discharged from a bankruptcy you could still get a bike loan. Unfortunately, you must prepare yourself to pay a much higher interest rate than is usually advertised. However, if you have not been discharged from your bankruptcy, you cannot get a bike loan.
How can I refinance a bike loan with bad credit?
If you are currently paying off a bad credit bike loan and have been keeping up with repayments and obligations, you could be eligible to refinance your loan with one of our other lenders. You will need to be able to prove that you are in a better financial position than before and that you have been keeping up with your current bike loan repayments.
What is part IX debt agreement?
A Part IX Debt Agreement is a formalised, legally-binding agreement between yourself and your creditors to pay back debts.
Can I get bad credit bike loan with unpaid defaults?
Yes, it is possible to get a bad credit bike loan if you have unpaid defaults. You have to be prepared to pay above the usual market interest rate. Some companies, such as telecommunications providers and power providers, are very quick to add defaults to your name. It’s up to you to check your credit history for errors and make take action to have any defaults removed that have been incorrectly listed. Correcting your credit history could save you a lot of money so it is definitely worthwhile spending the time to get this right.
How do I find out more about my Credit file?
Finding out about your credit file is easy. Read this article…
What should I do if I have more questions?
Asking questions is important, but asking the right questions is even more important. If you don’t know what to look for or what to ask your lender, read on…