If you have a poor credit history, it may take a bit of effort to get approved for a motorcycle loan. There are lenders who are willing to give motorcycle loans for people with bad credit, but the loan interest rate may be quite high if you are labeled as high risk.
Banks usually offer better interest rates than dealerships. In some cases, you are better off spending a few months improving your credit score so you will qualify for a loan with a lower rate. Do not be intimidated by the loan process because you have a bad credit history. Ask the lender for the lowest interest rate possible. Find out whether or not the interest rate on your motorcycle loan can change in the future and read through the details of the loan agreement papers before signing a contract.
When you apply for a loan, lenders look at your credit file. It is important to know exactly what is listed on your report and to check for any mistakes that need to be fixed. You are entitled to one free credit report copy each year and instant access to credit reports are available online for a fee.
Once you receive your report you may be surprised to find outdated or inaccurate information listed on your file. Contact the credit bureau and request that any necessary changes are made. You have the right to include a personal note into a credit file for potential lenders to read, so if you feel the information on your report is false include the details in your note.
Another option is to get a co-signer to help you out. A co-signer signs a contract with the lender stating that they will be responsible for your loan if you do not pay. Ask a member of your family, or a friend or colleague if they will co-sign a loan for you. Paying your loan payments on time will improve credit because a co-signed loan shows up on your credit report. Once your score has improved, you will have a much easier time getting approved for any future loans that you apply for.