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Ideas For Finding No Credit Motorcycle Loan
by Jay Fran
It is no secret that thin or no credit can hurt just like bad credit when
shopping for motorcycle loans. The main reason for this is that lenders all have
a variety of strategies on how to approach motorcycle loans in their loan
portfolios. Some lenders see motorcycles loans as a risky but feasible business
investment, while other lenders label motorcycles loans as a high risk money
losing investment. Overall, the general perception of most lenders is that a
motorcycle is a “toy” and therefore motorcycle loans are much more risky than
other types of loans. This “toy” labeled perception from lenders is a critical
component which makes shopping for a motorcycle loan much more difficult for
motorcycle buyers with thin or no credit.
If you would like to get approved for limited or no credit motorcycle loans, the
first step is to look online. Many online lenders are very competitive with
offering motorcycle loans and some of them specialize in limited or no credit
motorcycle loans.
If you have searched online and are still having trouble getting approved due to
thin or no credit, it is critical that you begin to understand the impact of
your FICO credit score. Essentially, a FICO credit score is the number one
variable most lenders use in approving you for a motorcycle loan. The FICO
credit score is a computer generated score which is comprised of your credit
payment history, amount owed, length of credit, amount of new credit and types
of credit.
Since many people with thin or no credit do not even have a FICO credit score
associated with their credit file their motorcycle loan applications are
sometimes automatically declined by lenders. Therefore, the first step to
getting approved for a limited or no credit motorcycle loan is to start building
credit history. In order to get a computer generated FICO credit score with your
credit file you must have at least one credit account that has been open for at
least 6 months and has been updated at least once in the previous 6 months.
This requirement can make it tough for young motorcycle buyers or immigrants who
wish to establish a credit score since some lenders will not extend credit to
people with a thin file. However in today’s age, there are credit card companies
willing to give newcomers a credit card with a small $500 limit to get started.
As a result, if all else has failed and you have limited or no credit a great
way for you to begin building your FICO credit score is to get a low credit
limit credit card and begin using it regularly for small everyday purchases. The
key to this strategy is keeping your purchases small and frequent and paying off
the balance every month on time. Always try to avoid maxing out the credit cards
or even using more than 30% of the available credit limit. To make this easy
some small purchases can even become automatic by putting things like monthly
cable or telephone bills on automatic credit card payment.
The bottom-line is that finding a limited or no credit motorcycle loan can be
challenging, but working smarter by shopping for a motorcycle loan online and
also beginning to build a credit history can take a lot of pain out of the
process.
Copyright (c) 2005, by Jay Fran. This article may be freely distributed as long
as the copyright, author's information and an active live link to http://www.motorcycle-financing-guide.com
is published with the article.
Jay Fran is a successful author for a website that specializes in finding the
best low interest rate online motorcycle loans, including used motorcycle loans.
This article is reprinted with permission from www.WritingCareer.com |
