Total Motorcycle Community Forums

A few years back we were mishandling credit cards and, ultimately, had to file a Chapt. 13 bankruptcy. However, we completely paid off our Chapter 13 and have never used credit cards since. We have our cars paid for, except we purchased a new to us Honda about two months ago and traded an older car for it as downpayment. So, some of our credit was restored.

Currently I am in the process of saving for a motorcycle and want a new one instead of a used bike. I have been trying to find some lending sites that won't screw me over with interest rates and that will actively work with people who have previously had a bankruptcy. Capitol One required it to have been 5 years back and Lending Tree says they don't do motorcycle loans, so they are out as far as areas that may be considered.

I am assuming that I am not the only one in the world that has run into some financial problems in their past, but gotten themselves straightened out a bit. Are there any reputable lenders out there that are easy to access and actually work with you instead of trying to tack on high interest rates? I have not tried the credit union or even where my wife and I financed our car, but was sort of hoping to find out about a lending company that really dealt with motorcycles enough to warrant looking into for a pre-approved loan. Part of the problem I have is that I can only guess a final, turn-key price on the bike I want to purchase.

Any rate, anyone know or have direct experience with such a lender, please let me know. I do not have to rush to make any deals or such and am really just researching options at this point. I'd appreciate any thoughs on the matter. We live in the Texas area, if that helps any.

Thanks.

The first point I'd make is that since a motorycle is considered a 'luxury' purchase, like a boat or a vacation home, you are not likely to find any lender that will give you a great rate with your history.

So, your best option is to keep saving up. Maybe get a gasoline credit card or something and use that for a year - paying it off, monthly, or every other month (if you don't carry a balance EVER, then your credit rating won't improve).

Some motorcycle sales companies offered a special loan rate with a credit card. The hitch is that as a credit card, not a straight up loan, they count on you making OTHER purchases with the card, and then owing money on the balance once the fantastic introductory rate expires.

Look at purchasing a used bike if you really really want to get into riding. Cheaper to insure and less expensive to purchase.

P

I financed through Harley Davidson Credit. I didnt finance much, and I have good credit, so I do not know what your situation would be with them. BUT, it is not a credit card, it is a 5 year loan, and the interest rate has no introductory 'deals'.

But I agree with the last poster...buy a used bike by saving up the cash for several months. If you have bad credit, go online and get a full credit report from all 3 companies to review whats on your credit, and maybe talk to a credit counselor to develop a strategy to improve it. Probably beyond the range of help most here can provide! Any lender will use your credit against you to jack up your rates (its how they make their money), so don't expect any of them to be very understanding.

Also, if you just bought a car, it might not be a good time to make another large purchase. Space the big credit purchases out at least a year or two. Financing a car doesn't immediately give you a boost in your credit score, maintaining a healthy debt-to-income ratio (based on the amount your various lenders request monthly to maintain the loan - not how much the total balances are, except with credit cards where you need to keep a balance at least 30-50% lower than the limit) over a long period of time is the key to regaining credit.

I've never been as bad as a bankruptcy, but I've had pretty dismal credit scores in the past. when I was younger I had to finance a cheap used car at 21% interest. I've wised up a little since then

I too think you should get a nice used bike while you wait for your credit score to heal itself a little bit. If it comes down to it, I've usually had the best luck getting loans at good rates from a credit union. Another good thing about local or small credit unions is that you can actually talk to a PERSON who uses their BRAIN instead of some pre-programmed animatron that can't wipe their but without being told it's ok.

Motorcycle IS considered a luxury item in the USA though. I think you will have a hard time justifying the purchase unless you really need it as cheap and efficient transportation. The fact that you just bought a new car doesn't help your case. I say go used and pay cash.

Thanks for the info and tips.

Bank and credit unions say my credit is not as bad as I thought and no problems with getting a loan. However, still waiting and saving. No rush to get bike and may actually work better deal when winter is in full swing, as bikes don't move easily from dealerships during this time. Have to wait and see.

Thanks.