New motorcycle financing with not so great credit | GTAMotorcycle.com

New motorcycle financing with not so great credit

ajaxguy

ajaxguy

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Has anyone had any success with getting approved with less then stellar credit? If so can you hit me with some info?

Also can we save the ..."wee you dont need one if your credit is bad" all this kind of stuff.. it was previous stuff and actually just need a loan as well to keep building credit as I paid off my new van in full and that was helping ..so any info appreciated.
 
Depends on what is less than stellar? If it's some late payments with a cell phone or collections for a parking ticket etc. Most banks are ok as long as the primary credit trades are reporting A1.

If you have some late payments with some revolving credit but, good history with installment loans, you might have to pay higher interest but, the banks will still do it. Especially if you have collateral. Collateral being RRSP, TFSA, or even your van and the bike being financed. As long as the collateral can be liquidated to repay the loan without much work from the lender. If it deprecates faster than the balance of the loan, they likely won't do it.


So where does that leave you?

You can go to a higher risk institution. Citi Financial and Easy Financial are two that will do high interest loans and use the "asset" for collateral. They may ask for a security deposit to cover any missed payments. You will also have them tell you they can even offer you relief from making a payment or two but, believe me, it's only so they earn more interest.

They will also push their insurance for job loss and disability etc. You start saying yes to these profit machines and they find ways to approve you.


So, it's up to you. You will pay through the nose. My best friend is horrible at saving money and goes this route all the time. Something catches his eye, got to have it, so he finances it.


Send me a pm if you want to discuss specifics. I can't get you a loan or approved but, if you want to review your credit report and assess how bad it is, I can help manage your expectations and steer you in the best direction.
 
How bad your credit is, will decide your interest rate, and possible down payment. You can ALWAYS get financing! Question is, when is it not beneficial. You can get a loan for pretty much anything, within reason, based on your income. If you make 30g's a year, and you want to finance a Ferrari....not gonna happen. If your credit is really terrible, interest could be up to 29.9%. But if you want that bike.....gotta pay to play!
 
I actually dont mind a high rate as the bike is not super expensive and the bike loan builds my credit.
 
My credit rating is mediocre, I would say more on the bad side of the scale, and I was approved for 2.9% over 3 years with $1000 down on a bike totalling $5066 at markham outdoor power. Hope that helps! Payments are super low :)
 
Who was the financing through if you dont mind?

JP0160 said:
My credit rating is mediocre, I would say more on the bad side of the scale, and I was approved for 2.9% over 3 years with $1000 down on a bike totalling $5066 at markham outdoor power. Hope that helps! Payments are super low :)
Click to expand...
 
Easyfinancial can approve you quickly but their rates are 45-47% and take a minimum payment every two weeks on your bank account. Once you are approve they could push you to take the total amount you've been approved for even if you don't need it + there's been some mention that their practices are border line illegal. Here's a link to Market place/ CBC; you can make your own opinion based on that video; it worth watching:

https://youtu.be/B39eDlBAUF8

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ajaxguy said:
Has anyone had any success with getting approved with less then stellar credit? If so can you hit me with some info?

Also can we save the ..."wee you dont need one if your credit is bad" all this kind of stuff.. it was previous stuff and actually just need a loan as well to keep building credit as I paid off my new van in full and that was helping ..so any info appreciated.
Click to expand...

In 2006 I had bad credit and went to Suzuki Newmarket and got approved at 29%. It's a crap load of interest but at the time I wanted a new ride so it didn't really matter I just paid it. All depends on how bad you want it.


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Ya exactly and I bet that loan helped build your credit up correct?

905 said:
In 2006 I had bad credit and went to Suzuki Newmarket and got approved at 29%. It's a crap load of interest but at the time I wanted a new ride so it didn't really matter I just paid it. All depends on how bad you want it.


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Click to expand...
 
If someone has a bad credit, how does a loan help build the credit up? And if there's such thing, why does the bank doesnt do it and instead gives a reason usually starting as follow:"Unfortunately, at this moment [...]"

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So if you have a loan and they report it to the credit bureaus every month and is in good standing you build credit points...credit cards do it as well but it is not as good as just say a loan of some sort, especially vehicle loans.
Its a funny system, its like you have bad credit but we will give you a horrible rate so the loan will cost more.. I get rewarding people with good credit but raping people with bad is crazy.

I own a home.. a van thats brand new and paid off , been with TD for years and they still wont even look at me.. the customer service aspect is gone nowadays.
 
ajaxguy said:
So if you have a loan and they report it to the credit bureaus every month and is in good standing you build credit points...credit cards do it as well but it is not as good as just say a loan of some sort, especially vehicle loans.
Its a funny system, its like you have bad credit but we will give you a horrible rate so the loan will cost more.. I get rewarding people with good credit but raping people with bad is crazy.

I own a home.. a van thats brand new and paid off , been with TD for years and they still wont even look at me.. the customer service aspect is gone nowadays.
Click to expand...

Find a better representative to speak with, or go to another bank. If the home is in your name, that gives them leverage to loan to you. Third party loans won't build credit as quickly as dealing with the banks. They have the monopoly really, because even third party folks use the banks.
 
Not directed at the OP.

A credit report is like a driver's record. If it has nothing, it's difficult to ***** risk. No history is the same as someone that is new to credit. So there is higher risk.

Having credit, access to credit and not using it etc. Provides history.

Term loans are ok. If they are new. It just shows you acquired a debt. If it shows some payment history and it's good. Others may take a risk.

Credit cards are similar. But what's interesting is, having the card and keeping the balance to zero is good. Again, having access to credit and not using it or using it and paying it off Provides a good rating.

Mortgages and cell phones now report too.

And there are collections and legal items that might report.

Don't pay your child support? It's gonna show.

Don't pay your fines or tickets?

It will show.

Don't pay your hydro or natural gas bill?
It will show.

Inquires for credit will hurt too.

You can have a few inquiries shopping for a car or house. But have Inquires for credit cards is bad.

What's the best way to "establish" credit?

Borrow money for financial assets.

Get a loan for RRSPS.

You benefit with a tax break. You gain an asset. And it shows a loan paid as agreed.

Banks love lending money for investments. And they can use the assets as collateral for the loan. So they don't mind if you do t pay your Rogers bill.

Accumulate some RRSPS and they will likely offer a loc or other credit access so you can use it for whatever. Vacation or toys.

But that takes time.

And it's true. Those that don't need credit, are typically offered it.

Those that need it? Not so much.






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Two guys walk into a motorcycle dealer.
The first guy has an excellent credit history. He gets the bike he wants the next day at 2% per year.
The second guy has a lousy credit history. He gets the bike he wants 3 days later at 10% per year.
It took the dealer the extra two days to find someone who was willing to finance it at all.
 
statsman said:
Two guys walk into a motorcycle dealer.
The first guy has an excellent credit history. He gets the bike he wants the next day at 2% per year.
The second guy has a lousy credit history. He gets the bike he wants 3 days later at 10% per year.
It took the dealer the extra two days to find someone who was willing to finance it at all.
Click to expand...
Bs. Almost every dealer these days have a "go to" credit company for high risk clients. They usually get an answer same day. And it's more like 20-30%.


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MNSTR said:
How bad your credit is, will decide your interest rate, and possible down payment. You can ALWAYS get financing! Question is, when is it not beneficial. You can get a loan for pretty much anything, within reason, based on your income. If you make 30g's a year, and you want to finance a Ferrari....not gonna happen. If your credit is really terrible, interest could be up to 29.9%. But if you want that bike.....gotta pay to play!
Click to expand...

not true, i was at a exotic car dealer on dixie and queensway and the owner was trying to get me to buy a lambo. he said he could get anyone financing on it but the rates would suck...personally i had no interest in dumping over 100k into a car but i did think about taking it for a testdrive (it was used), i had heard they sometimes get bikes so went in to take a peak...they did have 1 but it was a custom chopper, just not what i was looking for.
 
Just a warning. I met a guy that put his new M/C on his mortgage to get a better rate and avoid collision insurance. He wrecked the bike so bigger mortgage and no bike.
 
Why not contact your bank and ask? If your bank will finance you that should give you a good baseline of how high the rates might be. Also, if you are willing to further secure the loan by offering your van as security that should help keep the rate down.
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