Credit Score and Financing a Bike.

  • Thread starter Thread starter sleezyray
  • Start date Start date
S

sleezyray

Guest
Forum Sponsor
I am in the process of rebuilding my credit. Although i can afford the monthly payments easily, i know my credit is not good right now. I will rather avoid the embarasment of getting denied at the dealership. Most of the dealers require an upfront fee of 300 to 500 (snow city) just to begin the application process so for you financial experts here, what factors is considered in determining who gets approved and rejected outright.

what is the minimum credit score required by kawasaki. (zx14)
what is debt to income ratio and is there a formula i can use to figure this out on my own?
what other factors is considered. I have a good job and income with manageable debt.
I was also informed that with kawasaki, say i finance a bike at 7 percent and missed a payment, the rate automatically jumps to like 15 percent. is this true?
Am only looking for financing advise, not a save and pay cash kind of response please.
 
Last edited:
If you're worried about not being approved, there are dealerships out there that finance to high risk clients. I don't know if any of them sell brand new bikes or not though.
 
You can always go to the bank as well and get a loan or line of credit?
With bad credit you will most likely have a lien on the bike too.
 
you have a bad credit and you want to purchase a ZX 14...those things are costly( see my sig).

Most dealers will not allow you to walk away if they even see a hint of "I want this bike" in your eyes. They will get you a ridiculously high interest rate to keep your payments per month really low and keep you with them for a long time...

But they will require a down payment which is $500( or more).If you cannot afford the down payment or are cringing to give it now, then best to save up a bit.

Also a ZX 14 is costly,like I said before...less money down = more interest later...perhaps a litre or 600cc bike would suffice?
 
I would start by actually knowing what your Credit is, and also FICO score......


http://www.consumer.equifax.ca/home/en_ca.
They will mail it for free if you want to go that route.

Note: You do not want a lot of inquiries/checks on your file of those looking to see who will give you credit/financing as this actually goes against your score.
 
Last edited:
So many potential responses so I'll stick to the basics. You say you are "In the process of rebuilding your credit". How long have you been in this process? Most banks/finance companies are looking for a trend of good bill payment (at least a year, sometimes two) before they will consider financing you and/or financing you at a decent rate. Banks also consider what you were borrowing the money for and based on the importance of it (buying a house #1, buying a toy #99) and are less likely to loan money for things they view you'd be willing to walk away from if things got tough.

If the dealer is looking to charge you $300-$500 I'd personally walk away! Maybe things have changed but I've never heard of any business charging you money just to see if they can get your financed. Also, if the rate is 7% then you may as well just go to your bank. They won't charge you for the loan application and your rate will be in the same ball park.

Kedo suggests you get your credit score and that is also a good idea. I'm not sure if Equifax provides you with an actual credit score but if they do and it's less than 600 you're probably out of luck. Who knows, maybe your credit isn't as bad as you think.

Personally I'd pass on borrowing money for anything that isn't absolutely necessary. If your credit was bad lenders are going to be cautious loaning you money and even if you get the bike, perhaps that will push you over the edge so that another lender won't touch you when it's for something that is a necessity.
 
The fact that you even thought to ask what happens if you miss a payment tells me you cannot afford a bike.
 
Okay miss Cleo. Geez, like I said, I don't need personal opinion as to what's good and bad for me just the requirement for credit approval on a standard rate offered by kawasaki in particular. If you don't know shut up and just read on. Your future insight is worthless and makes you look arrogant. I thought this post can help some of us who cannot cash purchase a bike. I checked my Equifax last night, here are the figures. Credit score is 681. Income is $68000. Total debt is student loan $6400. Credit card $5600. Car loan $16000. Rent towards my mothers house is $800 and i cannot leave her because she is single. 3 late payments in 12 months on my credit card. No prior lateness before this. Otherwise no bankruptcies, collections and such. I posted this only because I do not want banks making inquiries on my account if the end result will be denial of loan for bike and a lower credit score as each inquiry lowers the score. Talking to CIBC, they offered for me to bring my laptop and they will access my equifax report which i paid $15 for before the application process. This way, there will be no inquiries by them to equifax and i will know if i can proceed with a loan application. The BS some of you are posting is just ridiculours. I said i can EASILY afford the bike on a monthly terms, however as you all know, a good credit is everything in this world. I also just got a second weekend job so my income will rise. OH well, flame on. Thanks folks.
 
Last edited:
Well 25% of your take home pay would be going to pay debt? (Which doesnt include A mortgage)
 
murf said:
Well 25% of your take home pay would be going to pay debt? (Which doesnt include A mortgage)
Click to expand...

i surpose so but i think you all missed the question i was asking so i ain't commenting any further. Cibc is going to answer it i guess.
 
Anything above 700 is good so your 681 should be fine. Though why not just wait a bit longer and pay off your credit cards and student loan before you take on more debt?
 
sleezyray said:
Okay miss Cleo. Geez, like I said, I don't need personal opinion as to what's good and bad for me just the requirement for credit approval on a standard rate offered by kawasaki in particular. If you don't know shut up and just read on. Your future insight is worthless and makes you look arrogant. I thought this post can help some of us who cannot cash purchase a bike. I checked my Equifax last night, here are the figures. Credit score is 681. Income is $68000. Total debt is student loan $6400. Credit card $5600. Car loan $16000. Rent towards my mothers house is $800 and i cannot leave her because she is single. 3 late payments in 12 months on my credit card. No prior lateness before this. Otherwise no bankruptcies, collections and such. I posted this only because I do not want banks making inquiries on my account if the end result will be denial of loan for bike and a lower credit score as each inquiry lowers the score. Talking to CIBC, they offered for me to bring my laptop and they will access my equifax report which i paid $15 for before the application process. This way, there will be no inquiries by them to equifax and i will know if i can proceed with a loan application. The BS some of you are posting is just ridiculours. I said i can EASILY afford the bike on a monthly terms, however as you all know, a good credit is everything in this world. I also just got a second weekend job so my income will rise. OH well, flame on. Thanks folks.
Click to expand...

A financially responsible person would go to their local bank, ask for a loan and pay off that 20%+ credit card debt. Then they'd pay off the bank loan or student loan, depending what has higher interest rate. Don't even want to ask what your car payment is at...

Also why do you need a brand new bike? You already have a car payment, credit card payment, student loan payment, rent, insurance etc...and now you want another payment for the bike + insurance. You will bankrupt yourself faster than you know it. 68,000 after taxes works out to 1,000 give or take but im willing to bet that at the end of the month you probably don't have a penny in your pocket.

What will you do if you go for a ride on your shiny new bike and fall and break your leg? Do you have anything put aside in savings in case something happens and you cannot work? Or will bankruptcy be your only way out?

Also part of your crappy credit score is because of the amount thats on your credit card. The larger % of available credit you use up, the more it is used against you. For example if you have 1,000 dollars on a credit card that has a limit of 2,000$ you're worse off then if you have 2,000 on a credit card that has 10,000 limit.

If you absolutely must have a bike then buy something used, there's no reason that you cannot get something nice for around 6-7 thousand dollars.

The above is just my opinion so don't get offended by what i said. Im simply calling it as i see it.
 
681 credit score, just go to a dealer and finance it. yer gonna pay 10% interest, but they should give it to you.
they dont look at all your other expenses that are not against your credit when buying a bike....they look at that for houses.

they may put a gps tracker in it so they dont loose the bike since you have missed 3 payments in the last year.
 
Loan Arranger will get you a loan. It will be anywhere from 12-25% though. They will however finance private sales as well as dealer sales. There are a lot of other places that will do this as well, I just know that one cause I drive by it all the time.

Anyway goodlucK!
 
Kedo said:
I would start by actually knowing what your Credit is, and also FICO score......


http://www.consumer.equifax.ca/home/en_ca.
They will mail it for free if you want to go that route.

Note: You do not want a lot of inquiries/checks on your file of those looking to see who will give you credit/financing as this actually goes against your score.
Click to expand...

Only the credit history is free. Credit score is different. And checking your credit score/history will not affect your score. They are counted as soft inquires and do not count. Applying for credit card, loan, etc are hard inquires and they affect your score.
 
You are right Sushi for the most part. At present equifax has a free trial program called equifax complete advantage plan. Just register to gain access to everything under your file including your score. Then call them tomorrow to cancel your membership and its free. Totally free. They are betting on the fact that a percentage of people who sign up will forget to cancel their membership so just dont forget to do that before the 30 day period ends. Am not desperate enough to finance a bike at a rate more than what kawasaki posts on their website. You can all go ride your cash purchased bikes. Enough with the diatribe.
 
Last edited:
Sushii said:
Only the credit history is free. Credit score is different. And checking your credit score/history will not affect your score. They are counted as soft inquires and do not count. Applying for credit card, loan, etc are hard inquires and they affect your score.
Click to expand...

https://www.econsumer.equifax.ca/trial_en.html

I've checked my score twice this year and cancelled a week later no problem. Just cut them off and say no three times when they try to convince you to stay with the product.

681 isn't too shabby. Is that FICO? The free Equifax score isn't totally accurate but at least it gives you a picture where you are. I got my mortgage with a FICO score in high 600's.
 
sleezyray said:
Okay miss Cleo. Geez, like I said, I don't need personal opinion as to what's good and bad for me just the requirement for credit approval on a standard rate offered by kawasaki in particular. If you don't know shut up and just read on. Your future insight is worthless and makes you look arrogant. I thought this post can help some of us who cannot cash purchase a bike. I checked my Equifax last night, here are the figures. Credit score is 681. Income is $68000. Total debt is student loan $6400. Credit card $5600. Car loan $16000. Rent towards my mothers house is $800 and i cannot leave her because she is single. 3 late payments in 12 months on my credit card. No prior lateness before this. Otherwise no bankruptcies, collections and such. I posted this only because I do not want banks making inquiries on my account if the end result will be denial of loan for bike and a lower credit score as each inquiry lowers the score. Talking to CIBC, they offered for me to bring my laptop and they will access my equifax report which i paid $15 for before the application process. This way, there will be no inquiries by them to equifax and i will know if i can proceed with a loan application. The BS some of you are posting is just ridiculours. I said i can EASILY afford the bike on a monthly terms, however as you all know, a good credit is everything in this world. I also just got a second weekend job so my income will rise. OH well, flame on. Thanks folks.
Click to expand...


You request opinions about financing on a completely public internet forum, then complain when you get the answers and opinions that you don't like but you know you're probably going to get? Welcome to the internet.

And you say you don't appreciate personal opinions but then go ahead and post your personal financial information about yourself, once again, on a public internet forum?
 
Matt_ said:
Loan Arranger will get you a loan. It will be anywhere from 12-25% though. They will however finance private sales as well as dealer sales. There are a lot of other places that will do this as well, I just know that one cause I drive by it all the time.

Anyway goodlucK!
Click to expand...

LOL, It would be cheaper to buy it on a VISA....
 
Sushii said:
Only the credit history is free. Credit score is different. And checking your credit score/history will not affect your score. They are counted as soft inquires and do not count. Applying for credit card, loan, etc are hard inquires and they affect your score.
Click to expand...
not true... they all affect your credit... dont pull the info unless you really need to know it. it doesnt uaually change much within a 6 month time period.
sleezyray said:
You are right Sushi for the most part. At present equifax has a free trial program called equifax complete advantage plan. Just register to gain access to everything under your file including your score. Then call them tomorrow to cancel your membership and its free. Totally free. They are betting on the fact that a percentage of people who sign up will forget to cancel their membership so just dont forget to do that before the 30 day period ends. Am not desperate enough to finance a bike at a rate more than what kawasaki posts on their website. You can all go ride your cash purchased bikes. Enough with the diatribe.
Click to expand...
what do they saw is their financing rate? honda told me that the best they would finance anyone at is about 10% on a motorcycle. it is a toy, with a high chance of non re payment if the buyer has bruised credit, easy to hid, easy to say it got stolen if they try to come repo it.

i was going to buy new, but i went to the used market and got a 2 year old 2009 (it was old inventory when previous buyer picked it up) i saved a bunch and it only had 3km on it.

your credit score isnt really bad, sub 600 is bad, yours is average.
psycho44 said:
https://www.econsumer.equifax.ca/trial_en.html

I've checked my score twice this year and cancelled a week later no problem. Just cut them off and say no three times when they try to convince you to stay with the product.

681 isn't too shabby. Is that FICO? The free Equifax score isn't totally accurate but at least it gives you a picture where you are. I got my mortgage with a FICO score in high 600's.
Click to expand...
stop pulling your credit scores...its going to affect it eventually. the form you signed for your mortgage also allows them to pull your credit annually, so you arent the only one checking up on it.
Forum Sponsor
 
You must log in or register to reply here.
Back
Top Bottom