Owning a two-wheeler gives a lot of comfort to commute from one place to another especially in busy metro cities where travelling in public transport could turn out be quite a nightmare. Hence, a two-wheeler has become an indispensable object for a convenient transport.
For many, buying a motorcycle by paying the full-amount would not be possible due to multiple economic commitments. In such a scenario, taking a loan is the only option. However, banks do not lend money to every individual who apply for a loan. There are lots of eligibility criteria that decide the loan approval.
With a good credit score, you may not find it difficult to get a lender to finance the vehicle. with What if you are already under bad credit and still buying a motorcycle is an utmost necessity? How will you find a lender who would extend credit to you even with poor credit score? Read on to find answers to all these questions.
Compare to find the Right Lender
Finding a lender with good credit score is easy. But with scant credit scores, it is slightly difficult to get one, but the chances cannot be completely ruled out. Thanks to new method of evaluating the creditworthiness of the borrowers.
Moving away from the traditional scoring system, several lenders now look at other criteria such as employment, steady source of income, social media profiles etc. You need to search for the lenders who do not consider credit score the major criterion for calculating the creditworthiness. By doing enough research, you will be successful in getting a two-wheeler loan from the right lender with better interest rate, terms and conditions.
Negotiate with the Lender
Some financial institutions consider credit score as the main criterion and reject the loan applications without seeing the larger picture. A bad credit could be a result of defaults that you had done years back which have an impact on your credit score even today. Your economic situation might have improved, and you could be having a steady employment despite having bad credit score.
You can explain and convince your motorcycle dealer and the bank that you will be able to repay the loan without defaulting. Though your two-wheeler loan might be approved with an interest little bit higher than normal, you can still take it due to its availability.
Pay More on Down Payment
Generally, the lenders finance about 80% to 90% value of the vehicle. When you plan to purchase higher end two-wheelers, getting finance for the major portion of the cost of the bike may not be possible with bad credit.
Making down payment reduces a lot of outgo on your interest rate and reduce the loan tenure. With bad credit, when you pay more on down payment, the lenders are more likely to approve your loan as the amount to be repaid is less.
Get a Co-signer
Getting a co-signer could be another viable option
to get a two-wheeler loan when you have a poor credit. The creditworthiness of
your co-signer will be taken into consideration for the loan approval as he/she
would also be equally responsible for the repayment.