If you are looking to buy a motorcycle but have been struck with a bad credit score, it might not be easy to get a loan. You might encounter situations where banks don’t give financing options below a specific credit score.
With the rising price of petrol and the need for a commute, you still can find a way to get a loan with a bad credit score bike finance. Wondering how is that possible and how feasible it is? Keep reading the article till the end to learn ways to finance and increase your credit score.
What Is a Good and Bad Credit Score?
A credit score has become a significant measure to identify your loan repaying capability. A credit score is a score that shows how easily can you return the borrowed money. A good credit score can give you access options to more credit products and a lower interest rate.
A lower credit score would need you to pay more interest rates with lesser financing options.
A credit score ranges from 300 to 850. The table below shows the credit score and its credibility.
|720 or higher||Excellent Credit|
|690 and 719||Good Credit|
|630 and 689||Fair Credit|
|629 or lower||Poor Credit|
Factors Affecting Your Credit Score
Certain factors play a significant role in shaping your credit score history. Out of those factors 2 of them are:
- Timely repayment of bills Any delay here can cost you a lot, and this due date can stay on our credit history for many years
- The amount you owe Your credit utilization and how you manage it has a lot of weight. Not using more than 30% of your credit limit is suitable to manage a lower limit. The amount you owe can quickly cause a change in the scores.
How To Avail for Bad Credit Bike Finance?
Personal loans are versatile and are simple to avail as people use them for many different reasons like renovation, buying a vehicle, marriage, etc. You can increase your chances of receiving a loan with a lower credit score in many ways, as these days, financing has become much more manageable.
You can provide other details to prove your creditworthiness instead of your credit history, like employment status, income, bills paid, etc. These documents can prove your financial habits as healthy and suggest that you are capable of repayment to the lender.
Benefits of Financing with a Bad Credit Score
When you need money within a short period with a bad credit score, you need to have certain documents like your residential proof and employment and salary status ready. Here are a few advantages of going for bad credit bike finance:
- Quick Response
- You can use it for any purpose
- Helps you in repairing your credit history
- Greater chances of getting approved
How To Increase Your Credit Score?
- Repaying credit on time
- Limiting credit utilization
- Increasing credit limit
- Repay pending debts soon
When you decide to approach authentic financing companies, you have a better chance of being given money as they deal with low credit financing. You need not have to chase a lender as authentic websites specializing in financing options give you online forms to apply for a loan, and it gets approved within a few days.
You will find the interest rate reasonable, which will help you ease the repayment of the money. Remember not to avail loan amount more than needed.