It is no secret that getting approved for motorcycle financing is based on your credit history and how you dealt with debts in the past. However, all too frequently good people with past credit problems get turned down for bad credit motorcycle financing. Many motorcycle lenders prefer to approve only pristine credit customers and forget about those who need a second chance or who have unfortunately lived though a bankruptcy.

For most motorcycle buyers with poor credit, it is an extremely frustrating experience when trying to get approved. In the automotive industry bad credit finance is easily available, but for motorcycles many banks seize up when working with those with poor credit.  There are many reasons banks are more lenient with automobiles compared to motorcycle, but none of that really matters.  What matters is what you can do today to help you get approved for a bad credit motorcycle loan.

Here are some tips you can used today to get approved quickly.

1. Communicate With Lenders

Communication with lenders plays a huge role in allowing you to get approved with bad credit.  Don’t just assume a lender is going to know your story because your credit bureau is reviewed.  You need to look for discussion items to make lenders understand your past credit problems are truly a thing of the past. 

For instance, maybe you had a major life event like a sick family member that caused you to be late on some of your bills.  Discuss it with the lender and show the lender after the situation was resolved that you are now current on your bills again.

Another helpful tips is to document your income by bringing the lender your past two years of tax returns and 6 months of pay stubs.  Most cycle buyers do not submit income verification, so it will show a lot of initiative to the lender on your part. 

Lenders like stability, so if you have lived in the same city for years and have a steady job make this a discussion item.  Highlight the fact that you are a stable citizen of the community and that you have had a steady job for “X” years.

If you are trying to get approved for motorcycle financing after bankruptcy, make sure you discuss reasons for the bankruptcy and why it will not happen in the future.  This is especially true if the bankruptcy was a result of divorce, a business venture failing, or medical bills.

Overall, to ensure you get guaranteed approval for bad credit motorcycle loans, don’t be shy in communicating with lenders.  Highlight your strong points and make them feel confident you are on the road to improving your poor credit. 

2. Show Lenders You Will Protect Them

For bad credit applicants there are a variety of ways to gain the confidence of lenders.  One great confidence builder is to allow the lender to automatically deduct your monthly payments from a paycheck or bank account.  This is also known as an allotment or auto deduction. 

Another option is to let lenders know you will take out full coverage and theft insurance, GAP protection, and an extended warranty.  All of these items either protect the lenders in a total loss situation or help hold up the resale value of the bike. 

Lenders highly consider residual values of a motorcycle because if an account goes into repossession the lender wants to be able to resale the bike for max value.  Informing the lender that you will protect them with the above products can go a long way and build residual value in your motorcycle.

3. Co-Signer and Trade-ins Help

Poor credit motorcycle loans do not always require a co-signer.  However, informing lenders that you have a co-signer can go a long way in helping you get approved with bad credit.

Furthermore, trade-ins are highly important especially if you made payments on time with your trade-in bike.  In the past you may have had some problems with other bills. But if you can show the lender on your past motorcycle loan you made all the payments on time it can be a big help with getting approved.

4. Reduce Maxed Out Credit Cards

Most motorcycle lenders consider maxed out credit cards very heavily in the approval process.  Therefore, if you have maxed out Visas, Mastercards or other credit cards, it is highly important to reduce these cards by at least 30%.  This will help boost your credit score and help you to not get declined just because you have maxed out balances on your credit cards.

5. Know Your Credit

It is definitely no secret that thousands of people per year find errors on their credit report.  If you have bad credit then that means creditor have reported negative items against you.  However, that does not mean the creditor has not made a mistake.  For instance, what if a creditor reported that you are six months late on a bill, yet you can prove that you are only 30 days late?  If you do not challenge it then it will count against your FICO credit score.

It is very important you check your credit report for errors.  One error can lower your FICO score many points and this could mean the difference between getting approved or declined for a bad credit motorcycle loan.

There is not a doubt it can be difficult to get approved for poor credit motorcycle finance.  But the key to guaranteed approval is to not get frustrated and simply remain persistent having solid communication with lenders about your situation.