How Can I Protect Myself Against Bad Credit Motorcycle Loan Scam?

Those who want to buy motorcycles can easily borrow motorcycle loans. However, a person with bad credit may find it a little difficult to get the loan.  All lenders do not provide bad credit loans and those who do, charge a high interest rate, limit the loan amount and keep the repayment period short.

People who try to borrow bad credit motorcycle loans often get caught in scams which are either total rip-offs or are against the interest of the borrower.

How can I protect myself against Bad Credit Motorcycle Loan Scam?

As a likely borrower of a bad credit motorcycle loan, one needs to be careful as many scamsters try to take advantage of the difficulties faced by a person with a low credit score.

  • Upfront Fees

Some lending websites ask prospective borrowers for upfront fees for approving the loan or for obtaining lists of bad credit lenders which are actually available free on the internet.  These are just scams to make money and the borrower should be careful.

  • Hike Interest Rate

Some lenders avoid mentioning in the loan contract that the interest rate is ‘fixed’.  Once the bad credit motorcycle loan is given, they inform the borrower that they would have to increase the interest rate as his credit score is quite low.  So, the borrower should insist that the contract mention that the interest rate would not vary over the period of the loan.

  • Insist on including unnecessary items

Some lenders insist that certain items like unnecessary warranties should also be covered by the loan.  The greater the loan amount, the higher the interest to be paid.  The borrower should be clear about how much loan he wants and should be firm in refusing any excess amount.

The borrower should go by his gut feeling and stay away from a particular lender, if he is not comfortable with his terms and conditions.  An internet search will also help him find out more about the lender, the complaints made by borrowers and so on.