What If I have a Used Motorcycle Loan with Bad Credit but a Great Co-Signer?

When a person with bad credit tries to get a motorcycle loan, he may find it difficult to find a lender.  This may be frustrating but if he tries hard enough, he is sure to get a bad credit motorcycle loan.  Many lenders hesitate to grant bad credit loans as the borrower’s credit history indicates that he is likely to miss out on payments.

Features of a Bad Credit Motorcycle Loan

Owing to the risky nature of the loan, the terms of a bad credit loan are stringent.

  • The loan would Motorcyclery a high interest rate.
  • The amount of the loan would be limited.
  • The loan would be granted for a short period.

What if I have a used Motorcycle Loan with Bad Credit but a Great Co-Signer?

A person finding it difficult to get a bad credit loan can try for a used motorcycle loan and also arrange to have a co-signer.

  • Used Motorcycle Loan

The amount the lender is willing to lend is limited, in case of a bad credit loan.  Since a used motorcycle would cost much lesser than a brand new one, the lender maybe willing to sanction the required loan amount. Also, a person with bad credit is better off spending on a used motorcycle instead of splurging money on a new bike.

  • Co-signer

Though a co-signer is not compulsory for a bad credit motorcycle loan, the lender may prefer a co-signer, as it reduces his risk considerably.  The requirement is that the co-signer should have an excellent credit history, as he is guaranteeing the payment of the loan if the borrower defaults.  Generally, close family members or friends agree to become co–signers.  The borrower should ensure that he makes timely payments as defaulting would affect the credit history of the co-signer.