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