Tips For Finding A Motorcycle Loan With A Better Credit Score
By Jay Fran, Thu Dec 8th
It is common knowledge that motorcycle financing companies' basehigh importance on your FICO credit scores when approvingmotorcycle loans. However, what many people overlook is thattheir FICO credit score can dramatically impact the term ontheir motorcycle loan along with the interest rate that isassigned to the motorcycle loan. In order to gain bettermotorcycle loan rates, it is highly important that you think ofyour FICO credit score as a picture of how risky you are to thelender. Your FICO credit score is essentially a benchmark whichmotorcycle financing companies use to grade you and assign arisk to you when applying for a motorcycle loan. Since factorsabout your credit change on a daily basis so can your FICOcredit score.
The below 5 tips are designed to help ensure you improve yourcreditworthiness as your credit score changes. Ultimately thesetips should help you obtain better motorcycle loan rates andloan terms in the future. Watch Your Debt- Keep your accountbalances below 25%-30% of your available credit limit. This isespecially true with your revolving credit card because manymotorcycle financing companies see credit card debt as morerisky. If you have a credit card with a $500 limit, you shouldtry to keep the balance owed below $150 when you apply for amotorcycle loan.
Make Your Payment On-time - Paying your current credit billson-time is one of the biggest factors that contributes to ahigher FICO score. Typically when motorcycle finance companiessee potential customers that do not pay their bills on-time thenthey either decline them or issue a motorcycle loan at a muchhigher interest rate. Late payments, collections andbankruptcies have the greatest negative effect on your creditscore and how lenders rate you when getting a motorcycle loan.
Check Your Credit Regularly - In today's age it is easy to getonline to check your credit report. Checking your free creditreport regularly is very important because it can help youuncover inaccuracies that are affecting your FICO credit score.Don't let your credit health suffer due to inaccurateinformation or errors on your credit report. If you find aninaccuracy on your credit report contact the creditor associatedwith the account or the credit reporting agencies to correct itimmediately.
Avoid Excessive Credit Inquiries - A credit inquiry normallyhappens when you apply for credit. If you have a large number ofcredit inquiries in a short time period many motorcycle financecompanies see this as a negative since it affects your FICOcredit score. Therefore, when you are applying for credit orshopping for motorcycle loans it is very important you considerhow many times your credit is accessed. Be advised thatsometimes motorcycle dealerships will pre-screen you for a loanby asking you for your driver licenses and social securitynumber. Normally this results in a credit inquiry on your creditreport. Be prudent in shopping for credit and motorcycle loans.
Establish Credit Early - Time is very important part ofimproving your FICO credit score. Therefore, it is recommendedthat you start building credit early in life. Getting one or twocredit cards can significantly help build your credit. However,the key to this strategy is keeping your purchases small andfrequent and paying off the balance every month on time. Whenestablishing credit you should also keep the oldest account onyour credit report open in order to lengthen your period ofactive credit use. The length of your credit history can make abig difference in getting approved for a motorcycle loan.
Copyright (c) 2005, by Jay Fran. This article may be freelydistributed as long as the copyright, author's information andthe following active live link with anchored text is publishedwith the article:
Poor Credit Motorcycle Loans, Poor CreditMotorcycle Financing Guide
About the author:Jay Fran is a successful author atMotorcycle-Financing-Guide.com - A comprehensive resource tocompare motorcycle finance companies for motorcycle financing,after bankruptcy motorcycle loans and new & used onlinemotorcycle buying tips for Harley-Davidson, Kawasaki, Yamaha,Suzuki, Honda and more.
