How Not To Get Ripped Off When Shopping For a Motorcycle Loan!
Are you looking for a motorcycle loan to finance the new or slightly used motorcycle? Here are some tips to avoid getting ripped off by high interest rates and loan shark type finance companies. Check your credit history and credit score. Fix any errors on your credit report BEFORE you apply for that motorcycle loan.
If you have paid anything off that is not yet updated, get it updated on your credit report first.
Check all three major credit bureaus for errors and updates. They do not always show the same credit issuers, etc. Check them all out as some banks and finance companies may get your credit report, from one, two, or all three bureaus.
Once your credit report is clean, then do your research to find the best bank or finance company to get your motorcycle loan through.
Get all your paperwork together to take to the bank with you. Most lenders will require your last three paystubs, your social security card, your drivers license, and some may want your utility bills in order to verify you are who you say your are.
Bring your monthly bills with you to verify your monthly payment amounts.
If you are able to either make a trade-in or put money down, bring that information with you as well. The more you can do on a down payment, the more interest you'll save and the more likely you will be approved for the loan.
Shop around for rate quotes. Check lenders online and by phone. Even one percentage point higher can mean hundreds or even thousands of dollars more in interest payments. There is no use in paying more for the privilege of borrowing money than you have to.
Ask questions! Bring a list of questions with you to ask your lender BEFORE you sign on the dotted line! Ask if there are any prepayment penalties. Ask about late charges, what they are, how much they are, if there are any grace periods. Ask them about insurance requirements, etc. The more questions you ask, the better informed your decision will be when choosing a lender for your motorcycle loan.
Always remember, an informed consumer is a smart consumer! Ask first, then sign later. Do not sign anything unless the lender has been forthcoming with information, and if after shopping around you are getting the best rate possible. Don't waste your time on a lender who hedges with answers or seems to be trying to mislead you. If you have a bad feeling about them, go somewhere else. Don't let yourself get ripped off. There are always other lenders out there who are reputable and who are willing to lend you money, if you have good enough credit.