Trouble getting a loan.. questions?
I have been trying to get a loan. It is for a motorcycle. I have good credit (well, 690 after it dropped some). I have been turned down even with a cosigner with good credit. I went to a motorcycle shop today that supposedly can get anyone approved. They sold a bike to a 19 year old dude with no credit and he walked away with it financed. They sold another one to a guy with previous bankruptcies and horrible credit, and he got approved. He was my age (around 20). They even tried me on the absolute worst-credit lender they have that hardly EVER turns people down, even with bankruptcies. No luck. What affects getting approved for a loan? It's ONLY for $3400. Even tried for 2900. Does my job and pay rate show up anywhere that might affect it when they pull a report? Will having a student loan that shows positive payment and is currently deferred wreck my chances? My car is going out and I need transportation, and can get none. (But yes, I do want a bike for fun anyway).
Public Comments
- "Currently deferred" isn't going to look good on the report - that looks like you've already had trouble keeping up with the payments you have. Knowing that, no lender want to wind up back-burnered behind your other creditors. Tighten your belt and live within your means for a few years, save up and pay cash for the bike.
- Approvals are not based 100% on credit score. If you have gold balls credit and have no way to repay a loan, you'll get declined. On the loan application you had to list your income. They compare that to the total of payments listed in your credit report. If the payments are anywhere near 50% of your income, you'll get declined.
- Student loan in deferment = not good. If you can't get a loan for $3,400, then the bank must have asked "with what we know about his income and his debts, how much will he be able to scrape up to make his payments"? Ask yourself the same thing. And then scrape up the cash to buy a broke-people's car (for now). Then scrape up the cash so that you can buy that motorcycle for your 21st (or 22nd) birthday. The ride will be so much better if you aren't dragging a bunch of payments behind you.
- try prosper.com
- Approval will depend upon your credit history plus your credit score. But there are lenders out there who provide motorcycle loans to people with bad credit, no credit or bankruptcy. You can try other sources. I know a company namely http://moneyforwheels.com who deals with motorcycle financing only.
* Some answers may have been provided by Yahoo! Answers.