How much credit? - Sportbike Forum: Sportbike Motorcycle Forums
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post #1 of 12 (permalink) Old 10-30-2005, 03:24 AM Thread Starter
 
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Question How much credit?

This question is for people who better understand banks or credit more than I do. During the summer I applied for financing at a yamaha dealership through the yamaha bank of america or whatever it is called. Not suprising I was turned down because I had no credit what so ever. Since then got my *first* credit card. I am 18 years old if that makes any difference to the banks. Come spring I want to go try to finance a machine again. By then I should have around 9 months of ontime, and fully paid credit card bills behind me. I will also have around $4 or $5 thousand to put as a down payment. My question is if you guys think I will get approved or declined again? Also there are two different dealerships I am going to try, one is a full fledged yamaha dealership and they only offer the factory financy yamaha bank of america thing. The other dealership offers a lot of different makes/models, but they do their financing program through a local bank I believe. I was wondering if my chance of getting approved is higher at one than the other?

P.S. A co-signer is not an option for me. I have to do this alone .

Thanks for the help in advance.
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post #2 of 12 (permalink) Old 10-30-2005, 03:44 AM
 
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I really dont think you should have a problem with that muchto put down. Try it with your bank, they are usually good for small loans that are just direct debit from your account.
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post #3 of 12 (permalink) Old 10-30-2005, 06:02 AM
 
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For one, a single credit card usually doesn't build a lot of credit in the lender's eyes.

However, that money down makes a difference, the loan is easier to get with that kind of $$ as a downpayment.

I used to sell cars/get customer financing, and if you put 40-50% down on a car, you're getting a loan in most circumstances. Only thing I'm not sure of, is bike loans are harder to get than auto loans, so that may effect your chances.

My suggestion is to go online, check capitalone and Eloan, then apply online to see if you can get your financing secured BEFORE going to the dealerships. A couple reasons why: 1) you know what you're looking at in terms of how much bike you can buy, and what rate you're approved at. 2) If you go around to different dealers asking about financing, they may "shotgun" your application to numerous lenders, putting a bunch of inquiries on your credit, which can lower your score.
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post #4 of 12 (permalink) Old 10-30-2005, 07:07 AM
 
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This may sound irregular, but I am actually going to refinance my bike with a credit card. The best finance rates for bike loans are between 7 and 10 percent APR, and I have a credit card with a fixed 6% APR, plus 1% for the first year on balance transfers, so it ends up saving me quite a bit. You may even be able to find some credit companies that will do a fixed low APR for balance transfers. One of the other good things is it frees up the title, so even though you owe money one the bike, you have the title free and clear, no lienholder.

Of course probably not the best idea for everybody, just depends on your credit card interest rates--some can be as high as 17 or more.
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post #5 of 12 (permalink) Old 10-30-2005, 07:25 AM
 
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I actually did that on my last bike. My credit card company sent me those blank checks, with a fixed rate of something like 2.9%, so I just bought the bike that way.

That's another option, but if it's his first credit card, the limit may not be high enough...but only slick can answer that.

One thing to consider if you do that: let's say you could do something similar where they give you a low rate for using a check, for example. Even if you're ONE day late on the payment, it'll automatically jump to the regular rate of 18% or so for the rest of the balance.
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post #6 of 12 (permalink) Old 10-30-2005, 07:46 AM
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Honda

Hate to say it but if the yamaha fails again go for a honda credit they are the easiest to get credit from I know people that have gotten turned down from yamaha suzuki and kawasaki but honda still financed them.
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post #7 of 12 (permalink) Old 10-30-2005, 07:54 AM
 
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Quote:
One thing to consider if you do that: let's say you could do something similar where they give you a low rate for using a check, for example. Even if you're ONE day late on the payment, it'll automatically jump to the regular rate of 18% or so for the rest of the balance.
That's a good point. I would try to avoid using a card with a high regular APR in case the rate defaults back to it. Maybe 10% or 11% is reasonable for a fixed APR.

I actually saw an offer that would keep your balance transfer rate at 0% for life--catch was, if you didn't make three purchases a month on the card it would go up to 18% for good. I guess the company figures on tripping you up sooner or later and screwing you!
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post #8 of 12 (permalink) Old 10-30-2005, 08:52 AM Thread Starter
 
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My limit is $150, its all I could get approved for .
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post #9 of 12 (permalink) Old 10-31-2005, 12:16 PM
 
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I would check your LOCAL banks first. With that much down, it should not be a problem, even with little history. One card with a 150 balance isn't going to do shit for your credit, especially in 9months. As long as you have full coverage on the bike, the bank won't have much risk in the loan. My bank is currently at 6% fixed @ 48months. 6.25 for 60months. Sometimes the local guys can do more than the bigger banks. At the very least the credit decision is up to the officer and not a computer.
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post #10 of 12 (permalink) Old 10-31-2005, 12:28 PM
 
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I hate to say it, but the down payment will make no difference. When you finance through suzuki, yam, kaw,or honda, they are not financing the bike, they are giving you a credit line for whatever, most first timers get between $4000 and $5000 so you will have to pay the difference with cash. They are much easier to get financing than a bank. Plus if you go through a bank, you must carry full coverage, have you price insurance yet, at 18 full coverage will be 2 to 3 times your bike payment.
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