Understanding Credit Scores for Motorcycle Loans
There’s no fixed standard credit score for a motorcycle loan. Credit scores indicate risk. Higher scores mean lower risk and better terms. Both FICO and VantageScores matter. Lenders use either. Check which one yours uses. The more favorable the score, the better the terms. Good credit gets better rates. Scores mostly fall between 300 to 850. Higher is better. "Good" starts around 670 FICO or 601 VantageScore. An excellent FICO exceeds 740.
Tips for Financing a Motorcycle
Even with cash, credit affects options. Dealers may limit models or terms based on score. Bad credit costs more, but loans exist. Many lenders work with lower scores. Now’s a good time to buy. New models and deals exist. But check credit first. Then visit dealers. Financing remains possible even with dings. Just expect costlier terms. Winter’s the best season for deals. Less riding means lower prices. License not required for purchase loans. But insurance likely is.
Understanding Motorcycle Down Payments
The larger your motorcycle down payment, the less your motorcycle loan amount will be. It’s recommended to have a motorcycle down payment of 10-20% of the purchase price. Putting a larger down payment on a motorcycle can improve your chances of motorcycle loan approval and provide you with a lower monthly payment. Evaluate your finances to determine how much you can comfortably contribute as a down payment.
Through this motorcycle loan calculator, you can determine monthly motorcycle payments by simply entering in a few details, including your planned down payment and interest rate. What Can I Afford? What is the NADAguides trade-in value of your current motorcycle? Note: make sure to deduct any remaining loan balance if you have one.