tempting

[datbme]

ok here is the situation. I want to get me a bike. I have have three credit cards, the longest one i have is about ten months. I've never been late on any payments, but my credit report dont update until the 18-20. on my credit report im damn near the limit on two of my cards, but i paid them off around feb 22. my credit score is fairly low reason being is because i'm at my credit limit i assume. today is a great bout mid 60's and i was wondering if i go today instead of waiting for my credit report to update will i be able to get a loan? my credit card limits are 500,400;300. does any one have any ideas on what to do thank u.

[anamosity]

Hard to say. I would think you have a bout a 60% chance. You could prob up that percentage by going with Maw Kaw's credit plan. They seem to be pretty darn lenient. Although if you strike out it will affect your credit report. If it fly's make sure to take care of the balance before the real payment plan kicks in after 24 months.

[ervins]

Just try...That will tell you that you either have to wait or save. Welcome to the forum!

[clausiam]

Originally Posted by ervins

Just try...That will tell you that you either have to wait or save. Welcome to the forum!

But applying for a loan, even if he's rejected, will lower you score even more. Just wait until you're sure you can get the loan, save in the meantime, that way the loan you need will be smaller too.

[ervins]

You never know unless you try. It won't kill you it just means you need to wait. You are young time is on your side.

[irishcarbomb]

if you try it will only pull a point or two off your score...they approved me for $5000 and the guy at the dealer said it was rare to get only part of it approved its usually all or nothing.

[datbme]

well i tried. i went down there and he hooked up the app. the first one denied amd then he tried a different one. the second one didnt response yet because they were closed. the guy told me i was close on the first one and the second one is a little easier. i dont know i hope to know thursday.. everybody keep me in their prayers. i really want a bike

[Lawn Masters]

I'd pay off what I owe on the cards before going to get a bike, gotta be careful here. credit cards scare me because of how easy it is to go into the red on them.

[goldseth]

I dont mean any respect to the others here, but most of these opinions are dead wrong. I work for a finance company...directly with credit extension...Im also very familiar with the financial industry at large due to some outside investments.

Multiple inquireis for the same TYPE of financing within a 30 day period wont hurt your score....the bureaus have considered 'price shopping'.

The bottom line is economics.
Lenders are tightening credit standards due to the rising interest rates, slowing growth rates and the implosion of sub-prime financing. This is even more pronounced when it comes to motorcycles and recreational vehicles.
When a buyer defaults on a mortgage, at least they can forfeit the home.
When you default on an auto loan, they know you park at home or work.
But a motorcycle, 4x4 or a boat is a much more difficult piece of collateral to repo...therefore, lenders are even MORE hesitant to lend to rough credit.

Your best bet is to call the lender with the longest payment history.
Ask to speak to a supervisor....they DO have authority to extend credit and if they say they dont, ask for the next supervisor and politely explain that you're not going to hang up until you speak with authority. (I work for a finance company and I've also haggled w/ my creditors).

Offer to fax verification of your payoffs with other lenders...point out your good payment history...and hopefully you have good employment history to lean on as well. Simply explain that you keep the credit line open because you want to access it when you want too...if they cannot accomodate this after your faithful business with them, you'll have to consider another lender.

If unsuccessful, ask for THEIR supervisor.
Keep going until you talk with a direct manager.
You'll feel like a ****, but if your history with them is as good as you say and you've paid off those accounts, they will eventually want you to stick around!

Have fun!

[bennice]

I'd suggest perhaps using one of your CC's to purchase a used bike if your limit allows for it. Most of the time you can get the CC company to drop you to some insanely low APR for a limited time, or you can make the purchase and transfer the balance to some low-to-zero percent APR sweetheart deal. The Kawasaki card and Yamaha cards really aren't stellar deals at all, and in the end you'll wind up paying a lot more than you think. It's nice having low payments for awhile, but that 6.9% is always accumulating while your minimum payment is $70-100 per month. If you do the math, you'll find that for around $5000, your min. payment is gonna be $69 per month on the kawasaki card. Around $25 of that per month is going to finance charges. So you wind up being required to only pay a little more than $800 over 12 months, and around $300 of that is interest. After 2 years your APR goes up to 9.9% of the remaining balance, which at that rate will still be a lot unless you pay a lot more than the minimums consistently.

If you buy used you don't have to deal with all the BS fees that a dealer will charge for set up and all those other things. Even better if you go with a private party sale. Also, with a used bike you don't have to carry as much insurance, and you have the title with no leinholder (although you never want to find yourself underinsured). That way if you find yourself in a tight financial situation you can always cleanly sell your bike, and never have to worry about the repo man looking for it.

Just my 2 cents...

Good luck!

[xeon]

Originally Posted by bennice

It's nice having low payments for awhile, but that 6.9% is always accumulating while your minimum payment is $70-100 per month. If you do the math, you'll find that for around $5000, your min. payment is gonna be $69 per month on the kawasaki card. Around $25 of that per month is going to finance charges.

That minimum payment thing could put someone in a bad spot and fast! If you do the math at the minimum payment for a bike, it could take 15 years (or more) to pay off and the interest would make you sick. Miss a payment and they shoot you up to some rate like 24% immediately. They increase the interest rate after two years as I recall anywhere from the mid teens to low twenties(yipeee!)... anyone that uses these manufacture cards should do it only if they can make payments on time and pay it off within two years. It makes better sense to finance elsewhere at a fixed rate if you know it will take 2+ for you to pay the bike off. I put my little Ninja on a Good Times card and have paid it off already. Building credit is a good thing.

To the original poster, I would slow down and look at the costs associated with owning a bike. You have the cost of the bike, insurance, gear and you may need some pocket money for maintenance/consumables. I wish you the best of luck and don't wish financial stress on any young person starting out.

Which bike are you hoping to get?