Buying a HD with not so good credit
Cruiser
Joined: Jun 2009
Posts: 199
Likes: 2
From: Indiana
I'll try and answer your question and although I don't have bad credit I know how the system works. Yes, you can probably buy a bike and if your credit is really bad the lender will factor your loan across several other lenders, I've seen as many as seven so everyone takes a smaller piece of the risk. The trade off is that you'll pay much higher interest rates and you really need to look at that rate and not the payments, which some lenders don't even want to talk about.
There's a reason why the big financial companies that lend money fly their people around in private jets and pay their executives mega bucks and it because people buy things they don't need at outragious rates. If you are determined to buy a new bike or even a used bike on a loan be sure to have the loan person tell you exactly how much you will end up paying for the bike over the life of the loan. By law, they have to provide that kind of information. They may try and tell you they don't and if they do, walk out!
Here's an really bad example done by Honda a few years ago. They had a program where you could buy a any bike for $69/mo for two years on a five year loan. The suckers as PT Barnum would have said lined up. What wasn't made real clear was that at the end of two years the loan rolled over onto a Honda Credit Card at 17% someodd interest rate. So you buy a $7k bike, pay $69/mo for two years, the loan rolled over to the credit card and the payments went to nearly $400/mo for 3 years and at the end of it you could have bought two bikes for what you ended up paying for one. It was legal but it was also preditory lending as far as I was concerned.
Best of luck.
There's a reason why the big financial companies that lend money fly their people around in private jets and pay their executives mega bucks and it because people buy things they don't need at outragious rates. If you are determined to buy a new bike or even a used bike on a loan be sure to have the loan person tell you exactly how much you will end up paying for the bike over the life of the loan. By law, they have to provide that kind of information. They may try and tell you they don't and if they do, walk out!
Here's an really bad example done by Honda a few years ago. They had a program where you could buy a any bike for $69/mo for two years on a five year loan. The suckers as PT Barnum would have said lined up. What wasn't made real clear was that at the end of two years the loan rolled over onto a Honda Credit Card at 17% someodd interest rate. So you buy a $7k bike, pay $69/mo for two years, the loan rolled over to the credit card and the payments went to nearly $400/mo for 3 years and at the end of it you could have bought two bikes for what you ended up paying for one. It was legal but it was also preditory lending as far as I was concerned.
Best of luck.
Extreme HDF Member
Joined: Jun 2007
Posts: 12,653
Likes: 18
From: Broken Arrow, Oklahoma
I got raped and never got a kiss even.
My credit isn't the best, but it's not the worst either. As the finance guy said, I'm going to keep it financed thru them for 6 months (make 6 good payments to eaglemark, and you're their buddy for life if you ever need another loan), and then take it to the credit union to refinance. Should be able to get down into the single digits with them.
My credit isn't the best, but it's not the worst either. As the finance guy said, I'm going to keep it financed thru them for 6 months (make 6 good payments to eaglemark, and you're their buddy for life if you ever need another loan), and then take it to the credit union to refinance. Should be able to get down into the single digits with them.
Extreme HDF Member
Joined: Jun 2007
Posts: 12,653
Likes: 18
From: Broken Arrow, Oklahoma
HUH?
I find some of the wisdom spouted on this forum unbelievable! Getting a good credit score is a simple matter. PAY YOUR BILLS ON TIME! IT IS THAT SIMPLE!! While cash leaves no "credit history" your day to day living does.
Rent / Mortgage
Utilities
Phone
CREDIT CARD (S)
Don't live beyond your meens. Pay your bills on time. Put some money away for emergencies. (they will come)
I've never been late paying ANY bill, have a comfortable income, and after 39 years have a high? credit score. My wife just started working 10 years ago (housewife before that - yeah I know - that's work too), has never borrowed ANY money and has an even higher credit score than me. This credit score crap is nothing more than a system by which borrowing rates can be jacked up by the lenders. LIVE WITHIN YOUR MEENS!!
I find some of the wisdom spouted on this forum unbelievable! Getting a good credit score is a simple matter. PAY YOUR BILLS ON TIME! IT IS THAT SIMPLE!! While cash leaves no "credit history" your day to day living does.
Rent / Mortgage
Utilities
Phone
CREDIT CARD (S)
Don't live beyond your meens. Pay your bills on time. Put some money away for emergencies. (they will come)
I've never been late paying ANY bill, have a comfortable income, and after 39 years have a high? credit score. My wife just started working 10 years ago (housewife before that - yeah I know - that's work too), has never borrowed ANY money and has an even higher credit score than me. This credit score crap is nothing more than a system by which borrowing rates can be jacked up by the lenders. LIVE WITHIN YOUR MEENS!!
My brother's debt to earnings ratio is very good. He makes very small mortgage payments on his house because of the VA. He pays all his bills on time. Doesn't have a credit card. And doesn't have any loans out.
Yet he can't get approved for a bike, or much else, because he has no credit history.
Cruiser
Joined: Jul 2009
Posts: 223
Likes: 0
From: Italy
My brother's debt to earnings ratio is very good. He makes very small mortgage payments on his house because of the VA. He pays all his bills on time. Doesn't have a credit card. And doesn't have any loans out.
Yet he can't get approved for a bike, or much else, because he has no credit history.
Yet he can't get approved for a bike, or much else, because he has no credit history.
As silly as it sounds, he should get a credit card.. and use it.
That way he will build up a credit history, for if/when he needs it.
I only pay cash for toys.
Road Warrior
Joined: May 2007
Posts: 1,260
Likes: 0
From: Flatwoods Kentucky
I say if you want a bike, just go for it, if you can meet your responsibilities. Heck you only live once and none of us are getting any younger... Go for it!!!!!!!
Last edited by davidsdad; Sep 12, 2011 at 07:07 AM.
Outstanding HDF Member
Joined: Aug 2011
Posts: 2,095
Likes: 11
From: Central Illinois
Something to keep in mind: Your credit score is not actually a measure of how likely you are to pay your debts. A better way to describe it is a measure of how much money the credit companies are likely to make off of you. That is why people who never use credit have a low score, just like people who use credit and then default on their loans or get behind in their payments.
That is why I recommend people have the cash to buy a bike in full, but open a loan and pay it off early anyway. Sure you will pay a tiny bit in financing costs, but its going to build your credit which will save you money later when you want to finance something big, like a house.
That is why I recommend people have the cash to buy a bike in full, but open a loan and pay it off early anyway. Sure you will pay a tiny bit in financing costs, but its going to build your credit which will save you money later when you want to finance something big, like a house.
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Tourer
Joined: Feb 2010
Posts: 252
Likes: 0
From: SF East Bay
JeffreyDSilver- Paying rent, Utilities, water, etc leaves NO credit history. I had ZERO debt and paid all my monthly household bills on time but could not get credit from anyone. I even had perfect history of paying the HD loan on my Buell, but was told by more than one lender that a paid-off / closed-in-good-standing vehicle loan was not considered part of my creditworthyness (is that a word?) I was in my early 40's and had not had any credit cards or any debt, except for the HD loan, in over 10 years. I could not get a Visa, M/C, or store card from anyone including my own credit union. My credit score was ... BLANK. The credit union people had never seen that before.
I went to Wells Fargo and put $300 on a secured Visa card. I used that card for a few small things and paid the balance off after a full billing cycle. That gave them something good to report to the credit bureaus. Two months later I was able to get a Visa thru my credit union and I did the same thing, paying off a small balance after the first full billing cycle.
One year later my score was over 700 and I was buying my first house. I closed the secured Visa account and got my $300 back from Wells Fargo.
I went to Wells Fargo and put $300 on a secured Visa card. I used that card for a few small things and paid the balance off after a full billing cycle. That gave them something good to report to the credit bureaus. Two months later I was able to get a Visa thru my credit union and I did the same thing, paying off a small balance after the first full billing cycle.
One year later my score was over 700 and I was buying my first house. I closed the secured Visa account and got my $300 back from Wells Fargo.
Novice
Joined: Aug 2011
Posts: 20
Likes: 1
From: Albuquerque New Mexico
HD Financial was going to give me 9.9% and acted like it was the best thing since sliced bread.
My credit union approved me at 3.9%.
It pays to shop around for financing!