financing-bad credit
Cruiser
Joined: Oct 2012
Posts: 100
Likes: 0
From: Thornton, CO
I would second what several others have already said... if you have credit card debt pay that off first, then look at your debt to income ratio. Debt to income ratio is often overlooked by people who are getting ready to apply for credit, but financers use this almost as much as your credit score. Credit cards count as a debt even if they are paid off because they are open credit lines. After you have paid off those credit cards, if you need to adjust this ratio, I would recommend closing all but 1 or 2 of the credit cards. What financers really want to see on a credit score is a range of debt types (home, auto, specialty loan, major credit card, retail credit card) with a good history of payments. Having 1 of each of these types of debt will improve your credit as quickly as possible, but any more than that and it could be detrimental to your credit score. Also frequently opening and closing lines of credit is detrimental to your credit score as well. Good luck and hope you get something sorted out.
Outstanding HDF Member
Joined: Aug 2012
Posts: 2,130
Likes: 0
From: Tampa
Well, you might not get a brand new one, but if you had saved for a large down payment, you may want to search craigslist and land a cheaper, used bike. It is hard to settle for a little less, but sometimes it is the correct move.
I see good looking harleys for 3-5K all day long around here.
I see good looking harleys for 3-5K all day long around here.
Road Master
Joined: May 2012
Posts: 792
Likes: 0
From: Florida
I would pay the credit cards down first. The easiest to build your credit back up is with revolving credit, i.e. credit cards, but you have to stay on top of them. Buy something small and pay it off. Never keep too high of a balance on credit card, none if at all possible and always pay more than the minimum payment. It took me a long time to convince my of of that. Now she likes being able to go and pay cash for what we want. And if we can't pay cash for it, well we don't need it. There are exceptions of course but very few.
Ride the Honda, pay the cards off and save for a bit. I would be happier doing it that way for sure.
Ride the Honda, pay the cards off and save for a bit. I would be happier doing it that way for sure.
Road Captain
Joined: Jul 2008
Posts: 530
Likes: 2
From: Goldenrod Crossing MN 56201
I know this is not what you want to hear, but if you can come up with $3400 down and can do the $240 a month for two years. Do it to a savings account and in two years you can own a sporty free and clear. $3400 plus $5760= $9160. They are a hell of a lot more fun to ride with out payments. Mike
Road Master
Joined: Nov 2010
Posts: 901
Likes: 5
From: Springfield, MO
You said you have a motorcycle, that's what counts! Ride it and enjoy it.
In the meantime, get your financial house in order, pay off high interest credit cards, give your credit time to recover from the bankruptcy, and think about a Harley after you have accomplished these goals.
EDIT: Just wanted to add, I hope I didn't sound like I was lecturing or judging. You were out of work for a year and that can be hard on a person's finances. So nothing personal intended... but I stand by my advice.
In the meantime, get your financial house in order, pay off high interest credit cards, give your credit time to recover from the bankruptcy, and think about a Harley after you have accomplished these goals.
EDIT: Just wanted to add, I hope I didn't sound like I was lecturing or judging. You were out of work for a year and that can be hard on a person's finances. So nothing personal intended... but I stand by my advice.
Last edited by RPS1981; Apr 8, 2013 at 09:57 AM.
Seasoned HDF Member
Joined: Apr 2009
Posts: 44,893
Likes: 29,868
From: PNW
Instead of digging further in, save some money and ride what you have. What's that bike worth - $3000? If you earn enough to make high interest payments on a bike that's overpriced, you certainly make enough to set aside chunks of cash to later buy a $5-6000 bike with your savings and your Honda.
Financing is not for everyone. My bike is financed. But - I have good credit and a rate of 2.9. I could pay it off right now, but I like hanging on to my cash especially while paying at such a low rate. High interest loans are for chumps who lack patience and responsibility. Sorry. That's how it is.
Financing is not for everyone. My bike is financed. But - I have good credit and a rate of 2.9. I could pay it off right now, but I like hanging on to my cash especially while paying at such a low rate. High interest loans are for chumps who lack patience and responsibility. Sorry. That's how it is.
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6th Gear
Joined: Mar 2013
Posts: 13
Likes: 0
From: Montgomery, TX
Instead of digging further in, save some money and ride what you have. What's that bike worth - $3000? If you earn enough to make high interest payments on a bike that's overpriced, you certainly make enough to set aside chunks of cash to later buy a $5-6000 bike with your savings and your Honda.
Financing is not for everyone. My bike is financed. But - I have good credit and a rate of 2.9. I could pay it off right now, but I like hanging on to my cash especially while paying at such a low rate. High interest loans are for chumps who lack patience and responsibility. Sorry. That's how it is.
Financing is not for everyone. My bike is financed. But - I have good credit and a rate of 2.9. I could pay it off right now, but I like hanging on to my cash especially while paying at such a low rate. High interest loans are for chumps who lack patience and responsibility. Sorry. That's how it is.
You will be able to find someone to loan you the money if you look hard enough BUT you will be digging yourself in deeper in the hole. Put as much as you possibly can into getting those cards paid off. Then save for a bike.
Credit card debt will make your credit rating worse, which then makes your interest rates higher. So even if you decide to finance the bike, you'll find more lenders and better rates after you get the credit cards paid off.
Not what you want to hear i'll bet. Our society has come to expect immediate gratification. It takes a lot of financial and personal maturity to wait until you can afford something. Sometime part of affording something includes financing it (most people aren't able to pay cash for houses or cars) - in most cases, though, easy access to credit can be a huge issue and could easily lead (back) to bankruptcy. Sorry to say it, but that's where this could lead for you again if you're not careful.
