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Discussion Starter #1
Hi. Let's start with a quick back story. Due to a personal situation, I don't have the ability to drive, and probably never will, so a good friend of mine has allowed me to use his Ninja 250 for the last year and a half to get to work and what not. Unfortunately, he'll be moving out of state in about two months and will be taking his bike with him, which means I'll need to get my own. I'm currently looking into financing, but I have a VERY limited credit history and I'm trying to avoid buying used off Craigslist and whatnot because I was burned about six months ago when the engine on it died after a thousand miles (it was checked out, serviced, and deemed fine when I bought it.) I can afford a $1500-$2000 down payment by the time my friend has to leave, but I'm sure that my lack of credit history is going to make it hard for me to get any sort of approval for financing, even if the interest rates are outrageous. Has anyone else here been in this boat before? Any recommendations as to what I can do to get approved for financing? I'm currently in the process of joining a credit union to see if they can help, but I still have my doubts. Any thoughts?
 

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A secured credit card can help establish a credit rating in a fairly short amount of time. Two months is probably too short of time to get any benefit, but for the future it's a good place to start.

If you can put $2000 on a secured card, it is reported the same as having an unsecured credit line of the same amount.

I'm intrigued that you are unable to drive, but can ride a motorcycle. How does this come about?
 

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I was involved in an accident when I was younger. I was behind the wheel in an emergency situation when the accident occurred, so PTSD followed. I've tried (and am still trying) to be able to drive, but it's... well... you get the gist.
 

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apocalyptic ... I have to be honest with you. If you are having REAL problems with driving, I suggest that you DON'T get on a motorcycle. When I am riding my bike in traffic - I use my brains and eyes TEN TIMES as much as when I am driving my car. Maybe it's not really 10X, but it feels that way! It takes that amount of effort to stay ahead of the curve.

You are taking a serious risk with your safety if you ride a bike, and your attention span has any loopholes in it.

I suggest that you use public transportation for a while. SAVE your money and put it into a bank account. BUILD UP real credit!!

My answer might seem boring - but it will keep you alive, and improve your savings. These things are POSITIVES in life!!!

dT
 

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apocalyptic ... I have to be honest with you. If you are having REAL problems with driving, I suggest that you DON'T get on a motorcycle. When I am riding my bike in traffic - I use my brains and eyes TEN TIMES as much as when I am driving my car. Maybe it's not really 10X, but it feels that way! It takes that amount of effort to stay ahead of the curve.

You are taking a serious risk with your safety if you ride a bike, and your attention span has any loopholes in it.

I suggest that you use public transportation for a while. SAVE your money and put it into a bank account. BUILD UP real credit!!

My answer might seem boring - but it will keep you alive, and improve your savings. These things are POSITIVES in life!!!

dT
You're probably right, but I've been riding for a year and a half with no issues. That, coupled with public transportation being sub-par when I live, I'm really trying to weigh all options.
 

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I have to ask, is it the association with driving a car that triggers the PTSD?
Yes. It's the car the triggers the PTSD. I'm fine with the road and everything else that's associated with it.

Does anyone else have anything to add? Maybe a decent online sub-par credit financing agency that they have experience with?
 

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By lack of credit, what do you mean? Never had a loan or credit card? Or is there a something in your past credit history?
Dods is correct, a secured credit card is a good start, I have seen them extend full credit in as little as 6 months. You may also try getting some store cards, buy something and pay it off several times. Credit reports show your payment history, Current, 30, 60, 90 days late. Any late payments are noted and often an explanation will be requested.
Secondly when underwriting a loan, several items are weighed, although credit history is the most heavily weighted in a vehicle purchase. Two ratios come into play, Loan to value, most banks will only loan up to 80% of the purchase price (Value) This ratio will sometimes go down with the age of the vehicle (depending on the lending institutions loan policy). Second ratio is "Debt to Income", simple to figure out, take your rent/mortgage and any other monthly loan payments, add them up and divide that by your monthly income, if the answer is greater than .42 (42%), it may be difficult for you to get a loan. I have underwritten car/motorcycle loans for customers with little or no credit history, but had to sell them to my boss's for an exception, I was able to do this as the customers ratios were well below the thresholds. When a loan is approved outside the lending policy, usually requires at least two officers of the lending institution to approve, and it has to be a well documented reason for the exception. This is all due to the fair lending rules, if you make an approval outside of policy you have to have a good reason and demonstrate that you weren't making the exception for any other reason than that it makes good business sense. FDIC auditors and other govt regulators will find it and want documented proof that the loan was made for legitimate reasons.
Most of the manufactures offer financing and often their lending policies are less stringent than a banks making get financed much easier.
Looking at Kawasaki's web site looks like they offer financing, but I dont see an online application. Honda does have an online application, and from where I am sitting the CBR300 is not a bad looking bike. With a $2000 down a ~$4600 motorcycle, you may just get the loan with a limited credit history. You should try to get pre approved through one of the manufacturers finance programs, aside from knowing you can get a loan it also gives you a little more bargaining power when making the purchase! I hope this works out for you!
 

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By lack of credit, what do you mean? Never had a loan or credit card? Or is there a something in your past credit history?
Dods is correct, a secured credit card is a good start, I have seen them extend full credit in as little as 6 months. You may also try getting some store cards, buy something and pay it off several times. Credit reports show your payment history, Current, 30, 60, 90 days late. Any late payments are noted and often an explanation will be requested.
Secondly when underwriting a loan, several items are weighed, although credit history is the most heavily weighted in a vehicle purchase. Two ratios come into play, Loan to value, most banks will only loan up to 80% of the purchase price (Value) This ratio will sometimes go down with the age of the vehicle (depending on the lending institutions loan policy). Second ratio is "Debt to Income", simple to figure out, take your rent/mortgage and any other monthly loan payments, add them up and divide that by your monthly income, if the answer is greater than .42 (42%), it may be difficult for you to get a loan. I have underwritten car/motorcycle loans for customers with little or no credit history, but had to sell them to my boss's for an exception, I was able to do this as the customers ratios were well below the thresholds. When a loan is approved outside the lending policy, usually requires at least two officers of the lending institution to approve, and it has to be a well documented reason for the exception. This is all due to the fair lending rules, if you make an approval outside of policy you have to have a good reason and demonstrate that you weren't making the exception for any other reason than that it makes good business sense. FDIC auditors and other govt regulators will find it and want documented proof that the loan was made for legitimate reasons.
Most of the manufactures offer financing and often their lending policies are less stringent than a banks making get financed much easier.
Looking at Kawasaki's web site looks like they offer financing, but I dont see an online application. Honda does have an online application, and from where I am sitting the CBR300 is not a bad looking bike. With a $2000 down a ~$4600 motorcycle, you may just get the loan with a limited credit history. You should try to get pre approved through one of the manufacturers finance programs, aside from knowing you can get a loan it also gives you a little more bargaining power when making the purchase! I hope this works out for you!
Thank you for your very informative reply. My lack of credit history is literally just what it sounds like. I've never had a loan or credit card before. My extent of credit is my cell phone bill and that's about it. My debt to income is definitely lower than. 42, so I'll try to contact a manufacturer with a finance application. If worst comes to worst, I'm find jobs closer to where I live for the next year while using a secured credit card.
 

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Your credit union will also be happy to give you your first loan after you get it established. Your utilities bills also show payment history as do any credit cards you may have.Have you checked your credit score? You may be surprised what you already have. There are some sites that offer a free credit score. Dealerships may also be a source for that first loan if you have a good down payment. I really wouldn't be too concerned. Banks have a bad history of loaning money to people that are way over their head in dept. You don't sound like you are anywhere close to that.
 

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Here's a thought, if your friends Ninja is a bit older and you've got a couple thousand bucks saved up, maybe you could just offer to buy your friend's Ninja? You know it's in good shape and unless it's a very recent Ninja 250, it's probably not worth much more than $2,000. If you can get to work, you'd eventually have the money to pay your friend back if there's a price difference. You might want to mention, if the new location is somewhat far away, that moving the bike will incur expenses and take time. Plus, they can get a better bike when they get where they're going. It could be a win-win for everybody.

Unfortunately, building credit takes time. I was in your exact situation a few years ago. I didn't have bad credit, but I was always a cash person. I paid cash for my house, car, motorcycle and basically everything else as well. I was spending some time at deals sites and kept hearing about credit card cash back deals. I wanted in on it, but my credit score was zero. I'd been at my for 10+ years, which probably helped, but I applied for a Capital One card and was approved. I only got $750 at first, but they raised my limit to $3,000 in a few months and in six months my credit score went from zero to close to 700, which would be enough to get you a loan. I'd suggest applying for a Capital One card. They'll give a card to anyone, even people who burn them in bankruptcy. My point being it can be done, but doesn't happen over night.

I might suggest hitting the myFICO. It's a forum related to all things financial related. It'd be a good place to ask about your options.

Good luck with the bike and PTSD. I hope it works out for the best.
 

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I curious about the PTSD. Have you tried a convertible as a next step from the bike? Would seem like a logical progression that might help.
 

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Are you gainfully employed? This is the first thing they look at and how long you've been on the job.

Do you rent or own? Do you move a lot?

No credit history is worse than bad credit history usually unless you had a repossession.

If you do get the loan or financing, it won't be at favorable terms: You will be charged a much higher annual interest rate, and a bigger down payment too., in most instances.

I see TV adds and newspaper adds all the time that basically says something like this: "Come on down to Sam's Cars and motorcycles, we finance anybody with no down, no credit check and no job is fine with us."

Just make weekly payments/ bi-monthly payments and disregard the terribly high interest rates, sometimes twice as high as normal, not to mention the much higher price of the units they are selling.

Most folks that are stuck between a rock and a hard spot will accept almost any deal just to get wheels under them.

Never fall for the LoooooonG extended contracts, like 84 months, which obviously lowers the payments, which is frequently happening now because you'll pay twice as much or more for the vehicle and it most probably will be worn out before it is even paid off. You can't trade it off or sell it because the payoff will be much higher than the thing is worth.

Beware!

Sam:coffeescreen:
 

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Don't even think it. Far too many get hooked by these criminals. If you can't get what you want through above board means then don't do it. Just keep saving. But at some point get your loan and with your saved money, pay it off almost immediately. Like 3 or 4 payments. Bingo! You got credit history. Don't push the issue.
 

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l am not sure if they still have it, but a few years ago my friend bought a Ninja at a Kawasaki dealer with a Kawasaki credit card. He was rebuilding his credit after a horrible divorce, and he said that making the major purchase of the bike helped persuade them to approve him. I believe he said they gave him a $10,000 limit and the interest was like 12%. Kinda high, but doable. The downfall was, he had to buy a brand new bike, they wouldn't do it on a used bike.
 
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