For motorcycle buyers with bad credit it can seem impossible to get approved for a loan. Many lenders view motorcycles as a luxury purchase and as a result make it much more difficult to get approved for a bike, then a standard car loan. But as a motorcycle buyer with past credit problems, you shouldn’t let what seems to be an impossible situation destroy your freedom of the open road.

Time and time again motorcycle buyers with poor credit histories make the same mistakes when trying to get approved for a loan. This article provides tips for finding a loan even if you have a bad credit history with a bankruptcy.

1. Don’t Rely On Dealership Financing Only

Yes it is true that motorcycle dealerships have a variety of financing sources to offer you. But those financing sources are nowhere near the number of available lenders nationally. Most motorcycle buyers with bad credit head to the dealership submit an application, and after getting declined assume it is impossible to get approved. This is the wrong approach.

The fact is a dealership normally only submits your application to the lenders that have specifically setup a relationship with the dealership. There are many other lenders that have never approached the dealership that most motorcycle buyers completely ignore. This includes credit unions, local banks, and many specialized lenders that focus strictly on bad credit applicants.

2. Don’t Give Up Too Soon

Most motorcycle buyers give up way too soon after getting declined for a loan. Sure you might feel a sense of rejection, but don’t let declines deter you. With a self defeating attitude you’ll never be successful with getting approved with bad credit.

A more wise method might be to approach the whole motorcycle financing process like a game. Just because one lender turns you down, doesn’t mean you give up trying to win the game, you keep seeking out other lenders. Don’t give up until you are successful!

3. Focus on Lenders That Specialize In Bad Credit

In every market there are lenders available that focus on poor credit applicants. It is important that you do your research and seek out these lenders.

For motorcycle and ATVs there are a variety of lenders that offer bad credit motorcycle financing. But without the motivation to seek out these lenders, you’ll end up never finding a loan like many motorcycle buyers with poor credit.

4. Show Lenders A Down Payment

If you have bad credit, many lenders like to see you have some “skin in the game” before giving you a loan. Most cycle buyers completely ignore this fact.

Showing a lender that you can put a little money down, implies to the lender you are serious about your purchase. Even if you can only put down $500 as a down payment, this can help the lender view your loan differently.

Obviously the more money you can afford to put as a down payment the better chances you have of getting approved. Many times showing a small down payment can make a huge difference. So when you fill out your application make sure you don’t leave the down payment section as zero. Always try to show a little even if it is $300.

5. Don’t Skimp on Insurance

By nature insurance protects the bank or lender in the event of theft, or a collision. Many motorcycle lenders might tell you full coverage insurance is not required. But if you have a poor credit history, showing the lender you will cover your motorcycle with full coverage insurance can make an impact.

In addition to standard insurance, products like GAP insurance and extended warranties can also show lenders you are serious about protecting your investment. Communicating your intent to purchase these products can help lenders minimize risk and approve more loans.