Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Loans
Profile Image

Question By
idcrytoo

1 Contribution
0 People Helped
Motorcycle Loan for $3000 (700+ Credit Score | 19 Years Old)
Hi guys I know it seems possible but I'm not so sure anymore.

Credit Info
*700+
*25% Credit Card Utilization ($20,000+ Credit Line)
*Never Missed a Payment
*No Derogatory Marks
*2 Years and 6 Months of History
*8 Total Accounts
*4 Total Hard Inquiries (TransUnion) | 1 Total Hard Inquiries (Equifax)

I'm currently making $2400 or more a month before taxes as a waiter and a residential counselor. I have proof of pay stubs and such.

I got denied to 4 motorcycle loans already.
*$10,000
*$8,000
*$6,500
*$4,000

With this failure, I decided to maybe try to get a loan from a credit union for $3,000 and just get a used motorcycle. Is this possible? Please tell me in detail what I can do and what is or what is not possible? Also if it is what kind of rates am I looking at?

Thank you for you kind consideration.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
5038 Contributions
1134 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

Did they send you a reason for denial? I am not seeing why you are getting denied from the info that you provided. Possibly you have too much credit right now and your "debt to income" couldn't support an more. I am not sure. I would try to find out why you were denied and then go from there. They have to tell you by law why they denied you. I don't think I would apply for any more credit until you can figure out what is going on.

Reply by
idcrytoo

1 Contribution
0 People Helped

Do you think it might be because my credit history is too short? Would it be any diferent at a credit union?

Top Contributor
5038 Contributions
1134 People Helped

In my experience most credit unions will be more strict with their lending standards as most of them are smaller places with more accountability to the members.

Top Contributor
30 Contributions
58 People Helped

Insurance

Been there done that. 19, the loan isnt your only enemy. CAN you even get the motorcycle insured? First find that out because if you cant dont even bother with the loan. You will need FULL insurance with a loan. Liability is easy. Full is not, esp your age and the type of bike. You might find the insurance costing more than the cost of the loan!!! Note that bikes under 600cc's tend to be better insurance cost wise. 1000cc's +, forget it. You will need to pay cash for the bike because the insurance will cost more than the loan payments. 

As "trytounderstand" said, you need to find out WHY they are denying you. My guess, debt to income. 25% of 20K is 5k in debt. 2.4K month less debt / expenses you dont have a lot of room. If you are desperate for a bike (I know you are) you can try lending tree. But the rates will be high! My advice, its best to curse the world and hold off buying a bike for now. Take the Motorcycle training course first. Get some gear. Get the endorsement on your Drivers License. Save, pay down debt. Try this again later.  

I used a credit union with whom I had an account with at the time. I think I was 21 and this was my first nice bike purchase. I had, clunkers before and had I not had those clunkers, I probably wouldn't still have the same bike I bought back then, today. Point is, learn on an inexpensive bike first.    

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.