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Finding A Thin Credit Or No Credit Motorcycle Loan

It is no secret that thin or no credit can hurt just like bad credit when
shopping for motorcycle loans.
The main reason for this is that lenders all have a variety of strategies on
how to approach motorcycle loans in their loan portfolios. Some lenders see
motorcycles loans as a risky but feasible business investment, while other
lenders label motorcycles loans as a high risk money losing investment.
Overall, the general perception of most lenders is that a motorcycle is a
toy and therefore motorcycle loans are much more risky than other types of
loans. This toy labeled perception from lenders is a critical component
which makes shopping for a motorcycle loan much more difficult for
motorcycle buyers with thin or no credit.

If you would like to get approved for a limited or no credit motorcycle
loan, the first step is to look online. Many online lenders are very
competitive with offering motorcycle loans and some of them specialize in
limited or no credit motorcycle loans.

If you have searched online and are still having trouble getting approved
due to thin or no credit, it is critical that you begin to understand the
impact of your FICO credit score. Essentially, a FICO credit score is the
number one variable most lenders use in approving you for a motorcycle loan.
The FICO credit score is a computer generated score which is comprised of
your credit payment history, amount owed, length of credit, amount of new
credit and types of credit.

Since many people with thin or no credit do not even have a FICO credit
score associated with their credit file their motorcycle loan applications
are sometimes automatically declined by lenders. Therefore, the first step
to getting approved for a limited or no credit motorcycle loan is to start
building credit history. In order to get a computer generated FICO credit
score with your credit file you must have at least one credit account that
has been open for at least 6 months and has been updated at least once in
the previous 6 months.

This requirement can make it tough for young motorcycle buyers or
immigrants who wish to establish a credit score since some lenders will not
extend credit to people with a thin file. However in todays age, there are
credit card companies willing to give newcomers a credit card with a small
$500 limit to get started.

As a result, if all else has failed and you have limited or no credit a
great way for you to begin building your FICO credit score is to get a low
credit limit credit card and begin using it regularly for small everyday
purchases. The key to this strategy is keeping your purchases small and
frequent and paying off the balance every month on time. Always try to
avoid maxing out the credit cards or even using more than 30% of the
available credit limit. To make this easy some small purchases can even
become automatic by putting things like monthly cable or telephone bills on
automatic credit card payment.

The bottom-line is that finding a limited or no credit motorcycle loan
can be challenging, but working smarter by shopping for a motorcycle loan
online and also beginning to build a credit history can take a lot of pain
out of the process.

About the author:

Copyright (c) 2005, by Jay Fran. This article may be freely distributed as
long as the copyright, authors information, and the below active live
link is published with the article.

Jay Fran is a successful author and publisher at www.motorcycle-financing-guide.comA comprehensive guide on how to have the best experience and get the lowest interest rates on online motorcycle financing, bad credit motorcycle financing, high risk motorcycle loans and motorcycle buying.

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