Are you looking to get bad credit ATV loans? Check out this guide to find out more.
So, you have decided to purchase an all-terrain vehicle (ATV), but you have a credit score that’s below 550. You have probably heard that you cannot get an ATV loan anywhere with that kind of score, at least not from traditional lenders like banks.
That is correct, but you can get a loan approved by other lenders who consider other factors besides your poor credit in determining your loan worthiness. These include your total income, expenditure, and the cost of all your debts. This will bring them to decide on your loan amount limits and other variables such as interest rates and repayment structures.
Whether you wish to purchase a new ATV or a used one, you deserve access to financing despite your credit score. You stand a better chance with unorthodox lenders but be prepared for interest rates slightly higher than those of banks and credit unions. Interest rates on ATV loans for people with bad credit may go as high as 35.99%, all depending on the loan amount, your financial qualifications, and of course, the lender.
To increase your chances of getting an ATV loan, there are a few things you should do differently:
1. Decide on your ATV model/purpose of loan from the get-go:
This will help streamline the options you will explore in terms of loan amount and lenders. Some lenders do not give big loans, some do. You should figure out exactly how much you need and the right lender to finance your project. If you are purchasing an ATV; is it a new one you want or a used one? Obviously the latter costs relatively lesser, and by extension, you’ll need a smaller loan amount to get it.
2. Improve your debt-to-income ratio:
A consistent work history, minimal debt and good earnings are alternative ways that the lender determines loan eligibility. Even if you have bad credit, a good debt-to-income ratio may put your name on the loan approval list!
3. Make a down payment:
This is the ultimate hack to convincing the lender of your willingness to commit to your end of the contract. Not only do down payments reduce the debt load in the future, they set you apart from other borrowers.
4. Stick to the agreement:
The advantages of making timely repayments are as far-reaching as your credit score. ATV loans span from three months to six years, depending on the contract. Take note that the longer your repayment schedule, the higher the interest rate. Be sure to select a repayment window that is as short as possible, and avoid defaulting.
Many lenders shy away from bad credit ATV financing, but if you look hard enough, you’ll find a good deal for your financial convenience!
If you have more questions on getting bad credit ATV loans, let us know in the comment section.