F***ing Banks!

[jokesonyou24]

Ok, so the bank turned me down for a loan. They said my credit wasn't good enough (I'm trying to build it in the first place) AND my vehicle wasn't good enough for collateral ('96 Ford Explorer...too old). I'm trying to get my first bike, so I'm looking used. Found an '05 250 with 9k-ish miles for $1900(private seller), so I asked for $2k. No dice. Should I try something else, like a credit union?

[FrugalNinja250]

IMHO you should start saving money at a credit union, build an account balance of a couple grand. Then, use that balance to get a secured loan or credit card, then use that loan or card to buy a bike. You build credit quickly this way, and since the loan is secured by the balance in the account the loan is easy to get. If you don't have the financial means to save this much then you don't have the means to pay off a loan this size, and that's why the bank won't loan you the money. In case you forgot, banks got burned big-time recently lending to marginal borrowers. My credit rating is 813 and I did it starting out buying a car with a secured credit card at my savings union.

[Joshorilla]

Yeah, silly idea trying to build your credit rating by buying several grands worth of motorcycle lol.

Get a monthly phone direct debit, a credit card you pay off in full every month, and a $500 loan, say it's to get a new oven, microwave and fridge.

[lgk]

get a better job, and save money.

theres no point in buying on a loan

[csmith12]

Alternative option: Buy a project and start learning.

It's almost buying season for bikes, use it to your advantage and buy a beater/project bike and restore/customize it. You have the entire off season to fix it, shine it up and get it legal before next season. You will love it when your done and learn a ton about wrenching & maintenance in the process. Cheap entry price and instead of payments, you buy parts, same difference in the end.

[subxero]

banks don't like to lend out small amounts of money, it's high risk low reward

[Nemesis]

If you can't afford $1900 or even $2K on your own then you most likely should not be buying a motorcycle.

Time and time again, noobs forget there are other expenses other than the motorcycle itself. You have insurance, maintenance, protective gear, registration, etc. to consider. And if you crash, well it's just more added expense.

BTW, a pre-gen ain't worth $1900. They should be selling for $1500 or less. At least in Cali it is.

[Panda]

Lots of great advice in this thread. @FrugalNinja250, chris, and @Nemesis pretty much nailed it.

[crazymadbastard]

Lots of good advise here, I hope see it all in the best light possible. A pregen can be had for quite a bit less than $2000, save your pennies and buy at the peak of winter and definately budget for protective gear.

[Bigballsofpaint]

Aside from all the other advice given. Go to a credit union for a loan, they are much more leinant as far as your credit rating is concerned. When i was 18 i opened an account at the credit union and took out a small loan for 1,000. Just to build my credit since i had none, ever since then i have been fine. Big banks are more likely to say no, while ive never had issues with my credit union. Plus their interest rates are usually lower.

[CC Cowboy]

Rob the bank, then deposit the money in a savings account and take a loan out on the savings account (passbook loan).

[tfkrocks]

Start with a credit card. Keep it in good standing and just wait. Building credit takes time. I would not try to take out a loan for a pregen. The things are not worth financing.

[dfox]

repeat everything stated above.

in my opinion, a motorcycle is not something to buy on a loan. If you can't afford cash, you can't afford it.

[CycleCam303]

I'm assuming this is your first bike? Brief 30 cents. I financed my new gen. I planned on making payments for a year and pay it off early to build credit. Everyone has offered good advice but the elephant in the room is that its your first bike. A pre gen 250 isn't exactly lust worthy. I'm not here to be holier than thou and tell you that you'll crash it and drop it.

I will tell you that you might not love it after a couple of months or you will want another bike badly in a very short time. Being able to get rid of something at the drop of a hat is great

[Lychee]

Or, you might fall in love with it and keep it forever!

[rasta]

I guess the jokes on you

I'm so clever

[jokesonyou24]

Hey guys, thanks for all the great advice and info. I've put a lot of thought and research into a lot of bikes, so I know that a Ninja 250 will do what I want it to, no more no less. I'd like a pre-gen for a few reasons: they're cheaper, I like the seat design better, I won't feel so bad when I streetfighter it, etc. Once I get one, it's stuck with me . I have some credit, just not enough to be more than a ghost when it comes to credit reports. I'm thinking about getting a credit card through my bank, something around a $200-$300 limit, using it for small purchases, and paying them off with the money I would've used in the first place(cash I would already have). If I can do that for say 6 months, I'd probably stand a better chance of getting a loan or possibly having enough saved to get a bike. And if can time it right, I could pick one up right at the tail end of winter, when the weather's nice enough for a test ride, but not quite full blown riding season so should still get the bike for a decent price. How about it? Decent plan? Or am I nucking futs?(I probably am anyway)

[jokesonyou24]

Originally Posted by rasta

I guess the jokes on you

I'm so clever

'cause I've never heard that one before

[tfkrocks]

Originally Posted by jokesonyou24

Decent plan? Or am I nucking futs?(I probably am anyway)

Good stuff. Don't need to rack up interest on a credit card to build credit; paying it off in full is much nicer on your wallet anyway. Another idea is to make the payments you would've had on the loan/bike to another bank account and then use that toward the bike later. You might be able to buy one without a loan before you know it if you make decent sized payments toward that.

[jokesonyou24]

I was planning somewhere between $200-$250 a month toward the loan per month, so depending on interest, I would've had it paid off in a year or so (10 months actual loan amount, 2 months interest?). So in 6 months, I'd have a little over a grand saved up. From there I could haggle a private seller or try to get a small loan for the remainder of said sellers asking price. Guess I'll start saving and cross that bridge when I get to it

The loan idea was just a "quick and easy fix" so I could have a bike now. I knew it was a long shot, but figured I'd try it anyway...

[tfkrocks]

Originally Posted by jokesonyou24

I was planning somewhere between $200-$250 a month toward the loan per month, so depending on interest, I would've had it paid off in a year or so (10 months actual loan amount, 2 months interest?). So in 6 months, I'd have a little over a grand saved up. From there I could haggle a private seller or try to get a small loan for the remainder of said sellers asking price. Guess I'll start saving and cross that bridge when I get to it

The loan idea was just a "quick and easy fix" so I could have a bike now. I knew it was a long shot, but figured I'd try it anyway...

Are you also budgeting in for gear too? I would suggest putting aside another $1000 for gear. I really wouldn't get your hopes up on the small loan idea because loans tend to be min. $5k from what I've noticed. Motorcycles are treated as a luxury and not as much of a necessity as a car so loans get handled differently. Also keep in mind that too many credit checks for loan/credit applications will only bring down your credit so if you keep re-applying too often only to get turned down, you're only increasing the chance you'll get turned down again.

[ForceofWill]

Credit checks only affect your temporary score and most banks will ask if you've applied recently for this very reason. You should find a new bank. My credit union will do personal loans from $500 and up with no collateral needed. I don't know what kinda job you have but if you don't have credit, income is your next in line for getting the loan.

[tfkrocks]

Originally Posted by ForceofWill

Credit checks only affect your temporary score and most banks will ask if you've applied recently for this very reason. You should find a new bank. My credit union will do personal loans from $500 and up with no collateral needed. I don't know what kinda job you have but if you don't have credit, income is your next in line for getting the loan.

Well for loan shopping, doing a bunch of credit checks within a short period of time will have it count only as one credit check, but if they're spread out, that's a lot of dings. True they are temporary, but enough of them could be quite detrimental for a while.

[jokesonyou24]

Originally Posted by tfkrocks

Are you also budgeting in for gear too? I would suggest putting aside another $1000 for gear. I really wouldn't get your hopes up on the small loan idea because loans tend to be min. $5k from what I've noticed. Motorcycles are treated as a luxury and not as much of a necessity as a car so loans get handled differently. Also keep in mind that too many credit checks for loan/credit applications will only bring down your credit so if you keep re-applying too often only to get turned down, you're only increasing the chance you'll get turned down again.

I'm planning to get my gear as money allows(already have gloves and riding glasses and I'm looking at a GMAX modular helmet, in addition to scorpion deuce pants per @dfox's recommendation of them. I can get both through Amazon for around $300), since I don't have my endorsement yet, and I'm trying to take the MSF BRC first. I'm just gonna set aside money toward a bike and see what I can come up with financially between now and about a month or so before winter ends. I should've clarified, the "small loan" wouldn't be through a bank. At that point, I could probably borrow the needed balance from family(a few of them owe me ), if the need arose.

[Sargent]

I'm just going to throw in because I disagree with some of what's being said. Sometimes a motorcycle is worth taking out a loan. I use mine for commuting and literally save enough in gas to cover my motorcycle payment. I'm paying for the insurance and my fuel fund has been diverted into the bike. Yes I'm putting out a little extra cash but I'm also getting some equity.

HOWEVER, in your case, I don't think a loan is a good idea. I've owned bikes before, I know the cost. It's worth it to me because my wife has the good car now instead of the old beater that seems to break down every third time she drives it.

[tfkrocks]

Originally Posted by jokesonyou24

I'm planning to get my gear as money allows(already have gloves and riding glasses and I'm looking at a GMAX modular helmet, in addition to scorpion deuce pants per dfox's recommendation of them. I can get both through Amazon for around $300), since I don't have my endorsement yet, and I'm trying to take the MSF BRC first. I'm just gonna set aside money toward a bike and see what I can come up with financially between now and about a month or so before winter ends. I should've clarified, the "small loan" wouldn't be through a bank. At that point, I could probably borrow the needed balance from family(a few of them owe me ), if the need arose.

Ok sounds like you have a decent plan then. Good luck with getting a bike! Make sure you try on that helmet before buying online. Don't forget boots.

(and go start building that credit for when you need a loan for something bigger later on)

[LittleRedNinjette]

401K loan, if you have a 401K anyway. That way you pay the interest back to yourself. in most cases you can take 40% of what you have in there out on a loan. You would just need to check with whoever you have for it.

[nightrider]

Hold on...so you want to get into riding and all the costs associated with it, yet you have a hard time saving 2 grand? You may need to rethink your priorities. If you have a half decent full time job or a decent part time job and no family to support it should take you 2-3 months at the most.

[jokesonyou24]

Originally Posted by tfkrocks

Ok sounds like you have a decent plan then. Good luck with getting a bike! Make sure you try on that helmet before buying online. Don't forget boots.

(and go start building that credit for when you need a loan for something bigger later on)

Well I've sized my head at 22 inches, so that'll help. And Amazon has a generous return policy. As for boots, already got 'em, Redwing, from their motorcycle line. It's the only brand I'll buy when it comes to shoes and this is my third pair over a period of 11 years(2 pair of motorcyle boots and 1 pair of running shoes). They're damn tough, usually last around 5 years(and I'm incredibly hard on shoes!) and now I'll actually be wearing them for the intended purpose. My first pair lasted 6 years before I replaced them, they're literally broken down to bare soles, no arch support, but the stitching has held up and they're still waterproof (up to six inches deep)

[jokesonyou24]

Originally Posted by nightrider

Hold on...so you want to get into riding and all the costs associated with it, yet you have a hard time saving 2 grand? You may need to rethink your priorities. If you have a half decent full time job or a decent part time job and no family to support it should take you 2-3 months at the most.

Well I'm married, work as a cashier at a convenience store and have all the "usual" bills,(utility, phone, etc.) and my plan outlined here is a rough idea of what I could realistically afford to set aside month to month. I'm buying a bike as a cheaper way to commute(with the added bonus of being more fun than just driving).So it may take me a little longer than 2-3 months, but I'll still make it happen.

[nightrider]

Originally Posted by jokesonyou24

Well I'm married, work as a cashier at a convenience store and have all the "usual" bills,(utility, phone, etc.) and my plan outlined here is a rough idea of what I could realistically afford to set aside month to month. I'm buying a bike as a cheaper way to commute(with the added bonus of being more fun than just driving).So it may take me a little longer than 2-3 months, but I'll still make it happen.

makes sense...For some reason I pictured you as being 18-20 years old...

[jokesonyou24]

Originally Posted by nightrider

makes sense...For some reason I pictured you as being 18-20 years old...

29...though I try like hell not to act it

[Nemesis]

Poor financial planning.

You need to do some more research and better planning. If I had the time I would type up my suggestion but I'm pretty busy all this month.

[Panda]

Originally Posted by ForceofWill

Credit checks only affect your temporary score and most banks will ask if you've applied recently for this very reason.

Credit checks stay on your report for 2 years. If you have too many credits on record, I believe more than 3, it will lower your score.

I don't know what "temporary score" you're referring to.

[csmith12]

Hey Dan, not sure that is true for all cases. Your credit is checked so much now, I am not sure it carries the same weight as it once did. It's supposed to be, your credit can only be checked if you agree and give auth to do so. I think some shady companies do it without auth though.

Your credit may be checked in the following common ways;
Getting insurance
Renting a house
Applying to a job
Loans and such

So if applying to many jobs that require credit checks, I wouldn't want finding a job to stain my credit record.

[ForceofWill]

Originally Posted by Panda

Credit checks stay on your report for 2 years. If you have too many credits on record, I believe more than 3, it will lower your score.

I don't know what "temporary score" you're referring to.

This is what I was trying to get at. Worded wrong

Does the formula treat all credit inquiries the same?
No. Research has indicated that the FICO score is more predictive when it treats loans that commonly involve rate-shopping, such as mortgage, auto and student loans, in a different way. For these types of loans, the FICO score ignores inquiries made in the 30 days prior to scoring. So, if you find a loan within 30 days, the inquiries won't affect your score while you're rate shopping. In addition, the score looks on your credit report for rate-shopping inquiries older than 30 days. If it finds some, it counts those inquiries that fall in a typical shopping period as just one inquiry when determining your score. For FICO scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO score.

http://www.myfico.com/crediteducation/creditchecks.aspx