Some people ride a motorbike because it is cheaper to run, easier to navigate through the traffic and can be parked just about anywhere. Others enjoy the freedom a bike gives them on the road, and the sheer organic and primal sense of going somewhere with no specific destination in mind.
In fact, riding a motorbike has been described as the ‘ultimate freedom’ and if you have ever had the pleasure of riding a bike, it is in another world when compared to driving a car. Most people ride a motorbike because they can’t imagine doing anything else and quite frankly, they don’t want to be anywhere else.
The problem is that not everyone can save the money to buy a motorbike outright, so most of us take out a loan and pay it off over a number of years. However, despite what some people believe, financial loans are not handed out willy-nilly to anyone, which means that you have to qualify for a loan.
For some people, this can be a slippery slope leading to disappointment, so it pays to have all your ducks in a row, before you start looking for the right motorbike loan. In essence, you have to demonstrate to lenders that you are not a financial risk and that you have the capacity and the ability to repay the loan, in the specified time period.
To help you in your journey, here are 7 tips that will help to make the application process less stressful for you and hopefully, result in your loan being approved.
- Stable employment: Lenders want to be sure that you can repay the loan. They like to see that you actually have a job and even better, that you have a stable job. This means that people who hop from job to job are less likely to qualify for a loan (all things being equal), than someone who has been in their current job for 12 months or more.
- Stable residence: For the same reasons that lenders want to know that you have a stable job, they also like to know that you have somewhere to live (you are not homeless). Also, that you have lived there for a reasonable amount of time. High risk applicants tend to lack stability in their employment and home life, moving around a lot and being less able to repay a loan.
- Credit history: Lenders will automatically perform a credit check on all applicants to access their risk profile. With a clear credit history, you will have more choices and better interest rates offered to you, whilst a poor credit history can mean that your interest rate will be less competitive.
- Savings history: Lenders like to see evidence that you can save money, because it gives them confidence in your ability to repay the loan. When people put aside money for a rainy day, it shows that they can be disciplined with money and implies an ability to budget correctly.
- Loans history: If you have previously had a similar loan and have completed all of the payments, this goes a long way to giving lenders confidence in your commitment and ability to repay another loan.
Once you are ready to apply for your motorbike loan, call us at National Financial Group and we will have you on your bike in no time at all.
