Getting a two-wheeler loan with bad credit.

There is not such a thing as a fixed score for obtaining a bike loan, but it is customarily considered that all monetary firms accept a score of 600 plus or 750 and above.  Your credit score could vary anywhere from between 300 to 900. Various lenders have different criteria or qualifications for dispersing a bike loan. Hence, it is desirable to hold a good credit score.

Influence of an Unhealthy Credit Score on Two-Wheeler Loan

One of the few causes why banks such as Axis Bank Two Wheeler Loan deny an application is because of a low credit score as it’s a minimum requirement.

 

• Deferred payment - If you ignore paying credit card EMIs on time always, it will damage your credit score.

• Credit card bills - Guarantee that you pay your credit card charges in full every month on the proper date. The logic is that the outstanding sum is viewed as overdue by the credit rating company. A steady build-up of overdue can reduce your credit score.

• Absent payments - This is the worst-case situation for your credit score. Failure to meet even a single payment can give a cynical marking to your aggregate score.

• Many credit applications - If multiple lenders at the identical time, it improves the possibilities of a hard inquiry. Each negative questioning can decrease your credit score drastically.

 

• Previous or prevailing loans - If you have a current bike loan or have been recently denied for a bike loan request and have quickly applied for another loan, there is a higher chance for the new loan request to get denied. This can considerably lead to a bad score.

What you can do now is:

More down payment - With a bad credit record, you will hold to pay more on a down payment. A down payment is the set amount you have to spend on any bike loan that you endeavor. Advancing down payment diminishes a lot of outgo on your interest rate and degrades the loan term. This is a fitting option as the loan sum to be repaid is less.

• Co-signer - A co-signer is a customer who is fairly held accountable for your bike loan, they are similar to a guarantor. The creditworthiness of your co-signer will be practiced into consideration for the loan consent.

• Allocate better lending terms - There are many situations that may have caused you to an error on your past loan and can yet have an influence on your score. It is always prudent to negotiate suitable lending terms with your lender even if the interest is a little higher.

• Analyze varied lenders - By taking adequate research, you will be victorious in achieving a two-wheeler loan from the best lender with a favorable interest rate, duration, and conditions. This has been facilitated by new ways of assessing the creditworthiness of the customers. Lenders view extra criteria such as occupation and a steady disposition of income.

Also read this: Ways to pay EMIs of Gold Loan