Motorcycle Loan

For just about anything you want to get off your chest about credit cards.
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onion
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Motorcycle Loan

Postby onion » Sun Sep 07, 2014 12:06 pm

Well, I'm supposed to be in the garden, but I test rode the new Yamaha FZ-09 and I fell in love with it. Its totally different from my current bike (Honda CBR600RR) and a lot better for commuting and long trips. I've never had a loan, so I'm not too sure what is taken into consideration most by lenders. I've got ~4 months AAoA, oldest account is 1 year, 1-2% util, 5 inqs on TU, 2 on EX, and 2 on EQ (somewhere around that). Some of those TU inqs are more than 6 months old and one is about to be a year old.

I'm planning on selling my bike on craigslist (around $6,000) before buying the new one (around $8,000). So, should I take out a loan for the full amount and make much higher payments for the first couple months, or take out a loan only for the amount I need (problem is that many lenders don't lend less than $3,000 for personal and $5,000 for motorcycle loans)? Will I even get a decent interest rate with my current credit file, or should I just save up and pay for it with my credit card and earn rewards? I've got a big moving expense coming up in a year so I'd rather not have a big purchase right now and it would be much easier on me financially to spread that out over a couple months/years.
FICO TU - 728 - 8/14
FICO EX - 716 - 7/14
FICO EQ - 740 - 7/14

Bank of America Cash Rewards - $2,400
Best Buy - $3,000
American Express Blue Cash Everyday - $8,000
American Express Everyday - $10,000
Discover It Chrome - $500 (AU on fiancée's card, helping her build credit)
American Express Platinum - NPSL
Barclaycard Arrival+ - $3,000
Capital One Yamacard - $11,000


irvinfitness
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Postby irvinfitness » Thu Sep 11, 2014 10:20 am

My personal rule of thumb (though it may vary from others) is to never finance "toys" unless it is at 0% and you could otherwise pay cash.

If the motorcycle is not your primary means of transportation, then you should probably save up the money and then put it on your CC to get the points before paying it off completely.

That being said, depending on your income, you would most likely be approved for the loan based on the information you provided. The interest rate may be high though, due to the age of your accounts and the lack of any other installment credit.

You know your situation better than anyone else though. Ask the lender what the best possible rate is and what the worst rate is and then try to guess where you would fall. Do the math to calculate your payment and determine if it is a burden you want to have while preparing for the move.

Either way, keep riding and be safe! :)
I just picked up a used GSX-R750 this past summer and have fallen in love with motorcycles.
[size=60]Chase Freedom Signature - 10k (rotating 5%)
Citi Platinum Select - 8.1k (rotating 5%)
Discover It - 12k (rotating 5%)
AMEX BCE - 20k (Groceries 3% / Gas 2% )
Regions Signature Visa - 5k
US Bank Cash+ - 5.5k (Restaurants/Fast Food 5% / Drug Stores 2%)
Navy Federal cashRewards Visa Signature - 20k (Business Purchases)
Care Credit - 6k (Vet Bills/Dentist - 0% APR)
Chase IHG Rewards (Priority Club) - 18k (Annual Night Certificate, Platinum Elite Status)

Not used except for occasional purchase with promo:
Jared - 7.5k [/size]

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nismoZtuner
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Postby nismoZtuner » Thu Sep 11, 2014 1:27 pm

irvinfitness wrote:My personal rule of thumb (though it may vary from others) is to never finance "toys" unless it is at 0% and you could otherwise pay cash.

If the motorcycle is not your primary means of transportation, then you should probably save up the money and then put it on your CC to get the points before paying it off completely.

Either way, keep riding and be safe! :)
I just picked up a used GSX-R750 this past summer and have fallen in love with motorcycles.


was about to say that.. better get some points than to not get anything than just interest..

I want this!

Image

but then i get parent and friends(girls) telling me that bikes are very dangerous and yada yada..

so then I`m like 370z nismo?..

hmm

Image
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710
BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]
American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]
Chase Sapphire Preferred[7.3]
Inquires: TU(?) EX(?) EQ(?)
TCL-$19,800
Age-22

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Vattené
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Postby Vattené » Thu Sep 11, 2014 7:52 pm

I also think that, if you can hack it, you should save up before you buy it and just pay for the whole thing. That big of a purchase would get you a lot of rewards as a perk, and you wouldn't have to pay any interest.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now



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