Turn To An Online Lender
The easiest way to get ATV financing with bad credit is to look outside of the dealership finance department. Dealership finance departments are well known for having high standards when it comes to applicants. If you do not have good to excellent credit, you will probably not get an approval.
Online lenders, like the ones in our lending network, are used to working with bad credit. That means that even if you have heard no before, you may be able to get that approval. Here is how our online lending works.
Fill out one short quote form and submit it to the loan network. The form is short and should only take you a few minutes. If approved for financing, one lender will make you a cash offer which you will then be given the chance to review at the lender website.
If you like the offer, you can accept it and have money to buy your ATV in your bank account as soon as the next business day. That will allow you to buy your ATV as a cash buyer from any dealer or on the used market. Don’t like the offer? Just walk away, because there is not commitment in simply getting a loan quote.
Want to see your offer? Get your ATV loan quote here.
Get Someone To Back You
If you have bad credit there is a way to get someone to essentially vouch for you and it is called getting a cosigner.
When you use a cosigner on a loan, you are essentially using a person’s good credit to boost your own rating, but it is a serious matter. If you were to default on your ATV loan, they would become equally responsible for the loan debt. For this reason, it is very unusual to ask anyone other than close family to cosign a loan for you.
Should you decide to proceed with a cosigner, use this tool smartly. Get your loan and pay on it responsibly. Within 6 months to a year, your credit should improve and you can then refinance the loan. That will remove the cosigner and relieve them of their obligations. The sooner you get the cosigner off your loan, the better for them and the less “family stress” you will have.
Save Up More For A Down Payment
Getting approved for a loan is all about reducing the risk for a lender. If you have bad credit, your loan is already risky, so you will need to make your loan more attractive. One way to do that is by putting more money down.
The more that you put down, the more favorable the loan to value ratio is. In other words, the less behind you would be on the loan. Statistically, lenders know that if you are not behind on a loan, and have equity, you are likely to continue making that monthly payment. In addition, if they have to repossess the ATV for any reason, it makes it easier for them to recoup their losses.
Ideally, you want to put down 20 percent on anything that you finance, but the more you put down the better. Just upping your down payment from 5 percent to 10 percent, for example, may get you an approval.
Choose A Cheaper ATV To Finance
This is a trick that, once again, involves reducing the risk to a lender. If you are having trouble getting approved for a bad credit loan for 15000 dollars, switch to a cheaper ATV. That 10000 dollar ATV may seem like a better risk.
Reducing the amount that you finance will reduce your debt to income ratio, making you look better in the eyes of a lender. Sure, you might not be able to buy as much ATV as you intended, but your payment will be less and you can always upgrade in the future after your credit improves.
Pull Your Credit Report
Finally, if you are having trouble getting approved for an ATV loan with bad credit, it may be time to finally address that poor credit rating. It is not as hard as yo umay think, here is what you need to do.
Pull Your Credit Reports
First, pull your credit report from the three bureaus, (Experian, Trans Union & Equifax). If denied credit, you are entitled to a free report.
Once you have your reports look for any errors and send a written dispute the credit bureaus. They then have 30 days to investigate the matter.
Next, look at ways to improve your score. Note balances that are too high and any inexpensive charge-offs that may be simple to pay off.
Make Payments On Time
Now, it is time to address the biggest factor affecting your credit score, on time bill pay. Make sure that going forward you make those payments on time. To do this, take advantage of every tool that you can. Ideally, sign up for automatic payments, but bill reminders can be useful as well. Paying your bills on time will not improve your score instantly, but you will see a gradual change for the better.
Pay Down Credit Card Debt
The second biggest factor affecting your score is credit utilization, which is the amount of your credit you are using. The less you are using, the better your score.
To lower your credit card debt, come up with a plan. Choose one card to target, usually the one with the highest interest, and pay the maximum on it, while paying the minimum on all others. Once the card is paid off, move on to the next one. Eventually, that debt will drop and your score will increase.