Buying a new bike is thrilling for many; times have now changed, with the expansion of banking industry. Owning a vehicle is now the need of the hour, and is bought with a sense of dependence, and not just a thought of recreation, like how it was years ago. Employees today cover a distance, because of the extension of business opportunities; there are many attractive bike loan schemes on offer that can be reimbursed via monthly instalments. It does sound simple and straight forward, but there are challenges involved. For those who are keen and excited by the thought of buying a brand new bike through a bike loan system. Take note of the five crucial steps:
Thoroughly study your debt
Ensure that your balance to be paid is less than 30% of the available credit limit; lenders consider the repayment of acquired loan via credit card to be risky. Study your credit limit thoroughly before having the confidence to purchase a bike via loan system.
Ensure timely payment of credit card bills
Pay your credit card bills on time, as it is the biggest asset for loan purchase, and it gives a sense of confidence to lenders, that the person will receive timely monthly repayment. When customers issue bank statement, and lenders find non timely bill payment, then the ease of loan offering is worn out. Lenders will even decline to offer a loan at higher interest rate. Lenders want to be assured of the ease of repayment, and if your bank statement shows negative credit score, it is a setback.
Build early Credit
The world is faced with challenging economy that has only increased cost of living. Inhabitants today thrive on credit card system, even with methodical planning of finances on credit card; it is difficult to keep track of optimum balance, hence it is not practical to depend on a single credit card. To avoid grave mishaps even after careful planning, build your credit card at the earliest possible time, by having one or more cards. To achieve optimum credit card build up, make small purchases and pay off monthly balances on time. Activate the account that has been used the most, which would be the oldest account, to just lengthen active credit usage. The number of times you use your credit card, it poses a sense of confidence to lenders. Amidst tough times, the safer option is to have more than one credit card, so that if the funds on one card are worn out soon, alternate funds can be used.
Avoid many inquiries
There are different modes of loan repayment, besides credit cards, the other common sources are wire transfers, personal cheques, debit cards, credit cards (Master Card or Visa) and salary deductions. Loan purchasers should study the various loan schemes before zeroing in on a convenient one. Despite a thorough study, the whole loan purchasing process is worrisome for many, especially for those who are doing it for the first time. Spend time with the lender, and an important point to take note of is never ask many questions, especially at the first instance. It poses waves of doubt on the lender, who will now be concerned about efficient monthly repayment. Most of the time lenders are wary of customers, and ask for important documents such as identity proof to pre-screen your character.
Find the most suitable plan
The most important aspect to consider before opting for a loan is to check the plan that is most suitable to your financial status. There are several schemes available. For those who are buying loans on credit, do all the shopping within a couple of days, to ensure maximum repayment amount. Mostly all loan schemes are stable and customer centric. There are many mediums to find suitable loan offers, at dealerships, credit union and bank, most of the options are available on lines as well.
Opting for a bike loan is not as risky as a car scheme, because of the mere fact that bikes are more reasonable, which calls for minimal discrepancies with interest rates. Bikes are a more economical option for many who live under tight means, and also for those who prefer to indulge in lifetime savings. Browse through the various loan schemes before opting for a suitable one, and as mentioned earlier, most of the schemes are consumer friendly.
Purchasing a bike loan is flexible and not daunting if you follow the crucial financial saving steps, more so because lenders are keen on customer satisfaction and offer the best schemes.