Financing a motorcycle after bankruptcy may not be as difficult as you think. Lenders realize that a consumer can file bankruptcy only once every seven years. A lender sees a new loan as debt that the consumer cannot eliminate. If the consumer shows he is on track to building a better financial history, many lenders will finance a motorcycle.
Apply for a secured credit card, if you do not already have a credit account. A secured card requires a deposit equal to your credit line. A low limit is fine--you are using this card to begin to establish positive credit history. Having two credit card accounts is ideal.
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Post regular monthly payments to your credit lines for six months. Your credit score will go up after six months of payments.
Save as much cash as possible for a down payment on the motorcycle. Because you are coming out of bankruptcy, a dealer will require a down payment.
Go to your bank and ask to see a loan specialist. Explain your bankruptcy situation and how long it has been since discharge. Tell him the amount of money you have as a down payment on the motorcycle.
If the loan specialist feels he can work with your situation, apply for a loan. Have proof of income ready to provide the bank.
Visit the motorcycle dealership and apply for financing. Applying with both institutions enables you to take the deal offering the best loan terms.
Make each payment on your motorcycle on time and in full. After six months, examine your credit report, available online at AnnualCreditReport.com (see Resources). You may find your score has risen enough to allow you to refinance the loan at a better interest rate.
You should not even consider financing a motorcycle or opening a secured credit card unless you are financially stable and have learned from the mistakes that caused the bankruptcy.