Get a Loan to Buy a Bicycle

Thursday, August 23, 2012

Get a Loan to Buy a Bicycle

A loan for a bike is usually low risk for the lender. A lender does not have to give you a lot of money and he can easily recover it in a short span of time. As a result, it is very easy to get a bicycle loan from a local lender as well as a financial institution. The best part is that your credit score does not need to be perfect in order to apply for a bicycle loan. Most of the people with a bad credit history are also cleared for bicycle loans and money is sanctioned to them. 

A bicycle loan is taken in the form of a personal loan. This means that you do not have to secure it against collateral. It is quite easy to qualify, to apply for a bicycle loan. The eligibility criteria include a stable income, a permanent address and a down payment. However, many people do not know the correct procedure of applying for a bicycle loan.

How To Get A Bicycle Loan

1) Research about lenders - The first step is to get quotes from different types of money lenders. This will give you an idea about different interest rates and additional charges. You can look for a bank, a credit card company or even a local lender. Banks are usually available to people who have a good credit history. The same goes with credit card companies. On the other hand, you can easily get a bicycle loan from a local lender.

2) Choose a lender - You should always select a money lender with the lowest quote. A personal loan quote depends on monthly installments, interest rates, down payments and other loan terms.
Interest rates usually depend on the time period for a loan and the size of monthly payments. Usually people only consider interest rates while applying for a loan and end up making the wrong choice. You should consider all the factors when you apply for a loan.

3) Verification - The next step is to carry out the pre approval process. You will have to give all your personal information along with information about your income and a down payment quote. For income verification, you can submit a recent pay check or copy of your tax return. A lender will require all this information to do a credit check. This will give him an idea if you will be able to pay your monthly installments on time.

4) Budget - You should always buy a bicycle that is within your budget. Wait for your loan to get approved, so that you do not exceed your limits. You should add your loan quote to your down payment. This will give you an idea about how much you can spend for your bicycle buy finance.

5) Negotiate - When you try to get loans for mtb or bicycles, it is always good to negotiate. For example, a shorter loan length will result in low interest rates. You should check all the terms and choose ones which are most profitable.

About the author:

The article has been written by Sachin.

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