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A guide to getting a motorcycle loan

The first thing that borrowers should know is that it is not wise to apply for a motorcycle loan with a car dealer without shopping around first. Car dealers will occasionally have promotional financing with reduced interest rates, however most of the time their rates tend to be higher than most banks and finance companies. People who make an effort to shop around will more than likely save money on the interest they will pay on their loan.

The next step of the process is to decide how much money needs to be borrowed. Some people like to add the cost of insurance and modifications to the loan.

Once this has been done the loan applicant will need to think about what sort of loan they wish to get. Sometimes buying a motorcycle using a product like a low interest credit card is cheaper than getting a personal loan. Borrowers should take the time to research interest rates and fees on credit cards, loans and mortgage top-ups in order to determine which loan option will leave them better off financially.

Loan applicants will now need to approach a bank or finance company and apply for their loan. The lender will want to know what the loan is for, a few personal details about the applicant and information about their credit history as well as their current income. Most lenders will not pay out a loan unless the borrower has insurance on the motorcycle. This is because they want to ensure that they will be paid back if the motorcycle is damaged, stolen or written off.

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