You can get bike finance if you’re blacklisted with a bad credit record in South Africa. There are creditors that offer bike finance with no credit check so anyone can purchase a new motorcycle.
One word of warning though. Creditors or bike dealerships that advertise “Bikes for Sale Blacklisted Welcome”, you need to approach with caution.
Because although they will offer you a loan to buy a new motorbike, the interest rates are often high.
So your monthly repayments can cost you a lot of money when qualifying to borrow with a bad credit record.
You can also take over bike installments even though you may be blacklisted. This has to be done through the current creditors consent and approval.
Can I get a Motorbike on Finance with Bad Credit?
Yes you can get a motorbike on finance with a bad credit record. Although as we mention above you have to make sure you are not paying too much interest.
If you are racing to set off on two wheels and need to borrow cash, you will be happy to know that bike finance for blacklisted people in South Africa is a real possibility.
These creditors operate differently to banks such as ABSA, FNB, Standard Bank, Capitec or Nedbank. Who do not offer bike finance for bad credit.
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What it means to be Blacklisted in South Africa
In South Africa if you have been blacklisted this means that you have a bad credit record. This prevents you from gaining easy access to financing solutions.
But before you imagine your exhaust pipe roaring far into the distance in front of your eyes. Remember that there are loan solutions out there. So you may actually be able to finance the bike you have your sights set on.
What are my Options for Motorcycle Finance with Bad Credit?
You have a few options to apply for motorcycle finance with a bad credit record. But there’s no such thing as guaranteed bike finance with no credit check in South Africa.
Most creditors that will offer you a loan to buy a motorcycle will want to check your credit history.
If your credit history does not exactly scream: “Lend money to me!” you may have to work a little harder than those with squeaky clean credit records.
This doesn’t mean that motorcycle finance for blacklisted people in SA is impossible. It’s just a little harder to come by. So you may have to approach a number of companies before you find someone who is willing to lend you the money.
In addition you may also be charged more interest on your loan if your credit record is less than favourable.
Bike Finance for Blacklisted – Motorcycle Loans
Consider applying for a secured loan to buy your new bike.
To take out a secured loan you need to own property or some other form of collateral. That you can list as security for the loan.
If you fail to meet the monthly payment, the lending institution will be able to repossess the items you listed as security collateral.
You may also be able to find a loan company that deal exclusively with blacklisted applicants.
The easiest way to find these companies is through an online search. After which you can decide which company is best suited to your purposes.
Don’t feel discouraged if a loan company denies you credit. Gather your pride and go for the next one.
Even if your application has been approved by company number one, consider yourself lucky enough have the luxury to look around. And choose the company that offers you the most affordable interest rates.
Before you make your decision, ensure that you are aware of the terms and conditions of the loan before you sign your salary away on the dotted line.
It can also help your case if you are able to pay part of the bike value in cash. Before you apply for bike financing, it is worth saving up some money to pay as a deposit upfront.
Private Bike Finance
If this fails, go private. People who are selling their motorcycles privately (not through a dealer) may be able to offer their bike in monthly instalments. Without taking your poor credit history into account.
Most people who sell privately prefer to receive cash upfront. So you might pay high interest on your monthly instalments.
There are also private bike finance lenders that operate separately from a company. We can’t advise you borrow money to buy a motorcycle from a private lender though.
To apply for Bike Finance with a bad credit record
- Make a list and contact all the companies who offer loans to blacklisted applicants. You can then compare loans, interest rates and find the best deal for your circumstances.
- To show the lending company that you are dedicated to receiving bike finance, you can seek the services of a debt counsellor. A debt counsellor will also be able to help you with your bad credit record. Therefore helping to free up the money you need to pay your instalment every month.
- You will need to submit documents such as a Drivers’ License, bank statements, Identity Document, Proof of Income, proof of address, as well as filling in the application form.
Blacklisted bike finance looking bright
The good news for blacklisted people is that nowadays you may not need to wait as long for your wheels. Getting bike finance is not as hard as it used to be.
Don’t worry about your credit situation. So many people these days are finding themselves in similar positions in times of recession.
In Conclusion
Remember that buying a bike is also usually cheaper than buying a car.
Because the monthly repayments for bikes are generally lower than car repayments, lenders will feel more confident in your ability to pay.
Best of all is that if you do qualify for bike finance with a bad credit record. And pay your monthly premiums consistently, you can improve your credit score and even get yourself off the blacklist.