“Dear Steve,
Got about 10k in debt, and they’re all in collections, but I recently got a decent job. Now I’m starting from square one and i want to see if I can finally become debt free. But I don’t really know where to start.
I have lost my mode of transportation and I really really need to get something for my job. I’m thinking of getting a cheap motorcycle ($5,000 is my limit) but I don’t have the money, so I’ll need to take out a loan. The thing is, my credit is terrible. How do I go about getting a $5000 loan? Are there any institutions that won’t screw me over with interest? I can pay off the loan within a year. I don’t have family or anyone who can loan me the money either, so that is not an option. Advice?
Lorraine”
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The Answer
Dear Lorraine,
I get the impression that your credit score is dinged from your open collections accounts. You might want to use the free credit score service provided by Credit Karma and let’s see what they share with you about your score.
As a motorcycle rider myself I urge you to take the motorcycle safety foundation rider class to become a safer rider.
There are some used motorcycle dealers that allow you to buy here and pay here. In that case your credit is less important. But for that privilege you will wind up paying more for the motorcycle through higher interest and sales price.
But there are quite a number of motorcycles for less than $3,000 that are not as sexy but make for a great daily commuter.
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