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Motorcycle Loan in Modesto California

This story is about Julie Anderson and her motorcycle loan. Julie lives in Modesto California.  Julie awoke one bright morning in late July 2008 and all she could think about was getting herself a motorcycle. It’s just one of those things you realize you’ve been thinking about for months but never really taken action.

Julie grew up with four brothers all who rode motorcycles for recreation and from point A to point B.  She had written motorcycles her whole childhood – from the big Harley Davidson hogs, to street machines of Julie’s brothers’ she used to ride all day (she didn’t think it was a Honda Gold Wing) there was no question about it – Julie wanted to have her own Harley Davidson.

The Harley Davidson in question would cost Julie just under $40,000 which was $40,000 too much for her and it was going to take an effort just to scrape up a down payment because Julie was not exactly frugal or careful with your money.

She decided that she would ask her mother for a down payment on her Harley Davidson (on the motorcycle loan required).  When she did ask her mother for the loan down payment she was flatly denied.  This was no surprise to Julie as she knew her mother never liked any of her children riding motorcycles in the first place.

Julie then went to her father and asked for a down payment to be used towards her $40,000 motorcycle loan and he said he would do what he could.  Julie’s father was separated from her mother now (for over seven years) and he was the parent who encouraged Julie and her brothers to take up the sport a motorcycling.

He didn’t make much money but really want to help Julie realize her dream of owning her own Harley Davidson, so he let her know he would do what he could do and that he would get back to her in the next week.

Unfortunately for Julie she was just now considering the reality of getting a motorcycle loan after she had let her emotions  finally overcome her natural hesitancy to go into debt.  Like we always say at California Loan Find, you need to move toward your debt slowly, carefully, and frugally.

So now as the initial excitement of buying her own Harley Davidson was becoming mired in the details of the funding – and yes this was discouraging to Julie – she still held onto her dream and had comfort in knowing that her credit rating was good.

As a matter of fact Julie’s credit rating was too good in that she had never had a credit card or handled any kind of credit at all.  She always paid in cash and always paid upfront without ever taking on debt – and since she was single and young she had never owned a home or made mortgage payments.

She never bothered to use a credit card from department store, grocery store, or even from a major bank in Modesto. While her parents offered to get her a MasterCard at one point, she declined on that offer as well.

It is not good to have absolutely no credit rating on the go.  You need to be establishing your credit rating at an early age so that in the future banks can make a decision on whether or not to give you a loan.

In this case, Julie’s motorcycle loan at a principal amount of $32,000 was a lot of money for the bank to be lending when she had no credit rating whatsoever.  I should note that Julie also had proof that she had been with the same employer in Modesto for over 7 years.

Unfortunately Julie lived in an apartment with two other roommates whose names were on the utility bills, the phone bills, and the rental agreement(s).  This creates a situation whereby the banks have zero track record on the borrowers ability to make their installments.

So you can see where we are going here – Julie really didn’t have much of a chance of being approved for her $35,000 motorcycle loan and it was coming down to the point where she would have to call the money in from a family member, a friend, an employer, or get a cosigner.