In order to understand the reason why there is this seemingly paradoxical difference you need to think about the loans in terms of profit and risk for the banks.

Profit:

First, a bank is in business to make a profit for it’s owners and shareholders. Simply put, making a small 1000 loan just doesn’t make the bank much money at all, especially when you consider the costs for loan maintenance, initiation, and customer service going forward on the loan. In essence, to cover those expenses a bank would have to charge quite a lot in fees and interest rates to make the loan profitable. However, with 50000 loans there is enough in principle for the bank to cover the maintenance, initiation, and servicing expenses and still make a profit without having to charge tons of fees and high interest rates.

Risks:

While this may sound somewhat counter-intuitive, a loan for 50000 dollars can actually end up being less of a risk to a bank. First of all, these types of loans are generally for business uses, or for purchasing other assets that have value in case of default on the loan. However, with 1000 loans, they are usually for paying bills or for small purchases like a couch or computer that are very hard to extract value from after a default. In addition, many times people who do need to borrow smaller amounts of money are those who don’t have many assets in the first place, making them higher risks again in case of default. As such, the bigger loan can end up being the more safe loan for the bank, and thus will carry a lower cost of interest and higher likelihood of being made.

There are some financial institutions that may average you scores to decide what the average score is. This average can end up being higher than 500. You can also use any property you might own as collateral in obtaining below 500 credit score loans. If all your outstanding debt is too much to average above 500 and you don’t own any property you might be able to free up some of your existing cash with debt consolidation. This consolidates all the payments you currently make into one or two lower payments. By paying a little less every month you have more spendable cash to use on other items.

You can also try to get a 1000 dollar loan with bad credit by using the title to your car to get a fast cash money loan. These quick cash loans can be obtained without having any credit check done. They are good for people that don’t have any credit history or have a very poor credit history. Even if you don’t own a home of your own, you might own a car or even a boat that can be used to obtain a fast cash loan. Ultimately, the best way to ensure receiving loans in the future is to pay off the debts you currently have to improve your credit rating.

There are a few options to consider. Some dealerships will offer buy here, pay here financing options. This is basically renting the two wheeler but there are a few things to consider. Most of these places don’t offer a huge selection if any. Most traditional retailers don’t offer in house loans for people with bad credit. However, they do offer motorcycle financing so your first step would be to check with them or your local bank.

If you aren’t certain of how your credit is obtain a report with all your detailed payment information. Sometimes, this is easier than going to a dealership and finding out how bad your credit is. Another way to look for credit is online. You can get multiple quotes with only one credit report. Keep in mind the more times you get your credit pulled the more of a negative affect it has on your overall score.

Another big factor is your income. Do you have enough income to be able to make all your payments in addition to your new motorcycle loan? The higher your income is the more likely you will be able to obtain a new loan regardless of your credit report. If you don’t make enough money now to cover all your bills another loan just won’t work.

It is possible to get a motorcycle loan with bad credit. You must know your credit score, find a lender and make sure you can afford your new loan. Follow these simple steps to land that bike of your dreams.