Approval Chance for Motorcycle Loan?

[Anonymous]

Hey guys. I'm curious on what you guys think my chances are of being pre-approved for a motorcycle loan?

I'm 20 years old with a Fico score of 740. I've only been at my current job for a little over a month and was at my previous job for a year. I only make around $400 a month with my stable job (until January when work begins to pick up quite a bit), but I also do contract IT work now and again in which I get payed $25 an hour. The last job I worked through the contract company lasted about 2 weeks, but I was only there for the last few days. I still ended up making ~$500 in a couple days. The next job is expected to begin early november and last a minimum of 2-4 weeks, and I made sure to list that on my pre-approval application.

So my financial sitation is alright in my opinion. I still live with my parents while I go to school so I have literally no other bills to pay, they don't charge me rent. The bike I want only has an MSRP of $4,990, and I put on the application that I'm willing to put $1,000 down.

My main worry is providing proof of income. The main job that I work provides me with pay-stubs, but the contract work only pays me in bank checks. I have a Chase ATM receipt with a picture of a check deposit from the company, but I'm not sure if that counts as proof...

P.S. I know a lot of people say don't finance toys. However one weak area in my credit is the amount of accounts I have. I feel as though a small loan like this for a bike can be good for increasing my credit further because I've never had any kind of loan. 

[lincar66]

I don't mean to be blunt but at your age the biggest thing any bank or credit union wants to see other than credit is job history and income and by the sound of it your income is unstable at best I bet if your parents cosign they won't give a care to proof of income but you alone I can almost guarantee they will want it

[Anonymous]

Welcome to the myFico forums!

I am thinking you can probably get approved for the motorcycle loan with the situation you described.  I dont think they will accept the part time gig as income since it isnt that steady.  I would recommend that when you do get that type of work, use a big part of it to pay down that loan early.

If you get a bank check for your part time work, is there any tax withholding done on it?   Ultimately, proof of income is done with tax returns as the proof.  All I am saying is that major companies, like Amex for instance, look for the tax return for proof of income when they are considering really large CLs, like 50k.

Do you have any CCs?  The Fico scoring system looks for 3 or more CCs and at least one installment loan.  If you dont have them, I suggest you consider getting them in the near future.  The motorcycle loan counts as an installment loan.

BTW - enjoy the times when you can get a motorcycle loan, or anything like that, and not have housing expenses.  I was living at my parents house and bought a new car and enjoyed it.  When I went into the military, I sold the car and that was the end of the good times.  When I came back, I never considered living with them as a valid option. 

hth