How Do I Refinance My Yamaha Card Loan?

Visitor Question: On my Yamaha Card how do I refinance my private label credit card motorcycle loan? I purchased a Yamaha FZF-R6 at a 7.99% annual percentage rate for 24 months and then 22.99% after the 24 month promotion period. In a few months my promotion period will be over and my interest rate will increase to 22.9%.

Answer: Congratulations to you for keeping an eye on the details with your motorcycle loan. Many motorcycle buyers who purchase bikes with private label credit cards never keep track of the promotion period. These buyers face higher interest rates and payments by surprise after the short promotion period ends.

There are basically three main methods to do a motorcycle refinance from a private label credit card. The method that is best for you highly depends on how soon you will be able to payoff your loan.

The safest method is to take out a simple interest personal loan with your local bank, credit union or online lender. Personal loans are simply a standard installment loan that has a fixed monthly payment for a specific term. You can normally get terms up to 60 months and fixed rates at 7% or below.

Here are the steps you would follow:

1. Shop local banks, credit unions and online lenders to find the best interest rates on personal loans.

2. Once you select a lender have them take your personal loan and payoff your Yamaha Card.

3. Make all your payments on time and payoff your personal loan.

Another method if you are a homeowner is to consider a home equity line of credit. This method requires you to take out a home equity line on your house and use it to payoff your Yamaha Card. Unfortunately with the current economic crisis in housing, this method may be difficult unless you are lucky and still have equity in your house.

The last method is a bit risky and works best if you are financially disciplined and can payoff your entire loan in one year. With this method you take out a credit card that provides 0% interest for one year on cash advances and balance transfers. You then take a cash advance and payoff your Yamaha Card which will place the entire balance on your 0% credit card. This option will provide you no interest cost over then next year, but you will need to payoff your entire balance in one year’s time or you will have massive credit card debt at a high interest rate.