- October 27, 2022
- Posted by: Sergey Grushetskiy
- Categories: Bad Credit Semi Truck Financing, Semi Truck Financing
Many truck drivers hope to one day own their own semi-truck— though simply applying for a loan can seem tedious and time-consuming. And that is without even knowing whether or not they will meet the criteria to get approved for a loan in the first place.
Because they are taking such a great risk, financing experts consider many factors before approving someone for a loan to purchase a semi-truck. One such factor is the applicant’s credit score.
How big of a role does credit score play in semi-truck financing? And how high of a score do you need? Let’s talk about it.
What is a Good Credit Score?
Any lender for any type of loan you need will want to look at your credit report. This gives them an idea of how well you have handled your credit in the past and how well you are handling it currently. It also helps them to determine just how likely you may be to default on new credit should they decide to take the risk and give you a loan. This is all summed up by your credit score.
Credit scores are impacted by things such as:
- Payment history
- Total debt you owe
- Number of open credit accounts, their type, age, and amount used
- New credit
- Hard inquiries
When trying to obtain a semi-truck loan, much emphasis will be placed on this score. Here is a very general overview of how credit scores can impact your ability to obtain financing:
- A great credit score will allow you to obtain an ideal loan without any issues at all.
- A decent credit will often lead to encounters with lenders who may weigh many different factors before deciding.
- Having poor credit can make it difficult to obtain a loan at all if you aren’t sure where to look.
So what is a good credit score?
While some may go as low as 600, many financing experts who offer semi-truck financing will require credit scores of at least 650. Ideally, lenders look for those at about 740 or higher.
Other Factors Considered for Semi-Truck Financing
Although credit score plays a very significant role in semi-truck financing options, other factors are considered, as well, including:
- The type of truck, including whether or not it is used or new, and its payload capacity
- Your down payment amount
- Your business’s financial situation
- Available collateral, if required
It is always a good idea to seek out all your options before trying to prove why a lender should invest in you.
Options for Semi-Truck Financing
A quick online search will show you that there are many different options available for semi-truck financing.
Banks, for instance, provide loans. However, the requirements for this traditional financing are often rather rigid. And, unfortunately, unless you check off all the boxes, the chance of you scoring a loan to purchase your semi-truck with the lowest rate is pretty slim. Qualifying for loans through banks is tough — and many find they don’t qualify at all.
Most of the time it comes down to credit.
What if You Have Bad Credit?
If you have bad credit or a score lower than 650, don’t feel as though your hopes and dreams of owning a semi-truck are out of reach. You still have options.
At 10-4 Financing, we offer bad credit truck loans to those who may not otherwise qualify — allowing them to invest in quality, reliable semi trucks. After all, commercial truck financing with bad credit doesn’t have to be difficult.
To learn more about the 10-4 process, contact our financing team today at 888-908-7701. Or, get pre-qualified today.