Commercial truck financing is not always easy to get when you have bad credit, but for many, they are essential. Many people have bad credit, often due to issues beyond their control, such as losing a job. If your credit is less than perfect, it might not be easy to get commercial truck financing. Thankfully, when you know where to turn, it makes the process far easier to get bad credit truck loans.
Reasons to Look Into Bad Credit Truck Loans
The way we live has changed a lot in recent years. People want to work from home or work in a more secluded environment more now than ever. If this is the situation you find yourself in, then driving a truck may be a great option. The problem most people face is, these trucking companies often want owner-operators to work for them. If you do not have your truck, it may be incredibly difficult to get a job like this.
The simple answer is to buy a truck that you can use, but that option is not so simple if you have bad credit. Finding bad credit truck loans is no easy task. You want a company that will loan you the money directly and works with you to restore your credit. Ideally, you want to have different down payment and repayment options that you can meet while working. These types of loans are possible, but they are not always easy to find.
Types of Trucks You Could Get a Loan For
When getting a bad credit truck loan, you need to consider what type of truck you want or need. This factors how much of a loan you should get and how much income you can make from it. Financers want to know this because it shows them how quickly they should get their money back. Some of the options you have in terms of trucks include:
- Semi Trucks
- Box Trucks
- Straight Trucks
- Water Trucks
- Vacuum Trucks
- Dump Trucks
- Bucket Trucks
- Utility Trucks
- Medium and Heavy Duty Work Trucks
- Sprinter Vans
- Commercial Vans
- And more!
It is also important to note that not all banks or financing companies will loan out money to anyone with bad credit. Even if you have a significant down payment, they may still not work with you. Plus, some companies only work with specific situations, such as owner-operators. If you are a new startup or have no experience in the trucking industry, these companies may not be an option. That is why it is essential to look at the companies you want to work with once you know the type of truck you wish to finance.
Steps to Take to Get a Truck Loan with Bad Credit
The most obvious first step is to do what you can to restore your credit before applying. We understand this may not be easy, but doing your best can go a long way. Next, you want to put together as large of a down payment as you can. You are likely to get a higher financing amount if you have a substantial down payment to show how serious you are about getting that loan. Some loans allow for smaller down payments, but others want 10-30%, which can be difficult to pull together.
Looking into a cosigner can also be an option for some people. If you have someone that would be willing to sign on the loan with you, it can help banks feel more secure they will get their money back. Keep in mind, if the co-signer does not hold a CDL and if the vehicle will require a CDL the co-signer won’t help much. When a bank sees you as a risk, anything you can do to reduce the risk you pose can help.
Finally, look around before you apply. When you do a credit check, it can ding your credit. The loss of even a few points can sometimes be the difference between getting approved and rejected. Make sure you talk to the people you want to work with and see what options they could provide before doing a full application. That way, you only have one hit to your credit and keep your numbers as high as possible before getting the loan.
First Capital Business Finance is Here to Help with Bad Credit Truck Loans
When you need help finding bad credit truck loans, you need to call us here at First Capital Business Finance. We have been helping people just like you finance commercial trucks of all sizes for years. It is our pleasure to listen to your needs and see what we can do to help. Once you know the difference First Capital can make, you are sure to love working with us from here on out.
How To Get Approved for Bad Credit Truck Loans | First Capital Business Finance