If you have made up your mind to get a semi-truck, it is now time to get into financing options. If you do not have a clue where to start, this blog has your answer.
What Makes Semi-Truck Financing Different From Regular Ones?
If we talk about traditional truck loans, they usually need your credit, current revenue generation info, and time span in the market doing business to check if you are eligible.
There are multiple parameters that decide your semi-truck financing terms, the interest rate set, and the required down payment.
Here are the semi-truck financing requirements that will determine your eligibility.
Factors Affecting Semi-Truck Financing Eligibility
- Most important is the Credit Score. Probably 600 or above is considerably the best Semi-Truck financing for rates.
- The age of your Business with a CDL License should be at least 3 years and +.
- The amount of down payment you can afford.
- The age of your Semi-Truck must not be more than 10 years old
- Semi-Truck Mileage – Less than 700k miles
FICO Score Breakdown
According to analysis, usually, the credit scores fall in the range of 600 to 720.
If your number falls under this, it is considered poor. Candidates with a score so less are often required to pay a hefty sum more than usual fees as well as deposits.
If you fall in this category, your number is in the Fair credit scores category. More often than not, applicants with scores in this bracket are known as subprime borrowers.
If your score falls in this category, then you have a good chance of loan sanction. It is an opinion that Individuals with such a score have a much lower chance of defaulting.
People having mid to top 700s scores are in the good range. Borrowers with scores in this range will have better than most interest rates from banks as well as lenders.
The scores are top tier and considered an excellent credit scores. Applicants with a credit score over 800 get the best offers from lenders.
Factors That Affect Credit Score
Payment history shows whether your previous payments have been on time or not.
Credit utilization rate is basically your credit being used on your credit cards.
Type, age, and number of credit accounts are important since the loan providers want to see the kind of range on your credit report. A good mix can greatly accentuate your score.
Total Debt on you.
Any bankruptcies or child support due will hurt your score.
New Credit Accounts in a short span can negatively impact your score. If you have applied for and gotten more than 3-4 loans or credit cards in 2-year time, it is bound to hit you.
The number of Inquiries also impacts. If your credit history is requested by the lender many times, it will stay on your report for more than 2 years.
There are many ways to finance a semi-truck. Give professionals from Advantage LLC a call for more information. Dial (281) 410-5337 to connect with us.