Want to know the difference in commercial truck financing with good credit vs bad credit? You’re in the right place!

The first thing you need to know is one of the reasons why CFF is America’s most trusted commercial truck finance company is because we have the best options, the most flexibility and over two decades of experience in commercial truck financing.

Another important reason people trust us is because our #3 Core Value dictates that, “We always recommend the program that benefits our clients before benefitting ourselves.” This means that we always recommend the game-plan to funding your dream that makes the most sense for your situation.

So, regardless of your credit score, if there’s a great deal to make, CFF is the team that’s going to make it for you! Get started by filling out our fast credit application.

That said, let’s dive in to discuss the differences between commercial truck financing for bad credit and good credit.

Watch CFF President, Matt Manero, calculate monthly payments based on a good credit and a bad credit, all in this week’s Monday Transportation in Minutes.

Good Credit Truck Finance

The typical client with ‘good’ credit that comes to Commercial Fleet Financing has a personal credit score of 640 or higher. With a personal credit score at this level or higher, you certainly look like a strong candidate for lenders to take the financial risk on. So, you gain several benefits and have a fairly simple process to getting financed.

The benefits of good credit financing include:

  • Qualify for best deals. Firstly, we offer several amazing deals at CFF – which vary based on the type of equipment being purchased, whether it’s new or used, how long you’ve been in business, and, yes, approved credit. You’ll more easily qualify for these great deals with approved credit (w.a.c.).
  • Quick and simple process to funding. After completing a simple application, you may gain approval in as little as 2 hours and may be funded in as little as 24 hours with CFF.

From time to time, we will request additional business information such as bank statements and/or tax returns, depending on the size of the loan and the type of truck or equipment being financed. In addition to your credit history, we like to review the buyers order of the equipment you are purchasing to make sure it has a clean title and is in good working order – all of which is a benefit to you and us.

  • Lower down payment. If you have higher credit, you definitely look like a better loan risk, on paper. Still, at CFF, we go the extra mile. We understand that there’s more factors to consider than just having good credit. We consider the types of credit you have as well as your years in business. If you’ve been in business for at least 5 years this makes a strong argument for your ability to pay back the loan. This means a lower down payment would be offered.
  • Lower interest rates. At CFF, we believe that if you have a good credit score, you deserve the lowest interest rates! Not only do you get low rates, but compared to our competitors in the transportation equipment financing industry, you’ll find our funding process is much faster and less complicated.
  • No collateral needed. One benefit you gain by having good credit, that is not true of banks and other companies, is that CFF will not connect all of your loans and take equity from your other equipment to finance a new truck. You see, our financing is fixed-rate, so we don’t cross-collateralize your other assets. With CFF, each truck financing contract stands on its own.

The main takeaway here is that you’ll certainly have an easier time getting financed at the best possible terms with a better credit score by any commercial truck financing company.

Bad Credit Truck Financing

What most people want to know is what semi-truck financing with bad credit looks like.

If you have a bad credit score, you have unpaid liens, or you have a bankruptcy, quite simply, it’s a “no go” with most finance outfits.

Let’s take a quick look at what you can expect to face with “bad credit.”

  • Less program options. Certainly, you’ll understand that if your credit is challenged, you may not qualify for the best programs offering low-money down, low interest rates, etc.
  • Higher interest rates. Since you’re perceived as a higher credit risk, you will likely pay a higher interest rate on a truck loan for bad credit than you would with a 640 score.
  • Bigger down payment. This also means that you’ll likely need to put more money down on the loan in order to qualify.
  • Rigid terms. The terms will be stricter and less flexible with a lower credit score.
  • Difficulty getting financed. In general, it will be difficult to get a bad credit commercial truck finance deal. You may have to wait some time and take steps to improve your credit score to prove to finance companies that you are a good financial risk.

If you have a damaged credit score, do not get depressed and give up on your dream of getting the commercial vehicle or equipment you want.

4 Steps to a Good Credit Come Back!

You’ve got bad credit? It’s not your fault…or maybe it is. Don’t beat yourself up about it and don’t throw in the towel! Ever see the movie, Rocky? it’s a classic because everybody loves a come-back-kid, the underdog.

Well, just like Rocky ran and ran until he climbed the million stairs of the Philadelphia Museum of Art, here’s your FOUR simple steps to rebuilding your credit regardless of how you ended up with damaged credit.

  1. Calculate Loan Affordability – Most people do NOT accurately calculate their ability to pay back the loans they agree to. So they over-borrow and end up crushed under the weight of all those expenses they failed to calculate. Doesn’t make you a bad person, just a mistake. Here’s what you should do instead. Use our Budget Builder Calculator Tool to accurately forecast all the expenses you’ll have and weigh in light of the cash flow you’ll make.

  1. Limit Inquiries – Every time you fill out an application for this or that loan, your number of inquiries starts to pile up. Having more inquiries lowers your score. Stop applying for so much credit and it will begin to rebound.
  2. Analyze Equipment Condition – You know how mamas get on kids for being ‘picky’ eaters? Well, she may be right about not eating a variety of fruits and veggies but when it comes to securing a five or six figure loan on commercial equipment, be super-PICKY! Analyze whether the equipment is in good working condition or will rack up a high maintenance bill because it breaks down all the time. You want equipment that’s under warranty and will MAKE you more money than it costs you. Because if your equipment costs you more than you make, you’ll stop making payments and…you know the rest.
  3. STOP the Late Payments – When people can’t make full payments they stop making any payments, which starts the demise. Instead, call your creditors and explain the situation. Smart lenders will work with you to come up with alternative ways of receiving some payment. This will get you out of the late payment cycle and will benefit your credit.

All this will help your credit rebuild so you can move forward.

Next Step

That’s why the very best next step for you is to get pre-approved for your next truck or equipment purchase and complete our fast credit application.

We will take a look at your unique situation and provide a solid game plan. We’ve been helping truckers secure commercial truck loans for over 24 years, and we’re the best in the business.

So, don’t doubt the CFF process, complete the fast credit application now or speak with an expert to learn more about our options.

About Commercial Fleet Financing, Inc.:

At Commercial Fleet Financing (CFF), our pros have given smart advice to fleet owners and owner-operators in the transportation, moving, towing or construction industries for more than two decades. With CFF, finding the right financing solutions is a phone call away and most borrowers secure commercial vehicle financing with ease. To talk directly with one of our finance pros and get started with a credit approval in as little as two hours, CFF’s phone number is (469)-281-2962.