Buying a Used Truck with Challenged Credit
If your credit score isn’t as great as it could be, you might think financing a semi truck is out of the question. However, buying a used truck with challenged credit is possible when you follow the steps outlined below. You can improve your chances of getting the commercial truck loan you need to purchase a used truck or an International Certified Pre-Owned truck. Read on to learn more about semi truck financing!
How to Finance a Truck with Challenged Credit
Buying a used truck with challenged credit isn’t as difficult as you might think. Follow these steps to help simplify the process:
- Work on Your Credit: If you know your credit needs work, try to improve it to the best of your ability before applying for a commercial truck loan. If you have outstanding debts, start with any in collections, then create a payment plan for your other debts and start paying them down.
- Make a Substantial Down Payment: When you have not-so-great credit, it’s always a good idea to put as much money down on a commercial truck loan as you can afford. You’ll increase your chances of getting an approval from the lender with every dollar you’re able to put down on the truck. Not to mention, making a large down payment will help decrease your monthly payments. One easy way to make a large down payment is to trade in your current vehicle and put its cash value toward your new loan.
- Use a Cosigner: If you can find a cosigner with great credit and a Commercial Driver’s License (CDL), there’s a very good chance you’ll get approved. Even if your credit needs work, the credit score of your cosigner can help tip the scales in your favor. Remember though, that if you’re unable to make payments for whatever reason, they’ll fall to your cosigner. And if they’re also unable to make payments, both of your credit scores will be negatively impacted.
- Buy from a Semi Truck Dealer: Some dealers allow you to make your down payment and then make monthly payments to them until you own the vehicle. This option is open to virtually all buyers, regardless of credit history. You’ll have to choose from their used or certified pre-owned inventory, but you’ll have a workable financing plan in place and won’t have to worry about shopping around for reputable private sellers.
- Put Up Collateral: Depending on the lender, you may be able to put up additional collateral as a substitute for equity. Not only does this increase your chances of getting an approval, but it also shows your commitment to ensuring the loan is repaid. This option tends to be very flexible, and you can work with your lender to find a solution that’s best for your credit situation.
- Read the Paperwork: Before you sign any piece of paper, you’re always told to “read the fine print.” Sure, loan documents can be confusing, but if you’re unsure of what a specific term or phrase means — ask! Your credit and money are on the line, so it’s important to understand what you’re agreeing to.
Finance a Used Semi Truck with International Used Truck Centers!
Are you ready to start shopping for a used semi truck for sale? The team International Used Truck Centers is here to make your experience easy and rewarding with multiple locations throughout the country. Contact us to learn more about our inventory, and how our financing team can help you find the high-quality semi truck you want, even if your credit needs work.