bad credit financing

Just because he has a bad credit score doesn't necessarily mean he made bad choices. A number of things could have impacted his score such as divorce, college loans,loss off a good paying job. Don't judge people.

 

Dont forget some people could have had their identity stolen. Mine was stolen a 8 years ago and it took me about years to get it fixed.

 

Who is judging him? I'm simply giving him the facts. With a bad credit score, he will have to deal with a high interest loan. Combatting an extra 5% on every single loan incurred while operating is a huge hinderance.
So until he gets his life in order, his chances of success are even smaller. I didn't say what the reason was, because its immaterial. Regardless of the reason, he still needs to clear up debt, and build a solid safety net.

 

You have to do your home work and pay down your debts and start paying things on time. A 500 credit score is a joke. Instead of trying to figure out how to get deeper in debt, you should be trying to get out of it first. When you get into the 700's at least, and have a little scratch in the bank then it would make sense to ask these questions.

 

I agree that you should work on your credit score before buying a truck. Even if you have some cash reserved what will happen if a double whammy hits you and you need a loan?

You should check out the forums at www.myfico.com to improve your credit score.

I have been getting advice on there for 9 months and I've improved my score 100 points.

 

Most people experience many ups and downs with their finances. Many of our customers in the past have struggled to find a lender that gets the deal done in challenging times. We wonder if it has to be that way.

We envision an approach to commercial equipment lending that could consistently help those with a challenged credit position but have no intention of staying there. In fact, the approach would be built on helping tougher credits acquire the critical assets needed today, but offer a plan for each customer to end up in a better place for their next equipment purchase.

If you want to learn more give us a call 203-956-4864.

 

What is considered bad credit now ? In the past I have gotten good financing with scores in the mid 600,s.

 

Best advice in the thread. I can personally say that myfico.com is why I have a 693 fico score. Started 24 months ago in the low 500's. It's a lot easier to fix your credit once you know what's involved and what steps to take. I knew the day i started as a company driver that I wanted to buy a truck one day. One piece of advice that Kevin Rutherford gave that really stuck with me is if you have bad credit, you probably have no business being an o/o. If you can't manage your personal finances, how are you gonna manage a business grossing 200k a year or more?

I've started the process of buying my truck, and as a first time "big truck" buyer, MCH and other lenders have said I'll need 15-20% down to get a decent interest rate, and that's with a fico score in the high 600's. I asked if I got my utilization down to 2-3% and score above 700, and he said still 15-20%. Between money down & emergency capital so I don't have to use credit cards, I've determined I need at least 30k to give myself a decent shot of being successful as an o/o.

If for only for yourself, I'd work on repairing the credit. It's well worth it. Equifax is a good subscription for 20 bucks. You can pull a new report every 24 hours, and fight negative accounts through Equifax. You'll be amazed by how many accounts you can get removed by disputing negative credit files. Next best thing to get is a secured credit card for 500+ that reports to the three agencies. Within 6 months, they'll normally return the 500, and make the account unsecured which will raise your score by 50 points within the first 9 months.

 

500 to low 600 is considered bad, 624-660ish is average, 660+ is good, 700+ excellent. Think that's about right.

 

I just started to "dip" my toe back in the water after being back on the company dime for 6 years Im getting that itch to start doing my own thing again, so im researching rates, Lanes, And I was AMAZED how quickly a bunch of lenders and brokers (20 MOL) started to contact me. And Im coming in 20-50% down with a 40-50K budget. So If you save up some dough and stick to a budget and have a solid game plan a company to haul for (dont buy anything to old BTW). Listen, at the end of the day everyone has to start somewhere,
Take the first step in faith. You don’t have to see the whole staircase, just take the first step. – Martin Luther King Jr. Good luck in your endeavor