Truck financing - do high limit credit cards help?
Discussion in 'Trucker Taxes and Truck Financing' started by SmoothtruckerArt, May 12, 2017.
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Having a lengthy Credit History of paying your bills on time, having a low debt to income ratio and having a good work history will help you get approved.
Bakerman and Road Killer Thank this. -
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Waterboy334 Thanks this.
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If you have a high credit limit, but still have a crappy payment history, you won't get a good interest rate anyway.
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Having a Big down payment helps.
Broke Down 69 and PhilKenSebben Thank this. -
What you want to do is seperate your personal credit and business credit. Never mix the two. Also just because you have a line of credit does not mean you should use it. -
You credit score is affected by the percentage of available credit you have, so high limit accounts with low utilization can really help.
But I notice you said "getting" high limit cards, as in you don't have them now. Applying for a card puts a credit inquiry on your credit report, which counts against you for a couple of years. More significantly, the average age of all your accounts weighs heavily on your credit score, so new accounts tend to lower your score for a while. I once had a foreclosure drop off my credit report after seven years. That lowered the average age of my accounts from twelve years to two and my credit score actually went down sixty points. So running out and applying for new cards in order to get approved for something you want in the near future doesn't work.
There are three hundred million people on file with the credit bureaus. Anything you can think of, they've already seen.RET423 Thanks this. -
Thanks for all the replies I'm not going to open any new lines of credit because I've heard from numerous of people if it is not altleast two years old it will hurt my credit score more than help it the credit inquires might also raise a red flag to the underwriters at the banks so my next approach is to raise it as high as I can and bring in my payment history from the lease that I'm currently under
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Are you talking about using your personal credit or business credit?
If you have high limit business credit cards, you likely have semi-established business credit profiles through Experian & maybe Equifax depending on the credit card. (Dun&Bradstreet does not report business credit cards). I would suggested you purchase a copy of your reports and review whether they are established enough to qualify for a loan - it will also depend on your payment habits and a variety of other factors that impact business credit.
Hope this helps!
- Tracy
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