Financing a truck with no credit isn’t always easy, but it is possible. You’ll need to take steps to improve your credit, plan your applications in advance, and be prepared for higher costs. Our dedicated team of experts is more than familiar with the ins and outs of bad credit truck financing, and we’ll do whatever we can to help you reach your goals.
Tips for Financing with Bad or Even No Credit
Financing a truck with bad credit is only possible if you’re prepared for a lengthier, more involved process. Although some locations may offer to sell you a vehicle without a credit check, the vast majority of reputable lenders will need to see your score before they can offer you a loan. This is true even if you decide to shop for your next truck out-of-state! Here’s what you can do to make sure you don’t end up with an exorbitant, costly loan:
Don’t Assume You Won’t Be Approved
First things first: financing a car with no credit is far from impossible. If you have poor credit, it’s extremely important to be up front about your limitations and ask your lender to go over all your options. You might not be approved for the loan you want, but making assumptions won’t help you.
Improve Your Credit Score if Possible
Financing a car with bad credit is easier than financing a car with no credit. Paying off outstanding loans and making on-time payments are bound to have a positive impact. Using a credit card for small purchases and paying your balance off immediately could also help to improve your score–just be careful to avoid going overboard!
Apply for Loans the Smart Way
Explore all lenders in the Northern Chicago and Milwaukee areas and make a list of all your options. Your credit may take a hit when you apply for a loan, but making all applications in a 14-day window limits the negative impact on your score. That’s why it helps to have everything planned out in advance before you apply for financing.
Don’t Accept Just Any Offer
We know that financing a truck with bad credit can be stressful, but you shouldn’t accept any offer that comes along. If you’ve made multiple applications, wait until they all come back to commit. Even a small difference in your interest rate can lead to significant savings with every monthly payment.
Be Prepared for Higher Costs
The lower your credit, the more you’ll pay in interest. That’s because the lender needs to secure their investment and make the risk of a financing agreement worthwhile. If it sounds harsh, remember that you can lower the amount you pay in interest by trading in an old vehicle, making a large down payment, and paying as much as you can on a monthly basis!
Apply for an Auto Loan at Lynch Truck Center
We’re here to help–no matter where your credit is today. Reach out to a financing expert at Lynch Truck Center to learn more about shopping for new or pre-owned trucks and commercial vehicles. You can even start exploring our most useful financing and insurance tips from your home in Waterford or Racine!
