Starting Fresh: Semi Truck Financing For Truckers With Bad Credit

Bad credit can often make or break different situations in life. If you are trying to advance in a trucking career or branch out on your own, then having the ability to finance equipment is essential for your early success. It can take months or years to rebuild bad credit. During this time you could be losing out on a lot of potential income. As you shop for semi trucks to purchase, it's important to understand the various financing options. Just because you have bad credit does not mean that you will not have the option of purchasing a truck. By using this guide, you can get an overview of your options and make the best decisions to help you and your career.

Loan Collateral

When your credit score is not high enough to prove your loan eligibility, many semi truck finance companies can accept something else as collateral. By putting up collateral, you are basically saying that if you fail to make payments, the finance company has the right to seize property or other items you put up. If you own any other trucks or vehicles, it is often common to use these items for the collateral. The finance company can determine the value of the vehicle and see if that's enough to get you approved for the loan. If that is not enough, then a loan collateral can be applied to any real estate equity that you own. This includes personal property and business property. The equity equals the amount of the mortgage that you have paid off and own. For example, if your house is worth $100,000 and you've paid $50,000 on it, then the $50,000 in equity would be the collateral that is placed on the loan.

Larger Down Payments

You can help reduce the interest amount and needs for heavy credit reliability by providing a larger down payment. Getting together as much money as possible can make a huge difference when you're trying to purchase a semi truck. Not only will a large down payment help reduce the initial amount of the loan, but it can showcase that you have the funds and ability to pay for the truck that you want. It's a good idea to sell off other semi trucks or vehicles that you are not longer using. This help cut down on the main costs of the vehicle. You can also budget, plan, and try to save as much as possible before purchasing the truck.

Used Semi Trucks

Along with increasing the down payment on the truck you want to purchase, you can also cut down the whole price of a truck. Used semi trucks can cost thousands of dollars less than purchasing new ones. This can make a huge difference in your ability to get approved for a loan. While shopping for used semi trucks, you can easily find out their history on the road, the mileage they have, and many other features. You may also be able to cut a better deal on the used semi trucks, making it easier to afford and easier to apply collateral to. Check out a dealer like Arrow Truck Sales to find used trucks.


If you have your eyes set on a special truck but the credit is not enough, then you may need to seek the assistance of a co-signer. Using a loan co-signer is basically like using their credit score to obtain a loan on your behalf. After the first few months of payments on the truck, you can transfer full ownership to your name and make all of the payments on the loan yourself. Not only does this method help you get approved for a loan, but it can help you raise your credit over time.

Used semi truck dealers have all kinds of financing options, even if you have bad credit. Contact them for more information on purchasing a truck for your business needs.