[Brotherman]

Can someone tell me what financing company only pulls a transunion credit report?

thanks

[BigDiesel]

:shock: :shock: :shock:

[Brotherman]

Looking for financing for a truck, transunion is my strongest score.

[got mud?]

Originally Posted by Brotherman

Looking for financing for a truck, transunion is my strongest score.

don't know for sure but I doubt they will pull from just one. most places use at least two for that very reason

[Musicman]

What is your FICO? How long have you been an owner-operator? I know of places you could probably get financing, but you have to remember that the terms are greatly affected by your FICOs. Some places will finance you with a score in the 500s, but you'll pay through the teeth on the rate and may be required to make a substantial down payment. You have to remember that even a fair lender must not only make a profit, but also factor in the risk he or she takes when financing you. Statistically, the lower your FICO, the greater the chances are that you, at some point during the term of the loan will not make your payments. Lenders have to factor in the costs associated with finding your truck, having it towed, and then processing the paperwork involved, as well as what kind of loss would be involved in getting the truck in shape to resell it as well as foregoing any ROI while the truck sits on a sales lot.

Most lenders will pull reports from at least two bureaus, if not all three, because your score can vary drastically from one bureau to another. If your credit is in such poor shape, why not spend a year or two as a company driver and work on repairing your credit. Four years ago my FICOs were in the high 500s; I spent a lot of time researching how to improve my credit and a lot of hard work doing it, but today my FICOs range from 720 to 760 and would have no problem getting a great rate on a truck loan.
Besides, do you really want a loan that would effectively have you pay double for your truck? Also, with a huge truck payment, what happens if it gets stolen, like mine did a month ago and you find yourself with no income? Could you continue to make those payments without an income? What happens if you get sick or injured on the job and cannot work for a few weeks or a few months?

[Brotherman]

Musicman, I'm a startup. This'll be my first truck. I had a family member that ruined my credit for me in the past. I've been doing credit repair for the last 2 years. my scores were in the 400-500 range.

Here are my fico scores.
tu - 684
eq - 659
ex - 623

I'm aware of all of the risks involved, I just need financing for 62-65k.

[Musicman]

Most financers want a minimum of two years as an owner operator. In fact, this is becoming more and more of a requirement. In the current economic climate, truck repos are up sharply and are sure to continue to rise as the market shakes out all of those out there who have no business running a business. Many lenders are finding that an owner operator’s longevity in the business is a better indicator of risk than his or her FICO. The failure rate for owner operators has always been extremely high. The largest factor for this is that many drivers think that because they are good drivers they will be successful owner operators. I and most others on this site would assure you that nothing could be farther from the truth. When times get tough, those who are not frugal business owners will be the first to turn in their trucks.
Your FICOs are not horrible, and you could probably get financing at a few places if you are willing to take a hit for not having any previous experience as an owner operator and an additional hit for having B credit. How much experience do you have as a driver, what kind of truck are you looking at and what kind of down payment are you able to make?
Your other option is to do a lease-purchase from a carrier. Just about everybody here who just read that last sentence is now furiously clicking the “post reply” button to shoot down my last sentence. If you are going to do a lease-purchase with a carrier, you need to be very, very, very careful of what you are doing. Most of these programs are designed to screw the lessee and make the carrier rich. In my experience, there are a few, and I stress the word “few” decent programs out there. Do your research, talk to as many people as possible who have been in the program of that company for a long time before you make a decision, and read the info on this board that is available… there is a lot on here you can learn from.

[Brotherman]

I understand what you are saying, I am ready to take a hit as far as financing goes due to my credit. . I've been a company driver for 7 years. I'm looking at a 05 freightliner M2 thats at a local dealer. I have a few grand to put down. I have a local o/o that is going to take me under his wing to show me how to run the business(same work that he does). I had 2 lenders that was working with and they changed their policies at the last minute and cut me off.

[GMAN]

Most lenders who do class 8 truck loans look for a credit score of at least 650. There are predatory lenders who will lend money to those with low credit scores and a substantial down payment. Those will usually charge a premium interest rate and more for the truck than if you had good credit. Many lenders will pull credit reports from all three bureaus and either average or take the middle score when making lending decisions. Another thing these lenders will consider is your employment history. The longer you have been with the same employer the better risk they consider you. When someone moves around in their employment the less stable they are considered. Some carriers will also not hire those who have had too many jobs. I know of some who will not hire anyone who has had more than 2 or 3 jobs in 2 years. One other factor is if you plan on staying with the same carrier that you are currently working once you get your own truck. The thinking is that you already know their system and won't need to have a period to learn about how the new company works. There are leasing companies who may make loans to those with lower FICO scores. I am not talking about a carrier, but a legitimate leasing company. Rates are often higher than conventional lenders.

If you have a good relationship with your banker, you may want to approach them first. I have known of some who have been able to secure loans from their local banker due to a personal relationship, even when the bank doesn't normally lend money on class 8 equipment.

You may also want to concentrate on improving your credit. That will give you time to save more money.

[whoopNride]

GMAN...As usual you are so right. The bank I use does not finance trucks as a rule. However, Due to my relationship with the banker, I can call him and get any amount I need over the phone.

I had never seen the guy when I walked in there 12 years ago and asked him for a loan to buy a truck :shock: He told me the bank didnt loan money on trucks due to so many repos. I told him I was willing to do whatever it took to pay him back. We talked for a few minutes and he told me to bring my buisness plan into him the next day and show him how I was gonna make money. So I did, he loaned me the money, and I have never let him down. If I had to skip a few groceries and eat beans rice. He got his money on time. Since then he has financed multiple Trucks, trailors for me, no questions asked.

I am Rambling....My point is Brotherman...Go see some local bankers,you never know until you sit in front of them.