It’s not always easy to obtain financing for an automobile. Lenders aren’t always keen on providing short-term or long-term loans to those who wish to purchase or maintain vehicles, especially when the borrowing is looking to finance a commercial truck.
Moreover, many lenders—both online and offline—are hesitant about trusting those with less-than-ideal credit scores to repay loans. More often than not, even the lenders that are willing to provide auto loans to those with bad credit reports aren’t very reliable and end up charging borrowers exorbitant interest rates.
Therefore, it can be quite challenging to identify which direct lenders are trustworthy and which lenders are making tall claims to lure in unsuspecting borrowers.
We did the homework for you and compiled a list of the top 3 bad credit truck financing options available online. Not only are these lenders reliable and highly reputed, but they also provide borrowers with affordable loans and flexible repayment options.
Let’s dive right in.
2021’s Best Commercial Truck Financing Options
- Auto Credit Express®: Overall Best Bad Credit Truck Financing
- myAutoloan: Top Rated Commercial Truck Financing for Bad Credit
- car.Loan.com: Best for Bad Credit Truck/Semi-Truck Financing
The beauty of choosing an online lending network to finance your truck is that it can give you access to funds from more than one willing individual. These individuals are well aware that they will be lending money to those with a poor credit report, and this does not discourage them from satisfying short and medium-term financing needs.
What’s more, the application process on these websites is quite straightforward, thereby helping you fulfill your commercial vehicle financing requirements in no time.
The process is pretty much the same on each of these websites. First, you register yourself on the site by filling out a form (this should not take you more than 5 minutes).
Then, the site passes on your details to its network of lenders that decide whether or not they want to get in touch with you. It is that simple – no fuss, no complicated formalities, and often no hidden charges.
Besides, you do not have to worry about your personal information on this website; you can rest assured that it will stay safe as all these sites have the strictest security measures in place.
Anyhow, let’s go ahead and take a look at the best money lending sites that provide bad credit loans for trucks.
#1. Auto Credit Express®: Overall Best Bad Credit Truck Financing
Auto Credit Express® has been one of the most reliable money lending institutions online since its inception over two decades ago. This site boasts an extensive network of dealers that can accommodate diverse financing needs. This site is essentially an automobile buying service that specializes in financing.
As of today, this financing company is the largest of its kind in North America, which only goes to show why it is so popular and highly reputed. This company is especially popular among those borrowers who have no creditor poor credit to their name. Even those borrowers who have faced bankruptcy will find it possible to receive loans using this site.
One of the best features of this site is that it helps you get in touch with highly reputed dealers. This makes a refreshing change from those sites that have shady dealers listed on them that swindle borrowers for both large and small amounts of money. The dealers on this site are handpicked using a careful selection process, thereby ensuring their credibility.
Another impressive feature of Auto Credit Express® is that it allows borrowers with poor credit scores to re-establish or re-build their credit. This is very useful for borrowers looking to boost their credit scores while simultaneously obtaining financing to purchase a new or used truck. Borrowers around the country have found this service to be user-friendly in giving them access to the loans at reasonable interest rates.
The interest rates on this site start at around 4% and get as high as about 30%. These rates mainly depend on the commercial truck loan term and the credit scores of the customer in question.
Therefore, there is no one-size-fits-all interest rate quotation for borrowers that use this site to finance their truck purchases. According to this site, a bad credit rating is considered to be anything below 525, which is considered to be a bad credit score among most money lending sites.
Gaining loan approval on this site is a relatively smooth process, and you can calculate your monthly repayments with the help of the tools provided in just a few seconds.
Since this company has partnered up with various auto dealers across the country, it should not be too difficult for you to get in touch with a dealer that’s conveniently close to home. These dealers are those that deal with both brand new and used cars—all in great condition, of course. Auto Credit Express® does not just cater to borrowers in the U.S., but to those in Canada as well.
All those borrowers that find it difficult to obtain auto loans for trucks and other automobiles using traditional sources can gain access to bad credit loans using this site. One of the many reasons that borrowers use this service over and over again is that the customer support executives on this platform are known to be both friendly and knowledgeable.
The car dealers on this site specialize in providing quality financing solutions to those with poor credit ratings. Nearly two million people have been able to purchase the automobile of their dreams using Auto Credit Express.
Considering most financial institutions only cater to those borrowers with pristine credit ratings, this site is easily one of the most convenient sources of financing for those with poor credit ratings.
While you will easily find dealers willing to provide truck loans to those with bad credit ratings using third-party options, these options are often costly in terms of interest rates since they are riskier than alternative sources of financing. The very same dealers now offer attractive loans at reasonable interest rates to borrowers via websites such as Auto Credit Express®.
#2. myAutoloan.com: Top Rated Commercial Truck Financing for Bad Credit
This site helps lenders and borrowers connect and makes finding an auto loan easy for users. Everything from commercial trucks to personal-use cars can be financed using this site which is why a large variety of borrowers seek out the services offered by it. The fact that it only takes a few minutes to connect with legitimate borrowers on this site is what makes it especially appealing to those who require short-term financing on an urgent basis.
This company does not cater to just vehicle owner-operators; it caters to those looking to finance all kinds of lifestyle products. What’s more, the customer support services offered by the company are truly impressive. Most online user reviews claim that the customer support services are top-notch. Moreover, the site offers users adequate information to help them make an informed decision regarding the various options available to them.
This company was established in 2003 and has been one of the industry leaders in the world of automobile financing in years since. Not only are the lenders in their network very reliable, but they are also highly responsive and typically take less than a day to reply to borrowers whose requests they’ve reviewed. All the application and approval processes involved with obtaining funds via this site are very simple and take only a few minutes to complete.
All the information you enter on the site is highly confidential and secure. The company is known to invest their resources in keeping their security systems up to date. Using one application, you could be privy to a maximum of four loan offers at a time. These loans differ from each other in terms of repayment terms, interest rates, and more.
Some lenders charge higher interest rates on loans provided to customers with poor credit scores. However, the bottom line is that even those with such credit scores can obtain loans on the site. Since the application and approval process on the site is so straightforward, it is no surprise that borrowers flock to this site when they’re short on time.
One of the biggest advantages of using this site is that its application process is quicker than those of its competitors. While most lending sites have application forms that take roughly 5-10 minutes to fill in, the application on this site takes only a couple of minutes to complete. Therefore, it’s easy to see why this service is very convenient to use as the application form can be filled in anytime, anywhere.
While this site may not be as popular or highly reputed as the others we have listed in this article, it is one of the best online lending sites for trucks in the country right now. You can use this site to obtain loans for either financing or refinancing.
You can receive approval on your loans in less than a day in some cases using this site. Those borrowers with above-average credit ratings and requests for small amounts of money find it easier to obtain quick responses from lenders on this site’s network.
A wide variety of transportation vehicles can be purchased using the loan options on this site, including vehicles that are available for auction and repossession. Therefore, it is easy to see why borrowers from all walks of life and all means prefer using this site to fulfill their automobile financing needs here.
#3. car.Loan.com: Best for Bad Credit Truck/Semi-Truck Financing
This site has one of the quickest and convenient online application processes that we have seen on any online money lending platform. The loan request form featured on the site takes only around a couple of minutes to fill in and covers all the relevant details a potential lender would want to review while deciding whether or not they would like to finance your needs.
Once you fill in the request form with all the compulsory details, car.Loan.com will work its magic and connect you to all the dealers that are willing to provide you with loans. In this way, the site ensures that you do not waste your time reaching out to lenders that are not interested in getting in touch with you in the first place.
Considering there are many such sites online that give you a generic list of lenders without taking into account your details and requirements first, we would say this is a definitive advantage.
This company has been in operation since 1994 and has made it possible for scores of borrowers to purchase the automobiles they need. Those borrowers with imperfect or low credit scores won’t have too much difficulty finding lenders on this site who are willing to provide financing at variable interest rates.
Considering this company has one of the largest if not the largest network of automobile dealers at its fingertips, it has quite an edge over its competitors. The auto dealers that this company has partnered with are adept at providing flexible financing options to those willing to pay slightly above-average interest rates (in case they have poor credit scores).
The online application process on this site is free, and you will not face any additional or hidden charges while hoping to get in touch with dealers and lenders. In other words, car.Loan.com is quite reliable and is not one of those sites that lures you in with cheap interest rates only to bombard you with exorbitant charges afterward.
This company firmly believes that it’s not only borrowers with perfect credit scores that deserve to have the automobile of their dreams. With the team of dedicated professionals that this company has partnered with for decades, they have been able to provide financing to thousands of users over the years. You only need to take a quick look at this company’s user reviews online to see how popular this service truly is.
Among the many impressive features of this site is that it has provided more than one billion dollars in financing to those who have special circumstances regarding credit approval. Even those users who have dealt or are currently dealing with bankruptcy have found it possible to receive loans using this service. By filling in some basic details you will be able to get interest rate quotations from different lenders.
This site has also proven to be very useful for those borrowers who are short on time and need funds immediately. It is not uncommon to have your loan requests approved within the same day using car.Loan.com. Thousands of auto buyers use this service every day to find lenders who are willing to finance their needs. While it may be true that not all loans receive same-day approval here, most loans required to fund short-term needs do.
Moreover, this is one of the few money lending websites that allow users to make loan applications with no strings attached. In other words, there are no hidden fees or charges associated with this site which makes it highly reliable. In addition, the flexibility associated with this site in terms of interest rates and loan repayment conditions is almost unparalleled in the world of online finance.
FAQs on Truck Financing With Bad Credit
Q1. How do I get a truck loan with a poor credit score?
If you have a credit score of 500 or less and are worried that you will not be able to obtain a truck loan online, you are not alone. Most people with such poor credit scores often give up on seeking out alternative sources of financing when their applications are rejected by banks and other traditional lending institutions. Given the high demand for truck drivers and trucks in general, it is no surprise that companies across the country are now looking for options to buy these vehicles themselves.
All things considered, purchasing a truck—either new or secondhand—often turns out to be cheaper than leasing or hiring them for a short period. Once you get hold of your truck, it will be easier to take on a greater number of contracts at reduced costs. Now more than ever, the financing options to purchase trucks are varied and convenient to access.
One of the many ways in which you can purchase a truck for existing business use is to lease it first and buy it later. Under this financing method, you make regular lease payments to the commercial truck leasing company, and once all your payments are complete, you can take ownership of the vehicle. However, the catch here is that the ownership rights will remain with the leasing company if you miss a payment or cease to make payments altogether.
The definitive advantage of this method is that it doesn’t require you to apply for a loan or any other source of financing since leasing only requires regular payments (sort of like EMIs without any down payments). In other words, these payments work in much the same way as rental payments on the property, except that you get ownership of the vehicle if you complete each payment on time.
Those with poor credit ratings (of 500 or less) find these loans to be the most convenient to obtain. The fact that they don’t have to pay a lump sum as a down payment or take out a loan to purchase a truck is quite attractive to them. Moreover, not having to pay interest and finance charges proves to be quite cost-effective in the long run for borrowers with limited means.
However, this is not the only financing option available to those who wish to own a truck for their business or private purposes. However, you may need to note that, as a general rule, it’s easier to obtain finance for small trucks than it is for large ones. Even if you have a poor credit score, various lending sites online can connect you to lenders who are willing to provide you with a loan to help you purchase the truck you need.
Another thing to note here is that you may have to pay interest charges that are higher than usual on loans obtained using these sites. Since vehicles are essentially valuable assets, getting loans using these sites is not all that difficult. The application and approval process on these sites is quite convenient and easier if you have all your relevant details and documentation on hand when filling out the forms.
There are no rules as such that govern who can and can’t receive a loan with the credit score that they have. Different sites have different lending networks and dealers that have varying requirements for borrowers’ credit scores. Most sites consist of lenders that are willing to provide borrowers with poor credit ratings with finance if the latter agrees to pay higher interest rates and follow stricter repayment terms than usual.
If you’re not very confident of your chances of obtaining a loan on such lending sites or simply don’t want to pay exorbitant finance charges on your loan, there are ways in which you can deal with both. The easiest way to improve your chances of getting your loan request approved is to try and boost your credit score before applying for the loan.
This can be achieved by making timely principal and interest repayments on your existing loans that are tied to credit rating agencies. However, if you don’t have any existing loans that you’re currently paying off, there’s no need to fret – there are other ways in which you can establish your reliability in the eyes of online lenders. One of these ways involves making a substantial down payment on the loan you’re looking to receive.
Trucks don’t always come cheap, even if they’re second hand, so you may want to consider whether or not you have adequate liquid cash at your disposal to make a down payment on your loan. If not, you can settle for paying higher interest rates on the loan or opt for a lease-to-own option, as we discussed earlier.
Many money lending sites for commercial truck financing like the ones we’ve listed for you above aim towards helping borrowers improve their chances of gaining approval on their loan requests. Financial advice regarding bankruptcy and improving credit scores are among the many avenues open to those who wish to boost their credit scores.
However, only the most highly reputed companies should be trusted to provide such advice to borrowers with less-than-perfect credit scores, which is why we’ve chosen to review only the best ones for you.
Q2. How to obtain financing for a semi-truck with a poor credit score?
Just because you think you have a bad credit score doesn’t mean that you do. Confused? Let us explain. Some lenders will term a credit score of below 500 as poor or bad. However, others believe that those with scores around 500 are still trustworthy.
Therefore, as you can see, a lot rides upon the lender you choose to get in touch with and what they happen to define as a good or bad credit score. However, you may want to note here that in most cases, anything above 500 is generally considered to be a ‘fair’ score, and lenders don’t hesitate all that much when providing loans to borrowers with such scores.
If you don’t meet a credit score of 500, don’t worry, you still have semi financing options available to you. If you’re looking for a semi-truck purchase instead of a truck, it may actually be easier for you to obtain financing with a credit score of below 500. As we discussed in the previous section, one of the best ways in which borrowers with poor credit scores can purchase a vehicle is to go for a lease-to-own option.
More often than not, you won’t even need to present your credit history or credit scores to a leasing company when you’re looking to exercise this option. After all, it’s not exactly a loan—just a financing option with regular lease payments. Therefore, approval of such an option isn’t dependent on your credit score, to begin with. Instead, other factors will be evaluated by the leasing company in question to decide whether or not they’ll allow you to lease their truck or semi-truck.
All things considered, leasing a semi-truck or truck isn’t all that different from leasing a car for personal use or a piece of machinery for business use. All you need to do under this option is to make your payments on time every month and adhere to all conditions regarding maintenance, etc., of the truck to eventually ownership of the truck. Until you gain ownership, you’ll have possession of the vehicle and can use it as you please as long as you do not cause substantial damage.
You’ll have to be careful here to note when you’ll receive ownership of the vehicle. Even though you retain possession as soon as you start making lease payments, ownership is only granted to the only owner-operator with all lease payments complete. Therefore, this isn’t a viable option for those who would like immediate ownership of their truck; they’d be better off looking for alternative routes to ownership.
If you wish to purchase a truck immediately, you can always apply for a loan online on one of the sites we’ve reviewed above. These sites can give you access to an extensive network of lenders and dealers that are willing to provide loans to borrowers wishing to purchase semi-trucks. Since these sites have partnered up with the leading automobile dealers in the country, you can be sure that you’ll receive legitimate financing options with their help.
In most cases, truck financing is provided to borrowers with bad credit scores at high interest rates and short repayment terms. If a lender perceives a bad credit score as a risk, then they’re more than likely to demand a high-interest rate as a premium for taking the risk. Making timely payments on these loans can even boost your credit score over time, which will help you obtain cheaper financing the next time around.
When looking to receive a loan for a semi-truck, make sure that you compare interest rates and repayment terms from different lenders online. A few minutes of your time spent in research could make all the difference in the world between paying exorbitant and reasonable amounts of interest. Besides, it’s no secret that some online lending sites have a larger network of lenders than others do.
These sites undoubtedly offer more flexible options to borrowers with varying credit scores. The amount of time a lender takes to review a loan request and approve it should be taken into account here as well. After all, time is money, so if you’re receiving a great deal on a semi-truck this week and a potential lender only responds to you a couple of weeks later, you’ve missed out on cost savings.
Another factor to consider here is the reliability of the lender and whether or not your loan repayments will affect your credit score. The most reliable and highly reputed online lenders have partnered with legitimate credit rating agencies, so borrowers that use these sites have the chance to improve their credit scores. A good credit score will not only make it easier for you to receive cheap automobile loans in the future but will also make it easier for you to obtain loans for various other purposes.
Also, depending on your liquidity preferences, you may want to compare different repayment terms and opt for the one that’s most convenient for you. Sometimes, lenders don’t specify repayment terms until they credit check your score and other eligibility criteria, so you may have to fill an application form first before you’re privy to such information.
Q3. What is the down payment on a semi-truck or truck?
As discussed in earlier sections, making a down payment on your truck loan is one of the few ways in which you can reduce the interest charges you end up paying on it. Therefore, it comes as no surprise that many borrowers wonder about the number of down payments they’ll need to make on these loans.
Many factors determine the size of the down payment you would need to pay on a truck loan. One of the more obvious factors is the selling price of the truck. Generally speaking, the higher the selling price of the truck (or the cost to the borrower), the higher the down payment that will need to be made on it. Also, if you want to purchase a semi-truck rather than a pickup truck, you’ll have to prepare to make a larger down payment.
One look online (or in a physical showroom) will let you know how the prices of these vehicles differ from each other and the financing options available on the purchase of each. Therefore, it logically follows that there are various down payment options associated with different vehicles, even if they are all technically trucks. In most cases, an online money lender will ask you to pay around 5-6% of the cost of the vehicle as a down payment.
Considering the average selling price of a selling truck (which can go up to $150,000), you can assume you’ll need to arrange for a down payment of a maximum of $7,500 (%5). However, again, the down payment varies from lender to lender and dealer to dealer. Therefore, you can’t hope to receive a definitive, fool-proof answer for how much you’ll have to pay when receiving possession of your truck or semi-truck.
Take a look at the earlier section for some of the alternative financing options available to those looking to buy trucks. One of the options we’ve elaborated on is the lease-to-own option that allows borrowers to gain possession of a vehicle while the leasing company maintains ownership. Under this option, a borrower won’t have to make a down payment at all since ownership is transferred to the user only after the final lease payment is completed.
Making a down payment on a loan is especially useful for borrowers looking to gain approval despite having a poor credit score. In such a scenario, a lender finds it easier to trust a borrower that can demonstrate the capacity to come up with cash as and when required. This is particularly true in cases where borrowers are looking to receive larger loan amounts.
If you’re able to make a substantial down payment on the truck, it may be wise to do so because it’ll show your lender that you’re less likely to slack off on making repayments on it. Besides, a larger initial payment will end up benefiting you in the long run since it’ll allow you to make smaller monthly payments in terms of return. Another advantage of a big down payment is that lenders will demand lower interest rates on your loan if you make it.
Q4. What is the total cost of a truck?
Trucks and semi-trucks don’t usually come cheap, so it makes sense to evaluate all sources of financing available to you before you come to a solid decision. As a general rule, you shouldn’t ideally pay more than 15% of the total cost of a truck as a down payment or take more than 4 years to repay the total amount to your loan provider. The monthly repayments, too, should be made in such a way that they don’t cause a strain on your finances.
Moreover, you’ll have to remember here that the larger the down payment you make, the less you’ll have to pay in interest and monthly repayments. However, it’s perfectly understandable that most people cannot afford to pay huge lump sums in cash as initial payment and therefore require a loan for the same. This is why online lenders are willing to bear a greater proportion of your down payment if you’re willing to pay a higher interest rate on the entire borrowed amount.
The smartest way to go about this is to draw up an elaborate budget that will help you determine how much you can afford to shell out every month on repayments. This way, you won’t go overboard with your loan payments and consequently cause a significant drain on your income. After all, you surely have other monthly expenses to take care of that will suffer if you don’t allocate your income carefully.
While there are many options available to borrowers in terms of repayment periods, shorter repayment periods have lower interest rates. In other words, the longer the repayment period you opt for, the more you’ll end up paying interest charges. This is why it’s highly recommended that you take advantage of any additional sources of income you have to make your loan repayments as quickly as possible to avoid spending more on interest.
Many people require trucks for a variety of reasons, the most common of which is to fulfill their trucking business requirements. Those who wish to borrow funds to finance their truck purchase now have a wide variety of options available to them like Auto Credit Express®, myAutoloan, and car.Loan.com. These platforms help users connect with lenders who can quote different interest rates to borrowers based on their credit ratings and history.
However, not all online lenders take into account borrowers’ credit scores, while others are keen to provide affordable loans to even those borrowers with bad credit ratings. In this way, financing options for trucks are now surprisingly easy to find online with the help of such lending services. Therefore, you can rest assured that with just a few minutes of time and effort on your part, you’ll be able to find the right kind of loan to finance your truck purchase.