Truck and Trailer Owner Financing
- Search for a lender that provides truck and trailer financing. You can do that online with a simple search or by calling local lenders. The good news is that most lenders have less stringent underwriting requirements when originating truck loans, as compared with securing a mortgage for a home. That is because your commercial truck or trailer acts as collateral for the loan. If you default on your loan, your lender can take your truck or trailer. That provides a strong motivation to remain up to date with your payments.
- Just because it's easier to get truck or trailer financing than it is to take out a mortgage loan, doesn't mean that there aren't requirements. Some lenders will require you to reach a bare minimum credit score--the three-digit number that shows lenders how responsible you've been with your finances in the past--before lending you money to finance your truck or trailer. For example, Prudential Leasing requires you to have a score of 650 or higher. Other stipulations might include how old the truck or trailer is and how many years of experience you have.
- After finding a lender, it's time to apply for your truck or trailer loan. Make copies of the financial paperwork that will prove to your lender that you have the financial means to pay back your loan. This includes your most recent federal income tax return, last two paychecks and your savings and checking account statements. Also make copies of the documents that verify your monthly debt obligations. These include your credit card bills and other loan statements, such as mortgage, student, car or personal.
Your lender will study those papers to make sure that your total monthly debt obligations are less than 36 percent of your gross monthly income. You will also have to give your lender permission to check your credit score to make sure that you qualify for a truck or trailer loan.