Can You Buy A Box Truck With Bad Credit or No Money Down?

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The way Box Truck financing works is quite different from the conventional vehicle financing system. 

Unlike the latter, qualification for the Box Truck financing depends primarily on the credit score of the business owners, besides age of business and business revenue. 

Basically, the Box Truck you are financing takes the form of collateral in box truck financing. This is, understandably, a way for the lender to minimize risk on the box truck loan.

Limiting the risk this way, you stand a better chance of qualifying for truck financing and even box trucking leasing deals

That said, many factors come into play in determining your box truck financing program, including the down payment, credit score, and interest rates.

In this article, you will be learning all about these and more as it relates to box truck financing. Some frequently asked questions will be answered, as well learn how to lease truck here!


What is Bad Credit?

To put it succinctly, bad credit essentially describes a low credit score. It refers to an individual’s poor history of defaulting on prompt bill payment, which, unfortunately, would be taken as an indication to fail to make timely monthly payments.

It results in a bad credit history. Bad credit typically refers to low credit scores. Things like late payments or maxed-out credit cards can bring your scores down.

A few things that could help you improve your credit scores include developing a history of on-time payments and keeping your credit utilization low.

While this article may be discussing bad credit in terms of individual box truck financing, it should be noted that corporate entities can also have bad credit based on their payment history.

Anyone with no good credit score will find it extremely difficult to get financing options for their box truck. And even when they do, it won’t be at competitive rates due to their notorious history. 

Toy truck with pound sterling and coins

How to Measure Your Credit Score

There are several models available for measuring credit scores, but we will dial it down to only FICO AND VantageScore in this article.

They both operate on a scale of 300 to 850, but they have varying bad credit ranges as you will no doubt see in the following paragraphs. 

Note: Every lending outfit, including credit unions, reserves the right to define what bad credit means to them and set their minimum credit score requirements accordingly. 

FICO score ranges

FICO has a score range of 300 – 850, and each sub-range means something regarding your credit status.  300 – 579.

This is the lowest range on the scale and it, quite simply, means very Poor credit scores. If you fall in this category, there is a high chance that your credit application will fall through.

And in the unlikely event that it does, it won’t be on favorable terms as you would be required to make considerably larger deposits and fees. About 16 % of Americans fall in this category.

580 – 669. Generally known as Fair credit scores, they are a step higher.

Credit applicants that fall within this range are called subprime borrowers and may still meet roadblocks during financing applications. 17 % of Americans fall under this group.

Two truck at a loading terminal

670 – 739. This number means a Good credit score. While people with scores as high as this generally tend to have a really low default rate, about 8 % still grow to become gross delinquents.

This range represents 21 % of Americans. 

740 – 799. If you fall in this range, it means you have a Very Good credit score like 25 % of other Americans.

This translates to enjoying better average interest rates from lenders and other financial institutions. This category has the highest number of people.

800 – 850. This is the very top of the scale and means you have an Exceptional credit score.

Once you attain this status, you enjoy perks, including the best rates from the right lenders and credit outfits. 21 % of people fall here. 


Like FICO, VantageScore is another scoring model. It was designed by Experian, TransUnion, and Equifax (the three major credit bureaus) and the scale also ranges from 300 to 850. 

The scale is broken down as follows: 

S/N Credit score Rating
300 – 499 Very Poor
500 – 600 Poor
601 – 660 Fair
661 – 780 Good 
781 – 850 Excellent

Factors that determine your credit score

The only solution to bad credit is improving your score. But before you can even achieve that, you must know the things that either affect or determine your credit score in the first place.  They are listed thus: 

Two adult male shake hands

Payment history

This simply describes a record that shows if you have bothered to make any payment at all. And if you have, were they on time or late.

Good payment history will give you a good credit score and put you on favorable terms with lenders and credit unions.

Credit utilization rate (CUR)

Also known as your credit utilization ratio, the credit utilization rate describes the amount of credit you are currently utilizing (how much you owe at the moment) divided by the total available credit (credit limit).

In other words, CUR is how much credit in your credit cards you are using. It’s typically expressed as a percentage. A healthy CUR has to be low, usually not more than 30%. 

Man carries a package on his shoulder

Credit accounts

This comprises the amount, type, and age of the accounts.

Irrespective of the type of loan or type of financing, a direct lender that wants to assist in your box truck financing would want to be able to see some diversity on your credit report.

A decent combination of a mortgage and credit cards will go far in helping you score. 

Note: opening too many credit accounts within a short time as well as taking too many loans all within a short period (2 years) can reduce your credit score. 

Total debt owed

This simply refers to every single penny you owe in all types of loans as well as the ones you have racked on your cards (never max out your credit cards).

If it’s too much, it can affect your credit score and expose you to higher interest rates. 

Hard credit inquiries

This describes the process a lender has requested your credit information. This simple act will pull down your score as they follow your credit report for a really long time. 

Male worker pushes furniture


Other factors would include bankruptcies, child support due, and other matters of public records. Don’t be found wanting in any of these areas if you want to keep a good credit record.

Cons of bad credit

If you have read up to this point, you probably already know that the higher your credit score, the better. The higher your chance of qualifying for credit and at favorable terms and rates.

If your credit score is, however, low, it can become rocket science to reach a favorable loan agreement or get favorable credit 

A bad credit score can expose you to these limitations: 

  • Higher insurance premiums. Vehicle insurance companies, as an example, utilize your credit report information in combination with other data to investigate your claim. This is notably in some states. 
  • Potential credit application rejection. This goes as far as all loans (including a commercial truck loan) and lines of credit. 

Bad credit loans

Try as everyone may, not everyone will have a commendable credit report or meet the basic credit requirements. 

Some first-time buyers, as you already may have guessed, have no credit history whatsoever.

Even these groups of people here will still need to get a loan to meet cash flow needs. And that’s where bad credit loans come in.

Bad credit loans are loans lenders offer to individuals with less-than-perfect credit scores or without credit reports.

Naturally, these loans carry with them more restrictions and higher interest rates. The reason for it is simple, it’s a way for lenders to hedge their risk of you not paying back.

A box delivery van at a garage

How to choose a good bad credit loan company

When it comes to loan companies, there’s no single best one to suit the box truck financing needs of everyone. 

It’s a different-strokes-for-different-folks situation. But there are a few factors that can help guide you to your best option. 

  • Eligibility requirements

Even for a bad credit loan, you still have to be eligible. In most cases, the eligibility requirement will be listed on the lender’s website during your online application.

It will feature parameters like:

  • minimum credit scores. 
  • minimum income levels. 
  • maximum debt-to-income ratios.
  • etc. 

Clearly, you should only apply to the ones you are eligible for. 

  • Fees and interest rates

Different lending outfits use different yardsticks to determine your interest rate. Get quotes from a few lenders and compare fees and interest rates. 

  • Repayment plan

There are different repayment terms available, but it’s typically anywhere from 1 to 12 years. You have to decide which one you want, short or long repayment period.

While the former demands lower overall interest and takes you out of debt sooner, the latter lessens your monthly payment burden. 

  • Type of lender

They range from online lenders to banks and credit unions. They all have their pros and cons. Do your due diligence before you settle for any one.

Branded Penske company long truck

How to finance a box truck with bad credit

Let’s say you’ve been eyeing that fine, new truck at a leasing company in your township and you just know you have got to cop it for your delivery truck business.

Then they show you their lease term and layout the lease payment plan and you realize you need a commercial vehicle loan to finance it. 

With a spotless credit history, you are home-free. However, if you come short, you’ve got your work cut out for you. But it’s doable. View review of IdeaLease progrsm here!

The following are steps that you can take to claim any of your light-duty trucks or any other truck for that matter. 

  • Work with what you have

Start by taking a good look at the state of your finances and see which is the best financing program for you.

Do this before you even start shopping for box trucks. Note: Understand that personal truck financing will differ from commercial fleet financing. 

  • Ensure your paperwork is in order

This is especially important for commercial box truck financing, not so much for personal use trucks. 

You will be required to submit proof of business paperwork as well as papers to show your ability and credibility to offset the loan when the time comes. 

  • Choose the box truck 

You have to be mindful of the truck you pick for financing as lenders don’t just hand out loans for just any truck. They have to be convinced that the truck is worth the loan. 

Van driver with packages on the front seat

  • Sort out your down payment

You know by now that there is no exact answer to this question as it depends largely on the lender. 

Given your bad credit history, expect it to be on the high side. Fetching from the number one on this list, you should be able to work out some type of deal. 

FAQ about Leasing Box Trucking Business!

How do you apply commercial truck financing bad credit to box trucks?

Typically, box truck financing differs from traditional vehicle financing and leasing. 

For one, traditional commercial truck financing for bad credit relies heavily on your credit score rating, business revenue, and age of business to determine qualification.

But for box truck financing, credit check doesn’t hold much importance. Instead, the box truck in question becomes the collateral, helping the lender to limit liability.

 This is why individuals with bad credit are more likely to qualify for box truck financing. 

Who is qualified for no credit check box truck financing?

As long as all the documents and credit checks are in order, Individuals and businesses are generally qualified for any kind of financing.

Box truck financing, however, is specifically tailored to accommodate individuals and businesses with bad credit. So, if you need a loan to get a box truck and you have bad credit, you’re in luck. 

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Can I apply for bad credit truck financing for a single truck?

Yes, you absolutely can. While different loan outfits may have varying requirements for trucking businesses with bad credit to qualify for a loan, all of them provide financing for one truck as long as you qualify.

To put it simply, you can apply for bad credit truck financing even if it’s for a single truck.

What are average Commercial truck financing rates?

Typically, commercial truck financing spans a timeline of about five years with varying interest rates that depends on a number of factors.

Individuals and small business owners with good credit scores and no delinquencies can expect commercial truck financing rates within the range of 5% and 5%. For others with bad credit, it can be relatively more. 

Which are the 2 best Box truck financing companies and why?

Once you become in need of financing for your box truck, these two box truck financing companies stand out: 

  • Truck Lenders USA

With decades of commercial truck lending experience in its belt, Truck Lenders USA is easily the best commercial truck in the country.

As a direct lender in the business, their offerings include custom leasing and financing options for box trucks.

  • First Capital Business Finance

They offer a broad range of commercial truck loans for individuals and businesses with bad credit, no Commercial Driver’s Licenses (CDLs), and low down payments. Also, their approval process is really fast too.

How do small business loans for truck drivers work?

Whether you manage a considerable fleet of trucks or you are a modest owner-operator, you will probably need trucking business loans at one point or the other.

For a small business, the process works similarly to any commercial truck financing. That is to say, for small business loans or large trucking company financing, the process is the same. 

What does trucking business loans bad credit entail?

Bad credit can make it almost impossible for you or your business to secure a trucking business loan. But thankfully, some lenders still give out trucking business loans to people with bad credit.

Here’s everything you need to know:

  • Before reaching out to a lender, make sure you have all your financial documents in order. 
  • Find the right lender, the ones that are willing to give loans to trucking business owners like you with bad credit.
  • Schedule a meeting. You have a 0% chance of securing a loan if you never apply for one.
  • Once you find a lender that’s willing to work with you, confirm their prepayment penalties. Then, ensure you stick to your loan payment plan to keep your credit report from getting worse.

 Is truck loans for poor credit different from bad credit?

No, they are the same. Bad credit and poor credit truck financing are also the same. 

Any score below 579 is considered to be a bad or poor credit, which means that borrowers with these scores are flagged to be more likely to miss a payment, and are consequently made to face extreme difficulty in securing financing. 

What are the requirements for bad credit truck loans in California and Texas?

In California and Texas, you will need all financial documents of your business before you can apply.

Also required would be your social security number, driver’s license, proof of California and Texas address (a copy of a recent utility bill would suffice), and a co-signer. 

Truck on the highway facing sunset

How to qualify for truck financing bad credit with no money down

It’s incredibly difficult to qualify for truck financing with bad credit and zero down payment. But it’s not impossible.

The catch, however, is that you will have to pay for a larger loan (including a higher interest rate) in these instances overall.

Can you make money as an owner operator truck driver?

Yes, you can make money as a local owner-operator truck driver. In fact, owner-operator truck drivers arguably make the highest earnings in comparison to other types of truck drivers, including company drivers.

On average, owner-operators make anywhere between $100,000 and $150,000 (USD) yearly. 

The pros and cons of used box truck financing

Like most things in the trucking business, box truck financing has its advantages and disadvantages, and they include: 


  • It helps to acquire the much-needed asset for your business. 
  • The loan repayment goes toward the value of the truck.
  • You spend less overall compared to buying it outright. 


  • You’ll have the burden of a loan and all that goes into servicing it. 
  • You are liable for all maintenance and repairs.
  • Once you get the truck, it’s yours. You’re stuck with it.

 How does a Box truck financing calculator work?

A box truck financing calculator allows you to get a figure in determining a payment estimation for the box truck you intend to purchase.

The financing calculator is an easy, simple, and quick way of coming up with how much it will cost you to own a box truck. Note, however, that this calculator does not equal an offer, it’s merely an estimation.  

Is Peterbilt financing calculator reliable?

Yes, Peterbilt’s financing calculator is reliable.

While Peterbit’s is arguably one of the best financing calculators out there, it doesn’t remove from the fact that it’s still a financing calculator at its very best. 

That is to say, it gives only an estimation of the cost and doesn’t equal an offer. 

What is Buy Here, PAY Here box trucks?

The term “Buy Here, Pay Here,” also known as BHPH, describes auto dealerships where truck financing for purchased vehicles is done in-house.

Auto dealerships like these typically deal with heavily-used cars. Also, their customer base tends to consist of customers with bad credit ratings. 

White delivery truck at a loading terminal

Are heavy duty trucks financing bad credit rates higher than smaller box trucks?

No, that’s not the case. Down payment and interest rates are a set percentage of the cost of the vehicle in question.

Naturally, heavy-duty trucks cost more than the much smaller box trucks. Following that, the down payment and interest rates are also higher as a result. 

What are the best owner operators financing bad credit deals?

As an owner-operator with a bad credit rating, these two financing companies will give you the best deals:

1. Truck Lenders USA 

With decades of commercial truck lending experience on its belt, Truck Lenders USA is easily the best commercial truck in the country.

As a direct lender in the business, their offerings include custom leasing and financing options for box trucks.

2. First Capital Business Finance

They offer a broad range of commercial truck loans for individuals and businesses with bad credit, no Commercial Driver’s Licenses (CDLs), and low down payments. Also, their approval process is really fast too.

 How to become an owner operator with bad credit?

Several factors could make you catch a bad credit rating, the following are four: 

  • Late payments. The payment history of an owner-operator accounts for 35% of their total credit score. Any delay reflects in your credit report. 
  • Bankruptcy filing. If you’re unable to clear your debt, you may be forced to file for bankruptcy to get legal protection. This stays in your credit report for up to seven years, scaring off potential lenders.
  • Charge-offs. When your account has become delinquent for a long time, the lender will be prompted to give up on you and charge off your account. This leaves a dent in your credit report, causing other lenders to avoid you. 
  • Defaulting on loans. Individuals who default on loans get the same treatment as account charge-offs. Missing more than one payment will throw you into the default categories.

 How do truckers benefit from trucking industry credit reports?

Your credit history and score are collected and kept by Credit Reporting Agencies (CRAs), including Equifax, Experian, and TransUnion.

The trucking industry credit reports benefit truckers in one way. Lenders use your credit reports to determine creditworthiness before they can approve your funds.

You can take advantage of this by ensuring your credit history is spectacular.

In any case, you can still obtain loans even with a bad credit rating if you look for lenders that don’t mind business owners with bad credit reports.  

What is considered a bad credit score?

Within the confines of this article, we have highlighted two credit-scoring models; FICO and VantageScore and they both pack a scale of 300 to 850. Any credit score below 600 is considered poor or bad. 

Toy truck with pound sterling

More accurately: 


300 – 579: Very Poor

580 – 669: Fair

670 – 739: Good

740 – 799: Very Good

800 – 850: Exceptional


300 – 499: Very Poor

500 – 600: Poor

601 – 660: Fair

661 – 780: Good 

781 – 850: Excellent

Why are bad credit loans the best for people with poor credit scores? 

As the name rightly implies, bad credit loans are designed to serve individuals with bad credit, that is to say, people with poor credit scores.

To put it clearly, it’s the only type of loan that people who have poor credit history will likely qualify for because the approval process is relaxed.


Box truck financing is necessary if you want to get one with limited personal funds. But you need a good credit score to get the best out of it.

But if what you have is a poor credit score or no credit at all, this article has highlighted steps that can assist you. 


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