Financing need help finding financing with damage credit

[Nissan197]

Get all those cards paid off and then think about a tractor. I believe in credit cards as long as they are paid off every month. You can even make a little bit of money through cash back programs, but again you have to pay them off every single month.

 

[McGeesEquip]

Just a question out of idle curiosity. Are you saying that the tractor manufacturers have "credit-worthiness" criteria that are lower than stand-alone finance companies?

Steve

Hey Steve,

I really can not say that manufactures with their own finance companies have a criteria lower than stand alone finance compaines. It would not be likely for him to jump from brand to brand trying to get financing if the brand most likely gets financed through Agricredit. I come across situations like that a lot when a customers gets turn down at one dealership they jump to another dealership trying to get finance when in fact both dealer brands get turn into the same finance company for financing.

 

[MossRoad]

I am looking for used compact tractor with FEL somewhere close to NW FL. I had problems in the past with credit cards but now have paid off 3 out of 6 and paying the other 3 satisfactory now but credit score is arounf 565 on one of the three credit reporting Co. I have income around 117.000 and now acceptable debt ratios.Now having said that I am looking for either a compact tractor with FEL or a bush hog to cut some trails through about 3/4 acher of land. Any ideas or help would be apreciated. I am a 100% disabilied Vet, Thanks Bruce.

Welcome to TBN. I removed your e-mail address from the post. It is not a good idea to post e-mail addresses in public forums as that is a great way to get on spam lists.

 

[smstonypoint]

Hey Steve,

I really can not say that manufactures with their own finance companies have a criteria lower than stand alone finance compaines. It would not be likely for him to jump from brand to brand trying to get financing if the brand most likely gets financed through Agricredit. I come across situations like that a lot when a customers gets turn down at one dealership they jump to another dealership trying to get finance when in fact both dealer brands get turn into the same finance company for financing.

Bruce,

Thanks for the info. As I understand it, credit inquiries could hurt your credit score, so the folks you describe may be digging a deeper hole for themselves.

Steve

 

[MessickFarmEqu]

We find new holland to be the most liberal of all the credit companies we work with. Probably because they are used to seeing highly leveraged farmers as a bulk of their customers.

 

[Diamondpilot]

For only that little bit of work hire it out and save your money. Get a tractor when you can pay cash, that is what I did.

Chris

 

[smstonypoint]

We find new holland to be the most liberal of all the credit companies we work with. Probably because they are used to seeing highly leveraged farmers as a bulk of their customers.

That's interesting. I would think that the tractor manufactures would have different "credit-worthiness" criteria for commercial ag. customers than for those who are buying for non-commercial users (like most TBN members).

Several of my former students are credit analysts/loan officers for farm credit agencies, etc. They collect a lot of balance sheet/income statement/cash-flow statement info from potential clients and evaluate financial ratios, cash-flow, etc. before deciding on whether to recommend making a loan. Of course, these are typically large loans.

Steve

 

[Skyco]

Pay off your bills and your credit score will go up. Then cancel the cards except for one that you can use for an emergancy.

You sure? I co-signed a loan for one of my boys a year or so ago and was surprised how low my score was. Why? Because I don't owe anyone anything! Haven't for a long time. The very nice lady at the credit union my son joined explained with no recent history of being in debt I was considered a risk:confused2:
I've also heard canceling cards drives your score down. Don't know for sure on that one. BTW I put $2000 or more on my credit cards every month but also pay them in full every month, apparently that also counts against me- again:confused2:

Oh yeah- when I co-signed for my son my interest free Kubota 3 year loan did not show up in my credit profile, so it didn't help build my rating at all

 

[kenmac]

I agree skyco, When you don't borrow money your credit score does go down. But who cares about a credit score unless you want to borrow money.. A wise man once said... Borrower is SLAVE to the lender:thumbsup:

 

[rjkobbeman]

You sure? I co-signed a loan for one of my boys a year or so ago and was surprised how low my score was. Why? Because I don't owe anyone anything! Haven't for a long time. The very nice lady at the credit union my son joined explained with no recent history of being in debt I was considered a risk:confused2:
I've also heard canceling cards drives your score down. Don't know for sure on that one. BTW I put $2000 or more on my credit cards every month but also pay them in full every month, apparently that also counts against me- again:confused2:

Oh yeah- when I co-signed for my son my interest free Kubota 3 year loan did not show up in my credit profile, so it didn't help build my rating at all

I'm no expert, but have done a lot of research and know my own credit history and score.

Aside from the obvious (nobody reporting BAD info on you), one thing that is considered is how much credit has been extended to you and how much of that credit is spent. If you have $100k of credit on credit cards and have spend $10k on them, you have $90k available. If you cancel the majority of those cards but still have $10k on the remaining, you have much less "available" credit. This means you are almost at max credit. I may not be explaining it correctly, but that is why canceling cards can be bad. Having at your disposal a lot of credit, but do not abuse it really helps.

I don't think spending $2k a month on credit cards and paying them off every months hurts, I think it helps.

Basically, borrowing your ***** off and keeping up with payments and paying stuff off shows you are a good credit risk. That is what it is all about.

People get frustrated because they have a low score but have done nothing wrong. Remember, your credit score is not a judge if you manage your finances in the best possible way (which may mean never borrowing)... it is a judge of how much of a risk you are if someone loans you money. You may be the most honest person in the world that would never default, but if you have never borrowed anything, nobody will know. On the other hand, the biggest dirt-bad in the world may have a great credit score because he borrowed a ton but always paid it back on time.

One thing to remember is the credit score has nothing to do with your income. The credit agencies do not know how much you make. The scores are about your history of borrowinig and paying it back.

Assumptions can be made about income based on how much you have borrowed, but there are no income reporting.

The agencies that loaned you the money on the other hand know what you make... and use that along with your credit score to make a lending decision.