Understanding Interest Rates for Truck Financing
Truck finance companies are very interested in helping truckers and commercial trucking in general to succeed. Part of the way to success is understanding the truck finance interest rates and how they affect the overall picture.
Two Types of Rates
There are essentially two types of truck finance interest rates, adjustable and fixed. Adjustable rates are interest rates that can change during the life of the financial product. Fixed rates mean that the rates are set or fixed at a specific percentage and do not change over the life of the individual financial product.
Good Credit/Bad Credit
Both good and bad credit has an effect on interest rates and can even determine if the financial product is adjustable or fixed. In simple terms, the better the credit the better the chance at having, not only a lower rate, but a fixed rate. That does not automatically mean that bad credit is always on adjustable rates, as some situations for good credit might be better served by adjustable and the same with those with bad credit. It really depends on the company’s comfort with the level of risk with a particular financial product.
Regardless of adjustable or fixed interest rates, the truck finance companies are willing to find the right financial product to meet the needs of both independent operators and commercial trucking enterprises. These companies want to see you succeed and share in the success story.