Tractor Loan Tips

Are you interested in finding a loan for your upcoming tractor purchase? Financing your tractor can feel like a real challenge, but it doesn’t have to be! This guide from the experts at 405-Tractor has the information you need to make finding a loan for your tractor as easy as possible.

Raise Your Credit Score

A credit score is a rating given to you by financial institutions to quantify your creditworthiness. The better your credit score, the more likely it is that you will get a loan. In some cases, a better credit score will even net you better terms for your loan! Luckily, it’s fairly easy to raise your credit score. All you need to do is pay your bills on time and use an open line of credit (like a credit card) on a regular basis. This will show lenders that you can be relied upon to pay back what you owe. While you’re attempting to raise your credit score, try to avoid canceling credit cards or having hard checks on your credit, as both will reduce your overall credit score. 

Save Up

Loans will usually cover the majority of the tractor’s sticker price. However, in most cases, you’ll be required to make a down payment of about 10 to 15 percent of the model’s total cost. Different dealerships have different rules concerning down payments, so be sure to ask about these rules while shopping for tractors. 

Secured vs. Unsecured

Tractor loans are either secured or unsecured. Secured loans put your tractor up for collateral, meaning it can be repossessed if you fail to make a series of payments. On the plus side, secured loans are generally easier to qualify for and have lower interest rates. As you may have guessed, unsecured loans are the opposite. Unsecured loans have higher interest rates and require a better credit score in order to qualify for them. However, your tractor cannot be repossessed if you have an unsecured loan. The decision of whether you want a secured loan or an unsecured loan is up to you. 

Get financing for your tractor at 405-Tractor in Oklahoma City, Oklahoma. We also offer new and pre-owned tractors, along with servicing, parts ordering, promotions, and trade-ins. We hope to see you soon!