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Tow Truck Financing: Loans & Financing for Tow Trucks

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Whether you run a towing and recovery business or maybe a repossession company, there’s one thing your business relies on: commercial vehicles. But flatbed tow trucks don’t come cheap. You might not have the capital on hand to purchase one truck, let alone a fleet.

Fortunately, tow truck financing is available to help you get the loan you need to buy the trucks that your business depends on.

Tow Truck Financing

Keep the above with the following changes:

Loan Amounts: $5,000-$15 million

Repayment Terms: 2-25 years

Tow Truck Financing Offers: 

Nav works with many lenders who specialize in transportation or equipment financing. Learn more about financing programs you can use to purchase tow trucking equipment.

Newtek

Newtek offers long-term financing programs for a variety of needs, including the purchase of equipment and vehicles. You can secure up to $15 million in funding with repayment over 25 years if you qualify.

Kapitus

If you’re looking for less capital to repay over a shorter time period, Kapitus offers intermediate-term loans to be paid off in 2-5 years, up to $500,000.

TimePayment

If you’re open to leasing a tow truck, TimePayment offers affordable lease options that allow you to retain working capital and still get the vehicles you need.

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Types of Tow Truck Financing:

There are a variety of finance options when it comes to commercial truck financing, so explore each to make sure you choose the one that best fits your needs.

Tow Truck Loans

There are a variety of business loans that you may qualify for in the purchase of your vehicle or tow truck equipment. You can go with traditional lenders that offer SBA loans (particularly the 7(a) program), but if your credit doesn’t meet their requirements, look for a financing company with less stringent criteria for loans.

Tow Truck Line of Credit

Another type of financing to consider when shopping for tow trucks for sale is a line of credit. Rather than being approved for a fixed loan amount that you get all at once, you are approved for up to a set amount of working capital. Borrow what you need for your tow truck purchase, and make your payment just on that. Should you need more money down the road, you have the rest of the line of credit available, as well as whatever you’ve paid back.

Tow Truck Collateral Loans

Some lenders will not require you to put cash down as collateral if you are funding the cost of a tow truck because that vehicle serves as your collateral. Should you not be able to pay off the loan, the truck would be taken to cover your debt.

Tow Truck Leases

Buying a tow truck isn’t always the best option. Leasing one, instead, frees up cash flow and doesn’t weigh you down with a greatly-depreciated vehicle after a few years.

Why Finance a Tow Truck?

You might think that it’s better to pay cash for any large purchase your business needs to make, but the fact is: even if you can afford to spend hundreds of thousands of dollars on a fleet of tow trucks, it might not be the wisest financial decision.

Conserving working capital while making monthly payments on your tow truck loan ensures that, should your business suddenly need cash for an unforeseen expense (which is almost guaranteed to happen), you can cover it. If you had tied up that capital in your tow trucks, you would then have to scramble to cover the emergency expense.

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Requirements for Tow Truck Financing

While each lender will have its own requirements for approving your tow truck loan application, you can, in general, expect that you will need to meet certain criteria.

You may be required to have credit scores of 650 or higher, as well as no tarnishes like bankruptcy or tax liens in your credit history. You may also need to have been in business at least a year or two, depending on the lender. 

Not sure what your credit scores are? Get your free business credit scores today.

If you have bad credit, not to worry. There are alternative lenders who may approve you for financing at a higher interest rate.

When Does it Make Sense To Finance or Lease A Tow Truck?

You may be unsure of which option between financing and leasing a tow truck is better for you.

If you want to own an asset (the tow truck) and be able to claim depreciation on your taxes, you might want to purchase it. You will also be able to recuperate some of your investment by selling the truck once you’re done with it.

On the other hand, tow truck leasing doesn’t require the down payment or collateral that a loan would. You may have lower truck lease payments than you would loan payments, and, at the end of the leasing period, you aren’t left with a greatly-depreciated vehicle that is worth a fraction of the purchase price.

If you don’t have good credit, however, you may have fewer lease options with leasing companies, and might be better off taking out a loan for the vehicle.

Nav’s Final Word: Tow Truck Financing

Smart small business owners and truck owner-operators leverage tow truck financing options including loans and leases as a way to preserve working capital and build their credit.

In choosing the right financing option, know how much you plan to spend on a commercial truck or fleet, and shop around for the best deal.

 

This article was originally written on July 16, 2020.

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Bad Credit Credit Cards – Finest pupil bank cards for March 2021 | Fintech Zoom

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One of the biggest learning experiences a young person has when it comes to their personal finances is figuring out how to manage their credit cards. This can be a fraught process. First, for someone with no credit, like a student, getting a credit card is easier said than done. Then, once a student has a card, the temptation to overspend can lead to a financial hole — and it can happen fast. Luckily, there are options out there that are good for beginners — almost like cards with training wheels. These are student credit cards.

There are lots of reasons someone might consider a student card. First, being a student comes with a lot of expenses, and even a flush checking account may be no match for the seemingly endless list of books, software and other school supplies needed during a given semester. After all, college and high school students have returned to campus (or their virtual classrooms) for the spring semester already, and while school definitely looks different right now due to the global coronavirus pandemic, that just means that students need supplies beyond the typical notebooks and pens — think top-of-the-line computers, a new desk, and other work-from-home essentials to complete schoolwork.

However, perhaps the most pressing reason to pursue a student credit card is to build credit. After all, it’s hard to get good credit if you don’t already have it. And, if you’re a high school or college student with no credit at all — well, that reflects on a credit report and makes everything twice as difficult when working with a credit bureau.

While some people choose to build credit with a secured credit card — that is, a card where you’ve backed your credit limit with a cash deposit, student credit cards work a bit differently. These cards typically only offer a small credit line, sometimes just a couple hundred bucks. That way, the student can use the card to build credit without the risk of racking up too much credit card debt (which leads to bad credit), while the card issuer hopes that the card holder will transition into full-time employment and will use their card for everyday purchases for years to come.

There are a handful of good student credit cards out there. This list will help you figure out which one is the best student credit card for you.

Best student credit cards

Best overall Best for students without a credit history Best for students who plan to carry a balance Best for students with a co-signer
Discover It Student Chrome Deserve Edu Credit Card Chase Freedom Student Bank of America Travel Rewards
Annual percentage rate (standard / penalty) 17.99% variable, with 0% for the first 6 months / None 18.74% variable / None 14.99% variable / None 14.99% to 22.99% variable
Late payment fee Up to $40 Up to $25 Up to $39 Up to $40
Cash-back reward rate 2% on gas and dining (up to $1,000 in combined purchases each quarter), 1% on all other purchases 1% on all purchases 1% on all purchases; 4% cash back on Lyft until 2022 1.5% on all purchases
Eligibility requirements No credit history required, proof of income required No credit score required; no Social Security number required for international students Co-signers not allowed, proof of income required Co-signers allowed
Annual fee $0 $0 $0 $0

A typical credit card application requires a high credit score (around 650 or so) and at least a few years of credit report history. To get a student credit card, however, you don’t necessarily need either, though some proof of financial experience and responsibility helps when it comes to securing a credit card offer. The card issuer looks at sources of income — even from part-time work or deposits from parents — as well as information about checking and savings accounts to get a sense of an applicant’s saving and spending. Luckily, once a student is able to get a card, simply making everyday purchases is an easy way to build credit (so long as the student is able to pay off their purchases).

In addition to more relaxed eligibility requirements, the best student credit card will offer some of the following features:

  • Special rules for credit newcomers such as minimal late fees and no-penalty APRs
  • Lower credit limits — usually between $500 and $2,000
  • Cashback rewards program on spending
  • A “reasonable” APR — usually between 15 and 20%

We evaluated 19 credit cards marketed specifically to students. We selected four cards that stood out across a range of criteria, including APR, forgiveness for credit mistakes, cash rewards and lenient eligibility requirements. We urge students to consider important factors like interest rate, whether the card has an annual fee and if the card offers a cash advance before they make a decision. Check out our picks below as well as some answers to frequently asked questions about student credit cards at the end of this article. We’ll update this list periodically.

The best student credit card overall

  • Standard APR: 17.99% variable (0% for the first 6 months)
  • Penalty APR: None
  • Late payment fee: Up to $40
  • Annual fee: $0
  • Cash-back rewards: 2% on gas and dining, up to $1,000 in combined purchases each quarter; 1% on all other purchases 
  • Foreign transaction fee: 0%
  • Standout feature: No late fee for first late payment
  • Eligibility requirements: No credit history required, proof of income 

The Discover It Student Chrome offers a winning combination of cash back and other rewards as well as lenient terms for first-time credit card holders. You won’t get dinged by the credit card company for a late payment — at least the first one — or have to deal with an exorbitant penalty APR. And, of course, getting 1 to 2% back in rewards each month is a welcome bonus. Note that Discover offers another similar student credit card, the Discover It Student Cash Back credit card, but the rotating bonus categories make things overcomplicated, especially for first-time cardholders. 

Features and rewards

Most student credit cards offer 1% cash back. The Discover It Student Chrome card bests that with 2% cash back on gas and dining, plus a generous cash-back match at the end of the first year. The match effectively doubles your first year’s bonus rewards, so if you receive $75 in cash-back rewards during the first 12 months, Discover will chip in an additional $75. We also like that the Chrome student credit card incentivizes good grades: You can earn a $20 statement credit for each school year you maintain a GPA of 3.0 or higher. 

Rates and fees 

Discover’s rates and fees are generally lower than competitors’. The APR charged on purchases ranges between 12.99 and 21.99%, and there’s an introductory six-month period with 0% APR. Students with the Discover It Student Chrome also don’t have to worry about a penalty APR, which some issuers will institute if a card holder misses a payment. There’s no late fee for the first late payment, but for the second instance the credit card company charges up to $40, which is comparable to what other cards charge. 

At the moment, most study abroad programs have been put on hold. That noted, the Chrome student credit card has no foreign transaction fees — though Discover isn’t as widely accepted outside of the US as Mastercard and Visa.

Best for students without a credit history

  • Standard APR: 18.74% variable
  • Penalty APR: None
  • Late payment fee: Up to $25
  • Annual fee: $0
  • Cash-back rewards: 1% on all purchases 
  • Foreign transaction fee: 0%
  • Standout feature: Low late payment fee
  • Eligibility requirements: No credit score required; no Social Security number required for international students 

Deserve Edu Mastercard positions itself as an alternative to the traditional banks and credit card issuers, and specializes in credit cards for students and first-timers. And the Deserve Edu student credit card checks many of the boxes: It offers 1% back on all spending, features a relatively low late-payment fee and comes with a flat 18.74% APR. While it offers a lower student rewards rate than others, its relaxed eligibility requirements are well suited for students with a brief or nonexistent credit history or other potentially disqualifying limitation — like not having a Social Security number, if you’re an international student. 

Features and rewards

The Deserve Edu student credit card offers 1% cash back on all purchases, which can be redeemed for statement credits in increments of $25. Card holders also get one year free of Amazon Prime Student — worth around $40 — and up to $600 of credit toward cell phone protection coverage when you pay your monthly bill with it. 

Rates and fees

The 18.74% variable APR is relatively low for a student credit card, and it’s not tied to your credit score, so you know exactly what the APR is at the outset. Rather, the APR is “variable” because it’s tied to the “prime rate” — a benchmark interest rate used by lenders that changes over time. With most other cards, you won’t know the exact APR certain until you’ve been approved, and if you have a limited or nonexistent credit history it could be on the higher end of the range of what the issuer advertises. If you miss a payment, there’s no penalty APR, though you may be charged a late payment fee of $25. (Still, that’s about $15 less than the fee charged by most other student cards.) Deserve doesn’t charge any foreign transaction fees.

Best for students who plan to carry a balance

  • Standard APR: 14.99% variable
  • Penalty APR: None
  • Annual fee: $0
  • Late payment fee: Up to $39
  • Cash-back rewards: 1% on all purchases; 4% cash back on Lyft until 2022
  • Foreign transaction fee: 3%
  • Standout features: Free, unlimited access to credit score; Earn a credit limit increase after making 5 monthly payments on time
  • Eligibility requirements: No co-signers, proof of income

The student version of one of our favorite cash-back credit cards, the Chase Freedom Student credit card has a lot to offer. The 14.99% variable APR is one of the lowest available for student credit cards, and you get a $50 credit when you sign up, a $20 bonus every year and a credit limit increase after five on-time payments.

Features and rewards

Chase offers cardholders free and unlimited access to their credit score, which can be an important tool for those building credit from scratch. The credit limit increase is another nice feature as credit use is a primary factor in a credit score. Most credit experts recommend using less than 30% of your total credit available, so the higher the limit, the easier it is to keep your credit use low.

Its 1% cash back on all purchases is consistent with the category average and the 4% back on Lyft rides is nice (though less practical for many in the coronavirus era). The $50 sign-on bonus can be triggered by making a single purchase in the first three months so you need not worry about hitting a high spending threshold. And the $20 annual reward can be redeemed for five years — as long as your account remains in good standing.

Rates and fees

Every cardholder gets the 14.99% variable APR — so you know what you’re signed up for at the outset. It’s best not to maintain a balance month to month, but if it happens once or twice, the interest will be lower than with other cards.

A few words of caution: This card’s late payment fee can run as high as $39 for a first late payment; most other student cards have a lower penalty or no penalty for first-time offenders; and if you’re planning on studying abroad, this card will subject you to a 3% foreign transaction fee.

Best for students who have a co-signer

  • Standard APR: 14.99% to 22.99% variable
  • Penalty APR: Up to 29.99%
  • Late payment fee: Up to $40
  • Annual fee: $0
  • Cash-back rewards: 1.5% on all purchases
  • Foreign transaction fee: 0%
  • Eligibility requirements: Allows co-signers

Bank of America is one of the few card issuers that allows co-signers, who can be a parent, guardian — or anyone with a good credit score who’s willing to share the legal liability. On the other hand, any late or missed payments or high outstanding balances will also negatively affect the co-signer’s score. 

Features and rewards

This student credit card is essentially the same as Bank of America’s Travel Rewards card, which means it offers higher risks and rewards than most other student cards. You get a higher cash rewards rate — 1.5% back on all purchases — but fewer of the relaxed requirements for credit novices. And points can be redeemed only as statement credits against travel purchases; so, unless 1.5% of your spending is on taxis, Uber or Lyft, flights, baggage fees, hotels, rental cars, buses, trains, amusement parks or campgrounds, this card’s rewards aren’t particularly valuable.

Bank of America will grant you 25,000 points, equivalent to $250, when you sign up if you spend $1,000 during the first three months. That’s a higher threshold than you’ll find with other student cards, but also a higher reward. Bottom line: If you can time your credit card application with a large purchase, it’s worth it.

Rates and fees 

Bank of America offers an introductory 0% APR for the first year and no foreign transaction fees. That being said, this student credit card doesn’t mess around when it comes to penalties: The standard APR runs between 14.99% and 22.99% depending on your credit score, but if you’re late with a payment, you could be hit with the 29.99% penalty APR. That’s exorbitant — and it comes in addition to a $40 late payment fee. Students at risk of paying late should avoid this card at all costs.

What’s the best student credit card right now?

The Discover It Student Chrome is our pick for the best student credit card right now due to its lenient terms for first-time cardholders, including no penalty for the first late payment, and a combination of cash back and other rewards. The Deserve Edu Credit Card is best for students without a credit history, while the Chase Freedom Student is a sound choice for students who plan to carry a balance. If the student has a co-signer, we recommend the Bank of America Travel Rewards card.

How does a student credit card work?

Student credit cards offer those with limited or no credit a way to start building credit and create a credit history. They generally come with lower credit limits than typical credit cards and don’t charge annual fees. And they often have novice-friendly features, including late payment forgiveness, incremental credit limit increases over time and credit education resources. Reward rates may be lower than for standard cash-back and travel credit cards, however, making student credit cards a lower-risk, lower-reward financial tool.

Are secured credit cards a good option for first-time credit card holders?

Student credit cards offer those with limited or no credit a way to start building credit and create a credit history. They generally come with lower credit limits than typical credit cards and don’t charge annual fees. And they often have novice-friendly features, including late payment forgiveness, incremental credit limit increases over time and credit education resources. Reward rates may be lower than for standard cash-back and travel credit cards, however, making student credit cards a lower-risk, lower-reward financial tool.

If you subscribe to only one CNET newsletter, this is it. Get editors’ top picks of the day’s most interesting reviews, news stories and videos.

What do you need to qualify for a student credit card?

Most credit cards require an applicant to have a credit score of at least 650 and a substantial credit history. Student cards don’t. Still, you may need to demonstrate some financial responsibility — including a source of income, even from part-time work or deposits from your parents. The card issuer may also want to see information about your checking and savings accounts to get a sense of your spending habits and confirm that you’ll have sufficient funds to pay the minimum monthly payment. 

How do cash-back rewards work?

For all the cards listed above, “cash back” refers to a statement credit that’s applied to your account to lower your balance. For the Bank of America Travel Rewards card, for example, you can only redeem rewards against travel purchases. But for most other cards, cash rewards can be applied toward a balance regardless of expense type.

Cards we researched

  • CapitalOne Journey Student Rewards
  • Discover It Student Chrome 
  • Discover It Student Cash Back 
  • Deserve EDU Student
  • Bank of America Cash Rewards for Students
  • CapitalOne Secured Mastercard
  • Bank of America Travel Rewards for Students 
  • Citi Rewards + Student
  • OpenSky Secured Visa
  • BankAmericard for Students 
  • StateFarm Student Visa 
  • Wells Fargo Cash Back College 
  • Petal Visa 
  • Chase Freedom Student
  • CapitalOne Platinum
  • Discover It Secured
  • Chase Freedom Unlimited
  • Citi Double Cash Card
  • CapitalOne Quicksilver Cash

Disclaimer: The information included in this article, including program features, program fees and credits available through credit cards to apply to such programs, may change from time to time and are presented without warranty. When evaluating offers, please check the credit card provider’s website and review its terms and conditions for the most current offers and information. Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.

The comments on this article are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

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Bad Credit Credit Cards – Feds charge four more in alleged $31 million embezzlement scheme preceding 2017 failure of Washington Federal Bank in Bridgeport | Fintech Zoom

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Bad Credit Credit Cards – Feds charge four more in alleged $31 million embezzlement scheme preceding 2017 failure of Washington Federal Bank in Bridgeport

James Crotty, 41, of Tinley Park; Boguslaw Kasprowicz, 63, of Burbank, California; and Miroslaw Krejza, 62, of Chicago, were also charged in Thursday’s 67-page superseding indictment. All four new defendants are scheduled to be arraigned in federal court March 4.

Bad Credit Credit Cards – Feds charge four more in alleged $31 million embezzlement scheme preceding 2017 failure of Washington Federal Bank in Bridgeport

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Complaints of credit report errors have increased during the pandemic. Here’s how to protect yourself.

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Complaints about errors in credit reports have skyrocketed since the COVID-19 pandemic began — and these errors can pose a host of problems for the consumer.

Roseann Palmeiri wanted to borrow money for some home improvement projects. But she was shocked to learn that her credit score had dropped by 200 points.

“I said, ‘How am I going to apply for a loan and get the good interest rates now? I might not even get the loan,’” she says.

Palmeiri says that she disputed a fraudulent charge on her credit card and that it somehow had been reported as a bad debt.

“To drop by almost 200 points? That’s ridiculous. And first of all, you really had no business reporting that until it was resolved,” she says.

The Consumer Financial Protection Bureau (CFPB) says that there were 195,974 complaints about bad information on credit reports last year – almost as many as all other complaints combined.

Palmeiri’s credit card company fixed the mistake. But it is not always that simple.

“There’s more of a chance of bad information being put on your credit report than there is a chance of them fixing it. It’s a mess,” says Ed Mierzwinski, with the U.S. Public Interest Research Group (PIRG).

Mierzwinski says that a mistake on a credit report can have serious consequences.

“If you’ve got a bad credit report and you can’t get it fixed, you’ll either pay more for credit or be behind credit or you could even be denied a job,” he says.

PIRG hopes that under the Biden administration, the CFPB will take a harder line on credit agencies that post bad information. But in the end, it is up to everyone else to make sure their credit report is accurate.

Experts say that people should check their credit reports regularly. They can get a free report once a year from each of the major reporting agencies at annualcreditreport.com. Anyone who sees an error should contact each agency, point out the error and provide evidence.

If the problem isn’t resolved, one may consider taking legal action against both the credit agency and the company that reported the bad information.

“Sometimes you should see an attorney before you write your letter because it may be a complicated matter that you need help trying to figure out how to articulate the information. That’s fine. But legal action can’t be taken until the credit reporting agency and the furnisher has an opportunity to correct the information,” says consumer attorney Craig Kimmel, with the firm Kimmel & Silverman.

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