Financing with a Charge Off on Credit Report

If it were me, I certainly would concentrate on getting any negative marks off my credit report. I too am self employed and have only ever had one negative thing show up, which was due to an ex not paying a bill designated to her in a divorce. While it wasn’t an easy thing to have removed from my credit rating it did almost immediately bump my credit score 120 points. Now a days depending on which credit report I look at I’m 790 to 820’s.

Main reason I keep an eye on my credit report is so if I have to replace a price of euquipment immediately I can finance with minimal worry. As far as advice on down payment amount, loan apr and length depends on several factors including but not limited to monthly cash flow, interest rate paid, around of return on investments and amount of liquid assets. Bear in mind it’s been my personal experience that having a loan for exotic play toys generally is viewed negatively when applying for most business loans. Having a good financial advisor and short and long term plan are worth more then anything.

What ever you choose I wish you luck.

 

For what it is worth it’s not the end of the world if your not in the 800’s. While it does help to have a higher score getting above 750 is considered excellent. And honestly I nearly always discount the pay for it in cash statements. Honestly if I had that kind of disposable cash laying around it would make less financial sense to pay cash since I could make a higher return letting the cash earn for me while still making a payment, even at 4%, especially considering the note would more then likely be paid off quicker then the length of the note. One thing my financial advisor mentioned when I Was taking about a Ferrari purchase was its about the amount borrowed and ability to pay the money back. A good credit rating is a large price of your ability to pay back borrowed money. If you do borrow the money I’d still put at least 20% down reguardless if it’s a straight auto loan or a personal or business loan. And I certainly would avoid the business loan if it were me as I personally try to keep personal and business transactions separate.

No matter what any of us tell you only you and possibly your financial advisor know your situation and what would work best for you. If you are sure making a couple of thousand bucks a month payment is doable for the next 60 months minimum without impacting your daily business life and your ability to pay your personal bills then by all means move forward, but a higher credit score will lower interest rate which are climbing.