Issue link: http://read.dmtmag.com/i/71813
and slowed credit card payments. "If you hang in there and work your way through it, it gives you that much more confidence," he says. In January 2011, he paid off his truck. Now his revenue is 5 to 7 percent higher than it was with his previous carrier in his current work hauling food products. Diamond was hardly alone in taking on large debt during the recession. While he was able to climb out of it, many owner- operators have been hamstrung by factors such as slow freight, expensive job changes, fuel costs, family illness or other emergencies. A compounding factor for many struggling owner-operators is being stuck with worn-out equipment and lacking the credit to replace it. If you're one of them, there is hope for improving your credit rating by making some smart, disciplined moves with your finances. As tight credit begins to loosen, owner-operators have even more reason to review their credit ratings, says Eddie Walker of Best Used Trucks, based in Fort Worth, Texas. "Overall, the finance industry is probably 100 percent better than it was two years ago," says Walker, who also serves as an adviser to the Used Truck Association. Contractors with the highest credit ratings have been getting interest rates as low as 9 percent through lending arms of original equipment makers and used truck dealerships, Walker notes. For the first time in years, lenders are listening, when he makes a case for owner-operators with medium credit risk due to no fault of their own, Waker says. More new truck loans are being made, says Dan Clark, general manager of GE Capital Transportation Finance. "It has definitely gotten better since the crisis of 2008," Clark says. "We're A key for credit users trying to manage debt is to keep only two credit cards and avoid getting new ones, even when incentives, which can have hidden fees attached, are offered. Tips for boosting your credit • Pay all bills on time. • If you've missed payments, get current. • If in deep debt, pay off the balance of one card while making minimum payments on others. • Stop using credit cards until debt is under control. • Avoid easy-fix lending products, such as payday loans or so-called checking advance products offered at some banks, which charge annual rates of up to 120 percent. • Open checking and savings accounts. It shows you plan to pay bills and be responsible. • If you are having trouble making ends meet, contact your creditors or the nonprofit National Foundation for Credit Counselors at nfcc.org. The agency keeps lists of certified local counselors. not as high as in 2005 or in 2006, but we're definitely trending in the right direction." Owner-operators who have a long history with the same carrier have better potential for getting loans, says GE Capital's John Conkin, vice president of sales. Prompt payment of bills is more important than ever, given an initiative to include rent and other payments on credit reports. Data firms CoreLogic and FICO are adding data on payday loans and child support this year, says Gail Cunningham, a spokeswoman for the National Foundation for Credit Counseling. Utility payments and cell phone bill details also may be added. Credit-reporting service Experian is reporting on-time rental payments and, on the downside, evictions. "The inclusion of rent and other payments that were once considered non-traditional will provide lenders with a more complete picture of the consumer's credit track record," Cunningham says. Although banks are still reluctant to make loans, the environment has improved for owner- operators going through the financial arms of truck manufacturers. "If debts have been handled responsibly" by the operator, she says, "this additional information will work to the borrower's advantage." Some say that getting loans from banks has always been difficult for truck loans, and even more so since the recession. But lending institutions that have traditionally JULY 2012 OVERDRIVE 39