“Your TransCredit credit score will determine if you get credit at all, and the interest rate on that credit”, says Ed Ojdana, president of Experian Consumer Direct, “The better the score, the lower the interest rate and that can save you a ton of money”.
This is an important question as the trucking industry is moving toward “risk-based” pricing; a business trend that is spreading like wild-fire in all areas of the business world. Interest rates on bank loans, credit cards, even premiums on your insurance are rapidly being hinged to the credit score. In other words, this means that the higher the score the less paperwork needed to prove credit worthiness, this results in quicker decision making and lower credit costs to the user. In the open market place that now exists in transportation, this translates to more competitive rate negotiations. Simply put, if the credit score is higher you may be more apt to accept the shipper’s or intermediary’s freight at a lower rate since you know the turn of your money is assured.