Financing an RV is possible even if you don’t have the best credit. We’ll go over what you need to know and how to prepare to finance your RV.
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What is an RV Loan and How Do They Work?
An RV loan is a type of unsecured personal loan that you can get from various lenders online or from a credit union or bank. Sometimes these loans get called secured vehicle loans, and they often have terms that are similar to other vehicle loans.
Your loan terms will vary based on the rate that you get for your loan and the lender that gives you the loan. Most often, there is a minimum credit score you’ll need to satisfy and an estimated rate available online, so you can request several quotes from different lenders to compare.
An RV loan may allow you to purchase a new or used RV, and this type of long-term financing can range from a few thousand dollars to tens of thousands or more.
RV prices vary widely, but the recreational vehicle itself frequently serves as the collateral you need for the loan. When the RV is the collateral for the loan, it’s unlikely you’ll need to supply further collateral to get financing.
Can You Finance an RV on Bad Credit?
It’s possible to get RV financing even if you have a bad credit score. Buyers often work with dealerships to purchase their RV, and these dealers can connect you with lending partners who can offer you various loan options.
Keep in mind that while going through a dealership might be the fastest way to secure a loan for your RV, it’s often not the cheapest, and there may be additional fees, or the rate of the loan may be higher than if you shopped around for a loan from an online lender, bank, or credit union.
Requirements to Qualify for a Bad or No-Credit RV Loan- A Checklist
Here’s a quick checklist of requirements you can expect when applying for an RV loan anywhere in the US.
To qualify for an RV loan, you’ll need to have a credit score of at least 550 in most cases. The higher your credit score is, the more likely you’ll receive a loan with better terms. So, it’s worth doing what you can to boost your credit score before you start looking into loans.
The general guideline here is that you’ll need to have an annual income of at least $20,000 to qualify for an RV loan, but depending on the loan amount you need, your income will very likely need to be higher.
Lenders will ask for your household income and other factors to help them assess how much debt you have and how risky it is for them to issue you a loan.
Living on your RV full-time isn’t an option if it’s the collateral for your loan or if it goes against the terms of your loan set out by your lender. For exact details on how you can use your RV, you’ll need to read the loan documents carefully.
If you’ve gotten other loans and paid them off on time, this is a good sign to a potential lender and could help lower your rates. Ask potential lenders about how your loan history impacts their offer.
Your lender may request to contact your employer so they can verify that you are employed and gather any other information they need. If you’re self-employed, you’ll often need to supply at least two years of tax returns.
How to Get an RV Loan When You Have Bad Credit
It’s possible to get an RV loan when you have bad credit, and taking these steps can help you save money and get the best possible deal.
Verify Your Credit Score and FICO Score
A credit score below 580 is considered a bad credit rating, and you can check on your credit score online. You can also take steps in the short-term to improve your score before applying for an RV loan, which could result in a better deal.
Shop for the Best Price
Regardless of your credit score, it’s a good idea to get a few loan offers from different lenders before you go into a dealership, and it doesn’t hurt to visit more than one dealership.
By shopping around to find the best loan terms, you’ll save money on your RV loan in the long term, and you may also get a better price on the RV that you want.
Get Pre-Approved
A preapproval letter is a letter that certifies that a lender is willing to loan you a specific amount of funds to purchase an RV. A dealership may give you a more favorable price if they think you’re a serious buyer and a preapproval letter is a good indicator that you’re not only serious but that you’ve done your research and you’ve prepared for the buying process.
Consider a Bigger Down Payment
When you discuss potential loans with different lenders, you can ask about how different down payment amounts can help. Putting down more money often gets you a more favorable interest rate and might improve your odds of getting approved for a loan.
Some lenders will have a minimum down payment amount of 20%, but many lenders that specialize in loans for people with bad credit don’t require a down payment at all.
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Best Loans for Financing an RV Purchase on a Bad Credit
Once you have a budget for your RV purchase, you can start looking at potential lenders, and there are a few companies that can help connect you with preferred lenders. These lenders specialize in low credit scores and bad credit scores where buyers would struggle to get approved by other lenders.
Many of these companies also finance used RVs, which means you can save a little money by choosing an older model, and approval rates are generally high, and response times are usually quick.
Some of the details of your loan will vary based on the specific lender that you choose, but these lenders all offer online applications that are quick to start and don’t require a massive amount of information to submit the initial inquiry.
Many lenders won’t finance what’s called “Full-timers” or people that live in their RV 100% of the time. However, it’s possible to get a loan with a decent rate and extended terms, and many lenders send you the funds via direct deposit, which means you’ll need a bank account.
While many of these lenders list minimum interest rates that you can expect, they don’t frequently list the highest interest rates you’ll get offered, so you’ll still need to shop around and do some negotiating. Keep in mind that not all lenders will approve applications if you’ve filed for bankruptcy in the past, and not all of them will approve out-of-state transactions.
1) Southeast Financial
Loan Amount: Minimum $10,000, maximum $4,000,000
Starting Interest Rate: 4.24%
Maximum Loan Rate: Unlisted
Minimum Credit Score: 720
Maximum RV Age: 15 years
Permissible RV Use: Recreational Use Only
Approval Rate for Loan: Response within 24 hours
- Finances older RVs
- Online application available
- Loan decisions in 3 hours or less
- Extended terms available regardless of the loan amount
- Funds sent as a cashier’s check
- Recreational use only
- Higher minimum credit score required for applicants
2) NoCreditCampers.com
Loan Amount: Minimum $10,000, maximum $4,000,000
Starting Interest Rate: 4.24%
Maximum Loan Rate: Unlisted
Minimum Credit Score: 720
Maximum RV Age: 15 years
Permissible RV Use: Recreational Use Only
Approval Rate for Loan: Response within 24 hours
- Previous bankruptcy ok
- No credit history ok
- No minimum credit score requirement
- Fill out a single questionnaire online to get started
- Terms limited to 180-days
- Lenders may charge you fees as part of your loan agreement
3) My Financing USA
Loan Amount: Minimum $10,000
Starting Interest Rate: 7.95%
Maximum Loan Rate: 17.99%
Minimum Credit Score: 570
Maximum RV Age: 2009 or newer only
Permissible RV Use: Recreational Use Only
Approval Rate for Loan: Response within 48 hours
- Approvals in as little as 48 hours
- 100% online application
- Get matched with several potential lenders
- Initial inquiry takes about five minutes
- Recreational use only
- You get matched with one lender at a time
4) Great RV Loan
Loan Amount: Minimum $10,000
Starting Interest Rate: Varies by lender
Maximum Loan Rate: Varies by lender
Minimum Credit Score: 550
Maximum RV Age: 15 years old or newer
Permissible RV Use: Varies by lender
Approval Rate for Loan: Varies by lender
- 100% online process for applying
- Out of state transactions are ok
- No penalty for prepayment
- Financing terms up to 144-months
- Terms will vary based on the lender you choose
Bottom Line – Bad Credit Isn’t the End of the World
Bad credit doesn’t mean you can’t own an RV or find a decent RV loan, but it may mean that you’ll have to do a bit more research to get the best deal and find a lender that’s willing to work within your budget. Shopping around and preparing for the process of buying can help save you money, and many lenders can offer loans regardless of your credit score.
