RV Financing

Do You Need a Bad Credit RV Loan?

bad credit rv loan applicant ***Bad Credit in the RV world generally ranges from 620-660, anything less there is a slimmer chance of receiving an approval (please see disclaimer below).

If your credit is less than perfect and you want a bad credit RV loan don’t lose hope-there are loans for every type of buyer-you just have to know where to look. Nearly everyone at one time or another goes through financial hardships. It may be the result of illness, divorce, unemployment, etc. Sometimes these things can destroy your credit rating for long after the financial crisis has passed. While some lenders may continue to deny you loans there are lenders who are willing to trust that you have put that behind you and give you a bad credit RV loan. This actually can be a step in helping you to rebuild your credit history as you make your payments on time and in full.

One of the first things that you can do is to use an online RV calculator to find out how much recreational vehicle you can afford. You simply enter the amount that you want to borrow (based on the cost of your “dream” RV) and then the interest rate and the length of financing. Keep in mind that a bad credit RV loan will have slightly higher interest rates than a regular, but you can refinance your loan as your credit improves to get a lower rate. After you have entered the amounts, within minutes (or possibly seconds) you will get an estimate of what your monthly payments will be. Keep working with the numbers until you find a bad credit RV loan that will fit your lifestyle and budget perfectly. Remember to subtract any down payment or trade in value from the loan amount before you figure out the payments.

Getting pre-approval for your bad credit RV loan is one of the best things that you can do for yourself, for the lender, and for the dealer. With pre-approval you can walk into any dealership and know exactly how much you can afford, which narrows down your choices to those which will fit your budget. The lender will know that you are serious about getting a bad credit RV loan and you will have done much of the work before you even shop for a vehicle which will cut down on the paperwork and “red tape” when you are ready to finalize your loan. Also, the dealer will have confidence that you are a committed buyer and that you will be able to afford the RV that you decide to buy with your bad credit RV loan.

Another thing that you might want to consider when you are looking at which RV to purchase is a pre-owned RV. RVs retain their value longer than cars and you can get a great deal on a used RV and the payments on your bad credit RV loan will be lower than if you were to purchase brand new. You might even be able to get a better RV with more of the “extras” that you would not be able to afford in a brand new model with a bad credit RV loan.

Take a look at RV lenders. They have loan products to fit nearly every situation and there is most likely one that will fit your needs and budget. Educate yourself on what a good deal is and be prepared to talk with the lender about your financial strengths and weaknesses. If you are working and have a steady income and are not currently in a bad financial position they will be able to find a loan for you. Don’t let your fears of what might happen stop you from realizing your dreams of owning an RV. Take the time to educate yourself. You won’t be sorry.


Read More Helpful RV Financing Articles:

An RV Loan Is Easy Once You Know the Steps
RV Warranty and Extended Warranties are Available.
What If I have Bad Credit and Need RV Financing?
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