What Is the Minimum Credit Score for an RV Loan?
It is important to remember that RVs are significantly more expensive than most other road cars, and as such, most financial institutions are usually more selective in regards to which customers they provide financing options. In this respect, the minimum RV financing credit score that most lenders are willing to accept is around 650-660.
Luckily, some lenders are open to providing loans for scores that are as low as 550, but the downside is that a low credit score will often result in a higher interest rate, as well as a lower total loan amount limit. Aside from having a good credit score, you will also need to have a down payment ready that is at least 10% of the total purchase price of the RV you intend to buy.
However, 20% would usually be even more preferable because it not only knocks a substantial portion off the amount that you need to take out in a loan but also helps you to secure a lower interest rate.
How Can I Qualify for RV Loans with Bad Credit?
Most lenders are willing to accept a minimum credit score for RV loans, but there are still a few eligibility requirements you will need to meet to qualify for one. For starters, you will need to show proof of a stable income stream with a minimum of $20,000 in earnings per year from a job or self-employment for two years, at least.
Your credit score will also need to be at least 550, and the RV that you intend to purchase must only be for recreational use. Moreover, you will need a positive loan history and if you happen to have any dings on your credit, that is usually acceptable, but they will need to be cleared first and not left outstanding to successfully qualify.
How Can I Take Out an RV Loan If I Have Bad Credit?
Credit unions
Similar to banks, credit unions also provide you with somewhere to deposit your money and take out loans. However, the advantage of borrowing from credit unions is that they are not-for-profit, member-owned institutions, and this means that they can usually offer you even lower RV loan rates than traditional lending institutions.
For example, some credit unions can even offer guaranteed RV financing for as little as 2.00% APR, even for those with a poor credit rating. However, the problem with credit unions is that in order to qualify, you will first need to meet their eligibility requirements to join. Plus, not all credit unions provide RV financing.
Banks
The benefit of using banks is that they usually offer longer repayment periods and, in some cases, they may even be willing to provide special interest rates to their most loyal customers. They also provide better in-person service and can guide you on the best possible path to financing your new camper without placing too much of a financial burden on yourself.
Plus, borrowing from a bank and making your repayments on time will usually have a positive effect on your credit score as well. However, the problem is that if you do have a less than stellar credit history, most banks are only willing to consider approving an RV loan with a credit score of 620 or more.
Online Loan Services
Online loan services are a convenient and fast way to secure financing for your RV because most online loan marketplaces have lenders that are open to approving bad credit RV loans, as long as you can prove that you have a steady income stream to make your repayments on time.
Plus, the multitude of available online direct lenders opens up more options for you in terms of loan rates, credit score minimums, borrowing amounts, repayment periods, etc., than you would typically get from traditional lending institutions.
Also, since they are easily accessible online, this means you can secure guaranteed bad credit RV loans in as little as 24 hours, all from the comfort of your own home without having to go to a physical location.
Dealership Financing
Depending on the RV dealership that you intend to buy the camper from, some of them can provide you with RV loans for bad credit, while the rest will usually connect you to partner lenders that will usually provide them with a finder’s fee.
The only downside is that most of those lenders may not necessarily offer you the best terms and interest rates, but if you shop around for a loan at a credit union, bank, or online lender first, then you can usually take that offer to the dealership and ask them to beat it to get a more competitive offer.
What Types of RV Am I Eligible to Finance With RV Loans?
The general consensus is that RV loans can be offered to borrowers looking to purchase these main types of RVs:
- Motorhomes
- Utility trailers
- Travel trailers
- Pop-up campers
- Fifth-wheels
- Toy haulers
- Horse trailers
What Are the Best Ways to Increase My Odds of Getting an RV Loan?
1. Provide a Significant Downpayment
You can improve the likelihood of getting approved for bad credit RV loans by providing a down payment of at least 20% of the value of the RV, which often improves your chances because it effectively reduces the level of risk to the lender.
However, you should also make sure that once you deposit the downpayment, you request a loan that does not exceed the projected wholesale or used sale value of the RV, as this ensures that you are able to secure yourself the best price possible.
2. Improve Your Credit Rating
You can often increase your chances of getting approved for a bad credit RV loan by paying off any lingering debt that you may still have to improve your credit score. And even if you can’t pay them all off, you can repay at least one of your existing loans and then present a plan to pay off the rest in the future to the relevant credit agencies.
You can also examine your credit report for any discrepancies that may be negatively affecting your credit rating, and if you find any errors, make sure to report them immediately.
And while these changes will take time to reflect on your credit score, your commitment to financial improvement can often be sufficient enough to encourage a lender to look more favorably on your loan application and provide you with guaranteed RV financing.
Are There Other RV Financing Options?
Home Equity Loans
Alternatively, if you happen to own a home or property, you can use it as collateral to secure yourself guaranteed RV financing through a home equity loan, even if your credit rating is less than stellar.
However, the problem with this strategy is that if you default on your loan, then your home or property will be taken to make up for it. It is for this reason that we would usually recommend that you opt for a personal loan instead, as this form of RV financing for bad credit is too risky.
Personal Loan
If you find yourself unable to qualify for bad credit RV loans, then your next best option is to take out a personal loan to purchase your camper. And while most personal loan lenders will usually expect you to apply for an RV loan with a 620 credit score, you can use iPaydayLoans to quickly get matched with a personal loan lender that can facilitate funding for much lower credit scores.
However, do keep in mind that most bad credit RV dealers will usually charge high-interest rates, offer shorter repayment periods, and may require you to pay an origination fee. Depending on your credit score, you may also be limited in terms of how much you can borrow, which in turn could end up affecting the type of RV that you can afford to purchase.
 | Why Us | |
|---|---|---|
| How much can I borrow? | $50-$35,000 | No hidden fees or charges |
| I have bad credit. Can I apply? | Yes | Bad credit is considered |
| Over how long can I spread the repayments? | 1-36 months | Fast decisions |
| Are credit checks involved? | Yes | Soft credit checks only |
| Chances of getting approvals | Good | 256-bit encryption protocol |
| How to apply? | Apply online | Easy application |
Conclusion
If there’s one thing that everyone loves, it’s the freedom of the outdoors and the enrichment that usually comes with the ability to go where you want, when you want. And that is exactly what an RV provides, as these vehicles facilitate more control over your environment by allowing you to sleep in your own bed, use your own bathroom, and cook your own meals wherever you go.
However, that luxury does come with a steep price, with some unable to secure personal loans from a traditional lender due to poor credit history. Luckily, you can apply for RV loans for bad credit from an online loan marketplace and even get approved in as fast as 24 hours!