bad credit rv loans

Can I Get an RV Loan With Bad Credit?

Financing Your Dream RV

For adventure seekers and road trip enthusiasts alike, buying an RV can be a ticket to exploring the country on your own terms and creating lasting memories with your loved ones. A study performed by the RV Industry Association found that RV ownership has increased by 62% in the past twenty years – and more than 9.2 million Americans plan on buying an RV soon.

If you have bad credit, this dream might seem out of reach. You might be wondering whether you can still qualify for an RV loan with a low credit score, and the good news is that it’s still possible to get one, but if your credit score is low, you should be prepared and understand your options.

In this article, we’ll be covering everything you need to know if you’re looking to get an RV loan with bad credit.

What Credit Score Do I Need for an RV Loan?

The minimum credit score required for an RV loan will depend on the lender, but most lenders require a credit score of at least 670. If you have a credit score below 670, you might still qualify for a loan. However, you have to be prepared to make a bigger down payment or have a higher interest rate. Typically, having a higher credit score will make it easier to get a better interest rate and loan terms.

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Below, we’ve included a rough credit score guideline:

  • Excellent (720 or above): If you have a credit score of 720 or above, you could be eligible for favorable RV loan terms and interest rates.
  • Good (660-719): If you have a credit score between 660 and 719, you could still qualify for an RV loan with reasonable interest rates.
  • Fair (620-659): If you have a credit score between 620 and 659, you may still be able to qualify for an RV loan but might be subject to higher interest rates and less favorable terms.
  • Poor (below 620): If you have a credit score that’s below 620, it might be difficult to get an RV loan from a traditional lender.

Current RV rates as of October 2023 for someone with a good credit score might be between 4-8%. If you’re looking to obtain an RV loan with a bad credit score, you’re probably looking at an interest rate between 8-13%+.

When shopping for an RV loan, it’s important to consider all of your options from different lenders to find the best deal. You should also keep in mind some other financial factors, such as your income, employment history and debt-to-income ratio.

What Are My Options for Getting an RV Loan With Bad Credit?

If you have bad credit and are having trouble finding an RV loan, there’s no need to be discouraged since you still have some options. One option is to find a specialty lender that specializes in giving loans to people with bad credit. Another option is to find a private seller that might be willing to finance the sale of their RV. The downside to this option is that a private seller won’t offer you the same protection as a traditional lender. Lastly, you can use a personal loan since they can be used for a variety of things.

Although these options are available, it’s worth noting that all of them will most likely charge a higher interest rate because of the higher risk they’re taking with a low-credit borrower. If the loan amount you’re requesting is too large, especially with a higher interest rate, you can consider downsizing to a smaller RV. Additionally, if you’re not in a rush to buy an RV, you can also take the time to improve your credit before applying for an RV loan.

How Can I Increase My Chances of Getting Approved for an RV Loan With Bad Credit?

On top of the options you have, here are some tips on other things you can do to increase your chances of getting approved for an RV loan with bad credit.

  • Make a larger down payment: Putting more money down on your RV will help decrease your loan amount, which makes you more likely to get approved.
  • Get a co-signer: Getting a co-signer, such as a family member or friend, with good credit can help you get approved with the potential for a lower interest rate.
  • Secure the loan: Securing the loan with collateral, such as a car or house, can help you get approved.
  • Bring documents: Having documents ready with financial information, such as proof of income and employment history, can help with supporting your loan application.
  • Be honest: Being honest with lenders about your financial situation shows that you’re being truthful and can help you get approved.

Final Thoughts

Getting an RV loan with bad credit might sound difficult, but it’s still possible. Everyone’s financial journey is unique, and despite having bad credit, you have plenty of options. By following the guidelines and tips from this article, you can increase your chances of getting approved for an RV loan and turn your RV dreams into a reality. With a little bit of patience and persistence, you can soon be cruising down the interstate in your new RV.


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