Are Boat Loans Hard To Get

Navy Federal Credit Union

Navy Federal Credit Union offers loans for new and used boats and personal watercraft, with terms of up to 180 months. Military members with direct deposit may qualify for a rate discount. Service members in all branches of the armed forces, along with their families and household members, are eligible for credit union membership.

How Do Boat Loans Work

Boat loans at Southeast Financial are efficient, fast, and flexible. We offer boat financing for all types of circumstances and provide quick credit decisions. To get started, simply fill out our online application and we can get you a credit decision in 24 hours or less. Once you are approved, you can get your check within about 3-5 business days. Southeast Financial finances boats from $15,000 to $4 million.

Calculate Payments With Our Boat Loans Calculator

Use our boat payment calculator to determine a monthly payment that you can afford when looking to finance a new or used boat.

Simply enter your desired amount, estimated interest rate, and the loan term over which you intend to pay back the loan. Once you’ve input the information, the calculator will generate your estimated monthly payment on your boat loan. Take this number and plug it into your current monthly budget.

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What Credit Score Do You Need For A Boat Loan

When applying for loans, there really isnt a staple credit score that you need to get approval. Each lender has different possibilities, and some may be willing to risk providing you a loan despite the bad credit.

However, do accept the repayment terms to be a lot more stringent if you have an unfavorable credit record.

For you to get the best deal, your credit score should be at least 650 and above. Some lenders make a concession for those with a score above 600 as long as they have a low debt to income ratio.

If you dont have any major red flags in your credit history, like bankruptcy, you should be able to get a boat loan without a down payment and acceptable interest rates.

However, if you have a credit score that falls between 500 to 600, it is considered an unfavorable one. Getting a loan approved with such a track record if difficult but not impossible.

However, do keep in mind that it wont be easy to meet the payback requirements that the lender sets.

With a bad credit score, you will not only be payinghigh-interest rates, but the lender will also ask for a down payment. Your loanwill also take longer to get approved as the lender runs extensive background checksto locate any red flags.

The Difference In Those High And Low Values Are Not Going To Be As Great As Many People Think

Look at it like this a 2009 Honda Accord in great condition, with a sunroof, leather interior and a navigation system might fly off the used car lot faster than a 2009 Honda Accord with cloth interior and no extras, but they are still 2009 Honda Accords and the selling price is not going to be wildly different. Same with boats. Good maintenance and amenities matter more to peace of mind and will help a boat sell faster , but there is still a range that has to be acknowledged by buyer, seller and the finance company.

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Message From Aqua Finance Marine & Rv Loans

Camping & boating are just a few recreational activities many people enjoy. While boats and recreational vehicles are important to many consumers, difficulty getting loans can prevent them from making these purchases. And a poor credit score might not just be affecting your consumers it could prevent them from bringing business to your dealership. However, as a dealer, you are in a position to help. By offering financing, you can give someone the opportunity to make a purchase that will stay with his or her family for years to come and to create many lasting memories. While Aqua Finance’s program can benefit someone hoping to purchase a boat or RV, your business will also will find many advantages as well. We offer approval for consumers with a wide range of credit scores. This means you’ll be able to draw in more customers and close more difficult deals.

How To Get A Boat Loan

Whether you’re buying a house, a car or a boat, lenders look for stability and consistency in your employment history, income, and assets.

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How Is A Boat Loan Different From A Car Note

The ability to finance boats makes them more accessible to people. However, depending on where you live, it can prove to be more difficult to get a boat loan through a bank. Marine financing companies that specialize in boat loans, as well as the risk tolerance for different types of vessels, may be a surer bet than standard commercial banks where most people have checking accounts and mortgages.

Most commercial banks also finance cars since a majority of Americans need to drive where they live. Boats are simply less common, so this type of loan is harder to get. But the most notable difference between a car note and a boat loan is that the terms are far longer: the average car note is about 5-6 years according to Experian, or a more precise figure of 69.7 months, while subprime car notes are on the longer end at 72 months.

Boat loans can be financed up to 360 months like a house, even though they depreciate much faster. This is because the amount being financed can often exceed $250,000 which is more than the median home price throughout the US. A car note is likely to be 5-8 years, a boat loan is often 10-20 years depending on the price and type of boat, while some vessels like steel-hull boats and yachts can be financed up to 30 years.

Boat Down Payments And Ownership Costs

Obviously, if youre applying for a boat loan, you have to be able to show that you have the money to make the down payment, but also be able to pay for the expenses of owning a boat whether thats insurance, slip fees, fuel, all those things that go into boat ownership, said David Mann, membership program manager for Boat U.S., a boat owners association that connects lenders with buyers, among other services.

Boat down payments are usually between 10-20 percent, but can depend on the cost and value of the boat as well as your location and finances.

The boat loan rate for which you qualify is going to hinge on factors mentioned above, but it also could swing on the term of the loan how many years youll be paying on it or even the age of the boat youre buying. For example, you might be able to get a better interest rate on a boat thats as little as one year newer. In general, smaller loans for shorter terms usually have higher interest rates than larger loans for longer terms. Again, rates can vary with your credit history.

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The Best Boat Loans Of September 2021

*With auto-pay discount

The best boat loan depends on your budget, the type of boat you’re purchasing, and the age of the boat. From financing for small ski boats to full-size yachts, there’s a loan out there for most things that float. But they’re not all the same.

Once you’ve narrowed down the type of boat you’re interested in buying and what model year you’re looking for, you can start shopping for a boat loan. Many lenders will only finance certain types of boats, or require a boat to be newer than a certain model year. To make sure you make the most of your shopping, know this going into it.

There aren’t as many lenders offering boat loans as there are auto loans. But there are still a few to choose from.

Popular Articles

Here are Insider’s top picks for boat loans in September 2021.

Types of boats financed: LightStream doesn’t list any specific requirements

4.29% to 10.39% APR, with auto pay discount

Loan amounts available: $5,000 to $100,000

Watch out for: High credit score requirements. LightStream only works with borrowers with good or better credit, so anyone with a low credit score may not qualify.

LightStream boat loans are a strong option for most borrowers looking for an inexpensive boat and fast funding.

LightStream is an online lender backed by Truist . With a completely online experience, same-day funding available, and many loan types offered, LightStream is one of our picks for the best RV loans and best personal loans.

Alternatives To Bad Credit Boat Loans

A bad credit boat loan isnt the right move for everyone. If your credit score is low but you have a reliable income and a good relationship with your credit union or bank, you may be able to get a secured personal loan with better terms than a subprime boat loan. Unsecured personal loans can also be an option, but you will most likely need good credit to get approved.

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How To Apply / Next Steps:

A) If you meet the Credit Profile Parameters please apply here. If you have any questions please call 949-515-0055 for more information on our mid-tier and sub-prime marine financing programs. Our service-oriented and friendly staff of experienced boat finance professionals will work with you, one-to-one, every step of the way to get you the boat of your dreams and get your credit rating back on track. * B) If you have not met the Credit Profile Parameters noted above you may not qualify for our sub-prime marine loan financing programs. We strongly suggest that you not apply for a loan unless you are relatively sure that you have met the general Credit Profile Parameters as it will place an unnecessary inquiry on your credit report that may lower your FICO score. Instead we recommend that you start monitoring your credit score and apply for a SeaDream loan once it has reached 550 or above.

To learn more about increasing your chances of securing boat financing SeaDream has put together a series of boat financing tips. After you have taken measures to increase your chances of being financed SeaDream will work with you to get the best possible boat loan.

You may always contact one of our loan representatives to further investigate your current scenario.

* Disclaimer: The credit profile parameters are only a general guideline and do not guarantee a loan approval.

Why You Can Trust Bankrate

Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. Weve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.

Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.

Our loans reporters and editors focus on the points consumers care about most the different types of lending options, the best rates, the best lenders, how to pay off debt and more so you can feel confident when investing your money.

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Can You Get A Loan For A Used Boat

Just because loans are available for financing a used boat doesnt mean everyone will be able to obtain one. For almost any type of boat loan, creditworthiness will be a factor. This means a high FICA score.

Scores in the 700s or higher are ideal in some cases, loans may be approved for those with scores in high 600s, but all other aspects of the borrowers profile must be very strong. Lenders providing secured boat loans would hope to see a stable employment history and a strong history of successfully handling loans of similar size, as well as liquid assets sufficient to cover 12 to 16 months of payments, according to Boats.com.

Banks, in particular, will give the best consideration to those who have almost twice as many assets as debts because they see these individuals as potential customers for other services, says Boats.com. These loans also typically require a down payment of 10 percent to 25 percent of the boats value depending upon the lender and your credit profile.

Personal loans typically require higher credit scores than secured loans because they represent more risk to the lender. Loans using your home as security require good credit and a stable history as well as a sufficient amount of equity in the home to more than offset the amount of the loan.

Use A Boat Loan Calculator

The LendingTree boat loan calculator helps you determine your monthly payment using the loan amount, interest rate and loan term. Additionally, the calculator breaks down monthly payments by year, helping you plan ahead. Should you find that your estimated payment is a bit tight for your budget, the tool allows you to adjust the loan amount and/or boat loan term to find what best fits your needs. When its time to buy, you may fill out a single LendingTree form and receive up to five possible boat loan offers from lenders based on your creditworthiness.

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What To Consider Before Getting A Boat Loan

Although there are a few choices for budget boats, most of them cost well into the thousands, and anyone in the market for a luxury boat can expect the price tag to be far higher than what most families have on hand for recreational expenses.

Once you have your sights set on the boat of your dreams and are ready to look at financing the purchase, take a moment to consider all factors that could affect your final decision.

Remember that the price tag is just one of the expenses attached to owning a boat. Maintenance and insurance can quickly turn into big-ticket items. And if you plan on keeping the boat at a marina, expect to pay monthly rent for a storage area, as well as administrative fees.

Anyone preparing to take out a loan should also take an honest look at their personal finances and future earnings. Once the contract is signed, the money must be paid back. Be sure to look closely at the fine print.

Is Financing A Boat A Bad Idea

As a general rule of thumb, you should ensure that any purchase you finance will be paid down faster than it depreciates. If the purchases value decreases at a faster rate than your loan balance, you run the risk of going “upside down” on the loan, or dealing with negative equity.

While this is most often talked about in terms of new cars, its also a concern with watercraft, especially since boats are quickly depreciating assets.

Negative equity can be a serious concern with a high-value investment such as a boat. If the boat were to be stolen, totaled, etc., you would be on the hook for the difference between the remaining loan balance and the insurance companys valuation/payout. Negative equity can also come back to bite you if you ever want to trade in the boat or sell it, as youll wind up owing your lender out-of-pocket in order to finalize the transaction.

Lastly, its important to recognize that financing a purchase will cost you more than the sticker price, no matter how competitive the interest rate you obtain. Between loan processing fees and finance charges, the added expense can be significant.

While financing a boat is not a bad idea in and of itself, its important to strike a balance between your purchase price, down payment amount, and loan repayment terms. This will help maintain a healthy loan-to-value ratio and ensure that you dont pay significantly more for your purchase over time than if youd paid in cash.

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Best For Bad Credit: Southeast Financial

Southeast Financial

For borrowers with bad credit, Southwest Financial is a good choice for a boat loan. This lender has no minimum credit score requirements, and loans are available even for borrowers with past bankruptcies.

• No minimum credit score requirement

• Discharged bankruptcies okay

• Rates starting at 4.49% APR

• Not available in Alaska or Hawaii

• $20,000 minimum loan

• High debt ratios may be a limiting factor

With a history dating back to 1936, Southeast Financial has been providing loans and other financial products to customers across the country for over 80 years. When it comes to boat loans, though, Southeast Financial excels at connecting borrowers with poor credit to lenders willing to finance their purchase.

Through Southeast Financial, subprime borrowers can access boat loans ranging from $20,000 all the way up to $4 million, with no published credit score minimum. Borrowers with low credit scores or high debt ratios may not qualify for the best possible rates, but loans are available even to those with past bankruptcies.

New and used boat loans are not available in Alaska or Hawaii, and borrowers are only allowed to finance their purchase if the boat is intended for recreational useno full-timers or liveaboards allowed. Repayment terms may vary according to the loan amount but are available all the way up to 15 years.