Boat Financing For Bad Credit

How To Get A Boat Loan

To get boat financing directly from a lender, youll need to apply for a loan. Most loan applications are online and require you to submit personal information like your name, address, contact information and Social Security number. You may also need to submit proof of identity, employment and income.

If youre applying for a secured loan, youll want to have information about the boat on hand, including the builder or manufacturer, model, model year and purchase price.

Once you submit your application, youll wait for an approval decision. If youre approved, you may need to visit the bank or credit union to close the loan and receive funds. Unsecured personal loans, especially from an online lender, can typically be closed online and funded the same or next business day.

Are The Types Of Boat Restricted For Boat Loans With Bad Credit

Each application for this category of finances is assessed on individual circumstances. Conditions are typically attached to this type of lending by individual lenders based primarily on aspects of the payment history and financial history. The vessel being purchased will also be considered as part of the application approval process. The consideration may be focussed on the age and condition of the craft and the amount of lending. This type of loan can be applied for all types of watercraft but individual lenders may have guidelines around the ratio of the price or value of the goods to the finance amount being requested. Individual lenders may limit how much they will extend to this category of applicant. If 100% of the purchase price is requested, a lender may require that percentage to be reduced.

Buying A Boat What Could Be More Exciting

But if you dont have the cash on hand to buy your boat outright, your dreams of smooth sailing could run aground unless you can secure financing.

Boat dealers and manufacturers often provide financing, but you should research and consider all of your borrowing options before setting sail. The more you know about your options, the easier it may be to pick a loan with the best terms.

Read on to learn about a few options to get a loan for a boat, and the benefits and drawbacks of each.

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Best Overall: Bank Of The West

Bank of the West

Bank of the West is our top overall pick for a boat loan. The lender features low rates, flexible loan amounts, and widespread availability, making it a great choice for borrowers with good credit looking to purchase a boat.

• Loans up to $5 million

• Repayment terms between One and seven years

• Available in all 50 states

• Full-time and liveaboard accepted

• Fees can be rolled into loan

• Rates as low as 3.74% APR

• No cosigners allowed

Bank of the West is arguably one of the most popular watercraft lenders. Founded in 1874, Bank of the West, also known as Essex Credit, operates and provides loans to creditworthy borrowers in all 50 states. Boat loans through Bank of the West can range from $10,000 all the way up to $5 million, with repayment terms from four to 20 years depending on the loan amount.

While the wide range of loan amounts and repayment terms is great, this lender wins our best overall spot because of the types of boats it accepts. Bank of the West offers to finance for boat model year 2001 or newer. Allowed boats include standard and custom power, sailboats, multi-hull boats, pontoon boats, electric boats, high-performance boats, houseboats, and wood hull boats. One of Essexs few exceptions is boats capable of speeds of 99 mph or higher.

Try Peer To Peer Lending

Borrowers who are looking to quickly buy their next boat may find that boat financing approvals may take aggravatingly long. As discussed earlier, there is a better boat financing option for them, from peer to peer lending sites. Boat owners all over the country have enjoyed the benefits of social lending, especially because of the lack of restrictions on use, as well as the attractively low interest rates. Using these unsecured personal loans when buying a boat can help borrowers achieve the life they want right away.

As with any major purchase, borrowers are of course encouraged to first review their financial situation before applying for boat loans .

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Benefits Of Recfis Boat Loan Program:

• Financing for boats up to 30 years old

• We work with self-employed borrowers who have a tough time proving income

• Buy down to a 580-credit score*

• Loans up to $200,000

• Terms up to 180 Months**

• Generous advances and back-end product allowance

• Fixed contracts with no pre-payment penalties

• Unparalleled customer service from seasoned professionals

*All loans are subject to credit approval and are not guaranteed approval at over a 580 score.

**Tier 3 and above.

Best Commercial Loan: Coastal Financial

Coastal Financial

Coastal Financial is our top pick for commercial boat loans because it offers a quick application process, fast funding, and finances new and used boats as well as charter boats. The company will also take care of setting up charter management and boat insurance on your behalf.

The lender offers boat loans from $5,000 to $5 million and approvals take less than 24 hours. You can apply online or over the phone.

Once the borrower and vessel are approved for a charter loan, you put the boat in your companys LLC, and you can enter it into a charter program. You can choose how often you want the boat chartered, and when you want to use it, and the company will handle the rest.

Coastal Financial has mostly positive customer reviews with customers appreciating the marine industry knowledge, easy application process, and fast funding times.

Coastal Financial, headquartered in Virginia Beach, Virginia, offers a quick application process and fast funding with some approvals taking less than 24 hours. The company finances new and used boats, as well as charter boats. Coastal also offers refinancing and RV loans.

It offers boat loans from $5,000 to $5 million and approvals take less than 24 hours. You can apply online or over the phone.

• Offers boat insurance and charter management

• You have to contact the company for borrower requirements

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Tips When Applying For Used Boat Loans

Regardless of where and how you obtain a loan to pay for your used boat purchase, it is important to shop around. You want to choose a loan that has the most favorable terms for you despite your credit situation. Here are a few tips to keep in mind when applying for a used boat loan.

• Know your credit score Your credit score will determine your options when it comes to financing your purchase. By knowing your credit score, you know where you stand financially and what your options are. Make sure there are no errors on your report that could hurt your score and your ability to get a loan at a more favorable interest rate.
• Pay off other debts If you have other pending debts, it might be a good idea to pay those off first before getting a new loan for used boat purchase. This will help you maintain a healthy debt-to-income ratio that will increase your chances of getting approved for your loan application.
• Get prequalified Save yourself the effort and time. Make sure you are prequalified for a used boat loan. This will not necessarily guarantee that you can get approved for the loan however, you will know what else you need to improve your chances of approval. It will also help you determine the best financing terms for your intended purpose.

What Is The Best Way To Buy A Boat

Generally, it is best to save up money for a boat before taking on the purchase. However, taking out a loan to cover the expense makes sense if you do not have the cash up front, but are confident youll be able to pay it off quickly. Personal secured and unsecured loans tend to be the best option since there are basically no restrictions on how you use the funds. If youre a homeowner, you could also consider a home equity loan or line of credit. These loans tend to have lower rates, but you will be at risk of losing your home if you do not make payments.

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The Best Boat Loans Of July 2022

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Bad Credit Boat Loans For Australian Borrowers

Lots of people run into problems with credit. Life doesnt always go to plan, and when that happens, your finances are usually one of the first things to suffer but a run of bad luck or bad planning doesnt mean youre dead in the water. Bad credit boat loans are a convenient way to access a boat and rebuild your credit reputation while you repay.

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Get Prequalifed Before You Start Boat Shopping

The process of buying a boat may go more smoothly if you already have an idea of how youre financing the purchase. As is the case with other loan types, you may be able to apply for prequalification for a boat loan or personal loan. And since prequalification typically only requires a soft credit check, it shouldnt hurt your credit scores.

Getting prequalified with several lenders may make it easier to pick the one with the best terms. It can also help you determine if the financing terms the boat dealer offers are competitive.

Personal Loans You Can Use To Buy A Boat

Getting a personal loan to buy a boat has its pros and cons. But it is one of the most versatile financing options if you have bad credit and may be your best choice, depending on your needs.

A personal loan will typically have higher APRs than those for boat-specific loans. And its unlikely borrowers with bad credit will receive a personal boat loan amount large enough for high-priced vessels. But the following lending networks can help you see which loan options you qualify for, including the loan amount and interest rate, so you can easily compare offers before applying.

As the name implies, 24/7 Lending Group can receive loan applications 24 hours a day, seven days a week, all year-round. Lenders on the site provide cash in less than 24 hours, and the site works with lenders to approve almost any type of bad credit. Those who apply may receive a free, no-obligation quote for a loan as small as $500 or as big as $35,000.

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The Best Boat Loans Of September 2022

• Frequently asked questions

Insider’s experts choose the best products and services to help make smart decisions with your money . In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, but our reporting and recommendations are always independent and objective.

The best boat loan depends on your budget, the type of boat you’re buying, 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.

Can You Get A Boat Loan On An Old Boat

Getting approved for a boat loan on an older watercraft can be tricky, but it is certainly possible. Some lenders will offer used and refi loans on boats as old as 19 years. If the boat is of high value, you may even find lenders willing to finance a watercraft as old as 25 or 30 years.

Expect that interest rates for old boat loans may be higher than those for newer boats, and you may even encounter higher down payment requirements.

If youre unable to find a lender willing to finance your old boat purchase, consider taking out a personal loan instead.

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Apply To Several Lenders

Because bad credit boat loans have higher interest rates, its important to shop around so you can get the lowest. It doesnt hurt your credit score to apply to multiple lenders any more than it does to apply to one if you do all applications within 14 days. Once you have the loan offers, ask the dealership to beat the lowest rate you got.

Bad Credit Boat Loan Terms

• Loan Terms up to 15 years
• Simple Interest Financing with No Pre-Payment Penalty
• Standard Fixed Rate & Short Term Fixed Programs
• Interest rates vary from 9.95 17.99%

Before you apply please review the following to ensure you meet the following minimum qualifications:

1. Loan Qualifications:

• Boats May Not Be Older than 15 Years
• Units That Do Not Qualify: High Performance Boats, Commercial Vessels, & Houseboats

2. Credit Profile Parameters:

• If you are not sure what your current credit score is, click to obtain a copy of your credit report.

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Best For Bad Credit: Southeast Financial

Southeast Financial

For borrowers with bad credit, Southeast 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 3.74% 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 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 for up to 15 years.

Apply For Bad Credit Boat Loans Online

There is an undeniable appeal to boat ownership, and for those with a love of the water, that appeal has an almost mystical quality not found with other recreational vehicles.

While purchasing a boat adds a whole new layer of commitment and responsibility for the owner, if properly maintained and put to good use, a boats emotional value can far exceed the cost.

As mentioned before, the loan amounts, rates, and terms boat loan lenders offer can vary dramatically based on the type of boat being purchased, whether its a fishing boat, a speed boat, or even a yacht.

But if you have a bad credit history and choose the appropriate finance option, theres bound to be a sea vessel thats right for you.

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How We Chose The Best Boat Loans

We researched more than a dozen boat loans before choosing the top six. We reviewed the boat loans based on the types of loans they offer, loan terms, borrower qualifications, total costs, and types of boats they finance. We also considered the companys reputation and customer reviews.

All of our choices had affordable rates, reasonable terms, and are available to a variety of buyers. They also offer financing for multiple types of boats and have good customer reviews.

Secured Boat Loans From Banks

Youre more likely to find secured loans from banks. Banks may offer perks to existing customers, like discounts and favorable loan terms. If your bank offers boat loans, its a good place to start.

Bank of the West

Bank of the West offers boat loans in all 50 states, but not in Washington, D.C. You can submit your application online. You’ll then be assigned a sales representative who will work with you to close the loan.

Loan amount: $10,000 to $5 million.

Rates: 4.24% to 10.49%.

» MORE: Read NerdWallets Bank of the West review

U.S. Bank

U.S. Banks boat loans are available in the 25 states where the bank has branches. You may have to visit a branch to close a boat loan, but the bank says it can make same-day preapproval decisions.

Loan amounts: $25,000 to $150,000.

Rates: Starting at 5.24%.

» MORE: Read NerdWallets U.S. Bank personal loan review

USAA

USAA works primarily with military members and their families. Though you can apply online, you must call USAA to complete your application.

Loan amounts: $5,000 to $500,000.

Rates: Starting at 6.20%.

» MORE:Read NerdWallets USAA Bank personal loan review

Truist

Truist Bank has locations primarily along the East Coast, and existing account holders can apply by phone. Those without accounts will need to apply in person.

Loan amounts: Starting at $3,500.

Rates: 6.30% to 8.52%.

» MORE:Read NerdWallets Truist Bank personal loan review

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