Use A Boats Id To Research Its Past
If youre thinking about buying a used boat, Yahoo Voices! points out that every boat has a Hull Identification Number, equivalent to a cars Vehicle Identification Number. Sites such as BoatHistoryReport.com let you use the HIN to learn more about the boat owners and any accident reports.
Are you considering buying a new or used boat? Whats the biggest purchase youve ever made?
Fallen In Love With A Boat Compared With Auto Loans Financing A Boat Can Be A Much Heftier Investment
Boats can be more expensive than a car, which means loan amounts can be higher and terms can be much longer.
Just how much you pay to finance a boat depends on a number of factors, including the type of boat loan you choose, the loan terms, your down payment and your credit.
Lets take a look at the different types of boat loans, your financing options and how to apply for a boat loan.
The Best Boat Loans Of September 2021
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*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.
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.
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Your Current Financial Status And Long
Before you take out a used boat loan, get prequalified. By doing so, youll know exactly how much youll get approved for and have a good idea of the types of used boats you can buy. When you apply, the lender will evaluate your credit score, debt-to-income ratio and net worth. How stable you are in your job and homeownership will play a role in whether you are approved for a used boat loan.
In addition to evaluating your current financial status, youll want to think about your long-term goals before investing in a boat. For example, buying a used boat today may mean you have to work an extra year or two before retiring.
Ways To Obtain Mobile Home Financing
Once you decide on your mobile homes features and where youre going to put it, its time to figure out how to pay for it. There are a few options to consider when financing a mobile home.
For example, its possible to get a loan from the same sources as traditional mortgages, such as FHA and VA loans, as well as specialized manufactured home loans through Fannie Mae and Freddie Mac. These options tend to give you longer repayment terms. But, depending on your situation, you may opt for a nontraditional path with a shorter term. This could include chattel or personal loans.
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Use A Boat Loan Calculator
When you get your boat loan, just what will the payments be? To get a good idea of how the monthly expense for different loans will shake out, use our Boat Loan Calculator.
Of course, there are some other variables that can come into play. Credit scores, debt ratios, and net worth may all be considered by the lender, more or less depending on your personal circumstances and the size and term of the loan. However, there are a few generalities that hold true for the vast majority of boat loans:
- Interest rates generally go down as the loan amount goes up.
- Interest rates generally go down as the term of the loan goes down.
- Higher loan amounts can usually be stretched over longer periods of time. In most cases, boat loans range from four to 20 years.
- Usually, the lender will be basing a boat loan on a 10- to 20-percent down-payment. That said, there are some no-money-down deals out there.
- Often, you can roll the expenses of accessories like electronics, trailers, and even extended warranties into a boat loan. Just be sure to pick out the complete package you want, ahead of time.
- Most lenders will be looking for credit scores of about 700 or higher. You can get a boat loan with a lower credit score, but expect that you may have to pay a penalty in the form of a higher interest rate or a larger down-payment.
What Is The Best Place To Get A Boat Loan
You have two options on how to search for a boat loan: in person at a boat dealership, or online.
If you’re looking to buy a loan from another individual also called a private party purchase searching for an online boat loan is likely your best bet. Online lenders will often allow borrowers to purchase boats from either a private individual or through a dealership. It’s a more flexible option that may open the possibilities to include more affordable, used boats.
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Our Take On Chase Auto Loans: 35 Stars
While Chase auto loans do not have the lowest interest rates we have seen, the company does offer competitive rates. Plus, the Chase Auto Preferred program can make Chase your one-stop shop for finding an auto loan and purchasing a vehicle.
Chase is an established bank with many resources that may be useful for Chase loan customers. While some drivers have reported issues with their Chase auto loans, these represent a small fraction of overall customers.
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Alternatives To Taking A Boat Loan
If you cant afford to buy a boat today, or youre not quite ready to make the commitment, here are some alternatives.
Save up for the purchase. Consider holding off and starting a savings plan toward buying a boat. You may be able to negotiate a cheaper price by paying with cash, and youll avoid paying interest on a loan.
Join a boat club. For a one-time fee and ongoing monthly or annual dues, boat clubs provide access to a fleet of boats for their members and guests.
Consider peer-to-peer rentals. Similar to renting a house on Airbnb, you can temporarily rent a boat through a peer-to-peer rental marketplace, such as Boatsetter or GetMyBoat.
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Applying Online For Boat Loans
When applying for standard boat financing, borrowers have to be prepared. They should be able to provide all the required information during the application process. Lenders use the boat specifications when evaluating the borrowers default rate as well as the potential risk. Compared to traditional bank loans that require information about the type and age of the boat being bought, peer to peer lending does not require the borrower to supply this. However, the borrower can voluntarily give details they want that they believe will increase their chances of getting approved.
Typically, borrowers look for boat financing not just once but during various points in within the buying process. For example, theres financing available for a boat purchase within 60 days of getting approved for a loan. At times, lenders also offer pre-approval application for borrowers who are just starting their search for their new boat, and they plan on buying it within the next 60 to 90 days. One more popular option for boat owners is refinancing their current loan so they get a lower interest rate and better terms.
Regardless of the type of financing the borrower is looking for, the bottom line is they should be prepared with the details of their planned boat purchase.
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Bank Of The West Boat Loans
Types of boats financed: Boats must be model year 2001 or newer to be eligible. Bank of the West specifically says that it finances standard or custom power or sailboats, multi-hull boats, pontoon boats, and electric boats. The lender also offers loans for high-performance boats, houseboats, and wood hull boats. However, it does not finance boats that can exceed 99 miles per hour.
4.29% to 9.99% for both new and used purchases, and 3.59% to 3.94% for live-aboard boats
Loan amounts available: $10,000 and up for new and used boats, $25,000 and up for live-aboard boats. Loans over $2 million are available.
Watch out for: Credit score requirements. Bank of the West states on its site that it lends only to people with credit scores of 700 or higher.
Boat loans through Bank of the West and its lending division, Essex Credit, are a good option for people planning to get a boat loan of $50,000 or above.
A $10,000 boat loan with Bank of the West would have a starting interest rate of 8.89%, a $15,000 boat loan would start at 8.39%, and a $50,000 loan starts at 4.29%. While their rates for loan amounts over $50,000 are competitive, anyone looking for a smaller loan may find a better rate with LightStream.
It’s worth noting that this lender does have a loan processing fee that could add to your total cost of borrowing. A 10% down payment is also required for loans between $10,000 and $200,000, and percentages increase for higher loan amounts.
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Alternatives To Boat Loans
If you would rather not go the traditional route or your credit is challenged, there are other methods of financing your boat purchase. These include:
Home equity loans or lines of credit. Since these loans are secured by an asset your home you may be able to find competitive rates. At the time of publication, APRs for home equity loans and HELOCs of $25,000 could be found for 6%, slightly higher than the 5.59% APR for the same amount from Essex Credit. However, an advantage of a home equity loan is that rates are typically fixed. Be aware that if youre tapping the equity in your home for a pleasure purchase, be certain that youll be able to repay the debt, or you risk losing your house. Furthermore, you may find yourself paying pricey closing costs and other fees, though some lenders will waive these fees.
A typical home equity loan has terms from five to 15 years, which may be longer than you need for a relatively inexpensive boat. HELOC terms vary but may last up to 20 years. An advantage of a HELOC is that you only pay interest on what you borrow but interest rates may be variable. You can read more about home equity loans versus HELOCs. Remember that good credit is vital here you typically need a FICO score of at least 680 to qualify for either a home equity loan or a HELOC.
How Do Boat Loans Work
Boat loans function similarly to auto loans or mortgage loans that you may have gotten before. Here’s how the process works:
- Find the boat before you start looking for financing. Many lenders ask for information about the boat in the financing application, so you’ll need to know exactly what you want to buy.
You’ll need to have good credit. Most of the lenders we looked at for this roundup required a credit score of 700 or above.
- You may be asked for a marine survey. You may be asked to have a marine survey completed to ensure the boat is in proper functioning order during your purchase process. According to the National Marine Manufacturers Association, the typical marine survey will cost between $20 and $25 per foot. This is most commonly required for people buying a used boat.
Expect to make a down payment. Like with a home or a car loan, you’ll likely need to make a down payment for your boat loan. The percentage requirement varies by lender and the amount you’re financing, but it’s generally between 10% and 20%.
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Best For Bad Credit: 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.
Rules For Getting A Loan From Chase Bank
If you wonder how to get a personal loan from Chase Bank, there are certain instructions given by the representatives of this financial institution.
Applying for a personal loan up to $5.000 is very easy if you deal with Chase.
Apply online on the official website of the bank to contact one of the Credit Managers.
The professional staff will get you through the whole procedure of application and receipt of the loan in your town/city.
Do You Need Cash Today?
Compare multiple Online Personal Loans Up To $3,000 offers in minutes!
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How Much Will It Cost Me To Borrow With Chase
After you apply for a loan, Chase calculates your interest rate based on your credit score, credit history and other factors. Chase then provides a loan estimate that itemizes your loans total cost, including the interest rate, fees, loan terms and other important details. The final cost will depend on your overall creditworthiness and other factors, including your income and current outstanding debt.
Best Boat Loans In : Finance Your Boat
Boat loans can be unsecured or secured by the boat. Compare financing options from online lenders, banks and credit unions.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.
Setting sail on your own boat is a priceless experience. But unless youve saved a lot of cash, youll need a boat loan to make your dreams a reality.
You can get a boat loan from a banks, credit union or online lender. The application process is typically fast, and approval is largely based on your credit score and ability to repay.
Before you jump in, consider that most financial experts don’t recommend personal loans for discretionary purposes, especially if you already carry credit card or other debt. If you take a personal loan, have a plan to pay it off.
Heres how to finance a boat with a personal loan including unsecured and secured loan options where to find boat loans and factors to consider before applying.
Setting sail on your own boat is a priceless experience. But unless youve saved a lot of cash, youll need a boat loan to make your dreams a reality.
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What Could Chase Do Better
Not everyone will qualify for Chases auto loans. The car in question needs to be no older than five years old and have no more than 75,000 miles on the odometer. The vehicle cannot have been declared a total loss by an insurance company or sold for scrap. The loans also do not apply to those using the vehicle for commercial purposes, including rideshare services. Those with poor credit will also likely not qualify for this particular loan.
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.
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