You can get an RV loan through a traditional lender, a bank or credit union, or an online lender. Some RV dealers have arrangements with lenders to offer their own financing. It’s often best to shop around, however. You can find better terms and lower interest rates elsewhere, especially if you have excellent credit.
If you have a great credit score, you’re likely to qualify for the most competitive RV loan products and terms. Lenders will typically offer the lowest rates to borrowers with scores in or above the mid-700s. You can improve your credit score before applying by paying bills on time, keeping credit card balances low and managing debt responsibly.
The size of your down payment can also play a role in the type of RV loan you’ll qualify for. Many lenders require a minimum down payment of 10 to 20 percent of the purchase price of the RV. A larger down payment can reduce the amount of money you need to borrow and help you get approved for a loan with a lower rate.
It’s possible to obtain an RV loan with bad credit, but the process will be more difficult. In addition to considering your creditworthiness, lenders will likely look at other aspects of your financial profile, including your income, the amount of debt you have and your employment history. It’s also important to take into account the value of your RV, as it will depreciate over time, meaning you may eventually owe more than it is worth. That’s why it’s a good idea to save for a substantial down payment, and also to choose a shorter repayment term, if possible.