Having bad credit can make it tough to get approved for loans, including RV loans for bad credit. However, there are still options available if you know where to look and how to improve your chances. In this guide, we’ll cover everything you need to know about securing RV financing with bad credit, from understanding credit score requirements to exploring alternative lending options.
The minimum credit score needed to qualify for an RV loan can vary depending on the lender, but generally falls within these ranges:
Most mainstream banks and RV lenders for bad credit borrowers have a minimum credit score requirement around 600-650. Scores below that are considered high-risk.
Even if you can find a lender willing to work with you despite bad credit, expect the loan terms to be less favorable than someone with an excellent credit rating. Here are some common impacts:
| Loan Factor | Impact of Bad Credit |
|---|---|
| Interest Rate | Higher APRs, potentially in the teens |
| Down Payment | May require 15-20% down or more |
| Loan Amount | May cap loan size, e.g. $50,000 max |
| Repayment Term | Shorter terms like 5-10 years common |
Essentially, bad credit RV loans are considered higher risk for lenders, so they try to mitigate that risk through higher costs and stricter loan criteria. But evaluating these tradeoffs is still better than an outright denial.
While major banks tend to have tougher credit score requirements, there are specialized lenders who cater to bad credit borrowers for RV loans. Some top options include:
These lenders have flexibility to work with bad credit scores in the 500s and 600s, though rates, down payments, and approval criteria may vary. Consider applying with 2-3 options to see which gives you the best deal.
Overcoming bad credit for an RV loan takes some proactive steps. Here are some tips to boost your approval odds:
Taking steps to improve your credit health over 6-12 months can also help tremendously in qualifying for better bad credit RV loan options.
For those struggling to find reasonable RV financing with bad credit, there are some potential alternatives to consider:
In some cases, bad credit may leave you with limited RV financing options - but getting on track to rebuild your credit opens more doors long-term.
With diligent planning and an understanding of the lending landscape for subprime borrowers, getting behind the wheel of your dream RV is still an achievable goal even with bad credit. Explore all your options and make the most informed decision for your financial situation.