A few years ago, it was much easier to win approval for a boat loan lenders were eager to write boat loans, and new and used boat sales were steady. That changed, naturally, with the collapse of the credit markets.
These days, banks and other marine lenders want to see stellar credit scores before lending money on a boat, and boat loan approval success will depend much more upon your credit score and your overall financial track record than before.
In addition, those same lenders have tightened their criteria for acceptable boats on which to write loans, making boat financing for older boats much more difficult.
However, it's not impossible to obtain boat financing, even with questionable or bad credit. But it will require cleaning up your credit score as much as possible, and you'll likely need to speak to several lenders before you find one willing to consider the loan.
Banks Want Credit Score of 620+ for 'Prime' Boat Financing
In general, banks and other marine financing companies want to see a credit score higher than 620 to make a boat loan, according to the website eboatloans.com.
That doesn't mean it's impossible to find boat financing with a credit score of less than 620; it simply means that you won't be eligible for a prime interest rate and may need to seek out a lender specializing in sub-prime marine loans.
Therefore, if you know you want to buy a new or used boat, you should plan ahead and clean up your credit report as much as possible to raise your score, especially if you fall in the borderline zone around or just below 620.
Bad Credit Boat Loans Offered, But Terms Won't Be Ideal
If it's impossible to bring your credit score above 620 before you want to purchase your boat, you may still qualify for a boat loan some marine lenders make loans to people with a credit score as low as 525.
However, those borrowers will face higher interest rates and tougher terms.
For example, many boat loans in prime programs run for 15 to 20 years, and boat financing companies are willing to lend $100,000 or more. However, bad credit boat loans may MOJAFARMA Blog run for only 10 to 12 years, and boat financing companies may limit the amount to $50,000 or $60,000.
Older Boats May Not Qualify for Subprime Boat Loans
In order to obtain one of these bad credit boat loans, you may need to pay down other debts first, and you may need http://www.MOJAFARMA.com href="https://www.fundera.com/">https://www.fundera.com/ to choose a boat that's no more than five or 10 years old. Some specific types of boats, such as personal watercraft and high-performance powerboats, also may not qualify.
Since marine lenders have different restrictions and different programs, it pays to shop around, even if you find one that seems to be a good fit.
Despite the fact that credit has gotten much tighter, it's still possible to find a boat loan to suit almost any credit history. However, the key to bad credit boat loan success is to plan ahead and talk to a variety of different marine lenders that will maximize your chances of obtaining a boat loan, even with subprime credit.