There are many reasons why people buy RVs. Some people purchase RVs as a way to have a ready vehicle for recreational activities, while others buy RVs to be able to enjoy their retirement fully. There are even people who purchase RVs as their main living accommodations! Whichever reason you have to buy an RV, you need to find the best banks for RV loan application.
The reason for this is that an RV is not a cheap purchase. On the low end, RVs will cost around $10,000, but high-end models with all the fixtures and features can cost up to $300,000! The cost that purchasing an RV will entail will be made lighter with the help of a bank loan. Thus, we have compiled the 5 best banks where you can apply for an RV Loan.
Best Banks for RV Loans Reviews
U.S. Bank
U.S. Bank is the best choice for those looking to secure a loan for their RV through traditional banks. With more than 3000 branches in the USA, primarily in the Western and Midwestern United States, first-time and repeat owners can easily find a branch to help them with their RV loan needs.
U.S. Bank offers a highly competitive rate without needing any additional financing from your chosen dealership. Borrowers must have a U.S Bank personal savings or checking account and can qualify for the lowest rate of 6.4% by applying for a loan of $25,000 that’s repayable in 48 months or less. However, U.S. Bank offers loans up to $150,000 with same-day approval available for qualified applicants. If you want to secure your RV loan from one of their partner dealerships, U.S. Bank offers loans amounts from $10,000 to $500,000 and up to 20 years for repayment. However, the bank will require a 10% down payment if the loan is made through dealership financing.
If you don’t have a U.S. Bank branch near you, you can apply for an RV loan online, however if you are qualified for a loan, you must visit a branch personally to complete your application.
U.S Bank does not charge an origination fee for loans. An origination fee is a fee charged by lenders to cover the cost of your loan. If you autopay your loan from your U.S. Bank account, you can get a discount.
While they don’t have an origination fee, they have a handful of other fees, such as their late fee ($29 after 5-day grace period), unsuccessful payment fee ($25), and a prepayment fee (1% of loan amount if loan is paid off within first 12 months after application). This means that you will not be able to pay off your loan early to save money.
Bank of the West
Bank of the West offers financing terms of both new and used RV loans. With more than 600 branches in the Western and Midwestern United States, borrowers will easily find a Bank of the West that can help them with their RV loan financing needs.
If you’re looking to buying a used RV to save some money, Bank of the West offers a variety of financing options for used RVs. With a little bit of research and luck, you can purchase an RV that’s made in 2008 or later with great financing terms. However, the mileage of the RVs are limited to 60,000 for gas models and 100,000 for diesel models. A representative from Bank of the West must also personally inspect the vehicle to ensure that the RV is qualified for the loan.
Bank of the West also offers loans for new RVs ranging from $5000 up to $300,000. What’s more, they also offer APRs as low as 6.25% for applicants who have great credit and opt for their autopay option. The autopay option also offers a discount of 0.25% per payment!
Even if you don’t have a Bank of the West branch near you, you can complete your RV loan application online or by phone. They also offer early loan repayment without any penalties.
Bank of the West does not offer pre-approval for their loans, and they have a strict criterion to see who can qualify for their RV loans. If you are applying for a used RV loan, you may not be allowed to use the RV as collateral against the loan.
SunTrust Bank
SunTrust Bank operates around 1,400 branches in Washington, D.C. and various Southeastern states. It offers a wide range of variable rate options for RV loans, allowing you to find the best deal according to your budget and preferred repayment plan.
Among all of the banks on this list, SunTrust Bank offers the lowest RV loan rate possible at an APR of 3.99%. The loan is repayable in 20 years with the 3.99% rate fixed for the first three years. After three years, the loan APR transitions to Wall Street Journal prime rate with an additional 0.50%. The loan also has a prepayment penalty of 1.50% during the first 12 months. This means that you will be able to enjoy the low interest rate for two years, along with an option to pay off the loan early. However, the loan is only applicable for amounts ranging from $100,000 to $1.5 million, making it inaccessible for those who are looking for smaller loan amounts.
If the terms of the low-rate loan are not suitable for you, SunTrust Bank does offer fixed-rate loans ranging from $50,000 and above. However, applying for a fixed-rate loan means that you would need to give a down payment ranging from 15-20% of the total amount.
If you’re looking to purchase a high-end RV and you have a stable cash flow, their variable-rate loan is a great option because it saves you money, especially if you are able to pay off the loan within the first three years.
If you’re looking for a loan that’s $5000 to $100,000, you can apply for their LightStream RV Loan program, which can be done online.
For those who apply for the LightStream RV Loan program, the loan is unsecured, which means that you will need to pay a higher interest rate, and you will not be qualified for the program if you have a bad credit history.
Wells Fargo
Wells Fargo is one of the biggest financial institutions in the United States and offers RV loans for first-time and repeat borrowers. With branches all over the USA, you can easily find a Wells Fargo bank near you to take care of your RV loan needs.
Wells Fargo provides secure RV loans for up to $100,000 and can complete the whole loan application process in 1-2 days. If you are a Wells Fargo customer, you can set up your checking account to allow for automatic payments and avail of a discount on your loan. However, you can still apply for an RV loan without being a long-term Wells Fargo customer. However, if you are a first-time borrower with Wells Fargo, you must have a good credit score, stable income flow, and low debt-to-income ratio.
Long-time Wells Fargo customers can apply for RV loans through the bank website or over the phone, but first-time borrows must visit a Wells Fargo branch in person to apply. Luckily, there are over 5000 branches in the USA.
Just as with U.S. Bank, Wells Fargo does not apply origination fees or out-of-pocket costs when you apply for an RV loan.
The Bad
If you apply for a Wells Fargo loan, you will be subjected to a hard credit check. If you have a negative credit check, it could affect your credit score and make it harder for you to apply for future loans.
5 Things You Should Know About Getting an RV Loan
Here are five things that you should know before you take the plunge and apply for an RV loan:
- The RV might be used as collateral – If you are getting a secured loan, the bank might require that you use the RV itself as the collateral for the loan. This means that if you are unable to repay the loan on time, the bank can repossess the RV after the loan is defaulted. If you get an unsecured loan, you will not have to put up the RV as collateral, however, you will be incurring higher interest rates and you will be required to have a good credit score before the bank will accept your loan application.
- Compare loan terms from different banks before choosing – Banks will have different terms when it comes to their RV loans and it is in your best interest to do your homework before applying to any bank. Research and compare loan terms for each bank to find out which ones offer the best deals for you.
- Getting an RV Loan approved can be a challenge – Think of getting an RV loan like getting a mortgage for your home: you need to have a good credit score, low debt-to-income ratio, and prove that you are financially capable before you are approved for the loan. If you have a bad credit history, you might find it difficult to apply for an RV loan. While some banks do allow borrowers with bad credit history or without existing bank accounts to apply for an RV loan, they typically ask for a large down payment as well as high interest rates. They might even ask for other collateral, such as other property or vehicles that you own.
- Always Consider the Interest Rate – Some banks offer attractive-looking low rates to entice borrowers, but you should be careful and check it against the repayment period. Typically, lower interest rates mean that longer repayment periods, which can result in you paying more money compared to a higher interest rate with short repayment times. What’s more, some banks even have penalties against early payments to lock you into the long repayment period.
- Your Loan Could End Up More Than the Worth of the RV – Another trick used by banks is asking for little to no down payment on your RV loan. While this means that you won’t be putting up a large amount upfront, this might translate to you eventually paying more than what the RV is worth. Always consider how much the market value of the RV is compared to the final amount that you will be paying through the loan. If you plan to sell off the RV in the future, you might end up losing money because of steep loan rates.
Conclusion
When looking for the best banks for RV loan terms, always consider your budget and what you need from the loan to make it comfortable and advantageous to you. If you have a big budget to work with and you’re confident that you can pay off your loan within the first three years, SunTrust is your best option. However, if you’re looking for the best rates for a used RV, Bank of the West has the best used RV loan rates.Get more tips on RV loans.
FAQs
What is a good interest rate for an RV loan? ›
The best RV loan interest rates currently start around 4.49 percent for borrowers with excellent credit. However, the actual rate you receive depends on factors such as your credit score, debt-to-income ratio and annual income.
What FICO score is used for RV loans? ›The RV financing industry-standard ranges from about 660 to 700 FICO score, but there is a possibility your search for “RV financing with 650 credit score” can be fruitful because there is financing available for credit scores in the 500 to 600 range.
Can I get an RV loan from my bank? ›You can also obtain an RV loan through a financial institution, such as your bank or credit union. If you go this route, you can get preapproved to borrow a certain amount before you head to the dealership.
Can I get a RV loan with a 600 credit score? ›If your credit score is at least 600, you may be able to score a peer-to-peer loan, in which you borrow from other people rather than an organization. Like personal loans, however, you may run into high fees and high interest rates.
Can a RV be a tax write off? ›Is an RV a Tax Write-Off? Yes, your RV can be a tax write-off, no matter how long you've owned it. New and used RVs are both eligible for tax deductions in many states. If your RV is your home, certain deductions may also apply.
How long does it take to get approved for an RV loan? ›Once you apply for an RV loan, it can take 24 to 48 hours or more to get a decision. Plus, the dealer needs time to get the RV ready for you. The whole process can take a week or longer. Also, you should also expect to pay a financing fee, which may range from $100 to $500, depending on the lender.
What is a good credit score to buy a RV? ›Good Credit Score
A credit score around 700 or higher will make it easier and faster for you to get an RV loan. If you have such a high score, lenders are likely to perceive you as low credit risk. Thus, you will get better and lower rates for your loan.
Qualifying for an RV loan can be a challenge
Securing financing for an RV could be more difficult than getting approved for a car loan. In fact, depending on the length of your loan term and the amount you're borrowing, qualifying for an RV loan could be similar to qualifying for a home mortgage.
Fair credit scores fall at the lower end of the credit-scoring spectrum. For FICO, they generally range from the upper 500s to the mid-600s. Fair VantageScore® credit scores fall in the low- to mid-600s.
Is it easier to get an RV loan or a personal loan? ›Because RVs are considered luxury vehicles, the process to get funding tends to be more complicated compared to regular personal loans. Additionally, repayment terms typically range from one to 15 years — longer than most personal loans.
How long will a bank finance an RV? ›
On average, RV loans range from 10-15 years, but many banks, credit unions and other finance companies will extend the term up to 20 years for loans of $50,000 or more on qualified collateral. Get a loan term up to 15 years¹ (180 months) for fixed RV loans with Mountain America Credit Union.
What kind of loan do I need to buy an RV? ›“An RV loan is typically a simple interest loan, similar to an auto loan, generally with longer terms,” Greene says. Typically, RV loans offer repayment terms of one to 15 years, but some lenders may even offer repayment timelines of as long as 20 years.
How big of a loan can I get with a 600 credit score? ›You can borrow anywhere from a few thousand dollars to $100,000+ with a 600 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
How to finance an RV over 10 years old? ›...
Negotiate the RV's Price
- Free maintenance options.
- Longer warranty periods.
- Their length of time in business.
- Being willing to wait until the market softens.
Brand-new RVs start losing value as soon as they're driven off the lot and continue to lose value throughout the first year rapidly. The RV depreciation rate increases at a steady rate after that until your RV hits double digits in age. Once an RV is ten years old or older, its value drops more rapidly.
Should I leave my RV plugged in when not in use? ›Again, the short answer about keeping your RV plugged in all the time is – no. The risks include battery damage from overcharging and frozen refrigerator coils, as most RV refrigerators need to be periodically cycled off and thawed.
How often should RV tires be replaced? ›The common rule of thumb for changing your RV tires is anywhere between three and six years. If you are on the road often, and you think your tires need to be changed, then it may not be possible to last as long as six years.
Does Bank of America finance RVs? ›Through its Dealer Financial Services unit, Bank of America provides retail loan financing and the full range of commercial banking services to dealers in the automobile, recreational vehicle, and marine industries across the United States.
Do you need good credit for RV loan? ›In order to qualify for the best RV loan rates, you should aim for a credit score of around 700 or higher. Of course, there are many lenders who also offer RV loans to those with bad credit.
Is it smart to finance an RV? ›Financing allows nearly anyone with a decent credit score and a saved-up down payment to purchase the RV of their dreams. You can set a monthly payment that's well within your budget so that you can confidently pay off your RV over a period of months or years, rather than having to have all the money for it at once.
What is the best month to buy a RV? ›
On average, motorhomes and travel trailers are at their cheapest at the end of the year. You can also benefit from good deals in the neighboring months of November and February — after the high season ends and before the next spring season starts up.
Can I get an RV loan with a 700 credit score? ›Many sources say that the lowest credit score range at which to qualify for an RV loan is around 650-660. Ideally, your credit score should be closer to (or over) 700. Such a score demonstrates strong creditworthiness, usually through a consistent payment history and low balance utilization.
Is it better to buy RV or finance? ›If you are considering purchasing a camper and are more patient than wealthy, save for it. A $10,000 loan financed for 5 years at 4% interest would have payment of about $185 per month. If you saved that same $185 you would be able to pay cash in 54 months (4 1/2 years) and save yourself over $1000 in interest.
What raises credit score? ›Factors that contribute to a higher credit score include a history of on-time payments, low balances on your credit cards, a mix of different credit card and loan accounts, older credit accounts, and minimal inquiries for new credit.
Is the RV craze over? ›The RVIA sees this decline as a return to normal market trends, which it expects to carry over in 2023. As 2022 draws to a close, RV prices are declining across all classes but one. Class B motorhomes are still very in high demand, perhaps in response to high fuel prices.
Can you have a 900 credit score? ›Depending on the type of scoring model, a 900 credit score is possible. While the most common FICO and VantageScore models only go up to 850, the FICO Auto Score and FICO Bankcard Score models range from 250 to 900.
What is the most reliable FICO score? ›The most accurate credit scores are the latest versions of the FICO Score and VantageScore credit-scoring models: FICO Score 8 and VantageScore 3.0. It is important to check a reputable, accurate credit score because there are more than 1,000 different types of credit scores floating around.
What is a good FICO score by age? ›| Credit Score Tier | Average Age |
|---|---|
| Excellent (800-850) | 56 |
| Good (670-739) | 49 |
| Fair/Limited (580-669) | 47 |
| Bad (300-579) | 42 |
Most lenders that offer recreational financing will require that your debt to income ratio be less than 40%. You can calculate your DTI ratio by totaling up your monthly recurring debts (total of all of your monthly payments for installment loans and revolving loans), then divide that number by your monthly income.
Is it better to pay off an RV loan early? ›A critical thing to remember is that while a longer loan term will have smaller monthly payments, you will ultimately pay more money in the long run due to interest rates. If you can afford to, having a shorter loan term will be better for paying off your RV with less money.
How much is a downpayment on an RV? ›
Most RV companies require a down payment of at least 10 percent of the purchase price, and many prefer 20 percent down. A larger down payment will help lower your monthly payments, and you may even qualify for a lower interest rate.
Can you claim an RV as a primary residence? ›Declaring your main home
Your main home is the one where you ordinarily live most of the year. This can be a boat or RV even if it doesn't have a permanent location. As long as it contains the required facilities, you can claim it as your main home on your taxes.
WalletHub, Financial Company
Yes, it's possible to make a car down payment with a credit card but it depends on your dealer's policy. Some dealers don't accept plastic, because the transaction fees eat away at their profit margins. Others accept credit cards but charge a fee for the transaction.
Yes, you can, but you'll need to apply for specific cards that accept applicants with low credit scores.
How many points does a loan affect credit score? ›Whenever you apply for a personal loan, lenders will make a hard inquiry into your credit history, which can drop your credit score by about five points. But don't let that stop you from shopping for the best interest rate and loan terms.
Can I get a loan with a 571 credit score? ›Credit Rating: 571 is considered a bad credit score. Borrowing Options: Most borrowing options are available, but the terms are unlikely to be attractive. For example, you could borrow a small amount with certain unsecured credit cards or a personal loan for damaged credit, but the interest rate is likely to be high.
What is the RV 10 year rule? ›The ten-year rule at RV parks. “The Ten Year Rule” is a code that's enforced at many upscale RV parks around the country. The rule implies that RVs older than 10 years are too weathered and worn and should be prohibited. The rule is often enforced regardless of how pristine the RV actually is.
What is the average age of an RV owner? ›34% are between the ages of 18 – 54 and 66% are 55+.
How long does the average RV owner keep their RV? ›The short answer is that the average lifespan of an RV is around 20 years or 200,000 miles, whichever comes first. But the answer isn't quite that simple. That number can vary depending on the class of your motorhome, how well you take care of it, and a few other factors.
Can I buy an RV with a 580 credit score? ›A score of 670 or better is typically required to qualify for an RV loan. A better score increases your chances of being approved for a loan. However, some lenders will approve you for a loan with just a 550 score.
What FICO version do auto lenders use? ›
However, many auto lenders still use FICO® Auto Score 2, FICO® Auto Score 4, FICO® Auto Score 5, and FICO® Auto Score 8.
What is the maximum RV loan term? ›How long is an RV loan term? The loan term and details for financing a new or used RV or camper are very similar. On average, RV loans range from 10-15 years, but many banks, credit unions and other finance companies will extend the term up to 20 years for loans of $50,000 or more on qualified collateral.
What is the lowest credit score to buy a RV? ›Many sources say that the lowest credit score range at which to qualify for an RV loan is around 650-660. Ideally, your credit score should be closer to (or over) 700. Such a score demonstrates strong creditworthiness, usually through a consistent payment history and low balance utilization.
How much of a house loan can I get with a 580 credit score? ›You can borrow anywhere from a few thousand dollars to $100,000+ with a 580 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
What is a good FICO score 8? ›Consequently, when lenders check your FICO credit score, whether based on credit report data from Equifax, Experian, or TransUnion, they will likely use the FICO 8 scoring model. FICO 8 scores range between 300 and 850. A FICO score of at least 700 is considered a good score.
Is FICO auto score higher than FICO? ›An auto loan FICO score specifically measures your ability to pay back auto loans. The basic FICO and auto loan FICO scores use different credit scoring models. The base FICO score ranges from 300 to 850, but FICO auto scores range from 250 to 900.
What is the most accurate FICO? ›The most accurate credit scores are the latest versions of the FICO Score and VantageScore credit-scoring models: FICO Score 8 and VantageScore 3.0. It is important to check a reputable, accurate credit score because there are more than 1,000 different types of credit scores floating around.