While your credit score is an important part of securing financing for an RV, it’s not the end all be all.
In fact, some lenders don’t even have a minimum credit score.
Below, you’ll learn how to buy an RV with bad credit, covering your best options to finance a new or used recreational vehicle.
Plus, we’ll answer some frequently asked questions from borrowers just like you to help get you in your dream camper – no matter your credit score!
How to Buy an RV With Bad Credit
Buying an RV with bad credit is possible if you explore all of your financing options, get preapproved, find the lowest-priced RV that meets your needs, and put as much money down as you can.
Let’s look at each of these in more detail.
Getting preapproved for an RV loan is important for two reasons:
- It shows that you are serious about purchasing a recreational vehicle.
- It gives you a little more negotiating power, potentially helping you get a better deal on your RV.
Tip: If your financial situation has improved, but your credit score is still bad, you may use that as leverage to get preapproved and secure a loan. Documenting your credit history can help you prove that your financial situation is on the up and up.
Dealer Financing Solutions
RV dealers typically have access to multiple partner lenders, which increases your chances of securing financing, even with poor credit. But, there are pros and cons to using a dealer financing solution.
- Having your dealer secure financing during the buying process is extremely easy and convenient.
- Because they have multiple lender partners, they can typically find a financing solution no matter your credit score.
- If you do your homework and present the dealer with your bank or credit union’s current loan rate, your dealer can shop around using their lender network to try and beat it.
- Dealers will often get kickbacks for referring one of their lender partners, so they may be inclined to offer you financing from a lender with higher rates.
- “Buy Here, Pay Here” dealers typically have higher than normal rates and additional fees.
Find the Best Deal
It goes without saying, but the cheaper the RV or camper is, the easier it will be to acquire financing, especially if you have bad credit.
Once you find a brand or model you like, shop around to find the best deal. Expand your search to dealers outside your local area and use online marketplaces to compare prices. Even the time of year can influence the price of campers (see When Is the Best Time to Buy a Camper for more information).
When it comes time to talk numbers, don’t be afraid to go low. It’s fairly easy to get a couple hundred, even a couple thousand, off the sticker price just by asking.
Related: How to Buy an RV Without Getting Ripped off (10 Insider Tips)
Put More Money Down
While you typically need a 20% down payment on an RV loan, putting more money down, if possible, can help in multiple ways:
- Letting your lender know you can put more than 20% down may increase the chances of you qualifying for the loan, even if your credit score is low.
- It may help you secure a better interest rate.
- Your monthly payments will be cheaper!
Improve Your Credit Score
Your FICO credit score will range from 300 to 850. If you’re on the lower end of that (580 or below is typically considered bad), you can build it up by paying your bills on time, paying down other debts, and waiting for those negative marks (missed payments, etc.) to fall off your report.
Tip: Run your credit report from AnnualCreditReport.com and look for any errors, such as missed payments that negatively affect your score that you didn’t really miss.
How to Find the Best RV Lenders
To find the best RV lender, you’ll want to shop around. Banks, credit unions, online lenders, dealer financing, and alternative financing (personal loans, home equity, etc.) are your main options.
Banks offer in-person service (unlike most online lenders), and if you’re an existing customer, your relationship with them might trump a low credit score when it comes to borrowing money for a motorhome. Plus, many banks offer special interest rates to loyal customers.
Bank Of The West, for example, offers RV financing from $10,000 up to $2,000,000. They do, however, prefer credit scores of 680 or higher.
Like banks, credit unions offer a place to deposit your money and take out loans. But, credit unions are not-for-profit, member-owned institutions. This can mean higher savings rates and lower loan rates!
While not all credit unions offer RV loans, many do! Southeast Financial Credit Union, for example, offers new RV loans for as little as 2.00% APR (at the time of this writing).
Online lenders make it easy to secure financing for your RV purchase anytime from your own home. Plus, the multitude of online lenders will open you up to more options – credit score minimums, loan rates, borrowing amounts, etc. – than you’ll typically find locally.
Not to be confused with Southeast Financial Credit Union above, Southeast Financial (SE) is an online lender that specializes in RV loans for those with bad credit. In fact, you can finance a camper with a 550 credit score and an income as low as $20,000 per year. They even offer loans to those with previous bankruptcies!
Alliant Credit Union
Alliant Credit Union is an online lender that offers a variety of RV financing options to those wanting to vacation or even live in their RV full-time (which not every lender will do). While they don’t post a minimum credit score, they do have a wide array of financing options, competitive rates, and same-day funding.
Lightstream is another popular online lender offering RV loans. They have one of the lowest minimum borrowing amounts I’ve seen from a lender, starting at just $5,000! However, you can only borrow up to $100,000, which may not be a big deal to you.
There are no fees or prepayment penalties, and they offer same-day funding.
RV Dealer Financing
As mentioned above, dealer financing is a quick and convenient option to secure financing for your RV purchase. But, some dealers try to pass on severely inflated rates to line their own pockets, so keep a mindful eye on that.
Camping World, for example, offers RV financing for the campers they sell. They have developed relationships with many banks, credit unions, and other financial institutions to help find a loan option that’s right for you.
Here’s a quick RV financing video from Camping World to help answer any questions you might have.
Alternative RV Financing
Other RV financing options include small personal loans and using the equity in your home.
- Personal loans: You might be able to take a small personal loan even if you have a bad credit score, but be prepared to pay high-interest rates – some as high as 35% – depending on the state you live in.
- Home equity: If you’ve built up enough equity in your home, you could use it as collateral to secure an RV loan. Just make sure you don’t default on a payment, as you could potentially lose your house!
What Is the Minimum Credit Score for an RV Loan?
The minimum credit score for an RV loan is typically 680, but some lenders, Southeast Finacial, for example, will go as low as 550. A higher credit score will improve the chances of securing an RV loan and typically result in lower interest rates, as well.
Do RV Loans Require a Down Payment?
Lenders typically require a down payment of 10 to 20 percent of the purchase price to secure an RV loan. A larger down payment may help secure financing if you have bad credit and can result in a lower interest rate and monthly payments.
What Are Typical RV Loan Terms?
RV loan terms are typically between 10 to 15 years, with some going as long as 20 years. And with rates between 2 to 20% on average, depending on the loan length and the amount borrowed.
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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.What is the lowest credit score to buy a RV? ›
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 buy a camper with a 550 credit score? ›
What credit score is required for an RV loan? 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.Can I finance a camper with a 600 credit score? ›
The minimum credit score to get an RV loan is 600. Credit scores of less than 680 have a maximum RV loan amount of $50,000. With a lower credit score, you should expect a larger down payment or a higher interest rate. Apply for your RV loan today.What is the typical down payment on an RV? ›
3. Save a down payment. 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.What is a good FICO score to buy a RV? ›
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.How much can I get approved for with a 550 credit score? ›
How big of a loan can I get with a 550 credit score? The amount you can qualify for with a credit score of 550 usually depends on the lender. One lender that considers borrowers with a credit score of 550 is Avant. They can lend up to $35,000, and their rates range from 9.95%-35.99%.How to bring up a 550 credit score? ›
- Check your credit report. ...
- Pay your bills on time. ...
- Pay off any collections. ...
- Get caught up on past-due bills. ...
- Keep balances low on your credit cards. ...
- Pay off debt rather than continually transferring it.
16% of all consumers have FICO® Scores in the Very Poor range (300-579).How big of a loan can you get with a 600 credit score? ›
You can borrow anywhere from a few thousand dollars up to about $50,000 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 much of a loan can I get with a 600 credit score? Depending on the lender, you might be able to get a loan for up to $50,000 with a credit score of 600. One way to shop for amounts and rates is to apply using an online platform like Acorn Finance.How accurate is Equifax on Credit Karma? ›
Here's the short answer: The credit scores and reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus.What should I not tell my RV salesman? ›
For example, never tell an RV salesperson that you're new to RVing and are buying your first rig. This may lead the salesperson to try to get you to buy something you don't need. You'll be spending more money than necessary.Why is it so hard to get a loan for an RV? ›
While some lenders offer RV loan programs for borrowers with rocky credit, these lenders will likely look at a number of other factors, such as debt-to-income ratio, employment history and income. Having a lot of debt or a lack of income are among the issues that could prevent you from being approved.How do you justify buying an RV? ›
The first and easiest justification for an RV purchase is that it can save you money in certain situations. Most notably, if you have an RV, you do not need to spend money to rent a hotel room anymore. Instead, you can stay in your RV whenever you travel to a new area, as long as you can drive to it.How many months is the average RV loan? ›
While an RV loan is similar to a car loan, it's different in that the length of the terms are much longer than the terms for a car loan, considering how much more expensive an RV is than a car. Loan terms for an RV loan tend to be 10 to 15 years long (180 months equals 15 years).Do you have to put 20% down on an RV? ›
Most lenders will require you to put at least 10% to 20% down to secure a larger loan on a more expensive RV. However, you can always put down more.How do people afford RVs? ›
People usually get loans to buy an RV through dealers, a bank, or an online lender. These financial products are far more varied than car loans since they can be secured or not. Having a secured loan means that if borrowers do not make their payments, the lender repossesses the motorhome.What is a good debt to income ratio for RV loan? ›
Most RV and marine lenders look for a maximum debt-to-income ratio of approximately 45 percent or less, however some will go as high as 50 percent or more with excellent credit.What is the oldest RV you can finance? ›
Typically, lenders will not finance RVs more than 10-12 years old. However, if you're interested in something a little older, you still have options. A personal loan or credit union can help you get financing for older rigs.
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable rate mortgages (ARMs).Can I get a loan with a 524 credit score? ›
Credit Rating: 524 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 with no credit check, but the interest rate is likely to be high.Will Navy Federal give me a loan with a 550 credit score? ›
A personal loan from Navy Federal is exclusive to Navy Federal Credit Union (NFCU) members who want to get quick cash reasons such as funding big purchases, home improvement and debt consolidation. Since it uses a membership-based structure, it does not have a minimum credit score requirement.How long does it take to go from a 550 credit score to a 700? ›
The time it takes to increase a credit score from 500 to 700 might range from a few months to a few years. Your credit score will increase based on your spending pattern and repayment history. If you do not have a credit card yet, you have a chance to build your credit score.Can my credit score go up 200 points in a month? ›
It may take anywhere from six months to a few years to raise your score by 200 points. As long as you stick to your credit-rebuilding plan and stay patient, you'll be able to increase your credit score before you know it.How can I raise my credit score 50 points fast? ›
- Pay credit card balances strategically.
- Ask for higher credit limits.
- Become an authorized user.
- Pay bills on time.
- Dispute credit report errors.
- Deal with collections accounts.
- Use a secured credit card.
- Get credit for rent and utility payments.
The credit-building journey is different for each person, but prudent money management can get you from a 500 credit score to 700 within 6-18 months. It can take multiple years to go from a 500 credit score to an excellent score, but most loans become available before you reach a 700 credit score.How rare is 900 credit score? ›
Only about 1% of people have a credit score of 850. A 900 credit score can be thought of as fairly unrealistic.Do people get 900 credit score? ›
The credit score range is anywhere between 300 to 900. The higher your score, the better your credit rating. Your credit score helps lenders to assess your credit capacity. The higher your score, the more likely you are to get approved for loans and credit.Why did my credit score go from 552 to 0? ›
Credit scores can drop due to a variety of reasons, including late or missed payments, changes to your credit utilization rate, a change in your credit mix, closing older accounts (which may shorten your length of credit history overall), or applying for new credit accounts.
You will likely need a credit score of 600 or above to qualify for a $5,000 personal loan. Most lenders that offer personal loans of $5,000 or more require bad credit or better for approval, along with enough income to afford the monthly payments.What size loan can I get approved for 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 loan can I get with a 560 credit score? ›
The two types of credit lines that are the easiest to qualify for with a 560 FICO score are credit cards and auto loans.How many months does it take to get a 600 credit score? ›
Whatever your reason for wondering how long it takes to get a credit score, you can generally expect it to take about six months – and usually longer to get into the good-to-exceptional credit score range.Can I get a 40k car with 600 credit score? ›
It's essential to be knowledgeable about how your auto loan process will be different than someone with a higher score. You might not have the same options, but you can still get an auto loan with a 600 credit score.Can I get a $20,000 loan with 650 credit score? ›
You will likely need a credit score of 660 or higher for a $20,000 personal loan. Most lenders that offer personal loans of $20,000 or more require fair credit or better for approval, along with enough income to afford the monthly payments.Which credit score is the hardest? ›
- Poor: 300-579.
- Fair: 580-669.
- Good: 670-739.
- Very good: 740-799.
- Excellent: 800+
No credit score from any one of the credit bureaus is more valuable or more accurate than another. It's possible that a lender may gravitate toward one score over another, but that doesn't necessarily mean that score is better.Is Experian more accurate than Credit Karma? ›
Experian vs. Credit Karma: Which is more accurate for your credit scores? You may be surprised to know that the simple answer is that both are accurate. Read on to find out what's different between the two companies, how they get your credit scores, and why you have more than one credit score to begin with.Can I buy a camper with a 620 credit score? ›
As with any loan product, having good credit usually works in your favor. 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.
A good credit score is generally a FICO score of 670 or better. 32 Many lenders consider a good credit score for an RV loan as one greater than 680 to 700. As with all types of financing, people with better qualifications may benefit from more favorable interest rates, larger loan amounts, and longer repayment terms.What is a subprime RV loan? ›
With that understanding, here are broad definitions of credit score ranges when it comes to RV dealer financing and consumer finance in general: 300-550: Deep subprime (bad credit) 551-660: Subprime (below average credit) 661-780: Prime (average-good credit) 781-850: Super prime (excellent credit)What is the oldest year RV you can finance? ›
Typically, most banks will finance a RV (motorhome or travel trailer) that is 10 years old or newer and in good condition. Some will extend the maximum age to 12 years for well-maintained towables, but very few banks will offer financing for RVs older than 10-12 years.How big of loan can I get with a 620? ›
You can borrow anywhere from a few thousand dollars to $100,000+ with a 620 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 can I apply for with a 620 credit score? ›
|Type of Credit||Do You Qualify?|
|Unsecured Credit Card||YES|
|Home Loan||YES (FHA Loan)|
- Make your payments on time. ...
- Set up autopay or calendar reminders. ...
- Don't open too many accounts at once. ...
- Get credit for paying monthly utility and cell phone bills on time. ...
- Request a credit report and dispute any credit report errors. ...
- Pay attention to your credit utilization rate.
With a 670 credit score you should qualify for a personal loan. However, lenders typically consider additional factors. While a credit score holds the most weight typically, factors such as income, debt-to-income ratio, utilization, and so forth, can also be considered.What is the lowest credit score a borrower can have and still be eligible for an FHA loan? ›
To qualify for an FHA-insured loan, you need a minimum credit score of 580 for a loan with a 3.5% down payment, and a minimum score of 500 with 10% down. However, many FHA lenders require credit scores of at least 620.What is the lowest credit score that will qualify a potential borrower for maximum financing for FHA loans? ›
Generally speaking, to get maximum financing on typical new home purchases, applicants should have a credit score of 580 or better. Those with credit scores between 500 and 579 are, according the FHA guidelines, "limited to 90 percent LTV".Which borrower can only qualify for subprime loan? ›
Subprime mortgages — also known as non-prime mortgages — are for borrowers with lower credit scores, typically below 600, that prevent them from being approved for conventional loans.
Characteristics of Subprime Loan Borrowers
A credit score below 600. A debt-to-income ratio equal to or greater than 0.5. Poor credit history. Credit cards or loan payments are delayed.
While we invite everyone to apply, no approval is guaranteed. The best way to ensure approval is to start with the basics: our minimum credit requirement is 570. Rates can range anywhere from 6.74% to 19.95%, and, depending on your credit history and loan amount, the terms can range from 36 months to 240 months.Is it smart to buy an older RV? ›
Is Buying an Older RV Worth It? If you want to save money on your RV purchase and don't mind the quirks that can come with older RVs, an old RV is definitely worth it. With research, planning, and proper RV inspection, you can get a great deal on a used RV that will last you for years to come.How old is the average RV owner? ›
34% are between the ages of 18 – 54 and 66% are 55+. 59% of travel trailer owners are female while 40% are male. 30% of travel tailer owners are employed full-time while 43% are retired.Can you get a 15 year loan on a RV? ›
The length of your RV loan will depend on many factors, such as the cost, your credit score, the loan payment where you get your loan from, and how long you want your loan term to be. On average, you can find RV loans available for terms of ten to fifteen years.