How to Get RV Loans With Bad Credit

It goes without saying that RV’s (Recreational Vehicles) are pretty wonderful to have if you’re someone who does a lot of camping or traveling. Unfortunately, they can also be fairly expensive to buy depending on how fancy you want yours to be. With bad credit, getting financing on an RV can be tricky business just as it is with a car, house or many types of personal installment loans. You already know that most reputable lenders are not going to want to work with you to get your RV. If your credit score is bad and you really want or need an recreational vehicle, you could possibly still get a loan, but there are some things you should know before you apply.

RV Loans With Bad Credit Have High Interest

When you’re applying for a loan to get an RV with bad credit, you probably will only be able to do business with lenders who offer subprime personal loans. You can expect your interest rate to be double or possibly even more than double what the average national rate is at the time you apply. If you don’t want to end up paying $30,000 on a $15,000 RV by the time the loan is up, you should pay all the extra money you can on your principal balance. There may be some months where you can afford to pay an extra $100 and some months where you can only spare an extra $20. Either way, pay whatever you can to help ensure that you’re not paying more than you really want to pay for your RV. An added bonus of doing this is that your credit score will improve, meaning that in the future you may not have to rely on bad credit lenders to secure financing. Before you apply, get your credit report and study it carefully. According to Credit.com, 79 percent of credit reports contain errors, and 25 percent of people have errors on their reports that could cause them to be refused credit! So knowing your score and checking your report for accuracy is incredibly important — especially considering that there’s a chance you might not have to settle for a bad credit lender if your credit actually isn’t terrible.

Not All Bad Credit Lenders Are Trustworthy

Bad credit lending is sort of a shady industry, mainly because people who are desperate for money with no way to obtain it are some of the easiest to rip off. You don’t want this to happen to you, so be sure to check out all potential lenders thoroughly with the Better Business Bureau or by looking them up on sites like Rip-Off Report to make sure they seem honest before applying for financing. Companies that have been around a while are generally better to deal with than newer companies because they probably have plenty of former customers who are willing to share their experiences with you.

Look for Used RV’s Amongst Your Inner Circle

RV’s are something that people frequently want to get rid of because they end up not using them as much as they had originally thought they would, and they can also take up a lot of space when not in use. There’s a great chance that you may be able to find a used RV through someone you know who is just anxious to get the vehicle off their property. Additionally, this person might be willing to finance the RV themselves, which means your bad credit likely won’t be a problem. If you know someone with an RV they want to get rid of, ask them how much they would sell it to you for and whether or not they would accept monthly payments. This could save you all the headache of trying to get a loan through other means.