An RV Loan is a consumer loan to help finance the purchase of an RV. As with other types of loans, the size of the loan and interest rate will depend on many factors, including the purchase price of the RV, your credit score and whether or not you want to use a down payment. You can compare rates and terms from many lenders, including banks, credit unions and online lenders. Many RV dealers also offer financing, but it’s best to shop around and prequalify before choosing a lender to ensure you get the best possible deal.
Most RV loans are secured, meaning the lender takes ownership of the RV if you fail to make payments. That’s why it’s important to prepare before applying for an RV loan by checking your credit scores with the three major credit bureaus and paying down any existing balances. This can increase your approval odds and help you qualify for a lower interest rate.
In addition to a credit check, the lender will typically require documentation of your income and assets. This may include pay stubs, W-2 forms and bank statements. Some lenders will also ask for an appraisal of the RV, similar to what’s required with a home mortgage.
As with any loan, it’s crucial to choose a lender you can trust. To do this, you should research a lender’s reputation and read online reviews. You can also ask friends and family for recommendations. Once you’ve found a lender you feel comfortable working with, apply for the loan. Most applications can be completed online, but you may need to provide additional documentation in person, such as proof of income or a copy of the vehicle’s title.
Before you start shopping for an RV, figure out what your budget is and how much you can afford to spend. You can then determine the size of the loan you need, which will help you narrow down your options. Once you have a price in mind, it’s time to start shopping. Look for the best deals on a rig that meets your needs and falls within your price range. Don’t forget to consider extra costs like insurance, which will add up over the life of your RV loan.
RV loans are similar to other types of consumer loans, with the exception that some lenders will only lend to people with a certain credit score or will only finance new RVs. Lenders will also vary by how flexible they are with the term of the loan, which can range from five years to 20. A shorter loan term means higher monthly payments but will allow you to pay off the RV more quickly and reduce total interest paid. A longer term will result in lower monthly payments but will cost you more in the long run. NerdWallet’s personal loans content is curated by a team of writers and editors who specialize in consumer lending. Their work has been cited in The New York Times, USA Today and MarketWatch.