A bad credit boat loan is a traditional boat loan that is offered to borrowers with low credit scores. The exact definition of a bad credit score depends on which credit scoring model you’re using: FICO Score or VantageScore. A bad credit score is under 580 for FICO or 600 for VantageScore. Since a boat is considered a “luxury” purchase, most lenders prefer borrowers with strong credit.
Consumers with a bad credit score can have a harder time qualifying for a loan and can expect to receive high interest rates. Unless you apply for a secured loan or apply with a cosigner who has strong credit, you may have a difficult time qualifying for an affordable boat loan.
Yes, you can get a loan if you have bad credit — but you might have a difficult time qualifying if you don’t have a cosigner or don’t offer a large down payment. Before applying for a boat loan, consider taking some time to improve your credit score first.
Boat loan terms can range anywhere from 12 to 240 months, though some lenders may offer longer or shorter options. Keep in mind that the longer your loan term, the more you’ll pay in interest. For this reason, it’s wise to select the shortest loan term you can comfortably afford.
Typically, lenders require that you provide a down payment between 10% and 20% of the total cost of the boat. Some lenders may offer 0% down boat loans, but putting money down will reduce the amount you pay in interest, lower your monthly payment and keep you from becoming upside down in your loan.
Yes, you can get a boat loan for a private-party purchase, but some lenders only offer funding if you’re shopping at a dealership. Before you get your heart set on a boat, be sure to check with your preferred lender to see whether they offer private-parting financing options.