Boat Loans for Bad Credit in 2024

Boat lenders at a glance

Getting a boat loan if you have bad credit may be difficult, but you may still have a chance of qualifying for one if you apply with the right lenders. Here’s what you need to know about how to get a boat loan with bad credit:

  Check your credit

Your credit score will help you determine which lenders you’re most likely to qualify with and the interest rates they may offer you. If your credit score is low, you should the time to improve your credit score before applying for a loan. Raising your score before applying can save you money in interest and fees, reducing the total cost of borrowing.

  Create a budget

The cost of a boat depends on the size and type of boat you’re shopping for. You’ll want to pay close attention to how much of a down payment is required, plus the minimum you’ll pay each month. Typically, you’ll need to save up between 10% and 20% of the boat’s total price to offer as a down payment. Use a boat loan calculator to estimate your monthly payments and determine whether a boat loan fits into your budget.

  Choose a boat

During the boat loan application process, you’ll need to disclose which vessel you plan to purchase, so it’s a good idea to make this decision ahead of time. Lenders typically want to know the make, model, year, mileage and condition of the boat, as well as its history.

  Apply to lenders

Rate shopping for a boat loan can help you nail down the rates and features that best fit your financial needs. During this part of the process, the credit scoring models will count all of your loan inquiries as one, as long as you do it within a 14-day window. It’s always a smart idea to apply to multiple lenders so you can find the least expensive loan with the best features.

  Close on your loan

After you choose a lender and meet their qualifications, you’ll need to sign your loan agreement and close on your loan. Be sure you understand what your repayment schedule will be, so you don’t miss a payment.

If you aren’t approved for a bad credit boat loan, you can take the following steps to improve your odds of getting approved for credit:

Apply with a cosigner: If a friend or family member with good credit is willing to apply jointly for the boat loan, this can increase your odds of approval. A co-borrower or cosigner can offset the lender’s risk, since two people are taking responsibility for repayment as opposed to just one.

Make a larger down payment: Offering a larger down payment can make your application more attractive to lenders since you’ll be more financially invested in the boat. Plus, with a larger down payment, you’ll only need a smaller loan and that reduces your total cost of borrowing.

Choose a less expensive boat: Used boats may not come with all the bells and whistles that new boats have, but they often come with a much smaller price tag. If you have bad credit, qualifying for a large loan may be difficult, so consider shopping around for a cheaper used boat instead.

Get credit counseling: If your credit score needs work and you’re overwhelmed by your current debt, it may be beneficial to seek credit counseling. A certified credit counselor can help you navigate your financial situation and take steps to improve your credit. If you qualify, a credit counselor can also help you qualify for a debt management plan.