Best Boat Loans in 2024

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Best boat loan lenders and terms

Written by Amanda Push | Edited by Katie Lowery and Pearly Huang | Updated December 21, 2023

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LenderBest for...Starting APRLoan termsLoan amounts
Boatloan logoLow APRs6.99%84 to 252 months$10,000-$30,000,000See Personalized Results
Large boat loans7.49%Up to 240 months$25,000-$30,000,000See Personalized Results
LightStream logoQuick funding7.49% (w/ autopay and excellent credit)24 to 144 months$5,000-$100,000See Personalized Results
Southeast Financial logoBad-credit borrowers6.99%Up to 240 months$10,000-$4,000,000See Personalized Results

Boat loan lenders at a glance

Boatloan logo

Boatloan.com: Best for low APRs

Starting APR6.99%
Terms84 to 252 months
Amounts$10,000-$30,000,000
Minimum credit score640
ProsCons

  Offers refinancing

  Can use a co-applicant

  Can borrow up to $30,000,000

  Doesn’t directly fund your loan

  Generally need credit score of at least 640 to qualify

  Minimum loan term of 84 months

See Personalized Results

Boatzon: Best for large boat loans

Starting APR7.49%
TermsUp to 240 months
Amounts$25,000-$30,000,000
Minimum credit score620
ProsCons

 Potential 24-hour funding

 Large loan amounts

 Offers secured and unsecured loans

 Doesn’t offer eligibility criteria

 May require a 10%-20% down payment

See Personalized Results

LightStream logo

LightStream: Best for quick funding

Starting APR7.49%-16.14% (with autopay and excellent credit)
Terms24 to 144 months
Amounts$5,000-$100,000
Minimum credit scoreGood credit score
ProsCons

  Offers same-day funding

  Doesn’t charge any fees

  Loans don’t require collateral

  No option to prequalify

  Smaller loan amounts than other boat lenders

  Shorter loan terms than competitors

See Personalized Results

Southeast Financial logo

Southeast Financial: Best for bad-credit borrowers

Starting APR6.99%
TermsUp to 240 months
Amounts$10,000-$4,000,000
Minimum credit scoreNone
ProsCons

  Offers same-day credit decisions in some cases

  Repayment terms up to 240 months

  No credit score requirement

  No financing if your boat is your primary residence

  Doesn’t offer financing in Alaska or Hawaii

  Only offers loans to U.S. citizens

See Personalized Results

See how much you can afford using our boat loan calculator

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Boat financing: How to qualify

It’s not hard to finance a boat, but you’ll receive more favorable rates and terms if your credit score is 600 or higher. Those with very good credit are more likely to qualify for a lender’s introductory rates. If your credit isn’t where you want it to be, don’t worry: There are bad-credit boat loans available for borrowers with scores in the mid-500 range.

Most lenders will check your credit and ask for certain information:

  • Personal information: Name, address, phone, Social Security number, date of birth
  • Financial information: Income, monthly housing cost, employer
  • Boat information: Used or new, age, estimated value

If you aren’t sure what your score is, you can get your free credit score below and then move forward with applying for your loan.

How to apply for a boat loan

Before financing a boat, you’ll need to do some legwork to find the loan that best fits your budget and financial position.

  1. Determine your budget. You don’t want to bite off more than you can chew with a new loan, so be sure to examine your monthly income and expenses to estimate what you can afford. A boat loan calculator can help you estimate your monthly loan payments.
  2. Check your credit score. A bad credit score can make it difficult to qualify for a boat loan and, even if you do qualify, you may be stuck with high interest rates. If you don’t have good credit, take some time to improve your credit score.
  3. Get preapproved or prequalified for a loan. This can give you an idea of what lenders are willing to offer. A boat loan preapproval is a firm offer from a lender that outlines your expected rates, fees, terms and amounts. Prequalification isn’t a firm offer but can give you a rough idea of what to expect without any impact to your credit.
  4. Compare offers. Don’t take the first offer you receive. Compare boat loan offers from at least three lenders and pay close attention to each of their features and fine print before deciding which is best.
  5. Sign your loan agreement. Once you decide to move forward with a lender, you’ll need to supply documentation to verify information such as your identity and income. You’ll also likely need to submit to a hard credit pull. Once your lender verifies everything, you’ll sign your loan agreement and start making payments.
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How to get a used boat loan

Like cars, the value of a new boat depreciates the minute it leaves the showroom, as much as 15% in the first year. Buying a used boat can cut down on that drop in value and save you money.

As with any new loan, you’ll need to determine your budget and make sure your credit score is in tip-top shape.

You can find used boat loans with banks, credit unions, online lenders and through your boat dealer. If a boat loan isn’t the right choice for your financial situation, you can also pay for a boat using a personal loan, home equity loan or home equity line of credit.

How to compare boat loans

When exploring loan options, there are a number of important factors to take into consideration, including annual percentage rates, terms, amounts and eligibility requirements. By comparing boat loan offers, you can select a lender that best fits your financial goals and budget.

  Annual percentage rates

A loan’s annual percentage rate (APR) measures how much it will cost you to borrow money. This number includes both the interest rate and fees. The better your credit score, the lower your APR is likely to be. Common boat loan fees include taxes, title fees, registration fees and loan processing fees.

  Repayment terms

Your repayment terms specify how long you have to repay your boat loan. The longer your term is, the lower your monthly payment will be. However, you will pay more in interest with a longer loan. The shorter your loan term is, the higher your monthly payment will be but you’ll save money on interest.

  Loan amounts

The amount of money a boat lender is willing to offer you depends on your credit score and history, income and the value of your boat. If you need a large loan amount, some lenders may require that you meet higher income and credit score thresholds.

  How to qualify

Each lender will have its own set of eligibility requirements, but most consider factors such as your credit score, income, payment history and debt-to-income ratio. Taking steps to improve your credit score and pay down current debt can improve your creditworthiness in the eyes of lenders.

How we chose the best boat loans

We reviewed our LendingTree boat loan partners to determine the overall best four lenders. To make our list, lenders must offer boat loans with competitive annual percentage rates (APRs). From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their boat loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service.

Not all lenders we reviewed can be found on LendingTree’s loan marketplace.

Frequently asked questions

The average boat costs between $60,000 to $75,000, but the price really depends on the type of boat you buy. For example, a large, luxury yacht can cost more than $6 million, while a base-model outboard speed boat may only cost about $20,000. If you want something basic for fishing, the average jon boat is $5,400.

Borrowers with strong credit may find boat loan rates as low as 6.25% APR, but many lenders’ rates start around 7%.

Yes — you can lease a boat, but leasing may be more expensive than boat ownership. Renting a boat for a short period of time may be the most cost-effective option.

You may be able to get a mortgage loan on a boat if it qualifies as your main home or second home. The IRS defines a home as a property with sleeping, cooking and toilet facilities.

Yes, you could qualify for a boat loan with a 600 FICO Score. There are boat loans for bad credit available, but you’ll save money by improving your credit before applying. To qualify for the lowest rates, you usually need a credit score of 700 or above.

Boat loan terms can be as long as 20 years, and some lenders allow you to pay off your loan early without charging a prepayment penalty. If you want to buy an inexpensive boat for a shorter term, consider using a small personal loan that can be repaid over six months or more.

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