The best RV loan interest rates are reserved for borrowers with good to excellent credit. Those with poor or fair credit will face significantly higher rates, and in some cases, might not be able to qualify for an RV loan at all. Those who can’t afford to buy their dream RV with a traditional mortgage should explore alternative options, such as using an online loan marketplace to compare offers from lenders. These marketplaces can often present borrowers with a number of different loan offers without affecting their credit scores, which can be especially useful for those with poor or bad credit. This allows them to take a closer look at the cost of an RV loan and decide if it is worth pursuing.

Annual percentage rate (APR)

APR is the total cost of a loan, including the principal and interest. It is expressed as a percentage and can vary widely from lender to lender. A lower APR means you’ll pay less over the life of the loan, so it’s important to shop around for the lowest rates available. To calculate APR, first find the cost of the loan, then divide it by the amount borrowed. Be sure to include any additional fees or charges that are included in the loan offer.

Loan term

A loan term is the length of time you’ll be responsible for making payments on your RV. Loan terms can range from two to seven years, with some lenders offering a choice of terms. Generally speaking, longer loan terms mean lower monthly payments, but they also come with higher overall costs.

Credit score requirements

Many lenders have minimum credit score requirements for RV loan applicants. These requirements are designed to ensure that borrowers can afford to repay their loans in the event of a default. They can be based on the make and model of your RV, your creditworthiness, or other factors.

Down payment requirements

Some lenders require a down payment, which is a percentage of the total purchase price of your RV. Others may allow you to skip putting any money down in exchange for a higher interest rate or if you meet specific lending requirements.

Minimum loan amounts

Some financial institutions offer loans to finance the purchase of a new or used RV for a specified dollar amount. This type of financing can be helpful for buyers who don’t have the cash available to cover the entire purchase price of their RV.

Creditworthiness

To qualify for an RV loan, you’ll need to have a decent credit score, which is typically around 670 or above. You can improve your chances of qualifying by saving for a down payment or working to raise your credit score.