If you’re a horse enthusiast with bad credit, you may find it challenging to secure financing for a horse trailer. However, there are options available for bad credit horse trailer financing. While bad credit can make the financing process more difficult, it’s important to remember that it doesn’t have to be an insurmountable obstacle. By taking proactive steps and exploring various financing options, you can still make your dream of owning a horse trailer a reality. It’s our goal to supply you with the information needed for this.
How to Reduce the Cost of Horse Trailer Financing with Bad Credit
- It’s true that financing a horse trailer with bad credit can be expensive, but there are steps you can take to lower the cost. For example:
- Providing a higher down payment may increase your chances of qualifying for horse trailer financing, and in turn, reduce your payments. With a higher down payment, you also increase your chances of qualifying for horse trailer financing.
- Purchasing a used trailer can often be more affordable than buying new, and may require less financing or a smaller down payment.
- If you shop around, search for multiple options, or check out the alternatives we provide you with, you can be sure to find bad credit horse trailer financing.
Understand the Cost Factors
The cost of horse trailer financing is influenced by several factors, including:
- Down Payment: Some lenders may require a down payment. A higher down payment can improve your chances of approval for bad credit horse trailer financing.
- Credit History: Your credit history plays a significant role in determining the cost of financing. Bad credit can lead to higher interest rates, but we’ll provide you with a list of lenders specializing in bad credit horse trailer financing.
- Proof of Income: Demonstrating your ability to repay the loan is crucial. Be prepared to provide proof of income when applying for horse trailer loan with bad credit.
FAQ about Horse Trailer Financing
What is a Horse Trailer?
A horse trailer is a van or a trailer used to transport horses. Its name varies from one location to the other. In some countries, a horse trailer is also known as a horse van and in other countries like Australia and New Zealand, it is known as a horse float. In Britain, it is known as a horsebox.
What is Horse Trailer Financing?
Horse trailer financing is getting funds to buy a horse trailer. You may have part of the funding and you need a top-up or you may need the entire buyout cost of a horse trailer. All these refer to horse trailer financing. They work just the same way as camper financing with bad credit.
How Much Does a Horse Trailer Cost?
The cost of a horse trailer varies depending on a number of factors like hauling capacity, weight, the material used to construct it, and size. However, the average cost of a horse trailer is between $15,000 and $30,000.
What are the Types of Horse Trailers?
There are two types of horse trailers; bumper pull models and gooseneck trailers. Bumper pull models are more common since they don’t require a pickup truck to tow them. Gooseneck trailers extend over the bed of the pickup truck and are attached to a ball hitch in the bed of the truck.
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Requirements of Horse Trailer Financing
The cost of horse trailer financing is determined by several factors. These factors include the downpayment amount, proof of income, and credit history. Each of these factors plays a crucial role in determining the financing cost.
- Downpayment. Some horse trailer financing may require you to make a downpayment. You can use a vehicle as collateral for horse trailer financing for bad credit. With a higher down payment, you can increase your chances of getting horse trailer financing.
- Credit history. Your credit history will influence the cost of your horse trailer financing. If you have a bad credit history, it can be challenging to find horse trailer financing, and those who offer bad credit horse trailer financing charge higher interest rates. We will provide you with a list of bad credit horse trailer financing companies.
- Proof of income. Every lender wants to be sure that the borrower is in a position to repay their loan. As such, you need to show proof of income to qualify for horse trailer financing with bad credit.
Options for Bad Credit Horse Trailer Financing
If you have a poor credit score and are in need of horse trailer financing, there are several options you can consider. These include both established financiers and lenders who specialize in bad credit, as well as innovative peer-to-peer lending platforms and personal loan lenders who offer bad credit horse trailer financing. With a little research and careful consideration, you may be able to find a financing option that meets your needs and helps you obtain the horse trailer you need.
Acorn Finance
Acorn Finance is experienced in horse trailer financing for bad credit. When you apply for a loan and qualify, you can receive funds in one or two business days. You can check offers online without impacting your credit scores.
- Credit Scores: 560+
- Loan amounts: Minimum of $1,000 to $100,000
- Rates: As low as 6.99% APR
Southeast Financial
Southeast Financial has been providing horse trailer financing for the last 20 years. They can help you finance a horse trailer whether you have good or bad credit scores. They finance horse trailers that are up to 12 years old. Once you apply for horse trailer financing with bad credit, you can get a same-day credit decision.
- Credit Scores:
- Loan amounts:
- Rates: APR starting from 6.99%
BHM Financial
BHM Financial is a horse trailer lender for bad credit. They finance new and used horse trailers whether you are purchasing them from a dealer or an individual.
If you are based in Canada, BHM Financial is a great option to help you finance bad credit horse trailer financing. They also finance a wide range of RVs like modular homes, mobile homes, a truck, trucks, and trailers.
- Loan amounts: $1,000 to $15,000
Upstart
Upstart is an online personal loan lender you can use for horse trailer financing. It partners with banks to offer customers personal loans that can be used to buy horse trailers. If you have poor credit scores of at least 580, and you are looking for horse trailer financing with bad credit, consider Upstart.
They have a repayment period of between 24 and 84 months. It does not charge origination fees or late repayment fees. If you enroll in autopay, you get a 0.50% interest rate reduction.
- Credit Score: 580+
- Loan amount: $1,000 to $50,000
- Rates: 6.12% to 35.99% APR
Upgrade
Upgrade is another personal loan lender you can use for bad credit horse trailer financing. It is a great option if you have poor credit scores of at least 580. Borrowers can check their rates without affecting their credit scores. Once you apply for financing, and you qualify, you can get funds as soon as the next day.
They have a repayment period of between 24 and 84 months. If you make a late payment, you will be charged a $10 late fee. There is also an origination fee of between 1.85% and 8.99%.
- Credit score: 580+
- Loan amounts: $1,000 to $50,000
- Rates: 8.24% to 35.97% APR
Also read: RV dealers that finance bad credit near me.
Horse Trailer Dealerships
Dealerships work directly with banks that offer their customers horse trailer financing. It is worth noting that dealerships can charge extremely higher fees so that they can qualify for higher referral fees from banks. However, the following is a horse trailer dealership you can consider:
Dixie Horse & Mule Co.
Dixie Horse & Mule Co. is a horse trailer dealership that works with over 20 banks to provide their customers with financing for a horse trailer with bad credit. Besides, they help their customers improve their credit scores if they can’t get financing at all for poor credit scores. Moreover, they accept trade-ins. So, if you have a horse trailer you want to trade in for a new one, consider this dealership.
Find Out Alternatives to Horse Trailer Financing
There are a few alternatives for horse enthusiasts with bad credit who are struggling to secure financing for a horse trailer. If you can’t get horse trailer financing with bad credit, then you can also consider a horse trailer dealerships or home equity line of credit. Other alternatives include leasing. Let us explore them.
Alternatives
- Consider leasing: Leasing a horse trailer can be an alternative to financing, as it often requires less upfront costs and can be a more affordable option. Another option would be to search for Rent to Own Trailers, similar to Rent to Own Campers without Credit Check.
- Improve your credit score: While it may take time, working to improve your credit score can increase your chances of being approved for financing and help you secure more favorable terms.
- Buy a used trailer: Purchasing a used trailer can often be more affordable than buying new, and may require less financing or a smaller down payment. But they can also with other downsides.
- Find out more about Peer to Peer Lending with Bad Credit. For peer to peer loans for bad credit, borrowers borrow money directly from peer to peer investors, bypassing banks and credit unions. Also read more about How to apply for a personal loan with bad credit for even more tips.
Home Equity Line of Credit
A Home Equity Line of Credit (HELOC) is another alternative financing option for a horse trailer, especially for those with bad credit. A HELOC allows you to borrow against the equity in your home and use it as collateral for the loan.
This home equity line of credit can help you leverage your home’s equity to finance a horse trailer. It allows you to borrow the amount you need and pay it off on a rolling basis. Its pros are that it comes with lower rates than personal loans and has flexible finning that allows you to borrow what you need. The downside is that its rates can be higher than that of home equity loans. However, HELOCs typically have lower interest rates than other forms of loans, making it a more affordable option for those who need financing for a horse trailer.
It’s important to remember that defaulting on a HELOC can put your home at risk of foreclosure, so it’s crucial to make payments on time and within your budget.
Using a car title loan
Using a car title loan as an alternative financing option for a horse trailer is also possible, but it’s important to understand the risks involved. Car title loans typically have high interest rates and can put your vehicle at risk of repossession if you’re unable to make payments. Additionally, using your car as collateral for a loan could jeopardize your ability to secure financing for future purchases, such as a new car or home.
Horse Trailer Financing for Bad Credit
If you’re in the market for a horse trailer but have bad credit, securing financing can be a challenge. Fortunately, there are lenders who specialize in bad credit horse trailer financing. Additionally, you can explore financing options through dealerships. If you’re not having luck with financing options, you may want to consider taking steps to improve your credit score or making a larger down payment to increase your chances of approval. It’s important to be realistic about what you can afford and not take on a financial risk that exceeds your means. Good luck with your search for a horse trailer!
