How To Finance an RV With a 600 Credit Score

Obtaining an RV loan with a credit score of 600 might be a bit challenging, as lenders generally consider credit scores in the 600s to be in the “fair” or “subprime” range. This means you might encounter higher interest rates and stricter lending requirements compared to borrowers with higher credit scores. However, it’s still possible to secure an RV loan with a 600 credit score.

What is an RV loan?

An RV loan is a type of loan that is specifically designed to help you finance the purchase of motorhomes, travel trailers, campers, or other recreational vehicles. RV loans are typically offered by banks, credit unions, and RV dealerships. The interest rates on RV loans are typically higher than the interest rates on other types of loans, such as car loans. This is because RVs are considered to be a higher-risk investment. You will make regular payments, which typically include both principal and interest, until the loan is paid off.

What is a Good Credit Score for an RV Loan?

RV lenders use credit scores to assess your creditworthiness and the risk associated with lending to you. A higher credit score generally leads to better loan terms. A good credit score for an RV loan is typically in the 680-720 range. However, you may be able to qualify for an RV loan with a credit score of 600 or even lower. The interest rate on your loan will be higher if you have a lower credit score.

Tips for Financing an RV With a 600 Credit Score

Here are some additional tips for financing an RV with a 600 credit score:

  • Shop around for the best interest rate. Get quotes from multiple lenders before you choose one.
  • Consider a cosigner. A cosigner with good credit can help you get approved for a loan with a lower interest rate. Find out how to get a loan with a cosigner
  • Improve your credit score. While you might need the RV sooner, consider working on improving your credit score over time. Here’s how to improve credit score.
  • Be prepared to pay a higher interest rate. If you have a lower credit score, you’ll likely have to pay a higher interest rate on your loan.
  • Down payment. A substantial down payment like 20% not only reduces the loan amount but also demonstrates your commitment to the purchase.
  • Make sure you can afford the payments. Before you sign any paperwork, make sure you can afford the monthly payments on your loan.
  • Explore alternative lenders. Traditional banks and credit unions may not be your only option if you have a lower credit score. You can also explore peer-to-peer lending platforms, which typically do not consider credit scores as heavily as traditional lenders. Some online lenders also specialize in working with borrowers with lower credit scores.

Where to Get an RV Loan with a 600 Credit Score

Obtaining an RV loan with a credit score of 600 is indeed possible. While it may present some challenges, there are a few places where you can get an RV loan with a 600 credit score. Some banks, credit unions, and RV dealership offer RV loans to borrowers with lower credit scores. You can also try to get an RV loan from a peer to peer lending platform. However, be prepared to pay a higher interest rate if you finance your RV through a dealership.

  • Credit Unions: Credit unions are member-owned, which means they are not driven by profit. They are more focused on serving their members’ needs, which includes providing access to credit, even for borrowers with lower credit scores. Consider credit unions like Adventure Credit Union or Alliance Credit Union.
  • Online Lenders: Platforms such as LightStream, RVfinancing, and Lantern by SoFi specialize in providing financing for recreational vehicles. These online lenders often consider a range of credit scores, making them suitable for individuals with scores in the 600 range.
  • Subprime Lenders: OneMain Financial and Advance America are known for working with borrowers who have credit challenges. While interest rates for sub-prime RV loans might be higher, they focus on helping individuals with credit scores below 620 to secure RV loans.
  • Dealerships: Many RV dealerships have in-house financing departments that offer loans to customers. They include Good Sam RV Centers, Adventure RV Centers, and Camping World are examples of a dealership that helps buyers with lower credit scores.
  • Local Banks: Some local banks might have more lenient lending criteria compared to larger institutions. Reach out to banks in your area like community banks to inquire about their RV loan options.
  • Online Peer-to-Peer Lending: Platforms like Prosper and Funding Circle allow individual investors to fund RV loans. These platforms may take a more holistic view of your financial situation beyond just your credit score.

Rent-to-own campers and RVs with no credit can be a practical option for people who are unable to get financing for a traditional purchase, such as due to bad credit.

Key Takeaways for Financing an RV with a 600 Credit Score

If you have a 600 credit score, and you’re interested in financing an RV, there are a few things you can do to improve your chances of getting approved for a loan. First, make sure you have a good down payment. A larger down payment will make you look like a more reliable borrower to lenders. Second, get pre-approved for a loan before you start shopping for an RV. This will give you an idea of how much you can afford to borrow and what your interest rate will be. Finally, be prepared to provide lenders with documentation of your income and assets.

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RV Loans for 600 Credit Score FAQs

Can I get a RV loan with a 600 credit score?

Getting an RV loan with a credit score of 600 can be difficult, as lenders typically consider scores in this range to be fair or subprime. However, it is still possible to secure an RV loan with a 600 credit score.

What credit score do I need to get an RV loan?

The minimum credit score required for an RV loan will vary from lender to lender, but most lenders will require a credit score of at least 660. A credit score of 660 is considered to be an average credit score, and lenders are more likely to approve borrowers with this score.

Is it hard to get financed for an RV?

The difficulty of getting financed for an RV can depend on your credit score, financial stability, and the type of RV you want. A higher credit score and a strong financial profile will make the process easier. However, if you have a lower credit score or limited income, you may face more challenges and higher interest rates. Shopping around, making a large down payment, and understanding your budget are all important steps to improve your chances of getting RV financing.

Ndesanjo is an experienced writer and researcher on finance issues. With an MA from the University of Toledo, USA, he is a valuable asset to the FiFi editorial team, and his work helps to make finance work for everyone. He has lived in 5 countries and speaks 3 languages. Read more about the editorial team at FiFi and our editorial guidelines.