Financing

Guide to Financing an RV

A recreational vehicle gives you the opportunity to travel and explore the country with all the conveniences of home at any time. At My Financing USA, we can help make your dreams of RV ownership come true. We can provide financing options to fit your needs, regardless of your credit score. This guide covers how to finance an RV purchase and answers frequently asked questions about the process of securing an RV loan.

What Are RV Loans?

RV loans allow buyers to finance a new or used RV, camping trailer or motorhome that is too expensive to purchase in a single lump sum.

RV loans allow buyers to finance a new or used RV, camping trailer or motorhome that is too expensive to purchase in a single lump sum. RVs vary significantly in size and luxury, so RV loans can offer very different terms and rates. While similar to a car loan, an RV is typically a larger and more complex purchase, so the rates tend to be higher and the terms for repayment are usually longer. 

Since an RV can have a high price point, financing may be the only way to fulfill your dreams of RV ownership. Depending on the lender and type of RV, you can get a loan for tens of thousands of dollars paid over a few years or for hundreds of thousands of dollars paid over decades. If you are buying a less expensive RV, you may be able to make the purchase with a personal loan. However, personal loans carry much higher rates and shorter terms, which means you will have a higher loan payment. 

If you are buying a more expensive RV, however, you likely will need to apply for a collateral loan. With these loans, the RV serves as collateral, so if you default on the loan, the lender will repossess and sell your RV. The specific rates and terms you can qualify for depend on the RV you want to purchase, your financial circumstances and your lender.

How Do I Finance an RV?

How Do I Finance an RV?

Similar to other types of loans, you will submit an application, and your application will be reviewed by lenders. They will use several factors to evaluate you as a potential borrower, including your credit score, location and your price range. If you want to know how you can finance a motorhome or RV, follow the steps below:

1. Consider What Kind of RV You Want

RV costs vary depending on the size, age and type of vehicle. Interior finishes and add-on features can also cause a small RV's cost to increase dramatically. As you begin seeking an RV loan, determine what you want in an RV and how you will be using it. 

Consider whether you will be using your RV to travel full-time or whether you will be traveling only on the weekends. Will you be camping in rugged terrains or cold climates? If so, you may need an off-road or winterized RV. Once you understand what RV lifestyle you want, write a list of the features you must have and features that would be nice to have.

2. Determine How Much You Want to Spend

After you know what kind of RV you want, research the average cost of those RVs and determine whether this average cost is reasonable for your current financial situation. Calculate how much you can afford for an RV by reviewing your budget. How much disposable income do you have each month? How much of that are you willing to allocate to an RV loan payment, along with other related costs like insurance, maintenance, fuel and storage?

You can use our RV loan payment calculator to help determine how much you can comfortably afford. We offer better options than the typical financing for an RV, with interest rates that range from 3.49% to 17.99%. The interest rate we can help you obtain depends on a number of factors, including the type of RV, the age of the RV, your credit score, your location and the amount you plan on financing.

3. Decide on a Down Payment

Many lenders require a down payment of at least 10%, though putting down more can help you secure a more affordable monthly payment and reduce the overall cost of your RV loan. How much you are required to put toward a down payment depends on your lender and the type of RV loan. When you find the perfect RV, review your savings and determine whether you want to save more for a down payment.

If you have poor credit, a larger down payment can increase your odds of being approved for an RV loan, as it reduces the amount of financing you need and decreases the risk to the lender. If you do not have much in savings, you may still be able to receive 100%, which we can provide at My Financing USA on a case-by-case basis.

4. Review Your Credit Score

The interest rate you will qualify for is largely determined by your credit score. While other factors like the size of your loan can play a role, creditworthiness is often the factor that makes or breaks RV financing. To ensure you are eligible for the best available RV loan interest rates, review your credit score and determine whether you need to increase your score before shopping for a loan.

If you choose My Financing USA, we can help you finance an RV with bad credit. Our minimum required credit score is 550, and we have programs that even allow for past credit issues such as bankruptcies, late payments or collections. If you would like to improve your credit, we offer a free consultation to help you increase your score. By reducing your debt and paying your bills on time, you may be able to improve your credit and get better RV loan offers.

5. Compare Lenders

The terms and rates you may be eligible for will vary by lender, so it's essential to compare the lenders who are offering you financing. Carefully read the fine print before you sign, as you should know how long the repayment period is for the loan, the minimum credit score and whether there are limits placed on your RV's age.

Compare your loan terms and interest rates, as these can greatly affect how much you pay in total for your financing and are often the deciding factors for which loan offer and lender is the right choice. Keep in mind that you should compare interest rates for the same type of loan. If a loan offer comes with a lower rate, it may also come with a shorter term, so you will have to pay your loan back faster. 

6. Fill Out an Application

More paperwork is required to complete an application than for the pre-approval process. When filling out an application, you may need to provide information about the RV you want to purchase, your employment history and your financial information, such as your debts and assets. After your application is approved or denied, you will receive the decision via email. When you complete an application with us at My Financing USA, you won't have to pay an application fee. 

7. Get Pre-Approved

To get pre-approved, you may need to submit some of your information, such as your financial statements, credit score and previous year's tax return.

Next, get pre-approved for a loan by a lender. To get pre-approved, you may need to submit some of your information, such as your financial statements, credit score and previous year's tax return. You may also be asked what RV you are looking to purchase. With My Financing USA, this can be changed later, and one of our loan officers will instruct you on how you can change this information. 

After you get pre-approved, the lender will give you a pre-approval letter, which you can use to show sellers you are a serious buyer. You will also likely feel more confident when making an offer, as you'll know you already have a financing option. We suggest closing a minimum of 10 days before your approval is set to expire so there will be enough time for funding.

8. Negotiate to Get the Best Available Terms

When you are looking to buy an RV, you want to ensure you are getting the best possible price. Dealerships tend to mark up the prices on RVs and expect customers to negotiate the price down. Depending on the circumstances and the RV you are interested in buying, you may be able to decrease the price by a few thousand dollars. 

Additionally, there may be extra amenities or incentives you can take advantage of to make the purchase price of the RV more acceptable like upgrades or maintenance. Even if you are not eligible for a low APR, decreasing your purchase price can reduce your overall cost for financing.

9. Close on Your Loan

Finally, you will make an offer on the RV. Your offer should fit within your budget and your pre-approval amount. If the seller accepts your offer, set a closing date and contact your lender. Typically, it takes about four to eight business days to go from application to closing. Of course, how long it takes to close depends on how quickly you can send the usable, valid documents that have been requested. 

After closing, the RV is yours. Once you provide final approval, the seller will receive the funds.

How to Finance a Used Motorhome

With a motorhome, you can travel across the country and visit the nation's most beautiful towns and parks.

With a motorhome, you can travel across the country and visit the nation's most beautiful towns and parks. For some buyers, a used motorhome may be the best, most affordable option. Many used motorhomes are a great investment, as they are less costly than a new motorhome and may have limited mileage. If you are on a budget or you want more room in your RV for less money, you may want to consider purchasing a used vehicle.

When you choose My Financing USA, you can finance a used RV. Our application process is easy — you simply take a few minutes to complete your application on our website, which is secured by DigiCert Norton VeriSign. 

After filling out your application, you will speak with a real person who will discuss your loan details with you. We will ask you about your expectations and goals for your RV loan. Once we have this information, we can help you determine which loan types may or may not be the right options for you.

We can get you pre-approved and limit our inquiries, which protects your credit score against numerous pulls. After we match you with a lender, we will send you the closing documents, which can be signed directly from your phone. With My Financing USA, you can obtain your check in 48 to 72 hours after submitting your application. Once you receive your check, give it to your dealer and drive your used RV home.

How to Finance an RV or Motorhome With Poor Credit

When you choose My Financing USA, you can get financed for an RV even with a low credit score.

If you have less-than-stellar credit, you may be doubting whether you can pursue your dream of RV ownership. However, when you choose My Financing USA, you can get financed for an RV even with a low credit score. We know poor credit may mean you've gone through a difficult period and fell behind financially — something that can happen to any of us. A challenging financial time in your past shouldn't hinder your ability to fulfill your dreams and lead the life you want to live.

We will search across the nation to find you the best RV loan terms and rates, so you can finance a motorhome even with bad credit. If you receive a rejection on your application, we will start the process again. We can help applicants with credit scores as low as 550 find an RV loan. Even if your past includes late payments, collections or bankruptcy, we are happy to discuss your RV financing options.

To safeguard your credit, we will reduce additional dings by spacing out submissions for inquiries and limiting how many lenders we are in contact with at once. You also won't face any hidden fees from vendors, and all your personal information will be secured by our website. We offer a selection of financing options from fair, flexible lenders with programs that meet your expectations and needs.

We can also offer a credit repair program to help increase your credit score, which can allow you to become a more reasonable risk to lenders. By making payments on time, lowering your credit utilization and paying off debts, you can improve your score. After you complete the program, we can return to your application.

How Much Does It Cost to Finance an RV?

A new RV can cost anywhere from $6,000 to $300,000.

The cost to finance an RV depends on the price of the RV, the interest rate you qualify for, your financing terms, the size of the RV, the make and model and the RV's internal furnishings. Typically, brand new RVs can cost anywhere from $6,000 to $300,000. Use our RV payment calculator to determine how much your RV loan may cost you each month. You can input the amount, term and your rate to calculate your monthly payment.

If you want to pay a lower monthly payment, you may want to obtain a longer financing term. At My Financing USA, we offer financing terms up to 240 months, or 20 years. A longer term can also mean you pay more in interest over the course of the loan, so you may want to opt for a shorter term to lower your total cost. Along with the cost of the loan, keep in mind that you may have upfront costs, such as a down payment.

Can You Finance an Older RV?

At My Financing USA, we work to find the right financing option for you.

Many lenders place limits on the age of RVs they will finance. Fortunately, it's still possible to finance an older RV. At My Financing USA, we work to find the right financing option for you. Credit unions or even personal loans can sometimes be used to finance older rigs. Keep in mind that many lenders charge higher interest rates on older motorhomes and may require good credit and a sizeable down payment. 

At My Financing USA, we can finance RVs from 2009 or newer. RVs that are older than this are financed on a case-by-case basis. If you are interested in an older RV and uncertain whether you can finance your purchase, discuss your option with us. Keep in mind that we are unable to finance units with salvage titles.

Where to Finance an RV

We provide personalized service to help you identify the best RV loan for your unique needs and circumstances.

Motorhomes are financed through loans from financial institutions or dealerships. Financial institutions like banks or credit unions tend to be better options than dealerships, as you are more likely to get a better interest rate and you can avoid aggressive sales tactics. When you get pre-approved with a lender, you can stick to a budget and ensure you make a purchase that offers the monthly payments you're comfortable making. 

My Financing USA is the best place to finance an RV. We provide personalized service to help you identify the best RV loan for your unique needs and circumstances. We search across the nation to identify the best interest rates and loan terms available, and we are happy to partner with you to identify a financing solution. Choose My Financing USA if you are seeking:

  • Credit protection: We can get you pre-qualified, reducing the number of inquiries on your credit.
  • Quick approval: When you apply for financing through my Financing USA, you can acquire your funding in just 48 to 72 hours.
  • Simplicity: Complete the entire application process online, from providing your information to signing your closing documents.

Along with these benefits, we offer extras like gap waivers and a wheel and tire program. If we cannot get you approved for an RV loan the first time, we offer a free credit consultation to improve your credit score and increase your chances of getting a loan.

Apply for an RV Loan 

Apply for an RV Loan from My Financing USA today.

The best way to finance an RV or motorhome is by applying for an RV loan with My Financing USA today. Follow the steps below to apply for an RV loan:

  1. Fill out an application: Complete an application on our website secured by DigiCert Norton VeriSign. 
  2. Get your information verified: Next, we will confirm the information you provided. You will speak with an expert loan officer to discuss the details of your application. We let you know which step you are on in the financing process and ensure your expectations align with our available resources.
  3. Receive your lender match: To find the best option for you, we will send your provided information to lenders until we locate a match. To shield your credit score during this process, we stick to a limit of three inquiries from a bureau. 
  4. Sign your documents: You can conveniently sign closing documents on your phone and submit them to us. Typically, it takes about one to three business days to verify and approve closing documents.
  5. Get your RV: After the lender approves your closing documents, you can pick up your RV and hit the road.

Our application process is entirely online and takes just minutes, giving you convenience and flexibility throughout the process. Contact us if you have any questions about how to get financed for an RV.

How Long to Finance a Boat

For many people, recreational boating is a popular form of entertainment. Whether you're looking to fish, tube with friends or relax on the water, owning a boat can give you the flexibility to get out on the water anytime you wish. However, it's no secret owning a boat is an investment, which is why most boat owners choose to finance.

Before purchasing your boat, it's beneficial to know how many years boat financing is and how much you can expect to spend over the term of your loan. How many years you finance a boat can impact your monthly payment and interest rate, so you'll want to learn everything you can before you pick a loan. Here's our guide on boat financing to help.

How Long Does It Take to Finance a Boat?

If you've ever purchased a home or car, the process of financing a boat may be familiar to you, though there are some key differences. How many years you can finance a new or used boat is affected by the following factors:

The Boat's Age and Condition

The age of the boat you're looking to buy can have a significant effect on the term a lender is willing to offer you. In most cases, the newer the boat, the longer the term. Many lenders place a cap on the age of boats they consider for financing, and others will only finance new boats. However, even if you want to buy an older boat, you still have financing options. 

Many lenders may be willing to fund older boats as long as they're high quality. While a lender may not finance an older boat that costs $30,000 and is worth $30,000, they may finance an older boat that costs $30,000 but is ultimately valued at $40,000.Keep your future boat's age and condition in mind.

The Boat's Price

The purchase price of your boat can significantly impact how long a lender is willing to let you repay your loan.

The purchase price of your boat can significantly impact how long a lender is willing to let you repay your loan. Typically, larger loans can be financed longer than smaller loans because they'll likely take more time to pay. Many lenders have requirements for minimum loan amounts to be eligible for certain term periods.

The Interest Rate

The interest rate you qualify for may also impact how long you want to finance your boat. If lenders are only willing to offer higher interest rates because you have lower credit, you may not want to finance your boat for a long period of time because you'll pay more for the total cost of your loan. On the other hand, you may actually want a longer loan term if you have a higher interest rate, as that can make your monthly payment more affordable. 

With standard boat loans, interest rates are either fixed or adjustable.

  • Fixed-rate loans: The most common type of financing for boats is a fixed-rate loan. This type of loan means your interest rate won't change throughout the duration of your boat loan, and your payment will be consistent each month, making budgeting much easier.
  • Adjustable-rate loans: With an adjustable-rate boat loan, your interest rate can change based on the market. As a result, your interest rate may change while you're paying off your loan, and your monthly payment may increase. The positive to this type of loan is it can be considerably low at times.

While most buyers prefer fixed-rate boat loans so their payments will be predictable, some buyers may not qualify for reasonable fixed rates because of their credit history, and an adjustable rate may offer a low introductory rate. For our customers' peace of mind, My Financing USA only offers fixed-rate loans with no prepayment penalties.

The Down Payment 

Many lenders require a down payment for a boat purchase. The amount you'll need to put down on your boat depends on the lender and the price. Some lenders will finance a boat loan without a down payment, but taking that route can put you in a poor financial position depending on the vessel's depreciation.

A down payment can also reduce your monthly payment and the total interest you'll pay for your boat loan, as it'll decrease the amount of financing you need. If your main concern is an affordable monthly payment, you may want to have a down payment.

Your Credit Score

Your credit history can also impact which boat loan terms you can select. While some lenders are willing to offer boat financing to borrowers who have subprime credit, they may have requirements for a low debt-to-income ratio and a down payment. Others may not be willing to offer financing to borrowers with low credit scores. If you have good or excellent credit, you may be offered better rates and terms.

The Type of Boat

Many of today's powerboats are lumped together and financed for similar amounts of time. Therefore, if you're purchasing a powerboat, you likely won't find much variation in the financing options available to you. However, there are some outliers lenders may treat differently, such as:

  • Sailboats
  • Liveaboard boats
  • Pontoon boats
  • Multi-hull boats
  • High-performance boats or boats with wood hulls

If you're looking to purchase one of these vessels, lenders may be less flexible with the terms they offer or not offer options for financing at all. For example, financing a liveaboard boat can be complicated due to the laws surrounding residences and homeownership. If a boat is riskier to finance for any reason, you may find fewer ways to finance.

Fortunately, when you choose My Financing USA, we search across the nation to find you the best rate and lender for various types of boats.

How Many Years Can I Finance a Boat?

If you're wondering how long you can get a boat loan for, you'll be happy to know you can finance a boat for many years. While lenders used to offer shorter boat loan terms, boats are now built better than ever, so lenders can use them as collateral for longer periods of time. As a result, lenders are willing to finance boats for more years, making boat ownership affordable for more borrowers.

How Many Years Can I Finance a New Boat?

When it comes to financing a new boat, you usually do so for as long as 20 years, which is longer than terms for auto loans and even some home mortgages.

Though often compared to auto loans, boat loans greatly differ in the terms offered. When it comes to financing a new boat, you usually do so for as long as 20 years, which is longer than terms for auto loans and even some home mortgages. Essentially, you can finance a new boat for a long time.

Whether you should accept a lengthy loan term depends on several factors, such as what you can afford for a monthly payment and what interest rates you qualify for. Ensure you can truly afford your loan on top of the other costs of boat ownership, such as storage and maintenance. The cost to upkeep your boat will likely be about 10% of your boat's price each year.

If you double your loan term, a lender may only be willing to offer a slightly higher rate or require a larger down payment. Additionally, the longer your loan term, the more you'll pay in total interest, so if you want to keep the long-term costs of your loan down, you may want to select a shorter term. Since My Financing USA doesn't offer any loans with prepayment penalties, you may choose to split the difference and finance for a longer term to keep your payments low while paying the loan off early to save on the interest.

How Many Years Can I Finance a Used Boat?

Like a new boat, you can finance a used boat for as long as 20 years. The financing options for used boats may differ from options for new boats. If a model is old, a lender may not be willing to offer financing whatsoever, as a lender typically needs collateral for a secure loan. While you may see a boat that's cost-effective and ready for a makeover, your lender could see an unreliable asset.

Fortunately, if you find a used boat that suits your needs and preferences, My Financing USA can help you find the financing option that's right for you.

How Long to Finance a Bass Boat

If you intend to use your boat for fishing, a bass boat may be a great option. These vessels feature a flat deck, a powerful outboard engine and aerated livewells to provide the best fishing experience possible. When fishing on a bass boat, you have more control of your boat in shallow water and during periods of high wind.

As with other types of boats, financing for a bass boat will differ based on the vessel's age, location, condition and make and model. For a bass boat, a lender may base the loan terms on the total amount you borrow rather than on the boat's current value. Some factors that impact your interest rate for a bass boat include:

  • Your down payment
  • Your debt-to-income ratio
  • Your creditworthiness

How Long to Finance a Pontoon Boat

If you're looking for a recreational boat to float on the water with your family and friends, a pontoon boat may be the best choice for you. Historically, pontoon boats have been slow-moving, making them great for outdoor activities like fishing, sunbathing and swimming. Today, pontoon boats are a bit faster, and because of their simplicity in design, manufacturers can create high-end interiors that offer a luxury experience.

The financing for a pontoon boat is similar to that of other boats. Like all vessels, new pontoon boats don't hold their value and may depreciate quickly in the first few years, similar to a new car. Typically, the rate of depreciation slows over time, but it's still something to keep in mind. Similar to a bass boat, your financing will be based on the pontoon's characteristics and your financial history.

If you want to know how a loan term can affect your monthly boat loan payment, use our boat payment calculator. Simply input your loan amount and interest rate and try different loan terms to see how the number of years you finance your boat may affect your payment. This calculator works for all boat types.

How Many Years Do Lenders Finance Boats For?

How Many Years Do Lenders Finance Boats For? At My Financing USA, you can finance a boat loan for many years — anywhere from 60 months to 240 months.

Note that loan terms vary from lender to lender and by loan type. A personal loan, also known as an unsecured loan, often comes with shorter loan terms, while lenders who specialize in boat loans may offer longer loan terms. There are two main avenues you can pursue for financing your boat:

  • Credit unions, banks and online lenders: Many borrowers go directly to lenders like credit unions and banks to get financing for a boat. These financial institutions tend to offer some of the best interest rates on the market. If you're a bank or credit union member, you may even qualify for discounts when you finance your boat with them.My Financing USA works with banks and credit unions across the nation to find the best boat loan for you.
  • Dealer financing:The majority of financing for new boats happens through dealerships. These businesses draw in customers, as they're the ones with a wide selection of boats to sell and have relationships with financial institutions that can offer customers boat loans. When a customer expresses interest in a boat at a dealership, they may pursue financing through the dealership or be referred to a bank.

At My Financing USA, you can finance a boat loan for many years — anywhere from 60 months to 240 months. This flexibility means you can pay off your boat as quickly as five years or take up to 20 years to repay your loan. How long you can finance your boat with My Financing USA depends on your loan size:

  • 10 years: You can finance a boat loan of $10,000 to $19,000 for up to 10 years.
  • 12 years: You can finance a boat loan of $20,000 to $24,000 for up to 12 years.
  • 15 years: You can finance a boat loan of $25,000 to $74,000 for up to 15 years.
  • 20 years: You can finance a boat loan of $75,000 or more for up to 20 years.

Along with your loan size, the term you're eligible for depends on your boat's age, your credit history and your down payment. Typically, we require a down payment between 10% and 15%, though we do offer 100% financing as determined on a case-to-case basis. We also require a credit score of at least 550 550 and limit the age of boats to 20 years or newer.

Learn About Boat Financing at My Financing USA

Learn About Boat Financing at My Financing USA

With our high customer satisfaction ratings and our A+ rating from the Better Business Bureau, My Financing USA stands apart from other boat financing companies. We pride ourselves on the sterling reputation we've developed. The advantages our customers enjoy when they work with us include:

  • The ability to get pre-approved for boat loans
  • Offers of great rates and terms from trusted lenders
  • Closing documents you can sign right on your phone
  • A website secured by Norton VeriSign, which keeps private information safe
  • A friendly team that will respond immediately to your questions

You can learn more about the boat financing we offer at My Financing USA or apply for a boat loan today.

How Long to Finance an RV

Many Americans dream of owning an RV. Whether you want to go camping at nearby parks and campgrounds or travel around the country, an RV can make vacations more affordable and flexible. Forget booking hotel rooms and flights months in advance – pack up your RV and family and hit the road for the weekend.

Unfortunately, many Americans with an ultimate goal of RV ownership believe it is not within their financial means. If you are considering purchasing an RV but aren't sure whether you can afford it, we can help you find the right financing option at My Financing USA.

What Are RV Loans?

RV loans are similar to auto loans, meaning you can finance them for several years. Lending institutions like credit unions and banks generally issue RV loans, along with private RV-related businesses. Though a dealership may claim they will finance you, the loan you will get through a dealership comes from a bank in their network. If you have financed a car or a home, the RV financing process will be familiar. 

A lender will consider the price of your RV, your proof of income, your down payment and your creditworthiness. Along with your rate and down payment, the cost of your RV loan depends on its length. Fortunately, your RV loan term is negotiable. 

How Long Does It Take to Finance an RV?

The RV financing process may seem familiar if you have previously financed a car or home. However, there are some differences between financing an RV and a vehicle, such as how long you can finance an RV or a motorhome. The factors below influence your RV loan term. 

How Long Does It Take to Finance an RV?

The Size of the RV Loan

Your RV's purchase price can significantly impact how many years a lender will allow you to take to repay the loan. Generally, you can finance a larger RV loan longer than a smaller loan. Additionally, many lenders set minimum requirements for loan amounts to qualify for specific terms. For example, a new RV can cost between $6,000 and $300,000 depending on the vehicle's size, model, make and internal furnishings.

At My Financing USA, we offer RV loan terms based on your loan size.

  • 20 years: For an RV loan of at least $75,000, you can finance a new RV for as long as 20 years.
  • 15 years: You can finance an RV for as long as 15 years if you obtain a loan amount between $25,000 and $74,000.
  • 12 years: You can finance a motorhome for as long as 12 years if your loan amount is between $20,000 and $24,000. 
  • 10 years: Even if your loan amount is only between $10,000 and $19,000, you can finance an RV for many years. At My Financing USA, you can finance RVs in this price range for up to 10 years.

We also offer the ability to pay off your loan early with no penalty. Loan sizes vary from lender to lender, so check with each lending institution you are considering.

The Type of RV

Financial institutions will treat most RVs and motorhomes similarly, except in some cases of more experimental vehicles. The following are the different types of RVs you may consider purchasing.

  • Travel trailer: These versatile trailers can serve various purposes. You can use a travel trailer for hauling and vacationing. 
  • Fifth wheel: Fifth wheels are a top choice among those who want to buy an RV. A fifth wheel allows for stable, easier towing and increases living area with over-cab space.
  • Lightweight trailer: A lightweight can be an ideal choice if you are looking for a smaller, more fuel-efficient trailer. These trailers can still come with plenty of amenities and are capable of towing by a smaller vehicle.
  • Expandable trailer: An expandable trailer can be a towable RV, a pop-up camper or a motorized RV. With an add-on or slide-out, you can increase your living space or enhance the feeling of the outdoors.
  • Class A RV: A Class A RV is one of the largest types of RVs. They are often luxurious and spacious and can carry a family of any size on a long-distance trip.
  • Class B RV: Also known as a camper van, a Class B RV is more compact than a Class A RV, but it still features a kitchen, bedroom and bathroom.
  • Class C RV: A Class C RV represents the middle ground between the Class A and Class B models and is recognizable by its over-cab sleeping or storage area, which can provide additional living space for a large family hitting the road. Though smaller than a Class A, a Class C motorhome offers much of the same craftsmanship and features. 
  • Toy hauler: A toy hauler is available as a fifth wheel, travel trailer, Class or Class C. This option can offer you extra space to sleep and store your toys, such as a motorcycle or an ATV. 

The Age of the RV

A financial institution will also consider the RV's condition, such as whether the vehicle is new or used. An RV depreciates as it gets older, which means banks and credit unions may be less willing to loan you money over an extended period if your RV is older. While you may still finance an older, used RV, you may only be eligible for a short loan term.

At My Financing USA, we finance RVs from 2009 or later and determine older models on a case-by-case basis. 

Your Credit Score

If you are borrowing money from a lender, they will want to know you have a reliable payment history. Many lenders consider your credit score when determining whether to approve your application and what rates they are willing to offer. The higher your credit score, the more likely you'll be to get approved for a rate and loan term you want. 

Credit ranges may vary by the lending institution, but you can generally expect the following credit score tiers.

  • Deep subprime: This range, typically between 300 and 549, is bad credit.
  • Subprime: This range, usually between 550 and 674, is below-average credit.
  • Prime: This tier, typically between 675 and 749, is average to good credit.
  • Super prime: Super prime is excellent credit, and the range is typically between 750 and 850.

However, even if you have less-than-stellar credit, you may still finance an RV. At My Financing USA, you can prequalify for an RV loan with a credit score as low as 550 550. We understand that everyone has a unique financial history, which is why we are willing to work with people who have previously dealt with credit challenges.

How Many Years Can I Finance an RV?

Many borrowers want to know how long they can finance an RV before starting their search. You finance an RV for many years, often much longer than you finance a car, depending on its price. That's because RVs tend to cost a lot more than cars or trucks. 

How Many Years Can You Finance a New RV or Motorhome?

Ensure you can afford your loan, along with the other costs of RV ownership.

You can finance an RV for many years, especially if it is a new vehicle. The typical timeframe to repay an RV loan is between 5 and 10 years, though a loan term can be as long as 20 years for newer, more expensive vehicles. With a new RV or motorhome, you may have more financing options available, as the collateral will be more valuable and reliable for a lender.

Whether you should obtain a long RV loan term depends on various factors, such as what interest rates you are eligible for and what you can afford to pay each month. Ensure you can afford your loan, along with the other costs of RV ownership. 

  • Insurance: As with any car or home, you will need insurance for your RV. For example, an insurance policy for a $50,000 RV may cost roughly $2,500 per year if you have a good driving record.
  • Maintenance: Every RV requires maintenance for regular service of tires, heating, cooling and toilets, along with winterizing services. Maintenance can cost anywhere from $3,000 to $5,000 each year, depending on whether you use your RV exclusively for summer vacations or getaways throughout the year.
  • Storage costs: If you lack the room to store your RV on your property, you may need external storage for your vehicle. Depending on the location and how much space you need, storage could cost about $2,500 each year.
  • Campground fees: Fees can vary significantly from one campground to the next. The range is typically between $20 and $100. Remember this when creating your travel budget.
  • Additional equipment and accessories: You can equip your RV with extra equipment and accessories, such as a water heater, infotainment gadgets and an external awning. Prices of these items can vary, so you may want to set aside a few thousand dollars depending on what improvements you would like to make. 

You may want to base your choice of an RV loan term on the costs you estimate for RV ownership and what you can afford.

How Many Years Can I Finance a Used RV?

How many years you can finance a used RV or motorhome depends on your RV's quality and condition. A lender needs collateral to approve you for financing to ensure they will have something of value to sell if you fail to make your monthly payments. 

If an RV is an older model, it can be much more challenging to find long-term financing, and you may have a more limited term to repay your loan. Like a car, an RV can depreciate quickly, so your RV's value can drop dramatically after only a few years of use. How long you can finance a used motorhome also depends on your down payment and credit score. 

How Many Years Can You Finance an RV With Lenders?

If you are buying an inexpensive RV, you may want a shorter term, but for an expensive RV, a longer term may be the right choice.

Whether you should take out an RV loan with a shorter or longer term depends on your finances and goals. If you want a lower monthly payment, you may want to opt for a longer term. If you wish to pay less for the loan in total, you may aim to obtain a loan for a shorter term. 

A longer term can also get you a lower rate, and with no prepayment penalty, you can pay off your loan faster than expected. For example, if you choose the longest loan term possible at the lowest monthly payment and pay more than your required payment each month, you can effectively lower how much you pay in interest and shorten your loan term's length.

If you are buying an inexpensive RV, you may want a shorter term, but for an expensive RV, a longer term may be the right choice. Whatever is right for you, we offer flexible financing options at My Financing USA. When you choose us, you can finance an RV for as little as five years or as long as 20 years. You can also enjoy the following benefits when you work with us.

  • Credit protection: We protect your credit score by reducing the number of inquiries. 
  • Quick application approval: Receive funding for your RV loan application in only 48 to 72 hours.
  • Convenience: Sign your closing documents right from your phone.

Additionally, we offer extras like gap waivers and a tire and wheel program. Use our RV loan payment calculator today to see how your loan term can impact your monthly payment.

Apply for an RV Loan With My Financing USA

Apply for an RV Loan With My Financing USA. After you fill out our online application for an RV loan, you can get approved for financing in only 48 to 72 hours.

If you want to get behind the wheel of a new or used RV, turn to My Financing USA. Even if you do not have perfect credit, we can help make your dreams of RV ownership come true. We offer our services across the 48 contiguous states and can help you find the lowest available rates.

After you fill out our online application for an RV loan, you can get approved for financing in only 48 to 72 hours. We will reach out to discuss your application and ask about your expectations and goals. After we approve your application, we can start submitting your name to vendors. Apply online for an RV loan in only minutes with My Financing USA today. 

The Different Credit Score Ranges In The RV And Boat World

WHAT ARE THE DIFFERENT CREDIT SCORE RANGES IN THE RV AND BOAT WORLD?

A credit score ranges from 300, being the lowest, to 850, being the highest. Individuals with low credit scores within the range of 300-569 have a lower chance of getting an RV loan or boat loan approved because they pose a potential risk for defaulting payments, as they fall into the Deep Subprime loan range as a result of bad credit. An individual with a high credit score, however, is more appealing to lenders because they are perceived to be lower risk. Most lenders look for borrowers with higher credit for assets such as RVs and boats because they are considered to be luxury items. However, My Financing USA searches for loan programs for most credit types to help you get approved for a boat or RV loan.

Credit Score Range

Excited businessman sitting at his desk in front of his laptop

If you need to finance an RV or boat, you will need to submit a credit application allowing the company to review your credit history. Your credit history is the most important deciding factor to qualify for such loans, however, every lender has their own set of credit ranges as to what qualifies for a good credit score. Currently, for My Financing USA, the current range is 550 and up in order to prequalify for an RV or boat loan.

Different lenders will normally have different credit ranges. Below is a definition of what credit score tiers look like in general:

  • 300 - 549: Deep subprime (bad credit)
  • 550 - 674: Subprime (below average credit) 
  • 675 – 749: Prime (average-good credit)
  • 750 – 850: Super prime (excellent credit)

With that understanding, you will find that every individual is unique with their financial history. Most RV and boat dealers will avoid doing business with individuals who have a deep subprime or subprime history. Some, like My Financing USA however, expand their target audience by working with individuals who had credit challenges in the past. 

Subprime RV and Boat Loans

Companies who offer subprime credit loans can help finance RV and boats to individuals who have below-average credit scores. Regardless of what your credit range is, My Financing USA matches you with the best RV and Boat loan rates and terms available.

Subprime Advantages -

  • Approval of credit scores as low as 550
  • Available financing options even with a past bankruptcy
  • Stretched out loan terms up to 15 years

Subprime Disadvantages -

  • Restrictions on the type or age of boats you can secure
  • Higher-interest rates
  • Capped loan amounts

Prime RV and Boat Loans

Most companies generally look for individuals who qualify within this credit score range. They will attract buyers for RV loans and boat loans with better interest rates and terms as compared to those in the lower range of the credit score range.

Advantages -

  • Efficient approval on RV and boat loans
  • Lower down payment
  • Lower insurance rate
  • Better interest rates and terms 
  • Better negotiating power
  • Longer loan terms

Ultimately, building your credit score takes time. Moving your credit score from subprime to prime has its advantages and will benefit you in the long run. You will be able to purchase an RV or boat rather than renting one at the best loan rate possible. You will have a better selection of RV and boats as well as spend less money due to lower interest rates. Even if you do have a strong credit score, it is also important to understand the costs of owning a boat or costs associated with owning an RV so that your credit score doesn't suffer from reoccurring costs.

If you are looking to reap the benefits in the high credit score range, you must ensure that you have no bad credit history such as overdue bills and unpaid debts. Whether you are looking to buy an RV or a boat, My Financing USA matches you with the best RV loan rates and Boat loan rates and terms available.

How Does A Credit Inquiry Affect My Score?

Having several inquiries can reduce your overall credit score and affect your RV or boat loan approval. Lenders use your credit report to conduct a risk assessment. Inquiries can affect their decision to offer a loan to you. Too many hard inquiries in a short period of time can be concerning to lenders. That's because multiple hard inquiries may add up to numerous new accounts. This may make the lenders feel you are taking on too much debt or having financial difficulties. A credit inquiry would typically remain on your report for 24 months and can cause fluctuations in your credit score.

The Differences Between a Hard Inquiry and Soft Inquiry

My Financing USA RV Dealer Indirect Program

A hard inquiry is when a lender reviews your overall credit report and makes the decision whether to proceed with the loan. This type of credit inquiry will influence your overall credit score as it will be recorded on your credit report.

A soft inquiry is when a lender checks your credit to pre-approve you before you apply. This kind of inquiry does not affect your credit score.

Most dealers and credit companies will “shotgun” your application to many sources, dramatically increasing the number of hard inquiries on your credit. However, My Financing USA always pre-qualifies customers with a soft pull and will only send your application to a lender for a hard inquiry if we have pre-qualified you.

Examples of a soft inquiry:

  • RV loan pre-qualify check
  • Boat loan pre-qualify check
  • Employment background check
  • Pre-approved credit card offers
  • Pre-approved investment loans

Examples of a hard inquiry:

  • Application for RV financing to lenders
  • Application for boat financing to lenders
  • Application for personal loans
  • Application for credit card loans

What Do Credit Loan Companies Look For?

Businessman in suit and tie holding cash in his hand.

Loan companies and/or lenders complete credit inquiries before approving or denying loans. If you are looking for financing plans to purchase an RV or a boat, you might want to take a look at the list of guidelines that credit companies look for before they decide to approve a loan for a client.

Opening several credit accounts – Opening multiple credit accounts in a short period of time can be concerning to lenders. Lenders may feel you are taking on too much debt or having financial difficulties. This can decrease your chances of approval for new loans.

Large balances on credit cards – Carrying large outstanding balances on credit cards often makes lenders believe that the individual is not living within their means. Try to keep credit card balances as low as possible, preferably below 30% of maximum limit.

Paying your bills on time – How efficient you pay your bills and installments are important factors that credit companies look for on your credit report. If there is any kind of delays or outstanding debts, it is highly unlikely that lenders would approve new credit loans for you until all unpaid bills are fulfilled.

Income and expenses – Lenders consider clients with a Debt to Income ratio below 40% to be lower risk than those with a higher debt to income ratio. Debt to Income Ratio is the percentage of your debt payments in comparison to your income.

Down payment – Although most lenders require a down payment ranging from 10%-20% of the purchase price. My Financing USA will work to get the lowest down payment possible based on your specific information.

When you are applying for an RV or boat loan, it is always a good idea to review your financials and ensure you are able to take on the new debt and the costs associated with owning a boat or owning an RV. My Financing USA is willing to help you secure the best financing for your RV and/or boat loans.