How to Get a Boat Loan

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Much like a car or RV, a boat is a big purchase and investment. Most people can't afford to purchase a boat outright, which is what boat loans are for. Whether you're interested in buying a new or used boat, you'll likely need to finance most or all of the boat's price. There are several ways to get a boat loan, including options for people with poor credit scores. To choose the right loan and lender, learn more about how to get a boat loan and what the process entails. 

How Do Boat Loans Work?

Like other installment loans, boat loans let you finance a boat with a lump sum that you repay through monthly payments. Boats generally cost more than cars, so these loans are typically for larger amounts of money. Getting a boat loan works like any other loan in which you apply with a lender and are assessed for eligibility. Lenders look at factors like credit score, credit history, outstanding debt, income and specific information about the boat you're interested in purchasing. 

Your credit score is one of the most important factors in determining loan eligibility. Lenders typically want to see borrowers have higher credit scores for boat loans. Your credit score will ultimately determine whether a lender wants to work with you, what interest rate you qualify for and more. If you have poor credit, getting a boat loan is still possible — you just need to find a lender willing to work with you. 

Learn About Boat Loans

Types of Boat Loans

Types of Boat Loans

Whether you're financing a new or used boat, you typically have a few different loan options. Depending on your credit score and financial situation, you may qualify for a secured or unsecured loan. Others may choose to take out a second mortgage to finance their boat. Here's a closer look at these boat loan options:

  • Secured: Secured boat loans require you to use the boat you purchase as collateral on the loan. The collateral can be repossessed as repayment if you stop making payments on the loan. Secured loans are typically for higher amounts of money and have lower interest rates and longer terms, which can benefit most borrowers as long as payments are made on time.
  • Unsecured: Unsecured boat loans are the opposite of secured loans. You don't need to put up collateral for these types of loans. Unsecured loans are typically used for smaller amounts of money and have higher interest rates and shorter repayment terms. Your credit history and existing debt typically need to be tip-top to qualify for these loans. 
  • Home equity loan: The least common way to finance a new or used boat is through a home equity loan, which is essentially a second mortgage. These loans require using your house as collateral instead of the boat. These loan types can be high risk, so they're often used as a last resort boat loan.

Potential borrowers can obtain boat loans through a few different avenues. If you're purchasing a boat from a dealer, they can use their relationships with lenders to conveniently find you a loan. However, dealership financing often has increased interest rates so they make a profit. Many banks and credit unions also offer boat financing, which can be beneficial if you have an existing relationship with them. Banks often have competitive rates that require good credit, while credit unions require borrowers to be members.

Online lenders are a popular choice for boat loan borrowers because they're flexible and easy to compare, and many are more willing to provide financing options to borrowers with poor credit.

How to Get a Boat Loan With My Financing USA

My Financing USA is an online financing program that helps match applicants with the most ideal lender for their financial situation. We help potential borrowers who may have lower credit scores and have been turned down by other lenders. Once you know your budget and are ready to apply, we'll help you throughout the process. Boat loans require monthly payments to repay the loan over its term. Determining what payments you can comfortably afford will help you narrow your options. If you apply with a co-applicant, we'll also factor in their credit score, income and other information.

Our online boat loan application is quick, secure and simple, allowing you to fill it out on your own time and from the convenience of your home.

From there, we'll send your information to various lenders nationwide. We only submit your application to one lender at a time to limit bureau inquiries that could impact your credit score. Each credit pull is valid for 30 to 90 days, and we recommend closing at least 10 days before that approval expires.

If a lender approves your application, you could receive your financing within three business days. If your application is getting denied, we'll continue trying or reconnect with you to determine how you can work to improve your credit score. An active effort to make improvements can help increase your likelihood of getting approved. 

Apply for a Boat Loan

FAQs About Boat Loans

Asking questions before and throughout your loan process is important to understand your loan. Here are a few common questions we often get asked regarding our boat loans:

  • What rates and terms can I qualify for? My Financing USA can finance Rates Between 6.49% and 19.95%, and terms range from five to 20 years. Our rates and terms depend on factors like your credit history, location, the loan amount and the age and type of boat being financed. 
  • Can I finance a boat motor? Financing only a boat motor is referred to as repowering. We can help you finance a boat motor — just provide the boat information you're repowering and indicate it's a repower in your application.
  • Are there any fees? Some lenders may charge several different hidden fees. We only charge a document fee for our services after you close, and it's financed into your loan total.

Secure a Boat Loan With My Financing USA Today

With over 15 years in business, we offer borrowers several advantages over other lenders, including favorable terms, easy closing and fast approvals. We also work with people who have good or bad credit. To get started, learn more about our boat loan process and fill out our online application.

Secure a Boat Loan With My Financing USA Today. Apply for a loan!

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