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What Credit Score Do I Need for an RV Loan?

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Last Updated on June 24, 2022 by Jessica Lauren Vine

Are you curious and asking, “What credit score do I need for an RV loan?”

Taking a road trip through the country in an RV is a dream for many individuals. However, getting the RV is the first step. Not to mention RVs are expensive, and many people require a loan for them. This can be problematic if your credit score is low. Let’s see what score you need and how you can fix it.  

You will need a Fico score of between 650 and 700 in order to get an RV loan. However, if you have a poor credit score of between 500 and 600, options are still available. Some tips on getting an RV with a low credit score are making a down payment, getting a cosigner, and choosing a cheap RV.

This article will detail all you need to know about RV loan credit scores, how to get your credit score, how to improve it, and how to get a loan even if you have a bad credit score. Read on to see how you can get the RV of your dreams.

What Credit Score Do I Need For An RV Loan?

Unlike your typical motor vehicles, RVs are much more expensive. This means that credit unions and financial institutions are much more reserved when choosing which customers they will give a finance plan to.

Hence, in order to qualify for an RV loan, your credit score should be between the 650 and 700 Fico score range.

See also
Is Owning an RV Worth It? - What to Be Aware of Before Buying an RV

Moreover, many financing options will still allow you to get an RV loan if your Fico score is between 500 and 600. However, the terms and conditions in order for you to get an RV loan with this credit score are much more involved.

How Do You Know If Your Credit Score Is Bad?

Typically if you have a large amount of credit card debt, you’ve been missing payments, or you have only been paying the bare minimum, you can expect your credit score to be low.

These are just general rules, and you may want to know precisely what your score is before you even consider applying for a loan. There is a way that you can acquire a copy of your credit report.

According to the Fair Credit Reporting Act (FCRA), you are able to ask for a free copy of your credit report once every twelve months. The three reporting credit bureaus are by law obliged to hand these over to you if you request them. You can ask any of these bureaus which are namely;

  • Experian
  • TransUnion
  • Equifax

Can You Get An RV Loan If You Have Bad Credit?

As we stated, you can get an RV loan if your credit score is not that great, but you will need to take steps to improve your credit along with additional factors first.

Before we explain how you can obtain an RV with bad credit, you should take a few preparatory steps to see if you are able to clear up your credit first.

There are two main factors to consider in terms of trying to rectify your credit before you jump the gun and apply for an RV loan with bad credit. They are namely;

  • Have listings that are incorrect removed
  • Start working on your debt if possible

In some cases (and many more than you would think), fraudulent activity and even identity theft can affect your credit score. You should have any errors and issues once you have gone over your report removed if you find something to be at fault.

See also
How to Buy a Used RV Out of State

After that, you should speak to your bank or financial advisor and try to consolidate your debts. Consolidating your debts can give you a balance so that you are not paying off so many bills with varying interest rates.

How Can You Get An RV Loan With Bad Credit?

If you are adamant about trying to acquire an RV loan but still have a poor credit score, then there are steps you can take to help you get the RV of your dreams.

Initiate a realistic payment budget

The main factor that lenders will take into consideration for giving you an RV loan, even if you have a poor credit score, is your ability to repay. If you don’t know how to do this, the first step is to use an RV calculator.

Consider that you should also budget not only for the RV itself but for additional accessories, utilities, and costs. These will include;

  • Fuel
  • Insurance
  • Campground Fees
  • Maintenance
  • Repairs

Give At Least A 10% Down Payment

If you have a bad credit score, the best way to get approved is to put down a large down payment on the RV. Typically, this should at least be 10%, but some dealerships may ask you for as much as 20%.

The larger your initial downpayment on the RV, the better your chances are of getting approved.

Choose The Correct RV

If you have bad credit, it is unlikely that you will be able to get a loan for a top-of-the-line RV model. You should manage your expectations and choose an RV that is within your price range.

Types of RVs
Type of RVDescription
Class A MotorhomeThis is the top-of-the-line largest and most expensive RV home
Class B MotorhomeThis RV is also known as a Camper Van. It is built using the body of a van for its base
Class C MotorhomeThese are midsized RVs and are typically within most individual’s price ranges
Fifth-Wheel RVThese are sometimes expensive and luxurious RVs that are towable
Travel TrailerThese smaller RVs are less expensive and can be towed by many vehicles, not just a pickup

Use A Co-Signer

If you are lucky enough to have a family member or friend who will co-sign for your loan, then that is also an option. However, they will need a good credit score, and if you cannot pay for the RV or fall back on your payments, then the duty will fall to them. So this is something to consider.

See also
Should You Buy an RV Out of State?

Try And Get Preapproved

The last thing you can try and do is to get preapproved by a lender. This may be difficult because of a poor credit score, but utilizing the tips that we discussed will help you and give you the leverage that you require.

Even if you have a poor credit score, a dealership will more often than not go out of their way to help you get the RV you want if you are preapproved.

Credit Scores for Buying an RV Frequently Asked Questions

You may have some other questions as you look into getting a loan for your RV. I hope these answers help.

Should I get a loan to buy an RV?

If you get a loan to buy an RV, keep in mind that it will use up some of the credit you’re able to get. If you want to buy a car or a house any time soon, you should shy away from taking on an RV loan.

Will getting an RV loan hurt my credit score?

Yes. In the short term, if you get an RV loan, it will hurt your credit. Your age of credit will decrease, your debt to income ratio will increase and lenders will be careful about lending you money until you prove yourself with your new account.

Should I wait to increase my credit score before getting an RV loan?

Yes. You should wait to get a good credit score before getting an RV loan. The higher your credit score is, the better terms you can get on an RV loan.

Conclusion

Although you need a good credit score of between 650 and 700, there are ways that you can acquire an RV loan if your score is poor.

The steps involved are numerous but not out of reach and can be achieved relatively quickly. If a lender and dealership can see that you are able to pay back the loan, then that is typically all that matters.

Hopefully, going through the steps we provided will give you a leg up on obtaining your RV loan, and you will be on your way to getting your dream RV in no time.

Before going anywhere, make sure you check out these other helpful RV-related articles.

How Often Should You Seal Your RV Roof?

How Do You Get Mold Out of a Fiberglass RV?

Best Generator for RV Air Conditioner

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