Key Takeaways
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You can get an RV loan from banks, credit unions, online lenders, and some RV-specific dealers.
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To qualify for an RV loan, you must meet certain credit score, income, and credit history requirements in addition to the lender’s specific requirements.
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To increase your chances of approval, make sure your finances are in order and research lenders to find options that fit your situation.
Recreational vehicles – or RVs – can cost anywhere from $10,000 to more than $500,000, depending on the class, model and condition. RV loans can be a great way to finance such a large purchase.
These loans are typically available through online lenders, banks, credit unions, and RV dealers.
The application process for an RV loan is similar to applying for a car loan, but getting approved is often more difficult. This is because lenders usually impose stricter requirements on these types of loans, given the large amounts.
Steps to Financing an RV
Wondering how to get an RV loan? It is similar to obtaining any other type of loan. To maximize your chances of approval, follow these steps before applying:
- Check your credit score. Lenders typically require a score of 670 or higher. If your score is lower, try to improve it before submitting a loan application.
- Identify the type of RV you want to purchase. This is important because it determines how much you need to borrow. You can also consider different lenders depending on whether it is new or used.
- Insure the money for your down payment. Although not required by all lenders, this is typically 10 to 20 percent of the RV purchase price.
- Compare lenders. Look at the eligibility requirements, interest rates, and repayment terms to create a list of viable options.
More information: Should you rent or buy a camper?
1. Prequalify with multiple lenders
Before submitting a full application, get quotes from the lenders you’ve researched. This process, known as prequalification, will not harm your credit. It helps you determine your purchasing power and possible monthly payment before you shop.
If you buy from a dealer, look for one that works with multiple lenders. This can increase your chances of being matched with a competitive offer.
2. Complete an application
Once you find a lender, complete and submit your complete application. While this may vary from lender to lender, you will likely be asked to provide the following:
- Your full name and date of birth.
- An ID, such as a passport or other official ID.
- Your address and telephone number.
- Proof of address, such as a utility bill, an insurance contract or a rental agreement.
- Your citizen service number.
- Your employer’s contact details.
- Proof of income, such as copies of tax returns, pay stubs, or W-2s.
3. Sign the loan agreement
The loan agreement states the loan terms, including your payment amount and due date. Check the fine print and sign. Depending on the lender, the money can be deposited into your account the next day.
Getting Approved for an RV Loan: Factors to Consider
RVs are expensive and are often labeled as luxury items. Financing a camper may therefore be subject to stricter requirements than a car loan, which often correspond to those for qualifying for a mortgage.
Credit score
As with applying for any type of consumer loan, a solid FICO credit score is an important part of your qualifications. Lenders use credit scores to measure your credit risk or the likelihood of repaying the loan.
Most lenders require a FICO score of at least 670 to qualify for an RV loan. However, some will allow FICO scores below that threshold. To guarantee the lowest rates, you’ll need a credit score in the mid-700s or higher. Otherwise, you could end up with a high interest rate.
Before you start your application, check your credit reports with all three credit bureaus – Experian, Equifax and TransUnion – so you are aware of any negative marks. That way you can take all the steps necessary to improve your score.
A free copy of your credit report from all three bureaus is available weekly at AnnualCreditReport.com.
Can I get an RV loan with bad credit?
It is possible to qualify for an RV loan with a lower credit score. Some lenders may still approve loans for buyers with a credit score as low as 600, but this typically comes with higher interest rates and fees.
Shop around to find the best deal, regardless of your credit score.
Income
When applying for an RV loan, the lender will ask you to provide proof of income. Lenders may also ask you to provide debt statements to calculate your debt-to-income ratio (DTI).
Your DTI shows how much of your monthly income goes toward paying your debts. Lenders typically want your DTI to remain below 36 percent, even after you take out an RV loan. A low DTI indicates that you can probably afford additional debt.
Use Bankrate’s personal loan calculator to determine how much you can reasonably afford.
Costs
On the low end, you can find a towable pop-up camper for as little as $5,000. New luxury RVs can cost more than $1 million. Before you start shopping, consider what you want in an RV and what you can reasonably afford.
The age of the camper also affects the price. A new camper obviously costs more than a used model. But even though the car has sleek features, you’ll likely experience steep depreciation, just like a new car.
On the other hand, a used RV will have similar features but cost significantly less. You can also find RVs that are decades old. They won’t have as comfortable features as a recent model, but they will cost significantly less.
| New | Used | |
|---|---|---|
| Class A | $50,000 to $300,000 | $30,000 to $175,000 |
| Class B | $70,000 to $150,000 | $40,000 to $115,000 |
| Class C | $50,000 to $150,000 | $30,000 to $75,000 |
| Travel trailer | $20,000 to $75,000 | $10,000 to $50,000 |
| Fifth wheel | $35,000 to $125,000 | $30,000 to $100,000 |
Source: Frequently asked questions about campers
Credit history
Although credit history requirements vary by lender, every lender cares about your borrowing record. This includes making timely payments on credit cards and any installment loans, such as student loans, personal loans or a mortgage.
Lenders struggle with late or missed payments and defaults. The less you have, the better.
Lender Specific Requirements
Approval requirements generally vary by lender. The most common variations include minimum credit score and income requirements.
Some lenders may also ask questions about how you plan to use the RV (as a primary residence or as a vacation home). They may also want to know the condition of the vehicle.
To avoid unnecessary rejections, check on each lender’s website or by contacting customer support before applying.
The bottom line
Many lenders can help finance an RV, both new and used. To improve your chances of approval, assess your credit score and income before proceeding with a formal application. Also, shop around and get pre-qualified with multiple lenders to find the best deal available to you.
