Theres no prepayment penalty and they come to their loan decision in one to three business days.
(Not all lenders offer a live-aboard program.)
We are big fans of their clearly detailed APRs.
The transparency instills confidence when applying.
LightStream boat loans are unsecured loans, so there is no collateral required.
There also arent any origination fees or prepayment penalties.
Southeast Financial is great for borrowers with bad credit.
Note: Southeast Financial as a lender is not affiliated with Southeast Financial Credit Union in Tennessee.
You cannot, however, get a live-aboard boat loan from Trident Funding.
USAA does not disclose a credit score requirement.
The minimum loan amount is just $5,000 and thats a plus.
Thats where boat loan lenders come in.
But how does a boat loan work?
And just like with cars, you could take out loans for both new and used boats.
No Interest Til Almost 2027?
Interest rates will vary and depend on the strength of your credit history.
A secured boat loan means you have offered collateral (more on that below).
you’re able to expect repayment terms akin to the typical installment loan.
A secured loan is the gold standard for a boat loan, but its not your only option.
If you default on your boat loan, the lender can repossess that collateral as payment.
So default on your loan and that boat will sail off into the sunset without you.
(And leave you marooned with bad credit.)
Unsecured Boat Loans
you’re able to apply for an unsecured personal loan with no collateral.
We generally recommend unsecured loans only for necessities, as interest rates are high.
(Because there is no collateral, lenders consider personal loans to be riskier).
Home Equity Loans For Boans
A home equity loan is a second mortgage.
Loan amounts are calculated based on the current market value of your home less the remaining mortgage balance.
Because these loans are risky, they are not the best choice for financing a boat.
Heres how:
1.
But you dont have to sign on the dotted line there.
How Boat Loans Affect Your Credit Score
Boat loans can have a positive impact on credit scores.
Creditors like to see that borrowers can consistently make on-time payments.
If you default on your boat loan, that will have a more negative impact on your score.
However, credit scores can be affected both positively and negatively by a boat loan.
Applying for any kind of loan requires the lender to do a hard inquiry into your credit history.
Late payments can bring credit scores down.
This is potentially a 20-year commitment.
For a $100,000 boat, thats a down payment of $10,000 to $20,000.
Fees
Many lenders charge loan origination fees or closing costs.
Factor these into your purchase.
Youll also pay taxes on it.
Maintenance and Repairs
Also like vehicles, boats require regular maintenance and upkeep.
Winterizing your boat also comes at an expense.
Towing
Will you better purchase any equipment for your truck or SUV to tow your boat?
Fuel
Gas prices continue to rise.
Some boats take petrol while others use diesel.
New Boats vs. Used Boats
Deciding between a new or used boat for your watercraft?
There are pros and cons to each and various implications for your boat loan.
Frequently Asked Questions (FAQ) About Boat Loans
Still have questions about boat loans?
Weve taken the most common questions readers are asking and provided some quick answers.
While many lenders require strong credit scores, some offer boat loans to borrowers with challenged credit.
Just dont expect to qualify for the competitive rates advertised on their site.
Dealers typically offer boat financing, but theyre not your only option.
Review loan options from online lenders and your bank or credit union before making a final decision.
Timothy Moore covers banking and investing for The Penny Hoarder from his home base in Cincinnati.
Contributor Larissa Runkle contributed to this post.
