How to Get RV Loans for Bad Credit in 2023

Having bad credit can make it tough to get approved for loans, including RV loans for bad credit. However, there are still options available if you know where to look and how to improve your chances. In this guide, we’ll cover everything you need to know about securing RV financing with bad credit, from understanding credit score requirements to exploring alternative lending options.

Credit Score Requirements for RV Loans

The minimum credit score needed to qualify for an RV loan can vary depending on the lender, but generally falls within these ranges:

700+ = Good chances of approval with best rates and terms
670-699 = Decent approval odds, but you may pay higher interest
600-669 = Considered subprime, making approval more difficult
Below 600 = Bad credit, very challenging to get approved with most lenders

Most mainstream banks and RV lenders for bad credit borrowers have a minimum credit score requirement around 600-650. Scores below that are considered high-risk.

How Bad Credit Affects RV Loan Terms

Even if you can find a lender willing to work with you despite bad credit, expect the loan terms to be less favorable than someone with an excellent credit rating. Here are some common impacts:

Loan Factor	Impact of Bad Credit
Interest Rate	Higher APRs, potentially in the teens
Down Payment	May require 15-20% down or more
Loan Amount	May cap loan size, e.g. $50,000 max
Repayment Term	Shorter terms like 5-10 years common

Essentially, bad credit RV loans are considered higher risk for lenders, so they try to mitigate that risk through higher costs and stricter loan criteria. But evaluating these tradeoffs is still better than an outright denial.

Top Lenders for Bad Credit RV Financing

While major banks tend to have tougher credit score requirements, there are specialized lenders who cater to bad credit borrowers for RV loans. Some top options include:

RV Loan Source: Minimum 550 credit score, starting 9.99% APR for bad credit
Southeast Financial: Credit score as low as 575 accepted, 10% down required
My Financing USA: Bad credit RV financing with min. 550 score, 10% down
Good Sam: Score down to 600, loan amounts up to $50k for subprime borrowers

These lenders have flexibility to work with bad credit scores in the 500s and 600s, though rates, down payments, and approval criteria may vary. Consider applying with 2-3 options to see which gives you the best deal.

How to Improve Your Chances of Approval

Overcoming bad credit for an RV loan takes some proactive steps. Here are some tips to boost your approval odds:

Check credit reports and dispute any errors that could be weighing down your score
Pay down debts like credit cards to lower your credit utilization
Provide a large down payment, ideally 20% or more to show financial commitment
Get a co-signer with good credit to reduce risk for the lender
Consider extra collateral like a vehicle or home equity to secure the loan

Taking steps to improve your credit health over 6-12 months can also help tremendously in qualifying for better bad credit RV loan options.

Alternatives to RV Loans with Poor Credit

For those struggling to find reasonable RV financing with bad credit, there are some potential alternatives to consider:

Personal Loans: No collateral needed, though loan amounts may be limited (e.g. $50k max)
Home Equity Products: Tap into home equity for the RV purchase if you have it
Pay Cash: Avoid financing altogether if possible by saving up enough to purchase the RV outright
Rent an RV: Can be a much cheaper short-term solution rather than purchasing

In some cases, bad credit may leave you with limited RV financing options – but getting on track to rebuild your credit opens more doors long-term.

With diligent planning and an understanding of the lending landscape for subprime borrowers, getting behind the wheel of your dream RV is still an achievable goal even with bad credit. Explore all your options and make the most informed decision for your financial situation.