Recreational vehicles (RVs) have the potential to create memories as either a primary home or an amazing recreational mode of transportation. Because of the versatility of the vehicle, you can find a wide range of loans available that vary in terms of interest rates, loan terms and total loan amounts. RV loans appeal to a wide range of potential borrowers possessing excellent to low credit scores. The cost of an RV varies depending on its classification. It’s advised to try and boost your credit score and financial information before applying for a loan. Higher credit scores and stronger financial information can make it easier to obtain more flexible terms and lower APR rates on RV loans.
Quick Look: Best Personal Loans for RVs
- Best for Overall: Alliant Credit Union
- Best for Excellent Credit: Marcus by Goldman Sachs
- Best for Fair Credit: Bank of the West
- Best for Bad Credit: Southeast Financial
- Best for Comparing Lenders: LendingClub
- Best for Speedy Funding: LightStream
6 Best Personal Loans for RVs
RV loans vary based on a wide range of factors such as whether you intend to use the vehicle as a primary residence or as a recreational vehicle. Loans for RVs depend in part on whether you intend to purchase a new or used RV. The strength of your financial information and credit score can heavily impact the loans available to you. Before deciding on a loan, take your time researching both the types of loan offers available as well as their drawbacks in benefits. Look at different RVs and offers before deciding on how much you will need for a loan.
Alliant Credit Union
Alliant Credit Union first began in the 1930s as a credit union for United Airlines. It includes over 250,000 members and offers a wide range of services such as savings accounts, checking accounts, loans and investment opportunities.
Alliant recommends higher credit scores above 700. However, there is no clearly stated minimum score. Credit scores typically range between 300 and 850, so a score of 700 is on the higher side. However, Alliant requires membership, which can create a potential barrier to entry. Membership can be gained by working as an employee for Alliant or one of its associated companies.
Marcus by Goldman Sachs
Marcus is owned by Goldman Sachs, which has grown into an international financial powerhouse. These loans tend to be on the smaller side but provide higher benefits. A Marcus personal loan is advised for higher credit scores.
Bank of the West
Bank of the West has a history of 120 years and is currently owned by BNP Paribas. Before entering into a loan, review the required documents. For example, Bank of the West RV loans requires information such as two years’ worth of income history as well as debt information. It offers no pre-approvals.
Southeast Financial
Southeast Financial was originally located in Tennessee, opening 20 years ago. The company has partnered with over 700 dealers.
The company offers RV refinancing, which can potentially lower your monthly payments. Southeast Financial offers RV extended protection plans to help cover unexpected repairs. The warranty terms for RVs run from 1 and 7 years. Borrowers have the opportunity to bundle both loans and extended warranties for RVs within one company.
Southeast Financial loan approvals are good for 30 days.
LendingClub
LendingClub was first founded in 2006 and over the years grew into a centralized website that helps to compile loan offers.
LendingClub helps interested borrowers compare different loans from one online location. For example, LendingClub offers a combination of recommended RV loans with starting APR rates of around 4.24%. A designated page on the website showcases RV loan terms to help provide a better perspective on specific market numbers.
When examining and comparing loans, gain a clear understanding of your intended RV with the additional fees such as insurance and licensing fees while actively accounting for them in your intended loan amount. Before accepting a loan, speak with a financial professional and analyze multiple loan and RV offers.
LightStream
LightStream is part of Truist Bank. Truist Bank has roots that stretch back to the early 1880s. Over the years, Truist Bank expanded and merged with other financial companies.
What makes LightStream so unique is that it offers the potential for loans to be deposited on a selected funding date of your choosing. This means that accepted loan recipients have the flexibility of deciding when funds need to be deposited to their accounts. The lowest APR rates are available when combined with autopay and excellent credit scores.
Loans for RVs at LightStream are offered at a fixed rate. Fixed-rate loans mean the interest rate remains the same throughout the life of the loan. Fixed rates can help provide a level of consistency in terms of loan repayment. The terms for RV loans can span between 2 and 12 years, and you can select the terms to some degree if you have an elevated level of credit. People who qualify with excellent or strong credit have better flexibility when it comes down to repayment terms.
Loans from LightStream are unsecured, which offers a lower level of liability for the potential borrower. There are no prepayment penalties and no home equity requirements. The website offers an interactive section where interested RV loan recipients can enter their desired loan amount and get a better idea of their expected rate.
Overall, the loan maximum of $100,000 is low when compared to other loan offerings, but LightStream offers attractive benefits that could work for the interested borrower.
Frequently Asked Questions
RV loans can vary greatly in APR rates, term lengths and loan amounts. The type of RV that you are interested in purchasing and additional costs such as upkeep and insurance will affect your loan choice.
How long are average RV loan terms?
RV loans tend to be relatively expensive, so the amount needed for a loan tends to be on the larger side. RV loan terms are usually between 10 and 15 years. However, factors such as your credit score and additional financial information also have the potential to impact term lengths. Before taking an RV loan, decide if you will be able to make consistent payments if unexpected financial situations occur.
How long can an RV last?
An RV can have a similar timeline to a car. Quality RVs have the potential to last around 10 years or about 200,000 miles. Driving long miles can potentially deteriorate the lifespan of your vehicle. Figure out if you intend to make the RV your primary residence or a recreational vehicle before purchasing it. Proper maintenance and upkeep can help extend the life of an RV; repairs have the possibility of becoming expensive.
RV Personal Loan Requirements and Criteria
When shopping for a loan, financial information such as your credit score can heavily impact the types of loans that are available to you. Keep your finances up to date to have the best chance at obtaining optimal loan terms and rates.
RVs have the potential to be used as a recreational vehicle or as a place of primary residence. Such a distinction can impact the loans available and should be taken into consideration when looking at different lenders. Certain lenders only provide loans to potential borrowers that intend to use RVs as recreational vehicles. One reason for the differentiation stems from the categories of risk that the different vehicle usages carry; rates may be different depending on if the RV will be a primary residence.
Some RV loans can vary between secured and unsecured loans. Secured loans for RVs often require collateral and that collateral is often the actual RV. When the RV is the collateral in question for a secured loan then failure to make prompt payments means that the borrower can potentially lose possession of the RV. If you plan to make your RV your primary place of residence, then secured loans offer an additional risk factor because failing to make payments could potentially cost you that primary residence.
In contrast, unsecured RV loans do not require collateral and can help lessen the amount of risk that a borrower is exposed to. Loans that tend to be lower in total financial amount have a greater possibility of being unsecured. One reason the smaller RV loans have a higher possibility of being unsecured than larger RV loans stems from the understanding that lenders are exposed to a greater amount of risk with larger loans. Lenders often try to lessen risk exposure through tactics such as requiring collateral on more financially significant loans.
Things to Consider Before Getting an RV Loan
Compare different loan offers and check to see if there are any hidden fees such as penalty fees or origination fees. These fees can potentially change the overall expense of a loan that looks appealing, so evaluate all the expenses.
Your credit score and financial history can impact the RV loans available to you. If you have a lower credit score, it may make sense to first improve your credit score before applying for an RV loan. Improved credit scores can allow you to obtain better loans with lower APR rates and more flexible terms.
RV loans fall under different classifications. For example, class A RVs are traditional motorhomes, and the class often includes larger models and more high-end features. Your RV could fall within five classes of recreational vehicles. Classes A, B and C are motorized. However, additional options such as a travel trailer or a fifth-wheel travel trailer are typically not motorized and can also potentially classify as an RV or motorhome loan.
Key factors such as how much debt you can afford affect your loan choice. Loans typically must be repaid according to set terms such as fixed monthly payments. If your loan is too much for your budget, then these payments have the potential to become too expensive or difficult to repay. Purchasing a smaller RV or a slightly scaled-down version from the one at the height of your budget can help protect you from unforeseen expenses in the future while also protecting your credit score.
Finally, it’s recommended to check customer reviews for RV loans as well as for the actual RV that you would like to purchase. Customer reviews can help paint a more realistic picture of what to expect in terms of payments and overall satisfaction. Speak with a financial professional before entering into an RV loan to better understand your options. Remember, loans are not to be entered into lightly because of their ability to expose you to added risk and additional financial expectations.