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Applying for a Boat Loan with Bad Credit: 3 Things to Consider

Aug 3, 2021 | Blog, Financing

Having a bad credit score can limit your chances of buying something important soon. It doesn’t even matter what your purchase plans are—as soon as your credit score is brought up in the conversation, your chances of getting a good amount dramatically drops. This is directly related to your past debts and deficiencies, much so that lenders may have second thoughts when looking at your records.

While it may seem like a lost cause, the good news is that there are a couple of workarounds to acquire that well-needed loan for your planned purchases, especially if you’re going for a boat. 

With that said, here are recommendations and preparations to consider before applying for a boat loan—even with bad credit:

1. Prepare All the Necessary Paperwork

Having a bad credit score means that there is a tendency for the lenders to check your papers more thoroughly than those with spotless records. This is done to verify if bad decisions caused your current credit scores in the past or by technicalities in the regulations. 

Whatever the reason may be, they will be able to come up with a decision based on your credit history. You need to be transparent about your scores and prepare all the necessary paperwork and receipts that will show all your loans and debts. Yes, there is a chance that your loan may be affected after this, but it is still better than getting no loan at all.

2. Choose a Possible Collateral for the Loan

Bad credit scores only spell trouble for most borrowers, much so that the lender will require collateral, just in case you wouldn’t be able to pay for the boat loan as well.

The type of collateral may vary, depending on the amount you are planning to borrow, so be sure to discuss this with the lender to get an idea of what you can offer in exchange for the loan. This is somewhat related to the first pointer. A fair amount of paperwork will also give the lender a preliminary list of the valuables you can use as your collateral.

3. Settle Your Old Debts as Much as You Can

Just because you have a bad credit score doesn’t mean that you can no longer make up for it. Work on paying your past debts little by little. If your current income only enables you to deliver them one at a time, no worries, that is still better than not paying anything at all. 

If the lender you’re currently coordinating with would see your efforts in settling past debts, they may give you a chance at a higher amount. Any type of gain, no matter how small, is still a win.


Applying for a boat loan despite your current bad credit score can be quite hard, especially if you don’t even know if you have a fighting chance of getting approved. Nonetheless, you still should try your best to submit all of the required documents and other pre-requisites, as even that may play an essential role in your loan’s approval. 

You may even check alternative financing agencies that deal with bad credit loans, so as long as you will be honest about your past debts and your current standings with your recent loans. Work on your past debts, prepare your documents, and qualify for a fair amount that can get you an excellent boat loan.

If you’re on the hunt for fair boat loans despite your bad credit history, Canada Powersports Financing is here to help you with that. We finance ATVs, Snowmobiles, and Boats, among other things. Get approved within minutes—reach out today!!

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