Are you looking to purchase a new recreational vehicle or upgrade your old one but aren’t sure if you meet the minimum credit score for an RV loan? If so, you aren’t alone; many Canadians are uncertain of the required minimum credit score when applying for RV financing.
In this blog post, we’ll discuss everything you need to know about recreational vehicle loans, including how they work and what scores lenders look at to determine your eligibility. Keep reading to learn more about recreational vehicle loans in Canada.
What is An RV Loan?
RV loans refer to financing to cover the cost of purchasing recreational vehicles, motorhomes, or trailers. A notable difference between these loans and auto loans is that the loan amounts are often much higher, ranging from $25 000 to $300 000 or more.
RVs are often expensive, with an average cost of $15 000 to $40 000. A high-end RV can set you back as much as $100 000. The RV purchase process is also more complex than the average auto loan.
The loan term for RV financing can range from a few years to at least 20 years, usually depending on the loan amount. When you purchase through a loan, the lender will pay for your RV, and then you can pay them back monthly over a defined period.
The monthly payment amount depends on your contract with the financier, how much you owe, and the length of the financing period.
How do RV Loans Work?
There’s no significant difference between RV loans and how other loan types work. The next step is filing an application if you’ve decided that financing is the most viable way to purchase an RV.
Most financiers will check your credit score before approving your RV loan. The minimum credit score for RV loan in Canada is usually 620. You can then discuss the financing terms with your lender if you qualify.
The financing terms will spell out the loan conditions, including the loan amount, the applicable interest, and the loan term. You will repay the borrowed amount plus interest monthly over your agreed-upon period.
Can You Get An RV Loan With Bad Credit?
While having a bad credit score can limit your options, it shouldn’t deny you the opportunity to possess the best RV possible. Several loan options are available to help you acquire an RV despite your bad credit.
Depending on employment history and income level, some financiers have programs for borrowers with credit scores as low as 550. It’s worth noting that if you have bad credit, any loans you qualify for will often be smaller and attract higher interest rates.
Contact Canada Powersports Financing for RV Loan
Do you need an RV in Canada but don’t meet the minimum credit score for RV loan? If so, Canada Powersports Financing can help. We have an RV loan for you whether you have good, bad, or no credit. Contact Canada Powersports Financing at (844) 531-0138 today to see if you qualify for RV financing.
