A credit score can fall anywhere in therange of 300 to 850. If you have a low credit score between 300 and 550, your chances of qualifying for an RV loan may be lower, as you are perceived to pose a greater risk to lenders.
On the other hand, if you have a higher credit score, lenders will perceive you to be less of a risk and may be more likely to approve your loan application and offer more affordable RV finance rates.Since an RV qualifies as a luxury item, some lenders seek borrowers who have higher credit scores. Regardless, at My Financing USA, we can help you find a loan program, even if you don't have a great score.
To prequalify for RV financing, our current range starts at a credit score of 550. Below are the general credit score tiers:
- Deep subprime:300 to 549
- Subprime:550 to 674
- Prime:675 to 749
- Super prime:750 to 850
Even if your score falls in the subprime range, we know that each individual has a unique financial history and we can help you find an RV loan despite credit challenges.
Subprime vs. Prime RV Loans — What's the Difference?
The majority of lenders seek borrowers in the prime and super prime ranges. However, if your credit score is below average, you may still be able to secure an RV loan from a company that offers buyers subprime loans. On the other hand, if your credit score falls in the prime range, you'll see betternew RV financing ratesand better terms than buyers who have lower credit scores.
Both subprime RV loans and prime RV loans offer benefits to borrowers. Subprime RV loan advantages include:
- Approval for applicants with credit scores as low as 550
- Financing options, even with a bankruptcy in your past
- RV loan terms that may stretch to 20 years
The benefits of a prime RV loan include:
- More favorable interest rates
- Fast approval for an RV loan
- Longer loan terms available
- Lower rates for insurance
- Greater negotiating power
- Better loan terms
Though it can take some time to improve your credit score, increasing your score can offer advantages that will benefit you over time. A higher score can help you get offers for a loweraverage interest rate for an RV loan, saving you money in the process. Even if you expect to obtain one of the average RV loan rates, you may want to understand the total cost of RV ownership to ensure you know the full picture of owning an RV.
