What to Know About Bad Credit RV Financing

Because of the higher risk to lenders, interest rates for bad credit RV financing are typically higher than for prime borrowers. Rates can range anywhere from 9% to 20% or more, depending on your credit profile, loan term, and the age of the RV.

That said, credit unions and local lenders often offer more flexible options than large national banks. As a not-for-profit financial institution, a credit union gives back to its members with lower rates and fees. Members can benefit from personalized guidance and local decision-making.

What is bad credit RV financing?

Bad credit RV financing is a loan option designed for borrowers with lower credit scores—usually under 650—who still want to purchase a recreational vehicle. These loans work much like traditional RV loans but may come with higher interest rates, shorter terms, or larger down payment requirements.

Lenders offering bad credit RV loans often consider more than just your score. They’ll review your income, employment history, and debt-to-income ratio to assess your ability to make consistent payments.

How can I get RV financing with bad credit?

There are ways to increase your chances of getting an RV loan approved. While bad credit RV financing is possible, it’ll come with a higher APY that increases your total cost of borrowing. Consider waiting a few months to improve your credit score.

Firstly, check your credit report. By reviewing errors or outdated accounts, you can correct mistakes and boost your score. Secondly, pay down your debt. Start making strides towards reducing your credit utilization to prevent further buildup.

Get started with bad credit RV financing today

Take time to understand your loan options, plan your budget, and choose a lender that puts your long-term financial success first. At MIT Federal Credit Union, our RV loans offer no processing fees, service fees, or prepayment penalties. With smart steps today, you’ll be ready to explore tomorrow’s adventures—credit score and all.