Qualifying for a Boat Loan
- 1). Check your credit report. Your credit score plays a huge role in whether you qualify for a boat loan, and the interest rate the lender offers. Before submitting an application, check your credit. Inaccurate information and a low score can result in loan denial.
- 2). Gather financial information. Lenders take several things into account. They’ll need to assess whether you can afford a new monthly expense. Therefore, they’ll request information such as paycheck stubs, a list of monthly debts and other financial statements that reveal your assets.
- 3). Determine a loan amount. Before applying for a boat loan, decide how much you would like to spend. Once you have an amount in mind, don’t allow the lender to sway your thinking or persuade you to finance a more expensive boat.
- 4). Provide a down payment. Because the actual boat secures the loan, most lenders don’t require collateral on boat loans. However, if you have so-so credit or you want to get a lower interest rate on the loan, save money for a down payment. Down payments aren’t required, but they can help you save money and qualify for a boat loan.
- 5). Submit an application with a boat lender. Boat lenders closely evaluate loan applications before making a decision. They’ll have to review your income and debts, and check your credit history. To receive multiple quotes from different lenders, use a loan broker (see Resources below).
- 6). Compare boat loans and choose the best offer. In addition to qualifying for a boat loan, you’ll want to receive the lowest interest rate. Comparing boat loans is easy and quick, and if you use a broker, they’ll find the loan programs for you. Simply complete a loan application, and brokers will respond with quotes from various lenders.
