Boats can be more expensive than cars, resulting in higher loan amounts and extended loan periods. As such, most people think a lot before taking a boat loan, while others can’t meet the eligibility criteria for getting a loan.
The cost of financing a boat is determined by a variety of factors, including the type of boat loan you select, the loan terms, your down payment, and your credit. And credit is the most crucial factor; if you do not have a good credit score, it will be difficult for you to get a loan.
However, there are ways in which you can get a bad credit boat loan, but before jumping to that, let’s look at some necessary basics:
Boat Loans and Their Types
A boat loan can be a secured personal loan expressly tailored to fund a boat, a more general secured loan that accepts boats as collateral, or an unsecured personal loan. As such, boat loans are structured similarly to vehicle loans, with a defined loan amount that you pay interest on over a specified period of time.
And, here is a list of different types of boat loans, have a look:
- ANZ Variable Rate Personal Loan: This loan has a 10.5% p.a. interest rate, and the application will be online for the same. Please note that the boat will be used as security.
- Latitude Personal Loan (Secured): This loan has a 5.99% p.a. interest rate, and the application will be online for the same. Please note that the boat will be used as security.
- IMB Secured Personal Loan: This loan has a 5.98% p.a. interest rate, and the application will be online for the same. Please note that the boat will be used as security.
- HSBC Personal Loan: This loan has an 8.5% p.a. interest rate, and the application will be online for the same. Please note that the boat will be used as security.
Things to Consider Before Applying for Bad Credit Boat Loan
Getting a boat loan with bad credit can be a difficult task. You have to consider a lot of aspects and take care of a lot of things. So, here is a list of things that will ease the process of acquiring the loan for you:
1. Maintain a Budget
You must be aware of how much you want to spend on a boat, and this is possible if you are clear about which boat you want to buy. Hence, try to be as clear about this as possible.
2. Check If You Are Comfortable With the Repayments
The monthly payment you select must be financially feasible for you. You must assess if you will be able to manage all other expenses after paying the due amount or not. And this will help you in planning things in a better way.
3. Keep Applying
It can be challenging to get a decent boat loan with bad credit. So, it will be helpful if you apply to different lenders by comparing their interest rates and then settle for the one that seems most feasible.
Take a boat loan if you passionately want to own a boat, and don’t let the financial constraints and lousy credit score hold you back. You can borrow money from a lender and try improving your credit scores simultaneously. And now that you have a decent amount of information at hand, start searching for the lender ideal for you today!