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Even with a credit score of 550, a bad credit boat loan may be able to provide you with the funds you require to purchase a boat. You’ll most likely pay a higher interest rate, however. Borrowers with poor credit can typically anticipate an APR of around 17%. This means that you should shop around to find the best rate rather than accepting the first loan offer that you receive.
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Note from the Editor: This article’s content is solely based on the author’s opinions and suggestions. It might not have received approval from any of our network partners through reviews, commissions, or other means.
Even with a credit score of 550, a bad credit boat loan may be able to provide you with the funds you require to purchase a boat. You’ll most likely pay a higher interest rate, however. Borrowers with poor credit can typically anticipate an APR of around 17%. This means that you should shop around to find the best rate rather than accepting the first loan offer that you receive.
How to get a bad credit boat loan
Obtain a free copy of your credit report to ensure that there are no errors that could be harming your score. Before buying a boat, you can challenge any errors and try to improve your rating. You don’t need a perfect score to buy a boat, but raising it by even 10 points could increase your chances of getting a boat loan with bad credit.
Pencil a budget
The type of boat you want will determine the price of the boat. The down payment and the monthly payment are the two figures that most borrowers worry about. The typical down payment ranges from 10% to 25% of the boat’s cost. Additionally, the monthly payment you select must be within your means. Here is a calculator for boat loans to assist you with the numbers.
Decide on a boat
You must specify exactly which boat you want to finance when applying for a bad credit boat loan. The lender will request the make, model, year, condition, and, if an engine is present, the number of miles on it.
Apply to several lenders
It’s important to shop around to find the lowest interest rates because bad credit boat loans have higher interest rates. If you submit all of your applications within 14 days, applying to multiple lenders won’t lower your credit score any more than applying to one will. Once you have loan offers, request that the dealership match your lowest rate.
Sign on the dotted line
You will be guided through the loan and purchase paperwork by the lender or the dealership finance manager. Here are some strategies for paying off a car or boat loan early to lower the total amount of interest you pay.
Current boat loan terms and rates
Here are a few boat loan companies that you could use to get financing. iNet and Southeast Financial are the top two businesses that provide bad credit boat loans.
| Boat Loans for 2022 | ||||
| Company | Starting APR* | Terms (months) | Loan amounts | Credit score requirement |
| Southeast Financial | 5.99% | Up to 240 | $10,000–$1,500,000 | None |
| iNet | Unspecified | Up to 240 | $5,000–$1,000,000 | 500 |
| LightStream | 5.99% | up to 144 | $5,000–$100,000 | 670 |
| Essex Credit | Unspecified | 48–240 | $10,000–$5,000,000 | 700 |
*Some loan amounts and/or terms may be necessary; an autopay discount may also be necessary.
Understanding bad credit boat loans
Experian classifies credit with a FICO score below 580 as having “bad” or “poor” credit. You can check your score here for free. Credit scores are used by lenders to determine how risky it is to make a loan. The higher the APR, the greater the risk and the lower the score.
| Boat loan interest rates by credit band | |
| Credit band | Average closed loan APR |
| Subprime | 15.45% |
| Midprime | 10.09% |
| Prime | 5.96% |
Source: LendingTree internal data Q1 and Q2 2022
Example
Here are some numbers based on a loan for a $20,000 boat for a five-year (60-month) term to help you understand what these APR numbers mean for your monthly payment and how much you’d pay in total interest over the life of the loan.
| Credit band | APR | Monthly payment | Total Interest |
| Subprime | 15.45% | $481 | $8,832 |
| Midprime | 10.09% | $426 | $5,550 |
| Prime | 5.96% | $386 | $3,177 |
How much boat can you afford?
It’s crucial to know how much boat you can afford because a bad credit boat loan will cost you more. To calculate how much you can spend on a boat, use a boat loan calculator. The total cost of owning a boat includes insurance, off-season storage, winterizing, launching/mooring/docking fees, fuel, maintenance, and repairs, so your bad credit boat loan payment must be manageable.
Put your desired loan amount, estimated interest rate, and desired loan term into the calculator to determine your monthly payment. Any input can be changed to see how the payment changes.
Alternatives to bad credit boat loans
For some people, a bad credit boat loan is not the best option. You might be able to obtain a secured personal loan with better terms than a subprime boat loan if your credit is poor but you have a steady income and a good relationship with your credit union or bank. Unsecured personal loans are another possibility, but they are likely to require good credit to be approved.
There are plenty of lenders offering secured personal loans. Even if your credit score is low, you might still be approved for a personal loan and have some flexibility in selecting the term and payment schedule that best suit your financial situation. The loan terms could be shorter than those for a bad credit boat loan, origination fees could be charged, and interest rates could be as high as 35 percent, which is the legal maximum for your state. 99% in some places.
If you have the cash on hand to purchase the boat, you may be able to negotiate a significant price reduction and avoid paying hundreds or even thousands of dollars in fees and interest while you work to improve your credit.
Home equity loan or HELOC
You might be able to borrow money if you own a home. Loans secured by real estate usually have lower interest rates. But if you couldn’t make the payments, you’d be endangering your house. Here’s more information on these options.
What to do if you aren’t approved
You can take steps to enhance your credit, pay off debt, save money, and try again later. However, if you don’t want to wait, you have a few choices, such as:
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FAQ
What credit score do I need to get a boat loan?
Most lenders will require credit scores of at least 700. With a lower credit score, you can still obtain a boat loan, but be prepared to pay a price in the form of a higher interest rate or a bigger down payment.
Can you get a boat loan with a 600 credit score?
You can obtain a boat loan with a credit score of 600, yes.
Can I finance a boat with a 620 credit score?
Even with a credit score of 550, a bad credit boat loan may be able to provide you with the funds you require to purchase a boat. You’ll most likely pay a higher interest rate, however. Borrowers with poor credit can typically anticipate an APR of around 17%.
Can you get a boat loan with a 580 credit score?
Even though it is occasionally possible to be approved for a boat loan with a FICO credit score in the 500s, typically you must have a score of 600 or higher and have a low debt-to-income ratio in order to be accepted. If you believe you are eligible, you can apply for a loan right now online.