a boat loan with bad credit
I have very bad credit and I need to borrow
$5,000 to $10,000 for a boat. Despite my bad credit and recent job change, I have
collateral. I own a 1997 BMW 328i free and clear. How would I go about getting
a loan, and what type of loan would this be considered? -- Glenn
I spent a little time trying to figure out why this is such
a priority for you. My personal preference is to have friends who have boats,
vacation homes, vegetable gardens, etc., rather than to actually have these things
The Bankrate feature, "Expensive
sports toys and how to pay for them," does a really good job of describing
the difference between dealer financing, bank financing and personal loans for
boats -- even for guys like you with bad credit.
should be its own collateral on the loan, and you shouldn't need to tap the equity
in your car to buy the boat. Getting an auto loan to tap the equity on a 6-year-old
BMW when you have bad credit is next to impossible.
at two Internet lenders: PeopleFirst and E-Loan. PeopleFirst offers refinancing
on used vehicles but requires that the car be less than five years old. E-Loan
will consider a 1997 car with less than 75,000 miles but will only give you a
36-month loan on a car this old, and it's meant to be a refinancing, not a source
of new money. With poor credit, the loan's APR would range from 8.99 percent to
You could sell the BMW, buy the boat, and use
the remaining cash as the down payment on a new or used car. A large down payment
will help convince the lender to approve your loan. The interest rate will still
be high but you should be able to do better than 9 percent to 20 percent.
the end, it's easier to get a car loan with bad credit than it is to get a boat
loan with bad credit.