Best overall boat loan

LightStream
4.6Check rate with Bankrate
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 9.99% –25.99%
- Loan amount:
- $5,000– $100,000
- Term lengths:
- 2 to 7 years
- Min. annual income:
- $50,000
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Hanneh Bareham specializes in everything related to personal and student loans and helping you finance your next endeavor. She aims to help others reach their collegiate and financial goals through making loans easier to understand.
Hannah has been editing for Bankrate since late 2022. They aim to provide the most up-to-date information to help people navigate the complexities of loans and make the best financial decisions.
Bankrate has also identified each boat lender highlighted as "best for" particular situations based on our research. Comparing these and other factors will help you find the right lender for you and determine if a boat loan is the right choice for your finances.
Consider your own financial health and credit history. Lenders that offer the lowest APRs and higher loan amounts tend to require good credit.
The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies.
Bankrate’s scores for personal loan lenders evaluate 11 data points related to loan costs and terms, as well as customer experience. | The annual percentage rate (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing. | The range of loan amounts that a lender will service. The maximum value is the largest amount a lender will give although this amount may not be available to borrowers who don’t have good or excellent credit. Amount ranges may vary for non-loan products. Term refers to the amount of time you have to repay the loan. | The minimum credit score typically required to qualify for a loan with a given lender. Exact thresholds are not always disclosed by a lender and in certain cases the minimum score is the best estimate based on publicly available information. Credit score refers to FICO 9.0 unless otherwise stated. | ||
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APR from 9.99- 25.99%* with Autopay | Loan Amount $5k–$100K* Term: 2-7 yr* | Min. Credit Not disclosed | ![]()
*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are .50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 9.99% APR with a term of 3 years would result in 36 monthly payments of $322.62. © 2023 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank. | Apply on partner site | |
APR from 8.49- 35.97% with AutoPay | Loan Amount $1k–$50K Term: 2-7 yr | Min. Credit 560 | ![]()
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49%-35.97%. All personal loans have a 1.85% to 8.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/. | Check rate with Bankrate | |
APR from 8.99- 35.99% | Loan Amount $2k–$50K Term: 3-5 yr | Min. Credit 600 | ![]()
GENERAL AFFILIATE DISCLOSURE UPDATE AS OF 03.2023 *Trustpilot TrustScore as of December 2022. Best Egg personal loans, including the Best Egg Secured Loan, are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. “Best Egg” is a trademark of Marlette Holdings, Inc., a Delaware corporation. All uses of “Best Egg” refer to “the Best Egg personal loan”, “the Best Egg Secured Loan”, and/or “Best Egg on behalf of Cross River Bank or Blue Ridge Bank, as originator of the Best Egg personal loan,” as applicable. The term, amount, and APR of any loan we offer to you will depend on your credit sc¬ore, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000– $50,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; Ohio, $5,000; and Georgia, $3,000. TO REPORT A PROBLEM OR COMPLAINT WITH THIS LENDER, YOU MAY WRITE OR CALL Joseph Walsh – Operations Manager, Email: ccrt-resolution@bestegg.com, Address: P.O. Box 42912, Philadelphia, PA 19101, Phone: 1-855-82-6353. This lender is licensed and regulated by the New Mexico Regulation and Licensing Department, Financial Institutions Division, P.O. Box 25101, 2550 Cerrillos Road, Santa Fe, New Mexico 87504. To report any unresolved problems or complaints, contact the division by telephone at (505) 476-4885 or visit the website https://www.rld.nm.gov/financial-institutions/. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $100,000. Annual Percentage Rates (APRs) range from 8.99%–35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–8.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. For example: a 5‐year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3‐year $5,000 loan with 7.99% APR has 36 scheduled monthly payments of $155.12. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. Best Egg products are not available if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories. | Check rate with Bankrate | |
APR from 7.99- 35.99% | Loan Amount $5k–$50K Term: 2-5 yr | Min. Credit 620 | ![]()
All loans available through Achieve Personal Loans (NMLS ID #227977) are originated by Cross River Bank (a New Jersey state chartered commercial bank) or Pathward, N.A. (Equal Housing Lenders) and may not be available in all states. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Minimum loan amounts vary due to state-specific legal restrictions – please call an Achieve Personal Loans consultant for further details. Loan amounts generally range from $5,000 to $50,000 including origination fees, and are offered based on loan purpose and underwriting conditions. Repayment periods range from 24 to 60 months. APRs range from 7.99% to 35.99% APR and include applicable origination fees. Example loan: four-year $20,000 loan with a rate of 15.49% and corresponding APR of 18.34%, would have an estimated monthly payment of $561.60 and a total cost of $26,956.80. To qualify for a 7.99% APR loan, a borrower will need excellent credit, a loan amount for $12,000.00 or less, and a term of 24 months. Loan origination fees vary from 1.99% to 6.99%. Adding a co-borrower with sufficient income; using at least 85% of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could also help you qualify for lower rates. Average interest savings for personal loans range from 0% - 6% based on closed loans that qualified for one or more of our rate discounts in July 2022. †Times noted are estimates and can vary for a loan request from Achieve Personal Loans (NMLS #227977). Same day approvals assume that a fully completed application with all required supporting documentation is provided early enough on a day that our offices are open. Achieve Personal Loans consultants are available Monday–Friday 6AM to 8PM MST and Saturday–Sunday 7AM to 4PM MST. | Check rate with Bankrate | |
APR from 10.50- 29.99% | Loan Amount $5k–$40K Term: 2-5 yr | Min. Credit 640 | ![]()
Overview: Happy Money (formerly Payoff) offers low APRs of 10.50 percent to 29.99 percent, making it an ideal lender for borrowers trying to consolidate credit card debt at a lower interest rate. This lender also offers free monthly FICO updates and reports payments to major credit bureaus in order to help borrowers build credit. This offer does not constitute a commitment to lend or an offer to extend credit. Upon submitting a loan application, you may be asked to provide additional documents to verify your identity, income, assets, or financial condition. The rate and terms you may be approved for will be shown to you during the application process. Loans subject to an origination fee, which is deducted from the loan proceeds. Refer to full borrower agreement for all terms, conditions and requirements. Only loans applied for and issued on or after January 23, 2023, are covered under the TruStage™ Payment Guard Insurance Policy. Please refer to the certificate of insurance, provided to you with your loan origination documents, for terms and conditions of the coverage. Some exclusions apply. Claims must be submitted for review and approval to CUMIS Specialty Insurance Company, Inc. TruStage™ Payment Guard Insurance is underwritten by CUMIS Specialty Insurance Company, Inc and not by Happy Money. CUMIS Specialty Insurance Company, our excess and surplus lines carrier, underwrites coverages that are not available in the admitted market. Product and features may vary and not be available in all states. Certain eligibility requirements, conditions, and exclusions may apply. Please refer to the Group Policy for a full explanation of the terms. The insurance offered is not a deposit, and is not federally insured, sold or guaranteed by any financial institution. Corporate Headquarters 5910 Mineral Point Road, Madison, WI 53705. | Check rate with Bankrate | |
APR from 9.95- 35.95% | Loan Amount $2k–$35K Term: 1-5 yr | Min. Credit Not disclosed | ![]()
Overview: Avant is a popular lender for borrowers with fair to poor credit. Its minimum credit score requirement is 580 FICO and 550 Vantage, lower than many other lenders. Avant is also a good choice for borrowers who haven’t built up much credit yet. | Check rate with Bankrate |
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A boat loan is similar to an auto loan. In this case, a boat loan gives you the money to purchase a boat. This can be anywhere from a small boat to a more luxury craft, depending on your financial situation and desires.
Some lenders offer loans specifically for boats, but most will offer personal loans that can be used to finance boats and related costs. Looking for an online boat loan from a personal loan lender can give you more options to find the least expensive option for you.
Most lenders will ask the borrower to fill out a loan application, which can be fairly thorough. Lenders will also likely ask for information like tax returns and proof of assets. It's likely that you'll need to provide a detailed account of your personal finances during the application process. Lenders want to make sure you're in a healthy place financially and can afford to take out a larger loan, so it's best to have the necessary documentation on hand before you start the process.
The application process is typically fast and approval is largely based on your credit score and income.Though banks typically require 10 percent to 20 percent down for the purchase of a boat, you may be able to finance 100 percent of the cost.
Lender | Loan Amount | APR | Funding Time | Minimum credit score |
---|---|---|---|---|
LightStream | $5,000-$100,000 | 9.99%-25.99%* (with AutoPay) | As soon as the same day | Not disclosed |
Upgrade | $1,000-$50,000 | 8.49%-35.97% | As soon as the same day | 560 |
Best Egg | $2,000-$50,000 | 8.99%-35.99% | As soon as the next business day | 600 |
PenFed | $600-$50,000 | 7.74%-17.99% | Within 1 to 2 days of approval | 700 |
SoFi | $5,000-$100,000 | 7.99%-23.43% | Within a few days of approval | 680 |
Happy Money | $5,000-$40,000 | 10.50%-29.99% | Within 3 business days of approval | 640 |
Prosper | $2,000-$50,000 | 6.99%-35.99% | As soon as the next business day | 600 |
Avant | $2,000-$35,000 | 9.95%-35.99% | As soon as the next business day | 580 |
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Who its for: Borrowers with strong credit history.
Fees: None.
Time to receive funds: Same day if approved before 2:30 EST, Mon-Fri.
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Who its for: Good-credit borrowers.
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Who its for: Those with less-than-stellar credit.
Time to receive funds: One to three business days.
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Who its for: Existing PenFed members who need a small loan.
Requirements: Must maintain PenFed savings account.
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Who it's for: Borrowers looking for a long repayment term.
Fees: None.
Time to receive funds: In a few days; larger loans may take longer.
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Who it's for: Those paying off existing debt.
Fees: Origination fee of up to 5 percent.
Time to receive funds: Same day as approval.
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Who it's for: People who want to be matched with a lender.
Time to receive funds: Same day as approval.
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Who its for: People looking for a smaller loan.
Banks and other lenders have tailored their products to fit nearly every budget and lifestyle. However, there are two main categories that boat loans usually fall into: secured and unsecured.
Both of these options have pros and cons, but the loans and rates available to you will depend on the lending institution and your financial history. It’s important to understand the difference between the two types of loans before signing up for any financing.
A secured loan is geared toward lower-credit borrowers and is backed by collateral (property, a vehicle or a value item that's used to recoup the loan value if the loan payments aren't made). In the case of a secured boat loan, the boat itself could serve as collateral.
Due to the collateral provided by the borrower, secured loans usually feature lower interest rates than unsecured loans and are accessible to borrowers with a low score or thin credit history. Secured loans are also accessible to borrowers who may not have the best credit history, as lenders aren't as stringent with secured loan requirements.
An unsecured loan doesn’t require collateral, and generally comes with higher interest rates and more restrictions than secured loans.
Unsecured personal loans are a common boat financing option, as they generally come with better rates and have benefits, like repayment flexibility.
Personal loans typically have competitive interest rates and flexible repayment terms and if you have a good credit score and sufficient income, a personal loan may be a great fit for you. Plus, depending on the lender, you may be able to make extra payments that go 100 percent toward the principal, which can help you pay down the balance faster.
A personal loan is unsecured, meaning your boat or another asset won’t be used as collateral. An unsecured loan is entirely based on your creditworthiness and verifiable income, so borrowers with better-than-average credit have the best unsecured approval odds.
Once your loan request is approved and funded, you receive the entire amount in your bank account, minus fees such as origination fees.
Comparing lenders is the most important step in the process of finding the best loan for your credit situation. Here are three steps to take before applying to ensure you're not putting your finances at risk in the long-term:
Prequalify for as many lenders as possible to see your predicted eligibility odds and potential rates without impacting your credit.
Compare the predicted offers to find the lender that offers the most competitive rates and terms.
Research the discounts and member benefits of the remaining lenders to find the one that best meets all of your financial needs.
While eligibility may differ from lender to lender, boat loans are often restricted to boats themselves or boat-related purchases. Boat loans can generally be used to finance any new or pre-owned models, from smaller jon boats to full-sized yachts depending on what you qualify for.
Depending on the criteria, some lenders may allow you to use the funds for any related purchases, like maintenance, repairs, storage and insurance. Before signing on the dotted line, check with the lender's requirements to make sure you don't end up in more high interest debt down the road.
Lower down payments: Depending on the institution, the down payment you're required to make could be less than what you'd have to pay with other financing methods. Some lenders don't even require a down payment, which could end up costing you more in interest down the road, but could increase your approval odds.
Long repayment terms: Since the loans are larger, the average repayment term for a boat loan falls between 15 and 20 years.
Potentially high fees: Origination and administrative fees have the potential to cut into a large portion of your loan amount, so make sure you're aware of any and all fees before signing on the dotted line.
Debt-to-income impact: Boats are a large investment, no matter the cost. Taking out a larger loan could boost your debt-to-income ratio significantly, which makes it harder to get approved for other forms of lending, like a mortgage or a car loan.
Boat loans are available for both new and used boats; generally the biggest difference between the two is in how much you'll need to borrow and where you get the loan from. If you buy a new boat, you may be able to get financing from the dealer or through a marine specialist. Used boats, such as those you buy from an individual, may not have dealer financing as an option, which would cost you more up front but less in the long-term.
Like most vehicles, the newest, biggest or most high-tech models end up costing the most. As a rule of thumb, assess the likelihood of a future upgrade to determine whether a loan for a new boat is worth it. If you have your eye on an upcoming model or an upgraded version of your current boat, consider looking at pre-owned boats so as not to put yourself in large amounts of debt unnecessarily.
Aside from the make and model, the biggest difference between new and used boats how much you will need to borrow. Generally, new boats are going to cost more, so you will need to borrow more money or put down a larger amount up-front. The exception to that is if you are deliberately choosing a used boat that costs more than the price of a new boat because of the size or features.
The other difference may be in where you can get a loan. If you buy a new boat, you may be able to get financing from the dealer. Used boats, such as those you buy from an individual, may not have dealer financing as an option. However, online lenders will still be available to help fill in any funding gaps.
If a boat loan isn't in the picture, there are other ways to finance such a purchase. Just keep in mind that while all of these options are technically available, it doesn't mean that they're the best fit for everyone. Before choosing an option, assess your finances to make sure it doesn't break the budget.
Unsecured personal loans, while potentially more expensive and harder to get approved for, can be good financing tools when looking to buy a boat. These loans are found through banks, credit unions and online lenders and since they don't require collateral, there's less risk involved. However, some lenders may limit what you can use the funds for, so read through the fine print before making a final decision.
Home equity loans can also be used to finance a boating-related purchase, although it's not recommended. A home equity loan allows you to tap into the equity you've built up in your home to finance a purchase, with your home acting as collateral. If you miss the monthly payments, you run the risk of losing your home to the lender to settle your debt.
Plus, the interest on a home equity loan is tax deductible only when using the funds to make improvements toward your home, so the interest you pay is on the hook for taxation if used to purchase a boat.
To decide how much you can afford a boat, consider factors like the following:
The APR: Look through the lender's credit requirements, APR ranges or prequalify to see your approval odds and what your monthly payments potential interest rate could cost you.
Your monthly income and expenses: Calculate your debt-to-income ratio to see how much more debt you can reasonably take on while maintaining your budget.
Other current debts: If you have other high-interest debts, like private student loans or credit cards that have been weighing down your wallet, consider paying those down before taking on another loan.
Repairs and maintenance: Before applying, calculate the maintenance, insurance and storage costs to determine whether a boat will fit comfortably in your budget. Also factor in the potential for emergency repairs and how much it could cost with your desired make and model.
If you need a loan to finance a boat purchase, you should start by checking your credit score and shopping around to compare lender rates. Be wary of high interest rates and added fees, especially if you do not have a high credit score and low debt-to-income ratio.
While used boats are much less expensive than new boats, prices vary significantly based on boat type, model years and history of use. To make sure you’re getting a good deal, you should compare the boat’s value with the given price using a guide like Kelley Blue Book.
You can lease a boat, but this can be cost-prohibitive depending on what type of boat you rent and for how long. In some cases, a long-term lease on a boat could end up costing you more than buying a boat. If you’re thinking about leasing a boat, consider an alternative like chartering or boat sharing.
Generally, it is best to save up money for a boat before taking on the purchase. However, taking out a loan to cover the expense makes sense if you do not have the cash up front, but are confident you’ll be able to pay it off quickly. Personal secured and unsecured loans tend to be the best option since there are basically no restrictions on how you use the funds. If you’re a homeowner, you could also consider a home equity loan or line of credit. These loans tend to have lower rates, but you will be at risk of losing your home if you do not make payments.
The term of the loan depends on the type of loan you choose, the lender you choose and the amount you borrow. Personal loans tend to have maximum terms of 7 years or less, while home equity products can have terms up to 30 years.
Financing a boat could be the right choice if you have good credit, qualify for reasonable terms, and are confident you will be able to make the payments on time. However, if you have fair to bad credit, it may be smarter to work on your credit before making the purchase or pay cash if you are able to.
To select the top boat lenders, Bankrate considers several factors that indicate loan cost, lender trustworthiness and eligibility. Factors include details such as credit requirements, APR ranges, fees, loan amounts and flexibility to account for a wide range of credit profiles and budgets. Bankrate also considers boat-specific offerings and emphasizes factors such as loan amounts that make a difference when purchasing a boat.
Each lender has a Bankrate rating, which consists of three categories. These categories include: