Raija Haughn is an associate writer for Bankrate.com specializing in personal and home equity loans. She is passionate about helping people make financial decisions that will benefit them long term.
Edited by
Aylea WilkinsLoans Editor, Former Insurance Editor
Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information.
Bankrate analyzes the best RV lenders and what borrowers should look for before signing a loan agreement.
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What To Know First
Bankrate’s picks for the top RV loans were chosen based on the interest rates, loan terms and additional features each lender has to offer. Based on our research, we have also identified each RV lender highlighted as "best for" particular situations. Comparing these and other factors will help you find the right lender and determine if an RV loan is the right choice for your finances.
RV loans are designed to help you finance the purchase of a recreational vehicle. You can get an RV loan from an online lender, a bank or credit union, or through a dealership. There are several factors to keep in mind when considering an RV loan.
The best RV loan interest rates currently start around 4.49 percent for borrowers with excellent credit. However, the actual rate you receive depends on factors such as your credit score, debt-to-income ratio and annual income. While finding a loan with a low interest rate is important, it is not the only thing you should consider. You should also consider the loan term and amount you are eligible for, as well as additional features each lender may offer.
How to apply for an RV loan
If you decide that an RV loan is right for your situation, you would follow these steps:
Determine how much you need. Calculate how much money you need and factor in any origination fees that may be deducted from your loan proceeds.
Check your credit score. Calculate how much money you need and factor in any origination fees that may be deducted from your loan proceeds.
Get prequalified. This lets you check your rates with multiple lenders without hurting your credit score.
Compare rates and loan terms. Look at various lenders, including banks, credit unions and online lenders, to see which offers you the best deal.
Complete the application process. You’ll need to submit documents such as pay stubs, tax returns and personal iden tification.
How to choose the best lender
Before applying for an RV loan, it is best to shop around and get quotes from a few lenders to help you decide which one will be best for you. When comparing lenders, you should keep an eye on the following factors:
Approval requirements. Every lender has its own threshold for approving potential borrowers, considering things like your income, credit score and debt-to-income ratio. If you have below-average credit, look for lenders that utilize other approval criteria; some will consider things like your area of study or job history.
Interest rates. The lowest advertised rate is never guaranteed, so compare your actual quotes. When comparing interest rates, also make sure to incorporate any fees or penalties; origination fees or application fees can significantly add to the overall cost of your loan.
Loan amounts. Some lenders have lower borrowing limits than others, so make sure that you know exactly how much you need to borrow and factor that in when choosing a lender.
Repayment options. Most lenders offer a variety of repayment options, but exact options vary by lender. If you're borrowing a lot of money, you may want to look for a lender with long repayment terms to decrease your monthly payment. If you have a smaller loan, a shorter repayment term will cut back on the amount of interest you pay overall.
Unique features. Some lenders offer unique perks and features. It is also important to make sure that the lender you choose provides loans for the specific purpose you’re looking for, especially when shopping for an RV loan.
Customer service. It's also wise to investigate a company's customer service options, particularly if you prefer in-person service to online. If you need more information, you can always look up reviews about the company or check its Better Business Bureau profile.
At Bankrate, our mission is to empower you to make smarter financial decisions. We’ve been comparing and surveying financial institutions for more than 40 years to help you find the right products for your situation.
Our diverse team of loan experts aims to help readers make financial decisions with confidence. To do that, we work hard to provide accurate, up-to-date information on lender information and explain information in plain language to demystify the loans process. Our award-winning editorial team follows strict guidelines to ensure the content is not influenced by advertisers.
We focus on the aspects of loans that people care most about: term lengths, APRs, lender requirements and tools lenders offer to help borrowers strengthen their financial position. All lenders discussed on Bankrate are vetted based on what value they provide to consumers in these areas, and our articles are fact-checked thoroughly to prioritize accuracy so we can be here for your every next.
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Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.96%-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/.
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*Trustpilot TrustScore as of June 2020. 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 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. 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.
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"This does not constitute an actual commitment to lend or an offer to extend credit. Upon submitting a loan application, you may be asked to provide additional documents to enable us to verify your income, assets, and financial condition. Your interest rate and terms for which you are approved will be shown to you as part of the online application process. Most applicants will receive a variety of loan offerings to choose from, with varying loan amounts and interest rates. Borrower subject to a loan origination fee, which is deducted from the loan proceeds. Refer to full borrower agreement for all terms, conditions and requirements."
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Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $300. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. New York: $20,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
Personal loans are available through Achieve Personal Loans (NMLS ID #227977), 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, credit usage and history. Loans are not available to residents of all states. Minimum loan amounts vary due to state specific legal restrictions. Loan amounts generally range from $5,000 to $50,000 (including the origination fee) and are offered based on underwriting conditions and loan purpose. APRs range from 7.99 to 29.99% and include applicable origination fees. Repayment periods range from 24 to 60 months. For example: A four-year $20,000 loan with an APR of 18.34% would have an estimated monthly payment of $561.60 and total cost of $26,956.80. To qualify for a 7.99% APR loan, a borrower will need excellent credit, a loan amount of $12,000.00 or less, and a term of 24 months. Loan origination fees vary from 1.99%to 6.99%, most loans have a fee of 4.99%. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to pay off qualifying existing debt directly; or showing proof of sufficient retirement savings, could help you also qualify for a lower rate. 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.
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The Bankrate guide to choosing the best RV loan
Why trust Bankrate?
Bankrate's goal is to empower you to make financial choices confidently. To help you with finding the best RV loan, we have compared the top lenders and pulled together the information you need to make your decision.
Our editorial team has researched online RV lenders to find trustworthy options that offer competitive rates. Our choices are not influenced by advertisers or partnerships and are based on what lenders are best for this type of financing.
Loan details here are current as of the publication date. Check with individual lenders for the most up-to-date information in case of any changes. The RV lenders here were selected based on critical factors like APR, loan amounts, fees and eligibility requirements.
What are the current interest rates for RV loans?
Current average RV loan rates range from 4.49 percent to 11.89 percent for borrowers with excellent credit. If you have poor credit, which means having a FICO score below 580, your interest rate will likely be much higher. In this case, consider saving for a larger down payment and working to improve your credit in the meantime.
Here’s a quick comparison of rates, terms and loan minimums as of late March 2022:
Overview:LightStream is the only lender on this list that offers personal loans specifically made for financing a recreational vehicle. LightStream offers term lengths of 24 to 84 months and loan amounts from $5,000 to $100,000.
Why LightStream is the best overall RV loan: LightStream has a low rate cap, making it an accessible lender for borrowers with less than stellar credit. This lender also offers a very low minimum APR of 6.99 percent for borrowers with excellent credit who sign up for autopay.
Pros
No fees or down payment
Same day fund delivery
Relatively low APR rate cap of 22.49%
Cons
Must have excellent credit to apply
Must have a long credit history
High minimum loan amount
Who the lender is best for: Lightstream is best for borrowers with excellent credit and a long credit history.
Impact on financial wellness: Financing an RV with a LightStream loan could save borrowers money on interest and fees, since this lender has a low rate cap and does not charge additional fees.
Time to receive funds: Borrowers can expect to receive funds as soon as the same day they apply. When you apply and are approved, you are able to select the day you receive funds, giving you more control over the borrowing process.
Fees: Loans from LightStream do not come with any added fees or prepayment penalties.
Additional Requirements: To qualify for the lowest APR, you must have excellent credit.
Overview:Upgrade offers a wide range of loan amounts from $1,000 to $50,000. This lender also offers a relatively low minimum APR of 7.96 percent and does not charge prepayment penalties if you decide to pay off the loan early.
Why Upgrade is best for fast funding: Upgrade advertises one-day funding, meaning borrowers can expect to receive funds within 24 hours of being approved.
Pros
Wide range of loan amounts
No prepayment penalty
Quick application and funding process
Cons
No cosigners allowed
Origination fee
Potential late payment penalty
Who the lender is best for: Upgrade is best for borrowers looking to take out a smaller loan. With a low minimum borrowing amount of $1,000, Upgrade is a great option for those that don’t need a large sum.
Impact on financial wellness: Loans from Upgrade could be a great option for borrowers with fair to excellent credit, but borrowers should beware of the relatively high rate cap of 35.97 percent and additional fees. Make sure you know exactly what you will be charged before signing off on a loan.
Time to receive funds: Upgrade offers one-day funding, so borrowers will receive their funds within a day of being approved for a loan.
Fees: Upgrade charges an origination fee of 2.9 percent up to 8 percent. You may also incur a late fee of up to $10 if you do not submit your monthly payments on time.
Additional requirements: Upgrade does not specify its loan requirements on its website, but this lender will consider your credit and overall financial health before approving your loan. Contact the lender directly for more information on eligibility requirements.
Overview:Best Egg offers personal loans from $2,000 to $50,000 with a reasonably low minimum APR of 8.99 percent. Borrowers can find out if they qualify within minutes of applying.
Why Best Egg is best for an online lender: This lender is well-suited for borrowers looking for a streamlined, simple online experience. Best Egg’s website offers resources to help borrowers make decisions and develop financial literacy, and their loan application process is quick and easy.
Pros
Accessible to fair credit borrowers
Wide range of loan amounts
No prepayment penalty
Cons
Required debt to income ratio of less than 30%
Origination fee
Returned payment fee
Who the lender is best for: Best Egg is a great option for fair credit borrowers who may struggle to qualify elsewhere.
Impact on financial wellness: Best Egg’s flexible loan amounts and relatively low minimum APR can help borrowers get the cash they need without the added costs. However, only borrowers with good to excellent credit will qualify for Best Egg’s lowest rates. Fair and poor credit borrowers should make sure they are comfortable with the APR they receive before applying.
Time to receive funds: Borrowers can expect to receive funds as soon as the next business day after applying.
Fees: Best Egg charges an origination fee of 0.99 percent to 5.99 percent as well as a $15 fee for returned payments.
Additional requirements: Best Egg requires lenders to have a minimum credit score of 600 and a debt to income ratio of 30 percent or less.
Overview:PenFed offers loans from $600 to $50,000, the largest loan amount range on this list. PenFed offers APRs from 7.74 percent to 17.99 percent.
Why PenFed is best for small loan amounts: PenFed’s flexible loan range allows borrowers to take out exactly what they need and is particularly well-suited for those looking for smaller loans.
Pros
Joint applications accepted
No origination fees
No prepayment fees
Cons
Eligibility requirements not disclosed online
Low maximum loan amount
Must be a credit union member to apply
Who the lender is best for: PenFed offers APRs from 7.74 to 17.99 percent. This low rate cap makes PenFed a great option for borrowers with less than stellar credit who may not qualify for rates that low elsewhere.
Impact on financial wellness: PenFed’s low maximum APR enables borrowers to access the cash they need without spending too much on added interest.
Time to receive funds: Borrowers can expect to receive funds within 1 to 2 business days after loan approval.
Fees: PenFed charges a late fee of $29 and a returned payment fee of $30.
Additional requirements: You must be a PenFed credit union member to apply.
Overview: SoFi offers loans from $5,000 to $100,000 and relatively low APRs from 7.99 percent to 23.43 percent.
Why SoFi is best for flexible repayment terms: SoFi offers flexible repayment options from 2 to 7 years. The option for a long repayment period makes this lender well-suited for major purchases like an RV.
Pros
No fees
Joint applications accepted
Wide range of loan amounts
Cons
Minimum credit score of 680 required
High minimum loan amount
No same-day funding
Who the lender is best for: SoFi personal loans are best for borrowers with good to excellent credit who are looking to take out a large loan.
Impact on financial wellness:SoFi’s wide range of loan amounts and flexible repayment periods give borrowers more freedom to customize their loan experience. This flexibility, along with SoFi’s low maximum APR, make this lender a cost-effective option for borrowers.
Time to receive funds: Borrowers can expect to receive funds within a few days of loan approval.
Fees: Loans from SoFi do not come with any added fees or prepayment penalties.
Additional requirements: You must be a U.S. citizen and over 18 years old to apply for a loan from SoFi. You must also live in a state where SoFi is authorized to lend and be able to prove a source of income.
Overview:Happy Money offers loans from $5,000 to $40,000 with relatively low APRs of 8.99 percent to 29.99 percent. Borrowers can choose from repayment plans ranging from 24 to 60 months.
Why Happy Money is best for customer service: Happy Money offers customer phone support 7 days a week and includes an online chat feature on its website. For borrowers looking for attentive customer service from an online lender, Happy Money is a good fit.
Pros
No late fees or prepayment penalties
Low minimum credit score of 550
Money management tools on website
Cons
Funding takes up to 3 days
Origination fee
Limited borrowing range
Who the lender is best for: Happy Money loans are best for borrowers with limited credit history. Happy Money’s maximum APR is 24.99 percent, 10 points lower than many lenders on this list, and their minimum credit score of 550 provides flexibility for borrowers who have not had a chance to build credit yet.
Impact on financial wellness: Since Happy Money’s loans come with relatively low APRs and few associated fees, borrowers can take out cash without worrying too much about added costs. While borrowers with low credit scores will pay more in interest than high credit borrowers, the 24.99 percent rate cap ensures that interest rates are not unmanageably high.
Time to receive funds: Borrowers can expect to receive funds within three business days of loan approval.
Fees: Happy Money charges an origination fee of up to 5 percent.
Additional requirements: You must have a FICO credit score of 550 or higher and zero delinquencies on current debts in order to qualify for a loan from Happy Money.
Overview:Prosper is a peer-to-peer lender that offers loans from $2,000 to $50,000 with APRs from 7.99 percent to 35.99 percent. Repayment terms for this lender range from 36 to 60 months.
Why Prosper is best for borrowers with good credit: Prosper requires a minimum credit score of 640 to qualify, and borrowers with good to excellent credit are more likely to qualify for this lender’s lowest APR.
Pros
Joint applications allowed
No prepayment penalties
Cons
Origination fee
High maximum interest rate
Who the lender is best for: Prosper is best for customers who want to be matched with a lender. As a peer-to-peer lending platform, Prosper pairs applicants with lenders what will work best for their specific needs.
Impact on financial wellness: Loans from Prosper are a great option for borrowers with good credit who can qualify for the platform’s lowest interest rates. Borrowers with bad credit should be wary of the lender’s high maximum APR. Make sure you know exactly what rate you qualify for before signing off on a loan.
Time to receive funds: Borrowers can expect to receive funds as soon as the next business day after loan approval.
Fees: Prosper charges an origination fee of 2.41 percent to 5 percent, a late fee of $15 or 5 percent of the payment (whichever is greater), and an insufficient funds fee of $15.
Additional requirements: To qualify for a loan from Prosper, you must have a FICO score of at least 640, some proof of income, a debt-to-income ratio of 50 percent or less, at least three open trades on your credit report, fewer than five credit bureau inquiries within the last six months, and have not filed for bankruptcy in the last 12 months.
Overview:Avant offers loans from $2,000 to $35,000 with APRs from 9.95 percent to 35.95 percent. This lender offers terms from 12 to 60 months.
Why Avant is best for borrowers with bad credit: Avant requires a minimum credit score of 580, making it an ideal lender for borrowers who have less than stellar credit or little credit history.
Pros
Low minimum credit score of 580
No prepayment penalties
Mobile app available
Cons
High APRs
Origination fee
No joint applications
Who the lender is best for: Avant is best for borrowers looking to take out a smaller loan. The borrowing range of $2,000 to $35,000 is well-suited for emergency needs and RV repairs.
Impact on financial wellness: While Avant loans can help borrowers with lower credit scores gain access to cash quickly, borrowers should still be wary of the relatively high APRs and associated fees. Make sure that you will be able to keep up with the added interest and fees before signing off on a loan.
Time to receive funds: Borrowers can expect to receive funds as soon as the next business day after loan approval.
Fees: Prosper charges an origination fee up to 4.75 percent, as well as a late fee of $25 and a dishonored payment fee of $15.
Additional requirements: You must have a credit score of 580 or higher to qualify for a loan from Avant.
Overview:Figure offers loans from $5,000 to $50,000 with APRs from 5.75 percent to 31.44 percent. This lender offers terms from 36 to 60 months and requires a minimum credit score of 640 to apply, making it well suited for borrowers with good credit.
Why Figure is best for retired borrowers: Figure does not require verification of employment for retired borrowers, making the lending process easier for borrowers who are no longer in the workforce.
Pros
Wide range of loan amounts
No prepayment or late fees
Low APRs
Cons
High minimum credit score of 680
Not available in some states
May charge an origination fee
Who the lender is best for: Figure is best for borrowers with good to excellent credit, since the minimum qualifying credit score is 680 FICO.
Impact on financial wellness: While Figure provides a unique opportunity for retired borrowers, its high minimum credit score and high maximum APR make it a riskier choice for those looking to avoid added costs. If you have excellent credit, a loan from Figure may work for you.
Time to receive funds: Borrowers can expect to receive funds within 1 to 2 business days after loan approval.
Fees: Figure may charge an origination fee up to 3 percent.
Additional requirements: To qualify for a loan from Figure, you must have a minimum credit score of 680 FICO, a debt to income ratio of 50 percent or less, a valid U.S. ID and proof of employment unless you are retired.
What is an RV loan?
An RV loan is a type of long-term financing used to purchase a motorhome, travel trailer or camper. The cost of an RV can range from as little as $10,000 to more than $1 million, so most RV buyers rely on financing.
Many lenders offer RV loans for both new and used recreational vehicles. You may be able to find RV financing through an online lender, a bank, a credit union or the RV dealership where you purchase the vehicle. The RV itself will usually serve as collateral for the loan, just like when you purchase a car.
While an RV loan is similar to an auto loan, loan terms are generally longer and the transaction is oftentimes more complicated, like a mortgage. Most RV loans feature repayment terms that range between one and 15 years. However, some lenders and financial institutions may offer RV loans that stretch as long as 20 years.
Depending on the amount you need to borrow, your lender may be more stringent. Similar to a home loan, your lender may want to see other documentation, such as tax returns, financial statements and detailed credit history.
A good credit score for a car loan is around 660 or higher, but for an RV loan, credit scores of 700 and above will help you get a favorable interest rate. The lender may also require an inspection, which can range from $150 to $1,200, depending on the RV.
How does an RV loan work?
While an RV loan is typically specific to the purchase or refinance of a recreational vehicle, it works like any other consumer loan. A financial institution or lender provides the funds for the purchase, and you pay back the money with interest over a specified time frame. RV loans are secured loans, meaning they’re backed by collateral — usually the RV itself.
Once you’ve decided on a lender, you’ll complete an application and, if approved, sign an agreement outlining the terms of the loan.
The type of RV and trailer style can determine which lender is best for you. Not all lenders will finance every type of RV. You’ll also need to let your lender know if you plan to use your RV as a primary residence.
What are typical RV loan terms?
Because RVs are more expensive than regular cars and trucks, lenders typically offer longer terms for RV loans than auto loans.
Some lenders offer terms as long as 240 months, or 20 years. However, borrowers who can afford higher monthly payments can find shorter terms.
For example, LightStream offers terms ranging from 24 to 84 months, while USAA offers terms as short as 12 months. If you can afford the payments under these shorter terms, you’ll pay less in interest over the life of the loan.
How to qualify for the best RV loan rates
When qualifying for an RV loan, your rate for financing might be higher than the rate you get for a car loan. RVs are considered luxury items, and lenders are more cautious about lending money for luxury items because they’re considered expendable during a financial crisis.
Because RVs are considered luxury items, financing is more expensive than with other vehicles. Lenders also generally require that your RV be collateral for the loan.
Check your credit score to see what kind of rates you might receive from lenders. Lenders use credit scores (generally FICO scores) to determine your level of credit risk. They will also consider your debt-to-income ratio, which reflects your monthly debt payments divided by your monthly gross income. Most lenders will require a debt-to-income ratio under 40%, although some may go as high as 50%.
“Having five or more years of significant credit history, a variety of account types, excellent payment history, a proven ability to save and stable and sufficient income are characteristics that contribute to applicants qualifying,” Nelson says.
If you want a variety of quotes, use lending marketplaces that let you fill out one application to get offers from several lenders. This makes it easier to see which terms you qualify for and choose the best deal for your situation. You should also consider pre-qualifying with a few lenders before deciding on one.
Whichever route you choose, the lender will want to know some basic information about the RV you intend to purchase. For example, you will need to provide the value, age and mileage of the RV. Buying a used camper can save you money upfront, but it will usually come with higher interest rates and potentially higher maintenance costs in the long run.
Can you prequalify for an RV loan?
If you decide to get an RV loan from a lender rather than financing through the dealership, most lenders allow you to prequalify. This allows you to see the terms you are eligible for without hurting your credit. The lender will perform a soft credit check in order to determine what you might be eligible for. You will still have to do a hard credit check when you officially apply, but prequalifying lets you get an idea of your terms with a particular lender without making a commitment.
Insurance for RV loans
To get a loan from most lenders, you’ll need proof of insurance. Talk to your insurance company and get enough coverage to meet the lender’s requirements. Insurance will add to your monthly costs, so budget for that as well. Consider the best RV insurance companies when comparing rates.
How to finance an RV
The steps to getting an RV loan is similar to getting other kinds of loans, but there are some unique things to consider:
Set a budget: RVs vary widely in price. Before you can figure out what financing you'll need, you need to know about how much you are willing to spend on the vehicle.
Save a down payment: You will likely need a 10 to 20 percent down payment. Ideally, you should pay for this out of pocket rather than with a loan to decrease your overall costs.
Check your credit score: Your credit score will determine what loan options may be available to you.
Decide what type of loan you want: You will want to decide if you would prefer an unsecured personal loan or a secured loan with your RV as collateral.
Compare lenders: To find the best loan options, you will want to compare several lenders. If possible, prequalify with a few to determine a realistic idea of your rates and loan costs.
Negotiate: You may be able to negotiate a price for your RV, lowering the amount you will need to finance.
Frequently asked questions
Some lenders allow co-signers on large loans, including RV loans. However, as with any other type of financing, whether you can apply for an RV loan with a joint applicant comes down to the individual lender’s guidelines.
Remember, if someone co-signs on an RV loan with you, they are equally liable for the debt. The account will almost always show up on their credit reports and could affect their ability to qualify for another loan. If you don’t need a co-signer for financial reasons, it’s typically best to avoid joint credit applications.
RV loans are a little different from car loans, as you can declare your RV a primary or secondary residence. This can reduce your federal taxes.
“If the RV is used as the consumer’s principal residence, the interest is deductible just as with a residential mortgage,” Barron says. However, if you declare your RV as a residence, you might need special RV insurance. If you’re worried about tax implications, consult with a tax professional.
Most lenders will not allow you to purchase a motorhome with a standard auto loan. Lenders typically consider RVs luxury items, like boats and motorcycles, while cars are a necessity. As a result, the lender will want you to take out a different loan to purchase an RV, likely with a higher interest rate than you could secure on an auto loan.
Renting an RV usually costs between $100 and $200 a night, depending on the type of RV and how long you’re renting it for. If you only want to use it once a year, renting may be the more cost-effective option. But if you dream of taking road trips twice a month, buying one probably makes more sense.
For undecided consumers, renting an RV or camper before you buy one can help you decide if it’s worth purchasing.
There are several strategies you can employ to be approved for a lower interest rate, like providing a larger down payment. Improving your credit score can also help, as can decreasing your debt-to-income ratio. Comparing quotes from different lenders can also help you spot the best deal.
Methodology
To select the top RV loan lenders, Bankrate considers 15 factors. These factors include credit requirements, APR ranges, fees, loan amounts and flexibility to account for a wide range of credit profiles and budgets. Of the lenders reviewed, 8 made Bankrate's list of best RV loans. Each lender has a Bankrate rating, which consists of three categories. These categories include:
Affordability: The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score.
Availability: What the minimum loan amounts are, its eligibility requirements and loan turnaround are considered in this category.
Customer experience: This category covers customer service hours, if online applications are available, online account access and mobile apps.
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