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Best RV loans of June 2023

Jun 02, 2023

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Check Your RV Loan Rates

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    Check personalized rates from multiple lenders in just 2 minutes
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    Explore loans ranging from $500 to $100,000
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    This will NOT impact your credit score

Best overall RV loan

LightStream

LightStream

Est. APR
8.99%–24.99%
with Autopay
Loan amount
$5k–$100k
Term: 2-7 yrs*
Min credit score
N/A
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Best for fast funding

Upgrade

Upgrade

Est. APR
8.49%–35.99%
with AutoPay
Loan amount
$1k–$50k
Term: 2-7 yrs*
Min credit score
N/A
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Check rate with Bankrate

Best online lender

Best Egg

Best Egg

Est. APR
8.99%–35.99%
Loan amount
$2k–$50k
Term: 3-5 yrs*
Min credit score
600+
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Best for small loan amounts

PenFed

PenFed

Est. APR
7.74%–17.99%
Loan amount
$500–$50k
Term: 0.16666666666667-5 yrs*
Min credit score
700+
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Best for flexible repayment terms

SoFi

Est. APR
8.99%–23.43%
with AutoPay
Loan amount
$5k–$100k
Term: 2-7 yrs*
Min credit score
680+
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Best for paying down credit cards

Happy Money

Happy Money

Est. APR
11.25%–29.99%
Loan amount
$5k–$40k
Term: 2-5 yrs*
Min credit score
640+
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Best for borrowers with good credit

Prosper

Prosper

Est. APR
6.99%–35.99%
Loan amount
$2k–$50k
Term: 2-5 yrs*
Min credit score
600+
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Best for borrowers with bad credit

Avant

Est. APR
9.95%–35.99%
Loan amount
$2k–$35k
Term: 1-5 yrs*
Min credit score
580+
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On This Page

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 $5,000 to more than $500,000, so most RV buyers rely on financing.

The RV itself will usually serve as collateral for the loan — if you default on the balance, it could be seized by the lender to satisfy the delinquent payments — 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 seven 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 with your term length, fees and approval odds. Similar to a home loan, it's likely that the lender will 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.

What can you use an RV loan for? 

RV loans can be used to purchase a motorhome, travel trailer, RV and in some cases, transport trailers, like animal trailers. Even though they function like an auto loan, lenders are more strict on what the funds can be used for since the loan amount is often much higher

Every lender will differ on its requirements; however, it's a general rule of thumb that most RV loans can only be used to fund the vehicle or related expenses, like repairs and maintenance costs.

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.
 
 

Compare RV loan rates in June 2023

LENDER BEST FOR RATE TERMS LOAN MINIMUM
LightStream Overall 8.99%-24.99%* with AutoPay 24-84 months $5,000
Upgrade Fast funding 8.49%-35.99% 24-84 months $1,000
Best Egg Online lender 8.99%-35.99% 36-60 months $2,000
PenFed Small loan amounts 7.74%-17.99% Up to 60 months $600
SoFi Flexible repayment terms 8.99%-23.43% 24-84 months $5,000
Happy Money Paying down credit cards 11.25%-29.99% 24-60 months $5,000
Prosper Borrowers with good credit 6.99%-35.99% 24-60 months $2,000
Avant Borrowers with bad credit 9.95%-35.99% 12-60 months $2,000

How we choose our best lenders

To select the best personal loans, Bankrate’s team of experts evaluated over 30 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories:

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    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. We also give bonus points to lenders offering rate discounts, grace periods and that allow borrowers to change their due date. 
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    Availability
    Minimum loan amounts, number of repayment terms, eligibility requirements, ability to apply using a co-borrower or co-signer and loan turnaround time are considered in this category.
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    Customer experience
    This category covers customer service hours, if online applications are available, online account access and mobile apps.
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    Transparency
    For this factor, we consider how well information is presented to the borrower on the lender’s website. This includes listing credit requirements, rates and fees, in addition to offering prequalification.

Where to get RV loans

Many lenders offer RV loans for both new and used recreational vehicles. You may be able to find RV financing through an online lender, bank, credit union or the RV dealership where you purchase the vehicle. 

Some financial institutions and online lenders won't have RV-specific loans, instead they may be advertised as personal loans that can be used for RV-related expenses. However, make sure that the lender approves the loan for these types of purchases; some may require you take out a secured loan due to size of the purchase. If you finance directly through a dealership, it's likely that the loans will be advertised as RV loans.

How to compare RV loan lenders 

Use the following factors to compare RV lenders and find the best one for you and your credit situation. If the lender offers prequalification, which allows you to check your approval odds and potential rates without impacting your credit, make sure to take advantage of this tool to ensure you're applying for the loan that will best benefit you now and in the future. 

  • Rates: The lower the interest rate, the less you'll end up paying over the life of the loan. When looking at lenders, look for the ones that offer the lowest rate maximums. The best rates will go to the most creditworthy borrowers, but it's always wise to compare multiple offers to find the most competitive rate for you. 
  • Max loan amount: Make sure the lender you're looking at meets your borrowing needs. Most lenders offer maximums that range from $30,000 to $50,000. Generally, the better your score, the more you'll get approved for.  
  • Loan terms: Most RV lenders offer terms that last between 12 months and 60 months, although some lenders may allow for longer or shorter terms if they offer repayment flexibility. 
  • Credit score requirements: To qualify for an RV loan, you'll likely need a good-to excellent credit score. However, every lender will differ in its minimum score requirement. Make sure to compare as many lender's as possible when it comes to minimum score requirements; just because you don't meet one lender's requirements doesn't  mean you won't get approved for another lender. 

Before diving into the lender comparison process, know exactly what you want out of a lender to find the best loan for you and your financial situation. Loans will differ based on what type of vehicle you're financing — and if you're financing a motorhome or RV — how you intend on using it. 

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.

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 percent, although some may go as high as 50 percent.

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 gives you an idea of what your terms with a particular lender could look like without making a commitment.

Insurance for RV loans

To get a loan from most lenders, you’ll need proof of insurance. Depending on your insurance company and vehicle details, the insurance costs could add a significant amount to your monthly payment, so budget for that as well. To avoid a clunky application process, talk to your insurance company and make sure your coverage meets the lender's requirements before signing on the dotted line.

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 installment 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. Before signing an agreement make sure you can maintain the monthly payments, as your RV could be seized if you default on the loan. 

The type of RV and trailer style can determine which lender is best for you, as 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 the monthly payment will be larger, but you’ll pay less in interest over the life of the loan.

Secured vs unsecured RV loans 

Secured loans are generally easier to get approved for and have less stringent financial requirements. However, this is because the lender is incurring less risk, because if you default on your loan you run the risk of losing the RV to satisfy the overdue payments. 

Unsecured loans don't require any collateral and approval is based solely on creditworthiness and financial health. While the risk of losing your vehicle isn't a factor, unsecured loans are often much harder to get approved for.

Pros and cons of RV loans

Just like with every other type of loan, there are both advantages and disadvantages to taking out a secured RV loan. Here's what to be aware of before signing on the dotted line.

Pros

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    Rates and terms could be more competitive than other forms of lending.

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    Some lenders could carry RV-specific benefits.

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    Terms and payment dates may be negotiable.

Cons

  • You could end up paying more in interest due to a longer repayment term.

  • If you fail to make the monthly payments, you run the risk of losing your RV.

  • Approval requirements may be higher to finance a full-time motorhome.

Alternatives to RV loans

If an RV loan isn't the best financing route for you, there are a few other ways to fund your purchase. However, your options may be more limited due to the expensive nature of RVs. 

Aside from opting for a used or less expensive vehicle and paying for it in cash, you can use a home equity loan — which allows you to tap into and borrow from the equity you've built in your home — or use a personal loan

While most personal loans don't have the maximum borrowing amount needed to purchase an RV, they can help make a dent. Plus, the borrowing requirements for personal loans may be less stringent than RV loans due to the smaller loan size. Keep in mind that some lenders may not allow the funds to be used for vehicular expenses, so always check before signing on the dotted line.

Frequently asked questions