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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.
If you decide that an RV loan is right for your situation, you would follow these steps:
1
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.
2
Check your credit score.
Calculate how much money you need and factor in any origination fees that may be deducted from your loan proceeds.
3
Get prequalified.
This lets you check your rates with multiple lenders without hurting your credit score.
4
Compare rates and loan terms.
Look at various lenders, including banks, credit unions and online lenders, to see which offers you the best deal.
5
Complete the application process.
You’ll need to submit documents such as pay stubs, tax returns and personal identification.
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:
1
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.
2
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.
3
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.
4
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.
5
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.
6
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.
Consider your own financial health and credit history. Lenders that offer the lowest APRs and higher loan amounts tend to require good credit.
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Lowest rate is for excellent credit only. Rates 6.99% - 22.49% APR w/autopay.*
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*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 6.99% APR with a term of 3 years would result in 36 monthly payments of $308.73. 2022 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.
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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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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 29.99% 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.
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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. It also offers a low APR for borrowers with excellent credit and is the only lender listed that offers loans exclusively for financing an RV.
Pros
Longer repayment option
No fees or downpayment
Borrowers choose when to receive the money
Cons
Requires established credit
High minimum loan amount
Must have credit history
Who its for: borrowers with strong credit
Lender perks:
RV- specific loans
Fast approval
Autopay discounts
Fees: None
Time to receive funds: Same day if approved before 2:30pm EST, Mon-Fri.
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
Option to add a co-borrower
Range of loan amounts from $1,000 to $50,000
Fast funding
Cons
Minimum income and credit score not specified
Origination fee of 1.85 to 8.99 percent
High maximum APR
Who its for: borrowers looking to take out a smaller loan
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.
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
Low minimum loan amount of $600
Seven days a week customer service
In-person experience available
Cons
Eligibility requirements not specified
PenFed savings account required
Late payment penalty
Who its for: Existing PenFed members with fair credit
Lender perks:
Small loan amounts
Member benefits
7 day customer service
Convenient mobile app
Fees:
$29 late fee
$30 returned payment fee
Time to receive funds:
Same day at brick and mortar
One to two business days online
Five to seven days via check
Requirements: Must maintain PenFed savings account
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 has all the features you would expect in a top-quality lender, including a variety of loan amounts, several repayment terms and zero fees. It also has unique member benefits that other lenders don't offer.
Pros
Soft credit check with prequalification
Variety of loan amounts and term lengths
Member benefits
Cons
Minimum annual income of $45,000 required
High minimum credit score
No co-signers
Who it's for: Those who qualify or plan to use a co-signer
Lender perks:
Autopay discount
Unemployment protection
Unique member benefits
Fees: None
Time to receive funds: In a few days; larger loans may take longer
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: While the average rate for credit cards currently hovers around 16 percent, Happy Money loans start at 8.99 percent, which could save borrowers money on interest and help them get out of debt faster.
Pros
Low minimum APR of 8.99 percent
Small loan amount
7 days a week customer service
Cons
Origination fee up to 5 percent
Requires several years of credit history
Only eligible for credit card consolidation
Who it's for: People who want to consolidate credit card debt.
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 it's for: Customers who want to be matched with a lender.
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
Long possible loan terms
Low minimum credit score of 580
Caters to thin credit history
Cons
High minimum APR of 9.95 percent
No co-signers or co-borrowers
Administration fees
Who its for: Those needing to finance RV repairs.
Lender perks:
Payment assistance options
Flexible qualification
10-day grace period
Fees:
4.75 percent administration fee
Late fee
Dishonored payment fee
Time to receive funds: Next business day (certain banks or institutions may take longer).
Requirements:
Have an Avant account
Submit income pay stubs
Pass identity verification
Provide employment information
Have bank account on file
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.
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.
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 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.
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
Rates and terms could be more competitive than other forms of lending
Some lenders could carry RV-specific benefits
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
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 compare RV loan lenders
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.
Once you know exactly what you want and how much you need, you can start your search. Prequalify for as many lenders as possible so as to avoid multiple hard-credit checks and failed applications. Once you prequalify, compare your predicted approval odds and rates; then you can sift through the details to find the lender that offers the most competitive terms.
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.
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 often more strict on what the funds can be used for.
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.
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.
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. However, some lenders may not allow the funds to the used for vehicular expenses, so always check before signing on the dotted line.
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.
2022 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..png?optimize=medium&width=120&format=pjpg&auto=webp)
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