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
RV dealerships, banks, credit unions and online lenders offer RV loans. Before you choose which lender you go with, you should compare options such as:
Annual percentage rate: The interest rate percentage on the loan. Your rate will depend on individual factors like your credit score, income and debt-to-income ratio.
Loan term: How long the loan lasts and, as a result, how long a borrower has to pay back a loan.
Loan amount: The amount of money the loan is for.
Bankrate has also identified each RV 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 an RV loan is the right choice for your finances.
Methodology
To choose the best RV lenders, Bankrate selected online lenders that offer RV loans or major purchase loans that may be used for RVs. To rate these lenders' services, we evaluated the following:
Affordability: We compare the general cost of the loan including APRs and fees.
Availability: We look at what the minimum and maximum loan amounts are, the credit score range the lender serves, eligibility requirements and loan turnaround time.
Customer experience: We consider factors such as online account management, online tools and customer service hours.
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.
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.
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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.
o Lowest rate is with AutoPay and for excellent credit only
o Loans from $5,000 - $100,000
o Same-day funding available (conditions apply)
o We guarantee your best-funded loan experience ever
* Applications submitted on this website may be funded by one of several lenders, including: FinWise Bank, a Utah-chartered bank, Member FDIC; Coastal Community Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Actual loan offers and loan amounts, terms, and annual percentage rates ("APR") may vary based upon LendingPoint's proprietary scoring and underwriting system's review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 7% may apply depending upon your state of residence. Upon final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. Loans are offered from $2,000 to $36,500, at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 72 months. Minimum loan amounts apply in Georgia, $3,500; Colorado, $3,001; and Hawaii, $1,500. For a well-qualified customer, a $10,000 loan for a period of 48 months with an APR of 24.34% and origination fee of 7% will have a payment of $327.89 per month. (Actual terms and rate depend on credit history, income, and other factors.) Customers may have the option to deduct the origination fee from the disbursed loan amount if desired. If the origination fee is added to the financed amount, interest is charged on the full principal amount. The total amount due is the total amount of the loan you will have paid after you have made all payments as scheduled.
Personal loans up to $50,000 with low fixed rates that will never change
Affordable monthly payments that fit your budget and no prepayment penalties
Fast funding, money is sent to your bank account within a day of clearing any verifications
No obligation and no impact to your credit score when you check your rate
Use your loan through Upgrade to pay on high interest credit cards, make a large purchase, finish that home improvement project, or almost any life event!
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 6.55%-35.97%. All personal loans have a 2.9% to 8% 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 17.98% APR (which includes a 14.32% 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 $343.33. Over the life of the loan, your payments would total $12,359.97. 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.
Get a personal loan up to $50,000 with a fixed APR from 5.99% to 35.99%,Get money in as little as one business day, upon approval and verification,Join more than 450,000 customers at a trusted company with an A+ BBB rating,Use it for almost anything: consolidate debt or other unexpected expenses
DISCLOSURE UPDATE AS OF 07.2021
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 score, 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 $50,000. Annual Percentage Rates (APRs) range from 5.99% - 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% - 5.99% 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. 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.
Low fixed rates (with AutoPay) and no origination fees
Checking your rate will not affect your credit score
Simple online application and live customer support
Fixed rates from 6.99% APR to 22.23% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 6/15/22 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
No prepayment penalties, application fees, late fees, or hidden fees. Because no one wants to do that
You can consolidate all your credit card payments down to one monthly, affordable, fixed-rate payment between 5.99% and 24.99% APR
"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."
9 out of 10 customers would recommend Prosper to friends or family*
Co-borrower option available. Applying with a co-borrower could help improve your rates
Get your money in as few as 3 business days, your monthly payment stays the same
For example, a three-year $10,000 personal loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.90. A five-year $10,000 personal loan would have an interest rate of 11.99% and a 5.00% origination fee with a 14.27% APR. You would receive $9,500 and make 60 scheduled monthly payments of $222.39. Origination fees vary between 2.41%-5%. Personal loan APRs through Prosper range from 7.95% to 35.99%, with the lowest rates for the most creditworthy borrowers.
Eligibility for personal loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All personal loans made by WebBank, Member FDIC.
Competitive rates from 9.95% - 35.99% APR and terms from 24 to 60 months
Checking your loan options has no impact to your credit score.
Fast Decisions, see your loan options in minutes
Funding as soon as next business day
*A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. Minimum loan amounts may vary by state. If approved, the actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. An administration fee of up to 4.75% will be deducted from the loan proceeds. Avant branded credit products are issued by Webbank, member FDIC.
Personal and auto loans from $1,500-$20,000 (GA minimum $1,500 existing customers for new loans $3100 for others)
A quick decision on your loan request
Clear loan terms with no hidden fees and no prepayment penalties
Apply online, by phone or at your local branch.
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.
Stilt is a mission-driven fintech company focused on providing credit to international students, immigrants and the underserved. We build products to improve financial inclusion and democratize access to the credit through providing accessible and reasonable personal loans.
Immigrants, international students, other visa
holders and those underserved by the traditional banking system often encounter many struggles while trying to build credit, apply for personal loans and build their financial future. Stilt’s services allow them to take a step forward in their path to financial health by applying for a personal loan with a unique qualifying process like Stilt’s.
Stilt is focused on improving financial inclusion and access to credit at reasonable rates.
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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 RV loan rates start around 4.29 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 4.29 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 20.49%
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 5.94 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
Fees: Upgrade charges an origination fee of 2.9 percent up to 8 percent. You may also incur a late fee 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 5.99 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 640 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 4.99 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 4.99 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 5.74 percent to 21.78 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 flexbile repayment periods five 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:Payoff offers loans from $5,000 to $40,000 with relatively low APRs of 5.99 percent to 24.99 percent. Borrowers can choose from repayment plans ranging from 24 to 60 months.
Why Payoff is best for customer service: Payoff 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, Payoff 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: Payoff loans are best for borrowers with limited credit history. Payoff’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 Payoff’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: Payoff 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 Payoff.
Overview:Prosper is a peer-to-peer lender that offers loans from $2,000 to $40,000 with APRs from 7.95 percent to 35.99 percent. Repayment terms for this lender range from 36 to 60 months.
Why Posper 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 35.99 percent. This lender offers terms from 24 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 with 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
Your rate for RV 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.
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.
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.
