RV Loans for Bad Credit

When you want a vacation and prefer the freedom of the open road rather than book into hotels or chain motels, why not buy an RV, a camper, or a trailer? You can get a loan for an RV even with bad credit, and this article explains all you need to know.

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What are RV Loans for Bad Credit?

To many, a recreational vehicle (RV) is a big motorhome you can live in when on vacation, but it can also be a smaller camper or even a trailer. RVs are generally more expensive than cars and often people take out a loan to buy an RV, but if they have bad credit they may think they won’t get loan approval.

In fact, there are a number of RV loan lenders who will approve loans for bad credit, provided the borrower can meet at least two conditions:

  • They can show that they have the ability to repay the loan as agreed
  • They can give the lender a down payment of a minimum of 20%

It’s worth noting that different RV loan lenders vary in their terms and conditions, so it pays to shop around to get the best deal.

Do I Qualify for Bad Credit RV Loans?

To qualify for an RV loan with bad credit, it helps if you can meet the following criteria:

  • You must show that you have a regular income that can meet the repayments, and have a secure job (for over 2 years if self-employed)
  • Annual income should be at least $20,000
  • When you buy an RV it has to be only for recreational use, not as a permanent home or office
  • Problems on your credit history are ok provided all outstanding debts have been cleared and any previous loans have been repaid in full
  • Most lenders require a minimum credit score of 550

How to Improve My Chances of Getting RV Loans if I Have Bad Credit?

If you have bad credit and want an RV loan, there are a number of things you can do to improve your chances of loan approval:

Check Your FICO Score & Credit Reports

Get a copy of your credit report from AnnualCreditReport.com and check that it is correct. If you find any errors, you can talk to the credit bureau to get them fixed before you apply for a loan. The minimum credit score for RV loans is usually 550, but it helps if it's higher.

Find the Best Price

There are a lot of vehicle dealers and it is a very competitive market, so if you find an RV that you like, you should negotiate to get a lower price than the dealer is asking. Also, make sure you look around first to understand the range of pricing, and if the dealer won’t negotiate, don’t be afraid to walk away. They may call you back and talk about a deal, but if not there are plenty more around to look at.

Get Pre-Approved

If you can get pre-approved for a loan, you are in a better bargaining position and can negotiate a cash deal.

Increase Your Down Payment

Usually, you need a down payment on the loan of at least 20%, but offering a higher down payment increases your chance of getting loan approval. It also means you pay less interest at maybe a lower rate.

Work on Your Credit

Whether you are applying for a loan or not, you should always try to improve your credit score. You can do this by paying bills on time, clearing any debts, and paying off your credit cards. This will all make your credit history look better when you decide to get a loan.

Where Can I Find RV Loans for Bad Credit?


A bank loan is always a good option if you have a good relationship with your bank. Interest rates are good and repayment terms can be flexible. However, it can be difficult to get a bank to approve a loan with bad credit although if you have a regular income that is direct-credited to your account the bank may agree to a loan with an auto payment for repaying the loan on a monthly basis.

Direct Lenders

You can find plenty of direct lenders online and some will offer RV loans with bad credit. You can apply on the various websites to try to get pre-approval and to check out the different rates and conditions.

Credit Unions

If you are a member of a credit union you can get a loan at a low-interest rate even with a poor credit score. Not all credit unions offer RV loans, so if you are a member, you should check with your credit union. Even if you are not looking for an RV loan immediately, it is a good idea to join a credit union in the future.

Dealership Financing

You can usually get a loan through the vehicle dealer although this is a more expensive option, and often the dealer will want to secure the loan against the RV. If the loan is not repaid on time as agreed the dealer can take back the RV to recover the loan and costs.

Other Types of Financing

There are other possible sources for RV loans with bad credit such as personal loans and home equity loans. The best way to find the right loan is to use an online broker such as CocoLoan.

You just fill out one simple form on the CocoLoan website and your request will be sent to lenders in our network. You will get a variety of loan offers which will make it easy for you to compare the various rates and terms to get the best deal for your situation.

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What to Consider When Comparing RV Loan Lenders?

Most RV loan lenders have different loan structures and the conditions of the loans can vary, so here are some points to look for when comparing different loan offers:


Naturally, the interest rate is the biggest cost of a loan, so try to find the lowest rate to make repayments easier.

Loan Terms

RVs can be expensive, requiring a large loan amount, and repayments can be spread over a long period, but the longer the repayment term the more interest you will be paying so it makes sense to pay off the loan in the shortest term you can afford.

Maximum Loan Amount

Some lenders have a limit on the maximum amount they will lend, so look for a lender that can give you the amount you need to buy the RV.

Credit Score Requirements

Many RV lenders require a minimum credit score of 550, so you should try to improve your credit history whenever you can by clearing debts and paying bills on time.

What Are the Differences Between RV Loans and Car Loans?

RVs and cars are both wheeled vehicles but the loans are different in a number of aspects. For instance, although people tend to think about RVs as the large motorhomes they see driving on the road, RV loans can also be approved for trailers that do not have engines and are towed behind a car or truck.

The average RV is more expensive than a car and can cost hundreds of thousands of dollars, so there are lenders who specialize in RV loans. Also, most RV lenders will only approve a loan if the vehicle is used for recreation, not for living permanently in.

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Financing Your RV Even With Bad Credit Today!

Don’t let your poor credit score stop you from enjoying life with an RV; you can always find a lender who will help you to get your dream recreational vehicle.

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