time on a boat and getting out on the water whenever you like is a special kind
of freedom. It’s not like having “sticks and bricks” where you’re forever stuck
in one place. It doesn’t matter whether you own a pontoon boat or a faster speedboat, it’s a
substantial investment but one that you can enjoy and possibly be a liveaboard with
a large enough boat to save on rent. Then if you kayak as well, you can paddle
around in the local waters without having to pull up anchor just to play on the
comes into this perfect scenario when you consider the cost of boating. While its
upkeep, fuel, and boat insurance do cost a fair amount, the price to
acquire a boat is the real issue. You want one that’s large enough to be
comfortable, especially if you’ll be entertaining guests or living abroad
full-time. When your budget won’t stretch to the type and size of boat that you
find appropriate, then it’s worth considering taking out a loan to cover the
article, we discuss what types of loans are possible to afford the right boat
What Loan is Useable for a
looking to get a loan to purchase a boat, there are a few options. However, if
you have bad credit, then the choices are more restrictive.
point, you should consider either a personal loan, collateral loan (at a fixed
rate) or a home equity loan.
Home Equity Loan
equity loan is one that is borrowed against your home. There must be sufficient
equity in the home (the difference between its current market value and any
outstanding mortgages or liens on it) to borrow against the equity value.
With a home
equity loan, it’s against an asset that’s yours already, so it’s considered
less risky by the lender and rates are reasonable. However, if you cannot make
all the payments on time, there’s a risk that the lender will move to repossess
the real estate. A credit check will be run before this type of loan is
Collateral (Fixed-rate) Loan
collateral loan at a fixed-rate is one where the boat is used as collateral.
This is useful for people with bad credit because it is asset-backed, so the
lender, usually a credit union or bank, is less concerned about repayment. They
will do a credit check when the loan is applied for and the boat can be
repossessed and sold off should the loan not be paid on time.
Personal Bad Credit Loan
A personal bad
credit loan is likely the best option for people who have bad enough credit and
get rejected when applying for other types of loans. Where security isn’t
sufficient to get the loan approved, a personal bad credit loan is another way
to go. Some lenders do a full credit check whereas others do a soft one that
doesn’t hurt future loan applications.
also the option of going the boat loan no credit check route. This is a
boat funding option where it’s confirmed that no credit check will be run. This
avoids impacting a bad credit rating any further.
With all personal bad credit loans, the loan isn’t specific
for one purpose. The person taking out the loan can spend the money on a boat,
home improvements, to buy an RV, or something else entirely. The flexibility is
part of its attraction to borrowers.
What Can You Do If Your
Credit is Bad?
candidly about a situation where your credit is bad and what the reality is
likely to be when wanting to get some finance to buy a boat.
Trying to work
with a boat lender is difficult. While they will know their boats and what’s a
realistic value for either a new or used one, they may not deal with borrowers
who have poor credit. This it can feel like you’re well and truly stuck.
though is that there are many loan types. There are some loans where the borrower
is either less concerned or completely not bothered about what the loan will be
used for. So, even when taking out a payday loan, it’s completely up to you how
you spend it or invest the money.
It’s also a
fair point that some lenders won’t offer a loan if they know you’re planning on
using the money for a boat. If they’ve personally never owned a boat before, it
can seem like an extravagant purchase even if you plan to buy it to live on the
What Other Choices Do You
lenders that are willing to lend enough money and aren’t restrictive about what
you are allowed to purchase with it. With personal loans, the lender is focused
on your ability to repay with monthly payments and rarely on what’s on your
might make the difference between getting approved for a loan or not. Bear in
mind that they will be responsible for full repayment of the loan if you’re
unable to do so. However, some friends or family members might enjoy occasional
use of your boat in exchange for helping you out.
you’re able to save up to put a better down payment on a boat purchase, this
reduces both how much you’re needing to borrow and how leveraged the boat will
be. Even if the loan is unsecured as a personal loan is, it’s still good peace
can provide proof of income from a long-standing job with pay-rises and
promotions over time, this can also make the difference between getting
approved or declined. Lenders are in the business of making money by providing
loans. They’re only trying to protect their best interests and avoid losing
their capital while trying to make a profit through the interest charged. When
you understand their position, try to work with them to provide what they require.