RV loans can be unsecured personal loans you get from online lenders, or secured vehicle loans from banks and credit unions. Rates and terms vary by lender, and the rate you receive will depend on your credit score and income, the age of the vehicle, and if the loan is secured by the RV, or unsecured.
Before hitting the road, consider most financial experts don't recommend taking a personal loan for discretionary purchases. So, unless you’re going to live in your RV, carefully consider the costs of financing – including monthly payments you may owe longer than the life of the vehicle. If you do take a loan, have a solid plan to pay it off.
Unsecured loans vs secured vehicle loans
RV loans, whether secured or unsecured, are repaid in fixed monthly installments, typically over a period of two to 20 years. Compare the potential benefits of financing an RV with an unsecured personal loan or a secured vehicle loan.
Reasons to finance an RV with an unsecured loan
Online lenders allow you to prequalify for a personal loan, to compare your potential rates and loan terms with no impact to your credit score
|Fast time to funding||
Online loans can be funded as fast as the same day, depending on how quickly you submit the required documents
You may not lose your RV if you fail to repay an unsecured personal loan (although there are still consequences to defaulting)
Reasons to finance an RV with a secured loan
Some secured vehicle loans may have lower rates than unsecured loans, as the loan is guaranteed by collateral
|Approval for bad credit||
Lenders may be more willing to approve your loan request if you secure the loan with the RV
|Larger loan amounts||
You may also be able to finance a larger RV purchase
Questions to ask yourself before applying
|What’s the true cost of an RV?||
Factor in expenses such as gas, insurance, storage, sales tax, repairs and maintenance to determine the RV's total cost.
These costs should fit within a budget that covers your needs, wants, savings and debt payments. Aim to keep savings and loan payments at 20% or less of your income.
|Should I build my credit score first?||
Credit score is a major factor in loan approval, and it impacts your rate and loan terms. Consider building your credit score before applying for an RV loan.
|Can I rent an RV instead?||
Renting an RV may be a faster and more affordable way to get on the road. It also lets you test out a vehicle before committing to a purchase. RVs can be rented from local dealerships or through peer-to-peer rental marketplaces.