Recreational vehicles (RVs) have become increasingly popular as people seek to explore the great outdoors and experience the freedom of the open road. However, purchasing an RV can be a significant investment. This is where recreational vehicle loans come into play. These specialized Recreational Vehicle Loans provide the necessary financing to make your RV dreams a reality.

RV loans offer flexible terms and competitive interest rates, making it easier to afford the vehicle of your choice. Whether you’re looking to purchase a camper van for weekend getaways or a luxury motorhome for extended travels, an RV loan can help you secure the perfect vehicle for your adventures.
Why RV Loans are Essential
RVs represent a significant investment. Unless you have the cash to buy one outright, you’ll likely need financing. RV loans make your dream of owning a recreational vehicle a reality by spreading the cost over manageable monthly payments.
Types of Recreational Vehicles Loans
There are two main types of RV loans:
- Secured RV loans: These loans are backed by the RV itself, which serves as collateral for the loan. If you fail to make your loan payments, the lender can repossess the RV. Secured loans typically offer lower interest rates and longer repayment terms than unsecured loans.
- Unsecured RV loans: These loans are not backed by any collateral. Because there is no collateral, unsecured loans are riskier for lenders, so they typically come with higher interest rates and shorter repayment terms.
Top RV Loan Lenders and Terms
Some of the top-rated Recreational Vehicles loan lenders and their terms include:
LightStream
- Minimum Credit Score: 660
- Loan Amounts: $5,000 to $100,000
- Terms: 24 to 144 months
- APR: 8.49% – 25.99%
- Pros: No fees, fast funding, rate-beat program
- Cons: Higher credit score requirement
SoFi
- Minimum Credit Score: 650
- Loan Amounts: $5,000 to $100,000
- Terms: 24 to 84 months
- APR: 8.99% – 25.81%
- Pros: Unemployment protection, no fees
- Cons: May not fund directly to the dealer
Alliant Credit Union
- Minimum Credit Score: 640
- Loan Amounts: Up to 100% of RV’s value
- Terms: Up to 15 years
- APR: Rates not publicly disclosed
- Pros: Potential for lower rates for members
- Cons: Must be a member
Bank of the West
- Minimum Credit Score: Not publicly disclosed
- Loan Amounts: Up to 100% of RV’s value
- Terms: Up to 20 years for new RVs
- APR: Rates not publicly disclosed
- Pros: Variety of loan options, relationship discounts
- Cons: May require branch visit
Essex Credit
- Minimum Credit Score: Not publicly disclosed
- Loan Amounts: Vary
- Terms: Vary
- APR: Rates not publicly disclosed
- Pros: Works with various dealerships
- Cons: Limited online information
Pros and Cons of RV Loans
Pros
- Makes RV Ownership More Accessible: RV loans allow you to purchase an RV without paying the full price upfront, making it more affordable for many people.
- Spread Out Payments: Loan terms can extend up to 20 years, reducing your monthly payments and making budgeting easier.
- Potential Tax Benefits: If you use your RV as a second home, you may be able to deduct the interest paid on your loan.
- Flexibility: You can choose from various loan types and lenders to find the best fit for your needs.
- Builds Credit: Making timely payments on your RV loan can improve your credit score.
Cons:
- High-Interest Rates: Compared to other types of loans, RV loans tend to have higher interest rates, especially for those with lower credit scores.
- Depreciation: RVs depreciate quickly, meaning you could end up owing more on your loan than the RV is worth.
- Risk of Repossession: If you default on your loan, the lender can repossess your RV.
- Additional Costs: Besides the loan payments, you’ll also have to factor in insurance, maintenance, storage, and fuel costs.
- Long-Term Commitment: A long loan term means you’ll be making payments for many years, potentially limiting your financial flexibility.
Overall, RV loans can be a great way to finance your dream RV, but it’s essential to weigh the pros and cons carefully before taking one out. Make sure you understand the terms of the loan, the total cost of ownership, and your ability to make the payments comfortably.
What are the Current Average RV Loan Rates?
The average RV loan rates vary depending on your credit score:
- Very Good Credit (740-799): Average APR is around 9.35%
- Good Credit (670-739): Average APR is approximately 11.45%
- Fair Credit (580-669): Average APR is about 16.52%
- Poor Credit (300-579): Average APR is roughly 19.45%
These are just averages, and the actual rates you qualify for may be higher or lower depending on additional factors such as your loan term, down payment, and the lender you choose.
Remember that some lenders advertise rates as low as 6.49% or 6.99%, but these are typically reserved for borrowers with excellent credit and may come with specific loan terms or amount requirements.
It’s always recommended to shop around and compare offers from multiple lenders to find the best rates and terms for your situation.
Factors Affecting RV Loan Rates
RV loan rates, like any other type of loan, are influenced by a variety of factors. Here’s a breakdown of the key elements that can affect the interest rate you’ll be offered:
1. Credit Score:
- Your credit history is a major factor. Lenders use your credit score to assess your creditworthiness, which is your ability to repay the loan. A higher credit score demonstrates responsible borrowing habits and reduces the risk for the lender, resulting in lower interest rates.
- Conversely, a lower credit score indicates a higher risk, and lenders may compensate for this by offering higher interest rates or requiring a larger down payment.
2. Loan Amount and Term:
- The size of the loan matters. Larger loan amounts may sometimes come with lower interest rates, but this isn’t always the case. Lenders consider the overall risk of the loan, and a larger loan amount can be seen as riskier.
- The loan term, or the length of time you have to repay the loan, also plays a role. Shorter loan terms usually come with lower interest rates, but they result in higher monthly payments. Longer loan terms have lower monthly payments but accrue more interest over the life of the loan.
3. Type of RV:
- Whether you’re buying a new or used RV can affect the interest rate. New RVs generally qualify for lower rates because they are considered less risky than used RVs.
- The age and condition of a used RV are also important. Lenders may be hesitant to finance older RVs or those in poor condition, and this can lead to higher interest rates or loan denials.
4. Down Payment:
- The amount of money you put down upfront can influence the interest rate. A larger down payment reduces the loan amount and demonstrates your financial commitment, which can lead to lower interest rates.
- A smaller down payment may result in higher interest rates or require you to pay for private mortgage insurance (PMI), which protects the lender if you default on the loan.
5. Lender and Economic Conditions:
- Different lenders have different lending criteria and risk appetites. This means that interest rates can vary significantly between lenders. It’s crucial to shop around and compare offers from multiple lenders to find the best rate.
- Overall economic conditions, such as inflation and interest rate trends, can also affect RV loan rates. When the economy is strong, interest rates tend to be higher, and vice versa.
6. Loan Type:
- The type of loan you choose can also impact the interest rate. Secured loans, which are backed by collateral (in this case, the RV itself), typically have lower interest rates than unsecured loans. However, with a secured loan, you risk losing your RV if you fail to make your loan payments
Eligibility Requirements for an RV Loan
To be eligible for an RV loan, lenders typically look for the following:
Credit Score:
- Minimum: Most lenders require a minimum credit score of 660, though some may accept lower scores with higher interest rates.
- Ideal: A credit score of 700 or higher will give you access to better interest rates and loan terms.
Income and Employment:
- Stable Income: Lenders want to see that you have a steady income source to make your loan payments.
- Employment History: A consistent employment history demonstrates your ability to maintain a job and income.
Debt-to-Income Ratio (DTI):
- Maximum: Your DTI, which is your monthly debt payments divided by your gross monthly income, should ideally be 43% or lower. Some lenders may accept higher DTIs, but it could impact your interest rate.
Down Payment:
- Minimum: Many lenders require a down payment of 10% to 20% of the RV’s purchase price.
- No Down Payment: Some lenders offer no-down-payment loans, but they typically come with higher interest rates.
Other Requirements:
- Age of RV: Lenders may have restrictions on the age of the RV they’ll finance, especially for used RVs.
- RV Inspection: Some lenders require a professional inspection of the RV, especially for used RVs.
- Insurance: You’ll need to provide proof of RV insurance before finalizing the loan.
- Loan Term: The loan term you choose will impact your monthly payments and the total interest paid.
How to Apply for an RV Loan
- Check Your Credit: Your credit score will significantly impact the loan terms and interest rates you qualify for.
- Obtain a copy of your credit report and score from the three major credit bureaus (Equifax, Experian, and TransUnion). If your score is below 660, consider taking steps to improve it before applying.
- Determine Your Budget: Calculate how much you can afford to spend on an RV, considering the loan amount, interest rates, and other associated costs like insurance, maintenance, and fuel. A good rule of thumb is to keep your total monthly RV-related expenses, including the loan payment, to no more than 15% of your take-home pay.
- Get Pre-Approved: Pre-approval helps you understand the loan amount and interest rates you might qualify for, giving you a clearer picture of your budget when shopping for an RV. Contact multiple lenders, including banks, credit unions, online lenders, and RV dealerships, to compare offers and choose the best one.
- Gather Required Documents: Before applying, make sure you have the necessary documentation handy:
- Identification: Government-issued ID (driver’s license, passport, etc.)
- Proof of Income: Recent pay stubs, tax returns, or bank statements
- Proof of Residence: Utility bill, lease agreement, or mortgage statement
- RV Information: If you’ve already chosen an RV, provide details like the make, model, year, and VIN.
- Complete the Application: You can apply online, in person at a lender’s branch, or through an RV dealership. Provide all required information accurately and completely. Be prepared to answer questions about your financial history and the RV you plan to purchase.
- Wait for Approval: The lender will review your application and may request additional information or documentation. Once approved, you’ll receive a loan offer with the terms and conditions.
- Review and Accept the Offer: Carefully review the loan agreement, paying attention to the interest rate, loan term, monthly payment, and any fees or penalties. If you’re satisfied with the terms, sign the agreement to finalize the loan.
- Purchase Your RV: With the loan secured, you can purchase your desired RV and begin your adventures.
Tips for Improving Your Credit Score Before Applying for an RV Loan
Improving your credit score before applying for an RV loan can significantly increase your chances of approval and help you secure a more favorable interest rate. Here are some effective tips to get you started:
Check Your Credit Report:
- Obtain a copy of your credit report from each of the three major credit bureaus: Equifax, Experian, and TransUnion. You can get a free report from each bureau once a year at AnnualCreditReport.com.
- Review your reports carefully for any errors or inaccuracies. Dispute any mistakes you find to ensure your score reflects your true creditworthiness.
Make Payments on Time:
- Your payment history is a major factor in your credit score. Set up reminders or automatic payments to ensure you never miss a due date.
- Even small late payments can negatively impact your score, so make it a priority to pay all your bills on time, every time.
Reduce Credit Card Balances:
- Aim to keep your credit utilization ratio (the amount of credit you’re using compared to your total available credit) below 30%.
- Paying down existing balances will not only improve your credit score but also lower your overall debt burden.
Avoid Opening New Credit Accounts:
- While it may be tempting to open new credit accounts to increase your overall credit limit, doing so can negatively impact your score in the short term.
- Focus on managing your existing credit responsibly and avoid taking on new debt unless absolutely necessary.
Keep Old Accounts Open:
- The length of your credit history also affects your score. Avoid closing old credit accounts, even if you don’t use them often.
- These accounts contribute positively to your overall credit profile and demonstrate a longer history of responsible credit management.
Diversify Your Credit Types:
- A mix of credit types, such as installment loans (like an auto loan) and revolving credit (like credit cards), can positively influence your score.
- However, only take on new credit if necessary and manageable.
Consider a Credit Builder Loan:
- If you have limited credit history or a low credit score, consider taking out a credit builder loan.
- These loans are designed to help you build credit by making regular payments over a set period.
Monitor Your Credit Score:
- Keep an eye on your credit score as you work to improve it. There are several free credit monitoring services available that can alert you to any changes in your score or potential errors on your credit report.
How to Negotiate Your RV Loan
Negotiating an RV loan can be a bit different from negotiating a car loan. Here are some tips to help you get the best possible deal:
- Shop around for the best rates. Don’t just go with the first lender you find. Compare offers from multiple banks, credit unions, and online lenders. You can also use an online loan marketplace to compare rates from different lenders in one place.
- Get pre-approved for a loan before you start shopping for an RV. This will give you a better idea of how much you can afford to borrow and what interest rates you qualify for.
- Negotiate the interest rate. Don’t be afraid to ask the lender for a lower interest rate. You may be able to get a better rate if you have a good credit score or if you’re willing to make a larger down payment.
- Negotiate the loan term. A shorter loan term will mean higher monthly payments, but you’ll pay less interest over the life of the loan. A longer loan term will mean lower monthly payments, but you’ll pay more interest overall.
- Negotiate the fees. Some lenders charge fees for things like loan origination, processing, or prepayment. Ask the lender to waive or reduce these fees.
- Consider a secured loan. A secured loan is backed by collateral, such as your RV. This means that if you default on the loan, the lender can repossess your RV. Secured loans typically have lower interest rates than unsecured loans.
- Make a large down payment. A larger down payment will reduce the amount you need to borrow and may help you get a lower interest rate.
- Don’t be afraid to walk away. If you’re not happy with the loan terms, don’t be afraid to walk away from the deal. There are other lenders out there who may be willing to offer you better terms.
Frequently Asked Questions (FAQs)
What is the average interest rate for RV loans?
Interest rates for RV loans vary, but you can generally expect higher rates compared to car loans. They depend on factors like your credit score, loan amount, and the lender’s current rates.
How long are RV loan terms?
RV loan terms typically range from 5 to 15 years, but longer terms may be available for larger loans. The length of your loan term will affect your monthly payments and the total interest you’ll pay.
Do I need a down payment for an RV loan?
While not always required, a down payment can help you secure a lower interest rate and reduce your monthly payments. It also shows the lender that you’re financially responsible.
Can I refinance my RV loan?
Yes, you can refinance your RV loan to potentially obtain a lower interest rate, change your loan term, or consolidate debt.
What documents do I need to apply for an RV loan?
When applying for an RV loan, you’ll typically need to provide proof of income, identification, credit history, and vehicle information.
Can I use an RV loan to purchase a used RV?
Yes, most lenders offer financing options for both new and used RVs. However, interest rates may be higher for used RVs.
What are the benefits of owning an RV?
Owning an RV offers the freedom to explore and experience different places at your own pace. It can also be a cost-effective way to travel and enjoy outdoor adventures.
Conclusion
Securing the right financing is a critical step in making your RV dreams a reality. By understanding the different types of RV loans, factors affecting interest rates, and tips for saving money, you can confidently navigate the process and hit the road with the perfect RV for your adventures.