A 650 credit score boat loan will undoubtedly find choppy waters with lenders.
A minimal credit score for boat loans is typically above the 680 range which is considered good credit.
Not only that, but you’ll be required to carry boat insurance if you take out a loan. Marinas may require insurance as well. They’ll want to ensure that if damage occurs on the boat, they’ll receive payment as the lien holder.
So finding a boat loan with a 650 credit score may be difficult, yet, options are available. Let’s dive in!
- Click here to view a list of lenders that may assist with boat financing, or
- Click here to view a list of lending-matching networks that may better connect you with a lender.
Is fair credit for a boat loan workable?
A 650 credit score is considered fair or near-prime. With boats being a luxury item, lenders would prefer good (or better) credit before approving a loan.
With this being the case, you might want a credit score of at least 700 to increase the chances of approval.
Also, some lenders perform hard credit checks when deciding to accept your application. Unlike a soft check, this can damage your score temporarily. A hard inquiry will stay on your credit report for two years.
Important things to know before applying for a boat loan
In addition to credit score, here are a few items lenders will want to know before approving an application:
- Employment history – Generally, having a strong work history will improve your chances of receiving a loan with fair credit.
- Unsecured vs Secured loan – If you want to lower your interest rate, choosing a secured loan which, if unpaid, will allow the lender to take ownership of the boat, might be a better option than unsecured.
- Debt-to-Income ratio – Ideally, you’ll want a debt-to-income ratio below 40% to be approved for a boat loan.
- Down Payment Amount – A majority of boat lenders will require at least 10% to 20% down payment before approving your application.
Boat financing with a 650 credit score
Financing for a boat can occur through traditional banks, credit unions, marine finance companies and boat dealers.
This way you increase the chances of loan approval and will likely secure a smaller interest rate.
You can do this by paying down debt, keeping credit utilization low and saving for a larger down payment.
650 Credit Score Boat Loan Options – Specialty Marine Financiers
When it comes to specialty marine financiers, a 650 credit score boat loan is somewhat below the minimal requirement.
For instance, Essex Credit requires a minimum score of 690 and BoatUS requires at least 680 to even begin the application.
Also, if a boat is over a certain age, a marine survey may be required in order to inspect the condition of the boat.
Given these facts, improving your 650 rating will give lenders greater confidence the loan will be repaid.
- Related Offer – Credit Sesame Free Credit Score & Free Credit Monitoring
Lenders that may assist in boat loan financing
Either way, some of the lenders mentioned below offer loans for a variety of reasons and may be able to assist with boat financing.
View the interest rates, loan terms and conditions below:
#1 – Lightstream
- Good for: those with good/excellent credit
- Minimum credit score: 680
- APR range: 4.29% – 10.84%
- Max boat loan term: 7 years
- Max boat loan amount: $50,000
- Soft credit check: No
Lightstream is a division of SunTrust Bank and offers loans for about any situation. You can finance a boat, RV or even an aircraft through this lender.
They have a slightly higher credit score requirement yet were included in this list because 680 is an attainable score for those at 650 currently.
Interest rates will vary by loan purpose, but current rates for a boat loan through Lightstream ranges from 4.29% to 10.84% depending on loan term (months).
Loan amounts range from $5,000 to $50,000 with loan term lengths ranging from 24 – 36 to 73 – 84 months.
Of course, to obtain the lowest interest rate an excellent credit profile is required.
After filling out the online application, you can receive the funds on the same day (during business hours).
#2 – Upgrade.com
- Good for: average/good credit
- Minimum credit score: 620
- APR range: 7.99% – 35.89%
- Maximum debt-to-income ratio: 60%
- Minimum monthly free cash flow: $800
- Soft credit check: Yes
Upgrade.com may provide you a 650 credit score boat loan very easily and quickly after filling out a one-page application.
You can get a loan from $1,000 to $50,000 to be paid back in 36 to 60 months at a fixed interest rate.
Your loan can be approved after the clearance of necessary verification, within a few days of applying for it.
All the loans approved by this platform will carry an origination fee from 1.5-6%, deductible from the proceeds of the loan.
The APRs of loans approved by this company may vary from 7.99% to 35.89%.
#3 – Upstart
- Good for: those with average/good credit
- Minimum credit score: 620
- APR range: 7.46% – 35.99%
- Maximum debt-to-income ratio: 45%
- Minimum annual income: $12,000
- Soft credit check: Yes
A 650 credit score boat loan from Upstart.com can range from $1,000 to $50,000 at APR rates varying from 7.46% to 35.99% for 3 years to 5 years.
They also allow you to repay your boat loan before the predetermined time period as no penalty is imposed on prepayment of the loan.
The interest rates on this platform are lower than the rates of credit card loans. The level of interest rate on your loan can depend upon your credit score.
#4 – Avant
- Good for: those with bad/average credit
- Minimum credit score: 580
- Loan amounts: $2,000 to $35,000
- APR range: 9.95% to 35.99%
- Minimum gross annual income required: $20,000
- Soft credit check: Yes
Avant®, based in Chicago, offers loans for major purchases (i.e. boat) for 650 credit score in a very simple and easy manner by filling up an online application for it.
The boat loan interest rates range from 9.95% to 35.99% with lengths ranging from 24 to 60 months.
Their process of approving boat loans is very transparent. They get your information within a few minutes.
They sign your loan contract online after selecting your loan options. The funds will be transferred to your account within 24 hours of verification of your information as their main priorities include security and trust.
They offer all types of loans at competitive rates of interest after understanding your financial constraints.
List of online networks that’ll assist in finding the best boat loan lenders
Locating the best boat loan lenders can be a difficult task. The lending marketplaces listed below streamline the effort with just a bit of information regarding your personal financial situation.
 – LendingTree
LendingTree is the nations most popular online lending marketplace. As with most lending networks, simply answer a few questions and they’ll find the best match.
They give you the ability to negotiate with lenders individually and compare your options.
They also give you the opportunity to check your credit score for free so that you can track your progress as you build credit.
 – SuperMoney.com
Another lending-matching company, SuperMoney allows you to compare options from various lenders. They aim to be a one-stop resource for all financial products an individual may need.
After completing the online form, lenders interested in your business will compete to offer their services to you.
Simply answer a few questions (loan amount, employment status, etc) and they’ll narrow down lenders that can best suit your needs.
Along with the amount of the loan you also have to pay the interest rate determined by the lender. Additionally, certain types of fees including organization fee, appraisal fee, inspections fee, and closing fee, may be required.
The loan is to be paid off as per the terms determined mutually by the lender and you.
 – LendYou
They’ll provide services to connect the borrowers with the third party independent lenders and for that reason they do not offer short term loans.
They can provide you 650 credit score boat loan options safely by forwarding your online application to the third party lenders of your choice.
After submission of your application, they will take a quick decision about the approval of your loan and the funds can be transferred to your bank account within 24 hours of the approval on your application.
The APRs range from 6.63% to 225% depending upon your credit score.
 – ZippyLoan
Zippyloan is a non-lending website as they connect borrowers with other lenders.
The decisions about the actual amount of loan, APRs and other terms are taken by the third party lenders on the basis of the information provided by you in your loan application.
This information will be provided to the lender you are connected with as per your loan agreement.
You can apply on this website for a loan from $300 to $15,000 for a period of 6 to 72 months but APR of your loan will be decided by the lender you will be connected to.
 – GuidetoLenders.com
This is another site that allows you to compare lenders for the specific loan type you’re looking for.
It provides a one-stop shop to compare lenders no matter what your credit score happens to be.
You simply input some information and they match you with the best lender that fits your description.
 – TrustedPersonalLoans.com
This company will simply connect you with other lenders that offer loan amounts ranging from $200 to $40,000.
A credit check will likely be performed by the lender that approves your application.
Your creditworthiness will depend on the loan amount approved. However, on their site they mention that most consumers don’t qualify for a loan about $1,000.