Getting an RV Loan With a Credit Score of 650 (2019)

If you have a 650 credit score and are shopping for an RV loan, be aware that some lenders classify "650" as sub-par when it comes to lending.

An RV loan with a credit score of 650 may be a tad too low for some lenders.

However, there are still options for people looking for an RV loan with fair credit.

Those options include personal loans which will carry higher interest rates than if you waited till your score read at least 700.

Plus ensuring you have at least 10 to 20 percent saved for a down-payment can assist in convincing lenders to do business.

Either way, personal loan options, which aren’t too stringent when it comes to lending requirements, are willing to work with those with bad to fair/average credit.

Applying for an RV Loan

First off, when applying, be aware that a hard pull can be performed to check your credit which damages your credit, albeit slightly, for a period of time.

Regardless, here are a few other points/tips to consider when purchasing an RV:

  • If you get pre-approved for loan from a bank, the RV dealer, who may attempt to persuade you to finance through them, may present a more charitable offer (e.g. lower interest rate). This is a good tactic to use to get a better deal.
  • Debt-to-income ratio is important for any loan. It’s best not to have monthly debt above 40 percent of your income.
  • Prepayment penalties, typically for longer-term loans, can apply as lenders don’t want to miss out on future interest payments. They recoup those with a fee if you pay extra during the year, so read the fine print!
  • Full time or part time? Whether you’re living in an RV full-time or part-time matters when it comes to insurance. This is because insurance costs will be higher if living full-time.

List of RV Loan Options with a FICO Score of 650

rv loan credit score 650

The following is a list of providers who offer RV loans or attempt to match you with the best lender.

  • Pro Tip: Since RVs are a depreciating asset, renting it out through platforms like Airbnb might help with recovering the costs of the unit!

650 Credit Score RV Loan Options from Banks/Personal Loan Websites

Lightstream

Important facts:

  • Good for: those with good/excellent credit
  • Minimum credit score: 680
  • Interest rate range: 4.29% – 10.84%
  • Max RV loan term: 7 years
  • Max RV loan amount: $100,000
  • 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 an RV loan through Lightstream ranges from 4.29% to 10.84% depending on loan term (months).

Plus, they’ll beat a competing lender’s rate by .10 percentage points to win your business. Also, autopay reduces the interest rates by .50 percent

Loan amounts range from $5,000 to $100,000 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).

Avant.com

Important Facts:

  • 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.com will be able to offer loans for those seeking an RV loan with a credit score of 650. They perform a soft credit check which won’t harm your score.

Loan amounts range from a low of $2,000 up to a maximum of $35,000. Terms will range from 24 months to 60 months.

APR ranges from a minimum of 9.95% up to 35.99%. There’s an administrative fee, late fees and dishonored payment fees. The administrative fee is 4.75% and is to be paid upfront.

There’s no prepayment fee for your RV loan. All that’s needed to apply is name, address, income information and a social security number.

Upgrade.com

Important Facts:

  • 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 offers loan amounts from $1,000 to as large as $50,000. This is a very attractive option for an RV loan with a credit score of 650.

The term length will range from 3 years to 5 years. There’s an origination fee that Upgrade.com charges that ranges from 1.5% to 6%.

This fee can be financed so there is no upfront cost. Upgrade.com offers APR ranging from 7.99% up to 35.89%. APR is generally in the 20% range for borrowers with a credit score of 650.

Upstart

Important Facts:

  • 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

Upstart can offer a loan amount as high as $50,000 – which is good news for those needing an RV loan with a credit score of 650.

You can also secure a loan of as little as $1,000. Upstart and APR ranges from a low 7.69% up to 35.99%.

Borrowers have the option of a 3 year term or a 5 year term. But with no prepayment penalty you can pay off your loan faster.

RV Loan Choices from Brokers/Lending-matching Websites

650 credit score rv loan

Photo by Airstream Inc. on Unsplash

The websites below aim to aid you in finding the best RV lender by allowing you to compare offers from various financial institutions:

Southeast Financial

Important Facts: 

  • Good for: those with good/excellent credit
  • Minimum credit score: none (however, they consider 650 a poor credit score)
  • Loan amounts: $7,500+
  • Loan APR: as low as 4.74%
  • Minimal annual income: $25,000 

Southeast financial is a lending broker and will attempt to match you with a bank that suits you best.

They have mostly positive reviews on TrustPilot. However, some complained that the loan process took a little longer than desired.

Either way, in addition to RVs, they also offer loans for motorcycles, boats, motor homes and horse trailers.

Supermoney.com

Important Facts:

  • Good for: those with bad to excellent credit
  • Minimum credit score: depends on lender
  • Interest rates: varies 
  • Soft credit check: yes

Recreational vehicles can get expensive, so you may need a good chunk of money when looking for an RV loan with a credit score of 650.

Supermoney.com offer loans up to $100,000. With rates starting at just 1.99%, it is an attractive option. SuperMoney will compare rates and terms with several different lenders thus the terms can vary widely.

The most terms carry of length of 24 months to 60 months. APR ranges from 4.5% to as high as 199%.

LendingTree

  • Good for: those with bad to excellent credit
  • Minimum credit score: 525
  • Loan amounts: from $1,000 w/ no upper limit
  • Loan APR: varies by lender

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.

Zippyloan.com

Important Facts:

  • Good for: those with bad to excellent credit
  • Minimum credit score: depends on lender
  • Interest rates: varies 
  • Loan amounts: $100 – $15,000
  • Loan term: up to 60 months

RV loan financing with a credit score of 650 can be found at zippy loan. You can borrow as little as $100 or as much as $15,000.

They offer short term loans which are due the next payday with other types of loan terms ranging from 6 months to 6 years.

The APR varies greatly depending on the institutional lender used.

Final points

There are a variety of options for those seeking an RV loan with a credit score of 650.

The providers listed all make the process easy and fast. It is worth checking with these providers to find out if your RV loan with a credit score of 650 can use the purchased RV as collateral for the loan.

If your lender is willing to do this, it should reduce the rate on the loan and save you some money each month and over the life of the loan.

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