If you get an unsecured boat loan (basically, a personal loan for a boat), you won’t need to put up any collateral, but repayment terms will be much shorter. You can expect repayment terms akin to the typical installment loan. (Take a look at our roundup of the best personal loans here.)
Key Features
Loan amounts
Flexible loan duration
Low interest rates
Wide loan amounts offered
Loan amounts
Same-day funding
Unsecured boat loan
Low starting APR
Loan amounts
Low starting APR
Loans available for bad credit
Wide loan amounts offered
Loan amounts
Low starting APR
Largest loan amounts offered
Physical office locations nationwide
Loan amounts
Flexible loan duration
Personal watercraft financing
Small loan amount available
Loan amounts
No down payment needed
Bad credit accepted
75% approval rate
Starting APR
4.24%
Starting APR
LightStream really shines with their low loan amount (,000) and starting APY, but we’re most enamored with the same-day funding. Terms aren’t as flexible as some others, but for an unsecured personal loan, the loan options are still strong. There’s no minimum credit score requirement, but to qualify for boat financing from LightStream, it’s apparent you’ll need strong credit.
Late payments can bring credit scores down. If you are hoping to improve your score with a boat loan, it is important that you make all payments on time. If possible, set up automatic payments from a bank account that you keep well funded, that way you don’t even have to worry about making monthly payments on time.
Loan terms
And just like with cars, you can take out loans for both new and used boats.
Do I Have to Finance my Boat Through the Dealer?
How Boat Loans Work
APRs vary based on borrowed amount, credit history and loan term. USAA does not disclose a credit score requirement.
Home equity loans are typically recommended for investments that will increase the value of your home, like an addition, a kitchen renovation or a major landscaping project. Because these loans are risky, they are not the best choice for financing a boat.
Down Payments for Boat Loans
Credit score
More Information About LightStream
,000 to 0,000
Repayment Terms for Boat Loans
Because boat loans are for recreational purposes — and not an investment, debt consolidation or emergency expense — a traditional structured loan, where the boat serves as collateral is the best. The process is quick (funding comes in as little as 72 hours), and terms are flexible (up to 20 year). The minimum loan amount is just ,000 and that’s a plus.
Annual Percentage Rate for Boat Loans
When making a big purchase with a decade-plus repayment term, it makes sense to shop around for your boat loan to ensure you get the lowest annual percentage rate (APY) and the best terms. Make sure loans for the type of boat you want to purchase are even offered at a lender before applying, and make note of their requirements around used boats; some lenders will not offer loans for boats that are 20 or 25 years old.
Types of Boat Loans
Up to 15 years
Secured Boat Loans
However, credit scores can be affected both positively and negatively by a boat loan. Applying for any kind of loan requires the lender to do a hard inquiry into your credit history. This does have a negative impact on your score, but the effect is minimal, and the inquiry falls off your report rather quickly. Just don’t apply for multiple boat loans, as this will result in multiple hard inquiries and a greater impact to your score.
,000 to 0,000
Unsecured Boat Loans
Key Features
What Type of Loan is Best for a Boat?
Home Equity Loans For Boats
You can apply for an unsecured personal loan with no collateral. This works just like any other personal loan, but instead of using it for a home renovation, debt consolidation or a medical emergency, you’d be funding your boat purchase with it. Source: thepennyhoarder.com
How to Apply for a Boat Loan
Not disclosed
1. Shop Around for Boat Loans
Starting APR
2. Get Pre-Approved
Can You Get a 10-year Loan on a Boat?
3. Have All Your Paperwork Ready
4.5 out of 5 Overall
How Boat Loans Affect Your Credit Score
Key Features Southeast Financial is great for borrowers with bad credit. The lender could offer more transparency around credit requirements, fees and interest rates, but it’s a good lender to turn to when your credit is keeping you from getting approved elsewhere.
,000 to million
The True Cost of Owning a Boat
Fees
Monthly Payments
Cons
Down Payment
Cons
Fees
iNet Lending lacks transparency in its advertising, which can be off-putting to some borrowers. Spend a little time researching a boat loan, and it won’t be entirely clear what APR you’ll be offered, what credit score you need or what fees you’ll pay at closing. So why include it? The smaller loans don’t require a downpayment and that iNet works with borrowers with challenged credit.
Up to 20 years (25 with larger down payment)
Registration and Taxes
Fees
Maintenance and Repairs
While many lenders require strong credit scores, some offer boat loans to borrowers with challenged credit. Just don’t expect to qualify for the competitive rates advertised on their site.
Towing
You can apply for a boat loan at your own bank or credit union, as well as other banks or credit unions in your community. You can also look to online lenders, marine finance companies and boat dealers themselves.
Fuel
Can I Get a Boat Loan with Bad Credit?
Boat Insurance and License
Not disclosed
New Boats vs. Used Boats
Not disclosed
Pros and Cons of New Boats
We generally recommend unsecured loans only for necessities, as interest rates are high. (Because there is no collateral, lenders consider personal loans to be riskier). But if you do not qualify for a secured boat loan and think you can manage the increased cost of an unsecured loan, unsecured boat loans certainly give you more options.
New boats are likely to have the latest technology and design.
You aren’t limited to the pre-owned market. You can buy the exact boat you want — with the customizations that serve your needs.
New boats are backed by a manufacturer’s warranty.
New boats are less likely to encounter problems within the first few years of service.
We generally recommend unsecured loans only for necessities, as interest rates are high. (Because there is no collateral, lenders consider personal loans to be riskier). But if you do not qualify for a secured boat loan and think you can manage the increased cost of an unsecured loan, unsecured boat loans certainly give you more options.
Used boats are cheaper to buy than new.
Used boats are cheaper to insure than new.
There is potentially a higher resale value because the depreciation is lower than a new boat.
Southeast Financial strives for same-day approval on loans (often fewer than 3 hours), but the actual funding can take several business days.
Used boats will require more maintenance and upkeep right out of the gate.
You’ll have to pay for a marine survey if you require a loan.
You won’t always know what you’re getting.
Frequently Asked Questions (FAQs) About Boat Loans
Fees
With your down payment at the ready, you can browse for the best boat loans and apply for a set loan amount and repayment term when you’ve found the best lender for you. Interest rates will vary and depend on the strength of your credit history.
Just like with a vehicle, you have to pay an annual fee to register your boat. You’ll also pay taxes on it.
USAA is only available to current and retired military members and their families. If this does not apply to you, you won’t be eligible for a boat loan. But for those who are eligible—especially those who already use USAA for banking and insurance—it can be a great option for a boat loan.
Key Features
LightStream
Credit scores
Will you need to purchase any equipment for your truck or SUV to tow your boat? Or, even more important, will you need to invest in a new vehicle to be able to tow the boat at all?
While it’s not clear to borrowers at the start of the process what even a ballpark APR might be for a boat loan with iNet, some borrowers are drawn to the no-down-payment option for boat loans under 0,000. Though iNet does not publish a minimum credit score requirement, they make it known that they’ll consider borrowers with challenged credit — and approve 75% of applicants.
Loan amounts
Best for Military Community
Credit scores Getting a boat loan requires a fair amount of paperwork, especially when the boat is more expensive than a new car. Things you might need for the loan application includes information about your assets and debt, two years of verifiable income history and your Social Security Number and/or Individual Taxpayer Identification Number.