Best RV Loans in April 2024 | Bankrate (2024)

Compare RV loan rates from Bankrate’s top picks

This table presents key details about the above lenders so you can easily compare them side-by-side.

A closer look at our top RV loan lenders

Here's a deep-dive into each lender, why it's the best in each category and specifically who would benefit most from borrowing from the lender.

How to compare RV loan lenders

For many, an RV is often a hefty expense that requires financing. When sifting through lenders, consider these factors to find the best match.

• Loan approval requirements: Every lender has a unique set of approval requirements. Lenders that specialize in RV financing generally require a high credit score, low debt-to-income (DTI) ratio, steady income and clean credit history.
• Available interest rates: To get the best interest rate available, compare quotes from lenders by prequalifying. The rates displayed on the lender website are the minimum and maximum you can qualify for.
• Loan amounts: RV loan amounts can be high depending on the vehicle you want to buy. Use a loan calculator to determine exactly how much you need to borrow. Include costs like sales tax, insurance and immediate maintenance and repair costs. Borrow only what you need so you avoid paying interest on money you're not using.
• Repayment options: RV lender terms tend to be long since recreational vehicles tend to cost more than cars. A longer repayment term keeps your payment low but costs you more interest in the long run. Consider the repayment options each lender offers to determine what will best align with your financial goals.
• Customer experience: An important part of the lending process is your experience as a customer. Before applying, think carefully about whether you prefer an in-person or a completely online experience. Check with your local bank or credit union if you prefer in-person service.
• Perks and special features:Whether the lender has usage restrictions, discounts offered, additional features and special programs may help sway your decision when comparing similar lenders.

What to know about RV loans

While an RV loan is typically specific to the purchase or refinance of a recreational vehicle, it works like any other installment loan. A financial institution or lender provides the funds for the purchase, and you pay back the money with interest over a specified time frame.

Some RV loans are secured loans, meaning they’re backed by collateral — usually the RV itself.

Before diving into the lender comparison process, know exactly what you want from a lender to find the best loan for you and your financial situation. Loans will differ based on what type of vehicle you're financing — and if you're financing a motorhome or RV — how you intend on using it.

What is an RV loan?

An RV loan is a type of installment financing used to buy a recreational vehicle, camper or travel trailer. You’ll typically receive a fixed-rate loan in a lump sum and make monthly installment payments for the term of the loan. Most RV loan terms range between two and 10 years.

Dealerships often offer secured RV loans. They may also be available through your local bank, credit union or online lenders.

Unsecured personal loans can also be used to finance an RV if you can afford the higher rates and fees that usually accompany them.

Why are RV loans less common?

Types of RV loans

There are two types of RV loans: Secured and unsecured. Which is right for you depends on your credit profile, the amount you require and whether you want to offer your RV as collateral for the loan.

• Secured RV loans:Secured loans are generally easier to get approved for and have less stringent financial requirements. The lender can repossess your RV if you default. They may also take longer to approve since the RV must meet the lender’s requirements.
• Unsecured RV loans:This type of RV loan is simply a personal loan that you take out to fund the purchase of an RV. No collateral is required. Approval is based solely on your credit profile and financial health. Rates may be higher than secured loans because the lender takes on more risk without an asset to seize if you can’t repay the loan.

Money tip:To get a loan from most lenders, you’ll need proof of insurance. Depending on your insurance company and vehicle details, the insurance costs could add a significant amount to your monthly payment, so budget for that as well. To speed up the process on a secured RV loan, get a quote from your insurance company and ensure your coverage meets the lender's requirements.

What are the current interest rates for RV loans?

Current secured RV loan rates can range from around 7.50 percent up to almost 36 percent. If you have fair or poor credit your interest rate will likely be higher. In this case, consider saving for a larger down payment and working to improve your credit.

What is considered a good interest rate for an RV loan?

Your RV rate is considered “good” if it’s combined with a loan amount and term that gives you an affordable payment without a lot of origination fees. For example, you may be offered the lowest rate for a short term — like two years. However, you’ll make a bigger monthly payment than if you chose a slightly higher interest rate with payments spread out over a longer term, like seven years. Always shop around to get the best rate at the lowest cost.

How to apply for an RV loan

The process of applying for an RV loan may vary depending on whether you choose a secured or an unsecured loan. Getting a secured RV loan is similar to taking out an auto loan, but otherwise, the basic steps for either loan type are similar.

1. Check your credit score

The best interest rates and terms are usually reserved for borrowers with mid-700 credit scores. Most lenders require a good credit score to qualify for an RV loan, which is typically a FICO score of 670 or above. If your score is lower than that, you may qualify for a fair or bad credit personal loan, but the interest rate and fees will be much higher.

2. Decide whether you want a secured or unsecured RV loan

You may find lower-cost options on a secured RV loan since the lender can repossess the RV if you don’t repay it. You won’t risk losing your RV if you finance it with an unsecured loan, but the rate and terms may be more expensive.

3. Have your income documents handy

You’ll need to verify you have enough monthly income to repay your loan and any other credit accounts that appear on your credit report. Lenders compare how much of your monthly income is spent on debts and see if you meet their debt-to-incomeratio standards. Consider a co-signer if you don’t qualify for the amount you need on your own.

4. Compare loans at several different lenders

Always prequalify with at least three different lenders and compare the rates, fees, loan amounts and terms they offer to find the best fit for your finances. Make sure you’re comparing apples-to-apples loan types. For example, if you want a secured RV loan, only compare rates and terms at lenders that offer them.

5. Choose a lender and apply

Once you’ve reviewed your offer and picked the best option, follow the lender’s instructions to apply. Make sure this is the lender you prefer because this step requires a hard credit check, which will temporarily drop your credit score.

6. Gather financial documents once you’re approved

The documents you need will vary from lender to lender but typically include paystubs, proof of your identity like a social security card or U.S. driver’s license, proof of your current address and bank statements or asset information. If you apply for a secured loan, the lender will also need detailed information about the RV you’re financing.

7. Receive funds

If you take out a secured loan, your funds will be paid directly to the RV dealer. If you choose an unsecured personal loan, in most cases, the funds are paid to your bank account for you to use to buy your RV.

Alternatives to RV loans

If an RV loan isn't your best financing route, there are a few other ways to fund your purchase. However, your options may be more limited due to the expensive nature of RVs.

Pay in cash

RVs are expensive vehicles, so paying in cash is impossible for many buyers. But if it’s an option for you, this route allows you to avoid paying interest. Since RVs depreciate like any other vehicle, a lightly used RV may be significantly more affordable than a brand-new one.

Home equity loan

If you’ve built a lot of equity up in your home and a seven-year RV repayment term isn’t long enough, a home equity loan may be worth a look. The major benefit is you can choose terms as long as 30 years, although 10- or 20-year terms are more common. Rates are usually fixed and often lower than personal loans, especially if your credit score isn’t that high.

One big drawback: The lender could foreclose on your home if you can’t repay the loan. Additionally, the lender will need to vet your home to approve you. You can expect the approval process to take several weeks.

Rent instead of buying

Buying may not be the best option if you aren't using the RV regularly. Consider how you'll use the camper and consider whether renting makes more sense. You may be able to save on insurance, storage and maintenance costs if you're only planning on taking it out once or twice a year.