Lenders consider a number of factors when determining whether to approve your application for a boat loan. From credit history, to loan amount, and beyond…let’s take a look at whether you may be approved for a boat loan.
Simply put, being approved for a boat loan comes down to your finances. Having great credit, low debt, and the cash for a solid downpayment will fast track you towards a boat loan approval. While there are other loan types to consider to obtain cash such as a home-equity loan, we will be focusing on using a professional marine lender.
One of the first things a marine lender is going to check is your credit score, so it is good to improve it as much as possible before applying for a loan. This includes paying off any credit cards, paying bills on time, and not applying for too much credit as multiple pings can hurt your score. Also review your credit card history to ensure there are no discrepancies with your score.
We know that nobody plans to have debt, but if you want to ensure you will get approved for a boat loan, being diligent about paying off existing debt is key. High debt signals to a lender that you are not able to pay your bills which may deter them from approving your boat loan. Aggressively paying down debt will greatly increase your chances of being approved.
Many boat loan lenders will require a decent amount of money for a down payment. Since a boat is a luxury item to a certain degree, compared to a home, a down payment will be required by most any marine lender. Saving money for a down payment BEFORE you decide to start shopping will ensure you can meet the loan requirements and hit the water quicker!
Speak With A Professional
Ready to find out if you will be approved for a boat loan? We are here to help! Simply click here or the banner below to get started. The first step is to discuss options with a professional marine lender who can help you determine your eligibility.
*Note: This post is informative and your personal credit history, financials, and other factors will determine whether you are approved for a boat loan. Approval may vary by lender.