Bad credit makes RV loans harder and costlier, but not impossible. Lenders consider credit score, income, loan-to-value, RV age, and loan term. Options include banks, credit unions, captive lenders, and online financiers. Steps that help: larger down payment, cosigner, prequalification shopping, and credit repair. Remember that most RV loans are secured, so read repossession and contract terms closely.

Bad credit doesn't have to stop your RV plans

Bad credit makes RV financing harder, but it doesn't make it impossible. Lenders look at your credit score, income, the vehicle's value, and the loan term when deciding whether to approve you and what interest rate to charge. A larger down payment, a cosigner, or choosing a newer RV can improve your chances and lower your price.

Where to shop for an RV loan

You have several lender types to consider: banks, credit unions, captive finance arms (manufacturers' lenders), and online or fintech lenders. Credit unions often offer more flexible terms for borrowers with lower credit scores, and some online lenders specialize in subprime RV financing. Compare prequalification offers to see estimated rates without a hard credit pull.

Secured loans and collateral

Most RV loans are secured, which means the RV itself serves as collateral. That gives lenders more confidence and can make approval easier, but it also means the lender can repossess the RV if you default. Read contract terms closely before signing.

What affects your rate and terms

Key factors include:

• Credit score and credit history

• Down payment size and loan-to-value ratio

• Income, employment stability, and debt-to-income ratio

• Age and condition of the RV (some lenders restrict older models)

• Loan term: RV loans often have longer terms than auto loans; longer terms lower monthly payments but raise total interest paid ¹

1. Save a larger down payment - 10-20% or more can materially improve offers.

1. Get a cosigner with stronger credit to access better rates.

1. Shop multiple lenders and get prequalified offers to compare costs.

1. Consider a newer or lower-priced RV to reduce lender risk.

1. Work on credit repair: pay down revolving balances, correct errors on your report, and avoid new missed payments.

Bad credit makes RV financing more expensive and may limit your lender choices, but it doesn't eliminate them. Use secured loans, compare offers, and prioritize a realistic monthly payment. Avoid taking on extra debt you don't need - improving credit before a big purchase will usually lead to better long-term terms.

1. Confirm common lender age limits for RVs (many lenders restrict financing to RVs under a certain model year).
2. Verify typical maximum RV loan terms (length in years) offered by major lenders compared to auto loans.