Trying to see if FT RV'n is for us
Hello all! My girlfriend and I are considering living in a FW FT. We are looking at the GD 350M but we are confused. We thought we could get an RV loan but that is not the case if we wind up livi...
Forum Discussion
It's true that many banks will indeed issue a loan on an RV with a lower credit score. Where they get you is on the required down payment, and the interest rate. Knowing what that money is costing you and how to make it cost less is the key.
Remember that the RV is a recreational purchase. They usually come with a significant down payment, and higher interest rates than auto loans.
The national average FICO Score 8 is about 695. You say yours is above 700, that's great. Having a good score increases the chances of getting the loan. It can also improve the conditions on the loan.
The higher the score, they may be willing to work with a lower down payment. The higher the score, the lower the interest rate they may offer. Those benefits usually start around 740 to 769. Above 769, the conditions usually get significantly better, topping out somewhere in the 81x range.
Some banks use the FICO Auto Score 8. It's a scale up to 900 versus 850. Knowing that number can help you too. Above 800 on that one you should be good.
One other thing to consider. You are looking at two loans. When you take out the first one, your credit score will take somewhat of a hit. It may be a little (usually) or it may be more. That means that the conditions on the second loan might not be quite as favorable. Waiting a year between the loans will give it plenty of time to come up again. Just something to think about.
Remember that the RV is a recreational purchase. They usually come with a significant down payment, and higher interest rates than auto loans.
The national average FICO Score 8 is about 695. You say yours is above 700, that's great. Having a good score increases the chances of getting the loan. It can also improve the conditions on the loan.
The higher the score, they may be willing to work with a lower down payment. The higher the score, the lower the interest rate they may offer. Those benefits usually start around 740 to 769. Above 769, the conditions usually get significantly better, topping out somewhere in the 81x range.
Some banks use the FICO Auto Score 8. It's a scale up to 900 versus 850. Knowing that number can help you too. Above 800 on that one you should be good.
One other thing to consider. You are looking at two loans. When you take out the first one, your credit score will take somewhat of a hit. It may be a little (usually) or it may be more. That means that the conditions on the second loan might not be quite as favorable. Waiting a year between the loans will give it plenty of time to come up again. Just something to think about.
