Choosing an RV Loan Credit Union

A rv loan credit union is an organization that offers financing to purchase or refinance recreational vehicles. Typically, RV loans work like auto or mortgage loans, with lenders considering your creditworthiness, income and debt levels when deciding whether to approve you for the loan. Lenders also look at the type of RV you’re purchasing, how often you plan to use it and its overall condition.

RV lenders offer both secured and unsecured loans. Secured loans require a borrower to offer up their RV as collateral in case they fail to make repayment. This makes these loans less risky for the lender, and thus can offer lower interest rates. In comparison, unsecured loans do not require collateral but typically carry higher interest rates to compensate for the risk. Most unsecured RV loans have repayment terms of one to seven years.

Approval requirements vary by lender, but they typically include minimum credit scores and income levels. Some may also ask you how you’ll be using the RV and request documentation of your existing debt and assets. Lenders also may look at the loan-to-value ratio when determining how much you can borrow for your RV.

When choosing an rv loan credit union, consider the lender’s maximum loan amount and its annual percentage rate (APR). The maximum loan amount will be determined by the type of RV you’re looking to buy, so shop around for lenders that offer the size you need. The APR accounts for both the interest rate and upfront fees, so shopping for the best deals can help you save money in the long run.

Many lenders have online applications, making it easy to complete the process from anywhere you have an internet connection. You can also apply for a loan at a local bank or credit union, but this option typically requires in-person interviews and additional documents.

There are also online loan marketplaces that connect you with multiple lenders to find the best deal. Examples of these include SoFi, Upstart and Best Egg. SoFi, in particular, looks at more than just your credit score and provides a fully digital experience. It also offers large loan amounts, and accepts joint applications to give borrowers more buying power.

Other lenders focus on a specific demographic, such as military veterans or seniors. NASA Federal Credit Union, for example, offers flexible lending options to members of the National Space Society or those who have been a member of a partner company or association that is a member of the National Academy of Sciences. USAA is another lending network that focuses on military families, but their RV loans typically come with higher interest rates than other lenders.

If you don’t qualify for an RV loan, consider other financing alternatives, such as personal loans or home equity loans. These can often provide better rates than RV loans, but you’ll need to have a good credit history to get the best interest rates. You can also try to pay cash for your RV, if possible, to avoid paying interest altogether.