A recreational vehicle or RV can open up a considerable number of possibilities for the domestic traveler. From exploring campgrounds in national parks to road-tripping across the nation to see friends or family, the right RV gives you a mobile home base where you can always feel comfortable and enjoy your privacy.

Sound enticing? You will have to secure your ability to purchase an RV before you can tap into all those benefits.

For most people, the idea of buying an RV with cash is unrealistic. Just as the prospect of taking out a loan crosses your mind when you consider buying a new car, financing a loan on your RV is the easiest way to make such a large purchase affordable. However, you will often find that banks view RV loans in a manner that is similar to the way that they might look at a loan for a boat or other pleasure craft. As a result, it’s not always as easy to get an RV loan as it is to get a car loan. 

If you find yourself asking, “What credit score do I need for an RV loan?” and similar questions, Resource One Credit Union has the helpful answers that you need. 

What You Need to Apply for an RV Loan

Remember that RVs are typically much more expensive than the cars purchased by consumers, so financial institutions—even credit unions—are more selective regarding which customers they choose to give financing options. Many sources say that the lowest credit score range at which to qualify for an RV loan is around 650-660. Ideally, your credit score should be closer to (or over) 700. Such a score demonstrates strong creditworthiness, usually through a consistent payment history and low balance utilization.

Alongside a good credit score, you should also have a down payment ready to go. This down payment should be at least 10% of the total purchase price of the RV that you have in mind—and a 20% down payment is even better. Not only does this payment knock a substantial portion off the top of the amount that you will need to take out in a loan, but it can also help to secure you a better interest rate. 

Check your credit report and start saving up for your down payment. When you can demonstrate the twin capabilities of responsibility and the means to pay, you’re more likely to secure the loan that you’d like.

The Typical Interest Rates on RV Loans

How much can you expect to pay in interest over the lifetime of your loan? The answer depends on the loan term that you choose. 

Some consumers prefer lower payments spread out over a longer period, while others like to eliminate their debt as quickly as possible, even if it means bigger payments. There are advantages to opting for shorter terms, too—they typically come with lower interest rates, especially once you qualify. 

At Resource One Credit Union, we provide a service that easily adapts to either kind of payment priority. Some of our typical terms and interest rates include:

  • Less Than 2 Years (24 Months) — 4.00% APR
  • 25-36 Month Loans — 4.45% APR
  • 37-48 Month Loans — 4.60% APR
  • 49-60 Month Loans — 4.85% APR
  • More Than 61 Months — 5.3-5.55% APR

(All rates expressed as lowest possible APR; individual loan terms may vary)

How long is a typical RV loan? Most buyers choose to opt for a longer-term loan in excess of 60 months to provide themselves with as much time as possible to pay, but your circumstances may be different.

Why Choose Resource One Credit Union for Your Loan?

At Resource One Credit Union, we offer a wide range of loan products outside of the typical auto loan ecosystem, including boat and ATV loans. Why should you choose to bank with us when you want an RV loan?

  • We’re a nonprofit, member-owned credit union, meaning that everything we do is in the best interest of our members. The result is a more flexible, friendly, and accessible service.
  • Our Skip-a-Payment Program. Need extra cash this month? We allow you to skip up to two loan payments per year with no penalty. A maximum of five skips applies to each loan.
  • Our GAP insurance solutions. Keep your peace of mind intact knowing that if something happens to your RV, GAP insurance will cover the difference remaining on your loan.

Explore the Possibilities with Our Team Today

Buying an RV could be just what you need to fully enjoy your retirement or make the most of an opportunity to travel around the country for an extended period. At Resource One Credit Union, we’re excited for the opportunity to open the door to this unique opportunity. With competitive interest rates on RV loans backed up by world-class customer service, and a more flexible approach to finance than the big banks, you’ll find a trusted ally in the R1CU team. 

Are you ready to get started applying for an RV loan? If your credit score is in the right spot and you have your down payment ready, there’s no reason to keep on waiting. Schedule an appointment at one of our financial centers, or contact us online or by phone to get the process started today. We look forward to playing a part in financing your dream RV soon.

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