Securing the correct financing for an RV or camper loan can be very difficult. In fact, it can be far more difficult than getting approved for something like a car loan.

Depending on the length of your loan, the amount your borrowing and other factors, you might find an RV loan to be similar to a home mortgage. This is nothing to take lightly so the correct research must be undertaken before investing.

Check Your Debt-To-Income Ratio

Some lenders will offer RV loan programs for borrows who have bad credit however they will look at a lot of factors like your debt-to-income ratio. They will also look into your employment history and current income.

Having a lot of debt of a lack of income are some of the main factors that could stop you from being approved.

Save Money For A Down Payment

Borrowing a smaller amount of money will reduce the risk to the lender and make you more likely to get approved. If you have money saved, then you will be able to get a smaller loan and it will pay off in the long run.

There is also the added benefit of paying less interest in the long-run due to the loan. You should also consider waiting and working on improving your credit to help increase your chances.

Be Aware Of Interest

RV loan interest rates range between 4% to over 15% which will add up in the long term. The rates will vary on several factors from the lender, your credit, amount borrowed and down payments.

It is important to work out how long it will take you to pay off the loan. If you borrow 40k at a rate of 6.5% your total costs will be 14.5k if it takes 10 years to pay off. However, if it takes you 20 years you will pay over twice the amount.

You Could End Up Owing More Than The RV

Some lenders require 10%, some require 20% and some don’t require a down payment. While this sounds appealing – if you put little or no money down, you could end up owing more than the RV is worth.

RVs lose their value very quickly, especially if it is brand new. If you plan to sell or trade it later, you might not be able to get enough money back to pay off your loan.