Agreed that boats are expensive, but that does not mean that people with bad credit cannot buy them. Till recently, lenders for bad credit loans were difficult to find. Not anymore. With online borrowing becoming popular and online lenders vying with each other for business, boat loans for bad credit are available quite easily.
All about Boat Loans for Bad Credit
A typical bad credit boat loan would have the following features:
- The maximum loan limit would be $60,000.
- The loan term would be around 12 years.
- Simple interest would be charged on the loan.
- It would be a loan with a fixed rate of interest.
- The lender would expect a down payment of at least 10%.
- The boat should not be more then 10 years old.
- Certain kinds of boats like high performance boats and boats to be used for commercial purpose would not qualify.
- The lender would specify the minimum credit score for qualifying for a bad credit boat loan.
- If the loan applicant’s payment defaults totaled up to more than the prescribed amount, he would stand disqualified.
- Bad credit lenders refuse loans to people who have made late mortgage payments or vehicle payments in the recent past.
- Those people who have been declared bankrupt in the past can apply for a bad credit boat loan subject to certain conditions.
- If the monthly debt to income ratio of a person wanting a bad credit loan is more than 40%, he would not be allowed to apply for the loan.
How to apply for a Bad Credit Boat Loan?
One can easily apply for a bad credit loan online. Online lenders have their own web sites in which details of different kinds of loans are given including all about boat loans for bad credit. A link is provided, clicking on which one can reach the page containing the application for a bad credit loan.
People should not apply for bad credit boat loans just because they are easily available. They should first check their ability to repay the loan.