People who want to buy boats can buy them even if they do not have the necessary funds, as boat loans are easily available. But a person with a low credit score would be hesitant to apply for a loan as chances of rejection are very high. In fact, till online lending came into the picture, bad credit loans were very rare. This is because lenders believed that the chances of people with low credit scores defaulting were high. Today, things are quite different and a low credit score should not prevent a person from buying a boat.
What should my credit score be to get a boat loan?
Though it is true that even people with low credit scores can apply for boat loans, lenders usually fix the minimum credit score to be eligible for the loan. This minimum score may change from time to time depending on the state of the economy, the willingness of lenders to take risks and such other factors. For instance, when the economy is in good shape, jobs are available in plenty and the risk of defaulting is low, the minimum credit score is not very high. In such a situation, 525 is considered as the minimum credit score limit by many lenders in the U.S. A person planning to take a loan can first find the minimum score from the lender’s website.
A person with a low credit score can follow the steps listed below to improve his chances of getting a boat loan:
- Improve the score by making regular payments for a continuous period before applying for the loan
- In case the low score is due to a specific situation like a divorce or an illness in the family, explain the same to the lender and convince him.
- Make certain that payments like monthly mortgages are not missed, as the lender may refuse a boat loan in case of such defaults.
- Also, get the credit score verified as errors in calculation may be the reason for a bad credit score.