RV Loans stands for Recreational Vehicle (RV) Loans. This is like a motor home for road trips.
You can live in a mobile home and start your adventure. Did you ever imagine how it would be like to live in a house which is movable? Well, RV homes have gained popularity nowadays and have become a lifestyle changer. If you have that traveler hiding in you and you are willing to explore the world outside, RV homes can be a great way to explore the country. Whether it’s a road trip, camping or family picnic, RV homes have emerged as a great option.
Well, it all looks very enticing, but at the same time, it also poses its own set of challenges, and the biggest one is of buying the RV. It is like purchasing an entirely new house but with the wheels attached, so the cost is also going to be on the higher side. Unsecured RV loans are an excellent choice for those who are willing to buy RV.
Personal Loan for RV Purchase
Personal loan is a good option for purchasing things that one desires, and it could range from going on a vacation to organizing a grand wedding to buying recreation vehicle like RV. Personal loans are easy to avail; they have fairly easier paperwork and are disbursed quickly. But, the most important feature that personal loan offers is that personal loan doesn’t require the individual to specify the objective of taking a personal loan.
One should take unsecured RV loan as there are certain advantages which are as follows:
- Personal loan gives you the leverage of getting fixed and low-interest rate with a defined payment schedule. Moreover, it also lets you make an extra payment at any time and wind up the loan without any fees or penalty.
- If you already own an RV and it is on loan, then you can use a personal loan for refinancing the existing RV loan for a shorter term which will eventually reduce the payment or you will get a better interest rate.
- Since the personal loan is unsecured, there is no need for collateral, so you are not worried about the extra burden of losing the asset.
- Another point to note about RV is that you can finance the entire or part of your RV with personal loan. If you responsibly pay the loan, then it improves your credit score, and at the same time, it also leads to an outstanding debt to income ratio.
RVs are expensive and involve massive investment, so you must compare not only the loan provider’s details but also the specifications of RVs; the price of the same varies from one RV to another and from one company to another. Once you have finalized the RV and pricing, the selling company may offer you the financing option, or you can do it yourself.
Many companies offering RV loans have the provision of prequalified RV loan. Before applying for a prequalified loan, it is essential that you must consider what types of Recreational Vehicle Loan you are looking for. To get a prequalified loan, you would need the following:
- Compare the rates before applying
- The loan amount starts from $1000, and there is no upper limit
- You also get flexible payment terms
- Some of the companies also provide a personal loan to those who have a poorly qualified credit score.
What are the different parameters one should consider before applying for the RV loan?
Whether it is unsecured RV loan or any other loan, it is important that you must look at the following parameters and compare the loan providers before choosing the one:
- APR- Before you apply for unsecured RV loan, it is essential that you must compare the APR. Different loan providers have different APR, it decides how much will be the EMI, so you must compare the APR of different loan providers.
- Secured or unsecured loan- You must determine if you want to go for a secured or unsecured RV loan. The unsecured RV loan comes with lesser risk.
- Flexible payment option- RV loans come with the flexible payment option. It can be weekly or monthly.
- Loan terms- You must know the loan term as it decides EMI.
Points to consider while taking RV Loan:
- You must know the credit score– It becomes imperative that you must check your credit score
- Higher Price– Many dealers offer high price knowing the fact that buyer will ask for a lower price.
- Compare options – Do not apply for an unsecured RV loan without comparing the financing options. Since there are many RV loan providers in the market, the best thing to do is compare the loan providers.
- Don’t over-borrow– If you are borrowing the loan, then you must borrow the amount which you can repay. Remember, you have to pay the high loan amount.
- Check for the hidden price- While you are taking a personal loan, it is essential that you must check if there are any hidden prices or fees or terms.
The process of application of RV Loan:
If you have decided that you are going to buy RV, and will be taking unsecured RV loan, then the first thing to do is to shortlist the loan providers based on the above parameters. RV loan is easy to avail if you fulfill the eligibility parameters specified by the loan providers.
Eligibility Criteria for RV loan:
- To be eligible, the applicant must be 18 years and above
- He/she must be US citizen
- A good credit score is important
- Latest bank statement and financial details, pay stubs and other supporting documents
- Identity proof
- Address proof
- Duly filled the application form.
- Social Security number
- Proof of employment
Personal loans or unsecured RV loans are a great way to buy a recreational vehicle. It gives you the leverage to own the vehicle of your dream without burdening yourself with hefty repayments. Many loan providers in the market will help you buy the RV, but it is important that you must compare the rates and other factors before finalizing one.