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RV financing and your credit score

Things You Need To Know About Credit Scores for RV Financing

Updated on February 2, 2023


Hitting the road and going to beautiful destinations in an RV sounds appealing. With its built-in beds, fully-equipped kitchen, and other home amenities, you have the freedom to go and stay as you please. Comfort and convenience wise, you can never go wrong with an RV trip.

However, it's probably one of the most significant purchases you'll ever make. With a price tag ranging from $10,000 to over $1 million, many people have to turn to financing to buy and own an RV. There are many RV loans out there, but it's not always easy to get approved for one. Certain factors will affect your chances to get RV financing, and your credit score is among them.

Here are essential things you need to know about credit scores for RV financing. It would be best to equip yourself with them, especially if you're planning to get your RV.

How Does RV Financing Work?

Financing an RV is pretty much similar to financing a car or a house. You'll get it from lenders or creditors who are offering RV loans, such as banks, credit unions, or RV dealers. Just like a car loan, you will be required to put in a downpayment and then make monthly repayments within a certain period.

Most RV loans are secured, meaning the RV itself serves as collateral to guarantee the loan. If you can't make your monthly payments, the lender has the right to repossess the RV. Although some lenders offer unsecured RV loans, the interest rates would be significantly higher.

RV loans' cost may vary depending on the interest rate the lender charges you and the loan term or amount of time you have to repay the loan. Thus, it would be best to compare different lenders' options to get the most affordable RV loan possible for you. But note that these lenders look at several factors when deciding to give you credit or not.

Understanding The Role of Credit Score

A credit score is among the factors that lenders use to evaluate how suitable you are to receive the loan. Since a credit score is based on credit history, which includes the number of your open accounts, total levels of your debts, and your repayment history, the lender will have an idea of how likely you are to repay the loan on time.

Although it's only one component, credit scores can make or break RV financing. Find out how a good or bad credit score affects your chances for better rates and terms and your RV loan approval.

Good Credit Score

As with any loan product, having good credit usually works in your favor. A credit score around 700 or higher will make it easier and faster for you to get an RV loan. If you have such a high score, lenders are likely to perceive you as low credit risk. Thus, you will get better and lower rates for your loan.

Bad Credit Score

On the other hand, having bad credit doesn't necessarily mean you won't get approved for RV financing. But though it's not entirely impossible to get an RV loan when you have a low credit score, it can certainly limit your options. Many lenders may offer RV loans to borrowers with scores of 550 but with higher interest rates and income requirements.

How To Improve Your Credit Score

If you want to better your chances for good credit RV financing, but you're currently struggling with credit challenges, don't lose hope. There are several ways to improve your credit though it requires a great effort on your part.

Instead of bearing sky-high interest rates and fees on your RV loan due to bad credit, consider the following to boost your credit score before you apply for RV financing.

Review Your Credit Report

The first step in improving your credit is finding out which factors affect your scores the most. To do this, you would have to get a copy of your credit report and review every item. Once you know what factor helps or hurts your score, you can better make changes to improve them.

There are also instances where there are mistakes in your credit report, such as wrong account status, duplicated debts, and incorrect balances. These errors could drag down your score. By checking your credit report, you can correct and remove them by filing a dispute.

Pay Bills On Time

Your payment history determines 35% of your credit score and has the biggest impact. Thus, the easiest way to boost your credit is to make payments on time. If you're behind on any payment, pay them as soon as possible. It will also help if you use automatic payment or calendar reminders to ensure you pay on time each month.

Remember that lenders are interested to know how reliable you are in paying your bills. They consider your payment history as a good predictor of future performance. If you fail on this aspect, work on this as soon as you can.

Reduce The Amount Of Debt

The amount of debt you have can also affect your credit score. If you're carrying multiple debts, it's better to pay them off before applying for RV financing. Paying off your outstanding balances can help boost your credit score since you're lowering your credit utilization. Note that a low credit utilization ratio tells lenders how well you manage your credit.

Essential Points To Remember

There is no shortcut to improve your credit score. It may take some time and effort before you can see the changes. Moreover, the negative information on your credit report may remain for a certain period. When you've done everything you could, all you need to do is wait until the negative items fall off.


Your credit score may not only affect your chances of getting RV financing. But it can also affect your financial health and life in general. When you have poor credit, you may not get the home and job you want since landlords and employers may run a credit check. Therefore, you must always take care of your credit score whether you're applying for RV financing or not.

Photo of Lauren Cordell

Lauren Cordell

Lauren Cordell is a financial guest writer who writes for various entrepreneur magazines. His writings are always packed with data and real-life experiences.

In his free time, you'll likely find him reading books about business and personal finance.