topic Re: Would I qualify for a Travel Trailer / RV loan?? in Auto Loans

Would I qualify for a Travel Trailer / RV loan??

sigs4me — Mon, 19 Feb 2018 15:19:31 GMT

Hi everyone, I have been working on rebuilding my credit over the last couple years and my wife and I are wanting to buy a travel trailer. I would like to get an idea on if I would qualify for one before I apply. We would be looking at a new travel trailer in the 10k-20k range. Also, any advice on a good lending institution would be appreciated as well.

My income is around 110k/yr and DTI is 26% Scores are below

Equifax-689

Trans-678

Experian-695

I had really high CC utilization up until a month ago ( 95%)which was holding my scores down. I have sense payed a lot of it off and my utilization is now down to (36%). The only negative I have is a 30-day late auto payment on a loan that was paid off 5 years ago.

If you need more info let me know and thanks for the help!

Re: Would I qualify for a Travel Trailer / RV loan??

Anonymous — Mon, 19 Feb 2018 18:39:47 GMT

I wouldn't think that getting approved should be an issue.. depending on where you live I have a great CU that finances RV's at really good rates. Be prepared to have 10% down as most national RV lender's require 10% down. Also, be prepared for a higher interest rate than you are normally used to as RV loan's are riskier for banks thus resulting in higher rates. Many of the national RV lender's require scores north of 700+ but there are still some that will lend to people with scores like yours.

Be sure to haggle on price quite a bit as there is a TON of mark-up on new campers. Unlike new car's with little mark up, camper's can often have 50% mark-up over invoice or more sometimes. A camper that MSRP's for 19,000 could very well have an invoice of 12-13k.

Re: Would I qualify for a Travel Trailer / RV loan??

Anonymous — Mon, 19 Feb 2018 19:25:30 GMT

SEMO great information ... thanks!

Re: Would I qualify for a Travel Trailer / RV loan??

sigs4me — Tue, 20 Feb 2018 00:58:38 GMT

Thanks for the info SEMO. What CU do you know of? I live in Ohio.

Re: Would I qualify for a Travel Trailer / RV loan??

HeavenOhio — Tue, 20 Feb 2018 04:46:09 GMT

@Anonymouswrote:
Many of the national RV lender's require scores north of 700+ but there are still some that will lend to people with scores like yours.

OP, this would be an excellent time for you to implement AZEO (all zero except one) on your cards. Two of your scores would hop above 700 for sure, if not all three.

Re: Would I qualify for a Travel Trailer / RV loan??

sccredit — Tue, 20 Feb 2018 17:11:49 GMT

Logix Federal Credit Union has decent RV rates and I would think an approval with those scores wouldn't be an issue.

When looking at the "MSRP" of any RV take 30%-35% off and that is a realistic price. Also look at RV Trader and what new ones of the make/model you are looking at will go for. I found that to be a reasonable indicator.

Re: Would I qualify for a Travel Trailer / RV loan??

Anonymous — Tue, 20 Feb 2018 19:45:11 GMT

We have had 2 trailers. Our current one is with a local credit union. The dealer set up the deal but we already knew what was fair when we purchased it. We put
$500.00 down as “earnest money” on both campers. One was 11,000 and the new one was 24,000. February is a great time to buy 😙

Re: Would I qualify for a Travel Trailer / RV loan??

sigs4me — Wed, 21 Feb 2018 12:09:12 GMT

Thanks for the help and insight everyone. I really appreciate it. If anyone else has an input please keep it coming. Thanks

Re: Would I qualify for a Travel Trailer / RV loan??

Anonymous — Wed, 07 Mar 2018 16:17:52 GMT

OP, I have scores very similar to yours and am also looking to purchase an RV. Did you have any success? If so, what did you get?

Re: Would I qualify for a Travel Trailer / RV loan??

sigs4me — Wed, 07 Mar 2018 16:37:13 GMT

Hi, I did have success. I just got approved a couple days ago and am going to pick up the check tonight. I am buying a Terry Classics V21. I got approved through three different places and ended up going with State Farm. They gave me an interest rate of 5.64% with no down payment. Next closest was 7.14% with 10% down.

Hope that helps!

Re: Would I qualify for a Travel Trailer / RV loan??

Anonymous — Wed, 07 Mar 2018 16:54:45 GMT

Awesome, I am glad this worked out for you OP! I totally forgot to mention State Farm in regards to RV lending, they can be VERY competitive on RV loan's in my experience. I do highly recommend putting money down for other people seeking RV loan's. It is VERY easy to find yourself upside down in a camper as they are items that depreciate very fast and people tend to finance them for very long term's (upwards of 120+ month's.)

Re: Would I qualify for a Travel Trailer / RV loan??

Anonymous — Wed, 07 Mar 2018 17:02:07 GMT

Thanks so much for the response and congrats on the purchase. I feel more confident about my prospects now with this info.

Re: Would I qualify for a Travel Trailer / RV loan??

sigs4me — Wed, 07 Mar 2018 17:08:24 GMT

Thanks SEMO and I agree with you on the down payment. In this case, I’ll have the camper payed off in a year and I used the freed up money to put towards an expidition to tow it. Normally I would definitely recommend as much f a down payment as you.

Re: Would I qualify for a Travel Trailer / RV loan??

Anonymous — Sun, 11 Mar 2018 15:31:52 GMT

That's excellent, Sigs!

Enjoy your new travel trailer!!

Be safe!

Re: Would I qualify for a Travel Trailer / RV loan??

Anonymous — Sat, 07 Apr 2018 22:31:32 GMT

Just a quick question regarding your scores. Are they your Fico 8 scores or your Fico 2,3 &5 scores? I am asking because my Fico 8 scors scores are just a bit lower than yours and I’m also looking for an RV loan.

Re: Would I qualify for a Travel Trailer / RV loan??

sigs4me — Mon, 16 Apr 2018 11:54:59 GMT

Fico 8 scores

Re: Would I qualify for a Travel Trailer / RV loan??

Anonymous — Mon, 16 Apr 2018 13:12:20 GMT

Great! Thank you for replying. I was asking because I have been told that some CU/banks look at the 2,3 & 5 scores vs the FICO 8 scores because they consider an RV loan to be more like a mortgage loan due to the length of time the loan can be extended out to(10-20 years) and my 2-3 & 5 scores are 10-15 points lower than my 8 scores and I was concerned that that might lower my chances of getting approved. Thanks again and congrats on your RV!

Re: Would I qualify for a Travel Trailer / RV loan??

Anonymous — Tue, 14 Aug 2018 01:36:04 GMT

Well? Did you go for it? Interested as I have this same question. Currently, waiting on review by State Farm.

Re: Would I qualify for a Travel Trailer / RV loan??

sigs4me — Wed, 15 Aug 2018 10:55:51 GMT

Yep, I went thru State Farm. I didn’t have any issues and they gave me a decent rate at 5.64%. I would recommend them without any hesitation. Good luck and let us know how it goes!