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

[sigs4me]

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!

[Anonymous]

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.

[Anonymous]

SEMO great information ... thanks!

[sigs4me]

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

[HeavenOhio]

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@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.

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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.

[sccredit]

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.  

[Anonymous]

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 😙

[sigs4me]

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

[Anonymous]

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?

[sigs4me]

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!