How bad will this hurt?

Anonymous · ‎06-28-2015

I have been considering buying a RV for a while. My boys aren't getting any younger. We currently have our house on the market. It seems like it is going to take forever to sell. My question is how bad do you think it will hurt my credit if I were to take out a small loan for approx $10,000 for a RV? My credit scores on fico 8 are around 660-670. I know waiting until after we buy a house is probably the best idea, but it just doesn't seem like it's going to sell anytime soon and I am dying to go camping and enjoy the summer with my husband and two boys.

Anonymous · ‎06-28-2015

It probably won't hurt much. What is keeping your scores where they are?. Do you have baddies or is your UTL too high? If your scores were 60 points higher this would not be an issue at all.

CH-7-Mission-Accomplished · ‎06-28-2015

@Kyliemarie85888 wrote:
I have been considering buying a RV for a while. My boys aren't getting any younger. We currently have our house on the market. It seems like it is going to take forever to sell. My question is how bad do you think it will hurt my credit if I were to take out a small loan for approx $10,000 for a RV? My credit scores on fico 8 are around 660-670. I know waiting until after we buy a house is probably the best idea, but it just doesn't seem like it's going to sell anytime soon and I am dying to go camping and enjoy the summer with my husband and two boys.

How about teaching your boys the joy of camping in a tent while hiking in the mountains or in a campground? Most boys would rather do this than hang out in a motorhome. (Motorhomes: Think retirees).

I have been reading a lot about personal finance and the rule seems to be borrow only for necessities, pay cash for luxuries.

Just something to think about.

I know RV's can easily cost 60K - 100K or more, so I might be concerned about a 10K RV needing expensive repairs.

Your boys won't be boys forever, but the important part is that you spend time with them. They don't need an RV to enjoy their parents.

You could also rent a lot of nights in a nice cabin for less than 10K if you don't like sharing your bedroom space with bugs and bears.

Anonymous · ‎06-28-2015

My scores are low because I racked up about $5,000 in credit card debt recently. I went on maternity leave and my newborn ended up having to have surgery and two hospital stays. Long story short, I went on maternity leave longer than I planned. I didn't have a savings nest like I know I should have. I have just finished paying off the medical debt that totaled around $7,000 so NOW I can work on paying down that credit card debt. I don't have any recent bad marks. I had one from Chase not too long ago, but wrote a goodwill and it was removed within a month.

Anonymous · ‎06-28-2015

True about camping with tents, but I'm a bit of a girly girl with a big imagination. I like having doors that lock when I'm asleep. Also, I live in the south so the bugs aroud here are ridiculous. I would prefer not sleeping with them. The campers I am referring to are the travel trailers. You can buy a small one brand new for $14,000. I just want a used one big enough for us to take weekend trips as a getaway. Thank you for your input!!

Berk · ‎06-28-2015

@Kyliemarie85888 wrote:
I have been considering buying an RV for a while. My boys aren't getting any younger. We currently have our house on the market. It seems like it is going to take forever to sell. My question is how bad do you think it will hurt my credit if I were to take out a small loan for approx $10,000 for a RV? My credit scores on fico 8 are around 660-670. I know waiting until after we buy a house is probably the best idea, but it just doesn't seem like it's going to sell anytime soon and I am dying to go camping and enjoy the summer with my husband and two boys.

I would go to your bank or credit union and see what kind of a rate they would give you on a used Rv loan in the amount of 10K. Just for comparrison - I bought a used RV for 13K 15 months ago. I financed 10K for 10 years at about 7.5% leaving my payments at $115.00 a month. All my scores at the time were around 750-760. All three took about a 20 point hit with this loan I paid it off in a year and bought another one for 23K and financed 19K for 12 years at 5.88% leaving me with payments of $195.00 a month. This time only Experian suffered a three point drop. Both times I obtained financing through the dealer. I'm quite certain that I could have obtained better financing through my credit union or a bank.

Hope this helps.

Anonymous · ‎06-28-2015

Hey. I just went camping in a tent for 5 days and I understand wanting a RV. I saw that the campsites give prime locations to RVs now. And I had a family of granddaddy long legs covering my tent.

You should look for used RVs on Craigslist.
There are some for 4k and if you get one that has the basic electric, ac, and plumbing in good working order then it could be a family project to update the cosmetics.

bestchoiceglobal · ‎06-28-2015

I totally understand that girly girl thing ha! I can't do tent camping but have been itching for a family getaway. We are doing a trip in July & are going the cabin route! I think we paid $75 for one night...anyways whichever way you go, enjoy your family trips!

Anonymous · ‎06-28-2015

Another reason I suggest getting a loan through your bank because dealers go crazy and pull your credit a gillion times.

http://ficoforums.myfico.com/t5/General-Credit-Topics/Car-loan-hard-pull-question/td-p/4095954

MarineVietVet · ‎06-28-2015

@Kyliemarie85888 wrote:
I have been considering buying an RV for a while. My boys aren't getting any younger. We currently have our house on the market. It seems like it is going to take forever to sell. My question is how bad do you think it will hurt my credit if I were to take out a small loan for approx $10,000 for a RV? My credit scores on fico 8 are around 660-670. I know waiting until after we buy a house is probably the best idea, but it just doesn't seem like it's going to sell anytime soon and I am dying to go camping and enjoy the summer with my husband and two boys.

Hi there.

Getting that loan will likely drop your scores a bit (how much is difficult to say because your profile is unique) but the "newness" will start to wear off in 6-12 months after applying and if all else remains stable you'll begin to go back up.