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Travel Trailer Loans for Bad Credit

Canada is home to some of the most scenic and beautiful destinations in the world. Because of this, it’s no wonder why it also has a strong and thriving RVing community. RVs, motorhomes, and travel trailers are an excellent way to see all of Canada’s beauty. However, if you’re looking to buy a motorhome, you may find that financing your purchase can be a big challenge.

Whether you are a full-time traveler or an occasional camper, financing a “home away from home” is a big decision that can affect your lifestyle for years to come, so it’s important to do your research and make sure you get the best deal possible.

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Written by: Aunt Piggyy

What is Considered Bad Credit in Canada?

 

Credit scores are given by two of the leading credit bureaus in Canada: Equifax and TransUnion. They are a numerical value that ranges between 300 and 900. The higher the number is, the better your credit score is. 

 

Below is a quick overview of what your credit score means:

  • 300-559 – Poor
  • 560-659 – Marginal
  • 660-724 – Good
  • 725-759 – Very Good
  • 760 and Up – Excellent

 

If your credit score falls around the poor-marginal range, your loan options are very limited. While it is not impossible to get the financing you need, it will take longer to get approved and you may have to pay more than you would like. 

 

Travel Trailer Loan Approval Process

 

If you’re considering financing a new motorhome, one of the biggest factors that can affect your loan application is your credit score. Traditional banks and credit unions are very particular about your credit score because it is a clear indication of how likely you are to pay back the loan. If your credit score is low, you will have a much harder time getting approved for a traditional travel trailer loan.

 

The good news is that there are many alternative lenders who specialize in financing RV purchases in Canada. This means that even if you have bad credit, you can still qualify for a great deal on a motorhome.

 

Here are the steps to getting approved for a bad credit travel trailer loan:

 

Get Pre-Approved

Before you start shopping for a motorhome, you’ll want to get pre-approved for a loan. This will give you an idea of what kind of loan you qualify for and how much you can afford to borrow. The best way to get pre-approved for a travel trailer loan is to go to an RV dealer and ask them to provide you with a pre-qualification letter. This letter will tell you how much money you can borrow based on your credit score.

 

Shop Online

Once you’ve gotten pre-approved for a loan, it’s time to start shopping online for your new motorhome. Many dealers offer financing through third-party lenders. This means that they will send your application to one of these lenders, which will then process your application and provide you with the loan approval. You should compare the interest rates and fees associated with different lenders before signing any agreement. 

 

Apply for Financing

Once you’ve found a lender who’s willing to work with you even if you have bad credit, it’s time to apply for financing. To do this, you’ll need to fill out an application form (in person or online) and submit it to the lender. Most lenders will ask for your personal information and proof of income. If you want to further lower your interest rate, you can increase your down payment or provide security for the loan. 

 

Lenders That Offer Travel Trailer Loans for Bad Credit in Canada

 

Here are some alternative lending companies that offer to finance motorhome buyers with bad credit:

 

FEL Canada

FEL Canada offers a wide variety of loans for people with bad credit. You can get financing for up to $50,000 to purchase a mobile home, truck, trailer, RV, etc. They offer variable interest rates, so it’s best to contact FEL Canada directly to find out what their current rates are.

 

Trusted RV Loans

If you are planning to purchase a more expensive motorhome, Trusted RV Loans is the one to call. They offer RV financing for up to $150,000, so you can purchase a Class A, B, or C motorhome. Interest rates vary depending on your credit score, but you can qualify even if you have bad credit. 

 

Cash In 24

Cash In 24 is another alternative lending company that offers travel trailers and RV loans for bad credit. They offer loans of up to $50,000. Their repayment terms and interest rates vary so it’s best to contact them directly to find out what they have to offer.

Conclusion

 

It is possible to get a travel trailer loan even if you have bad credit. There are many alternative lenders who specialize in financing RV purchases. The best thing you can do to ensure you get approved for a loan is to shop around and compare the rates and fees associated with different lenders.

Aunt Piggyy

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