RV Loans for Bad Credit: Your Complete Guide to Financing Your Dream Adventure

Securing an RV loan with bad credit isn’t impossible—in fact, many lenders now specialize in helping borrowers with credit scores as low as 550 hit the open road. While you’ll likely face higher interest rates and may need a larger down payment, understanding your options can make the difference between denial and approval. Let’s explore how to navigate RV financing with less-than-perfect credit.

Understanding Bad Credit RV Loans: What to Expect

Bad credit RV loans are specialized financing options designed for borrowers with credit scores under 600. These loans typically come with higher interest rates (often 14-20%), require larger down payments (usually 10-20%), and may have shorter terms than traditional RV loans. However, they make RV ownership possible for those who might otherwise be denied financing.

The reality of RV financing with bad credit means adjusting your expectations. While prime borrowers might secure rates around 6-7%, those with credit challenges should prepare for rates that could reach 20% in some cases. This significant difference can dramatically impact your monthly payment and total loan cost.

For example, on a $50,000 RV loan with a 240-month term, the difference between a 7% and 15% interest rate would mean paying roughly $387 versus $644 monthly—a difference of over $61,000 in total interest over the life of the loan.

Many lenders that specialize in bad credit RV loans have built their business model around helping customers with credit challenges. They understand that credit scores don’t tell the whole story and are often willing to look at other factors like:

Income stability
Employment history
Down payment amount
Debt-to-income ratio
Previous RV ownership experience

Minimum Requirements for Bad Credit RV Loans

Lender	Minimum Credit Score	Typical Interest Rate Range	Down Payment Requirement
GreatRVLoan	550	9.99% – 19.95%	10% minimum
iNet	600	Not specified	Varies
Southeast Financial	575	Starting at 6.24%	Varies
Good Sam	600	Starting at 15.95%	Varies
FastLendGo	550	14.74% – 19.95%	10-20% recommended

How to Improve Your Chances of RV Loan Approval

Improving your chances of RV loan approval with bad credit requires strategic preparation. Focus on saving for a larger down payment (aim for 15-20%), getting a co-signer with strong credit, choosing a less expensive or used RV, and gathering documentation that shows income stability beyond your credit score.

The most powerful tool in your arsenal when applying with bad credit is a substantial down payment. While traditional RV buyers might put down 10%, those with credit challenges should aim higher:

15-20% down payment: Shows commitment and reduces lender risk
Co-signer or co-borrower: Adding someone with stronger credit can significantly improve approval odds
Proof of stable income: At least 2 years of steady employment history
Debt reduction: Pay down existing debts to improve your debt-to-income ratio

“When I was helping a client with a 580 credit score secure RV financing, the difference between 10% down and 20% down was the difference between denial and approval,” says a loan specialist at a major RV lender. “Plus, the rate was 2% lower with the larger down payment.”

Consider looking at used RVs rather than new ones. According to research from the RV Industry Association, RVs typically lose 20-30% of their value in the first few years. By purchasing a 2-5 year old model, you’ll need a smaller loan amount, which can make approval easier to obtain.

Documentation to Prepare for Your Application

Proof of income: Last 2-3 months of pay stubs or 2 years of tax returns for self-employed applicants
Bank statements: Last 3-6 months to show financial stability
Residence history: Proof of stable housing for at least 2 years
References: Personal and professional references can sometimes help
Explanation letter: A written explanation of past credit issues and how they’ve been resolved

The Application Process for Bad Credit RV Loans

The application process for bad credit RV loans starts with researching specialized lenders who work with lower credit scores. Next, get prequalified to understand your budget, gather necessary documentation, and submit applications to multiple lenders within a 14-day window to minimize credit score impact.

Walking through the application process step by step will help you avoid common pitfalls that lead to denials:

Check your credit report first: Before applying, obtain your credit reports from all three bureaus and dispute any errors. Even small improvements to your score can help.
Research lenders specializing in bad credit: Look for lenders who advertise “bad credit RV loans” or “RV financing for all credit types.”
Get prequalified: Many lenders offer prequalification with a soft credit pull that won’t affect your score.
Compare offers carefully: Look beyond the interest rate to examine:
- Loan terms (length)
- Down payment requirements
- Prepayment penalties
- Origination fees
- Total interest paid over the loan term
Submit formal applications: Once you’ve identified the best options, submit formal applications. Try to do this within a 14-day window so multiple inquiries count as a single hit to your credit score.
Be responsive: Lenders may request additional documentation. Responding quickly improves your chances of approval.

According to financial experts, shopping around is crucial when you have bad credit. One study by LendingTree showed that consumers can save more than $39,000 by improving their credit and securing better loan terms.

Types of RVs That Qualify for Bad Credit Financing

Most lenders offer bad credit financing for conventional RVs less than 15 years old, including Class A, B, and C motorhomes, travel trailers, and fifth wheels. Specialty units like park models, tiny homes, and custom RVs typically don’t qualify. Newer models with good resale value increase your approval chances.

Understanding which RVs qualify for financing can save you time and disappointment. Generally, lenders prefer:

Conventional RVs: Standard models from established manufacturers
Newer models: Typically 15 years old or newer (though Good Sam finances RVs up to 20 years old)
Well-maintained units: RVs in good condition with service records
Popular floor plans: Models with proven resale value

Most bad credit lenders will finance:

RV Type	Typically Financeable	Age Restrictions
Class A Motorhomes	Yes	Up to 15 years old
Class B Motorhomes	Yes	Up to 15 years old
Class C Motorhomes	Yes	Up to 15 years old
Fifth Wheels	Yes	Up to 15 years old
Travel Trailers	Yes	Up to 15 years old
Toy Haulers	Yes	Up to 15 years old
Park Models	Usually No	N/A
Converted School Buses	No	N/A
Tiny Homes on Wheels	No	N/A

“When I was denied for a converted school bus loan with my 590 credit score, I switched to looking at a 5-year-old conventional travel trailer and was approved within days,” shares RV owner Michael from Colorado. “The lender explained that conventional RVs are simply easier to repossess and resell if needed.”

If you’re set on a specialty RV type that’s difficult to finance, consider improving your credit first or exploring alternative financing options.

Comparing Good Credit vs. Bad Credit RV Loan Terms

The differences between good and bad credit RV loans are substantial. Good credit borrowers (670+) enjoy rates from 6-14%, flexible terms up to 20 years, higher loan amounts, and fewer restrictions. Bad credit borrowers face rates from 14-20%, may have shorter maximum terms, lower loan amounts, and more limitations on eligible RVs.

These differences directly impact your monthly payment and total loan cost. Let’s compare a $30,000 RV loan with different credit scenarios:

Credit Profile	Typical Rate	Monthly Payment (15-year term)	Total Interest Paid
Good Credit (670+)	6.99%	$269	$18,420
Fair Credit (620-669)	10.99%	$337	$30,660
Poor Credit (550-619)	17.99%	$455	$51,900

Beyond the rate differences, bad credit loans often come with other limitations:

Restricted RV age: May only finance newer models (under 10 years)
Mandatory down payment: While good credit buyers might get zero down options
Shorter maximum terms: May be limited to 10-15 years instead of 20
Higher fees: Including origination fees and loan processing charges
Limited lender options: Fewer lenders to choose from

FastLendGo and other specialized lenders have developed programs specifically for bad credit borrowers that can help bridge this gap, but understanding these differences helps set realistic expectations.

Alternatives to Traditional RV Loans for Bad Credit

If traditional RV loans aren’t viable with your credit situation, consider alternatives like buying a used RV to reduce loan amount, using a home equity loan (if you own a home with equity), saving for a cash purchase, or exploring RV rentals to test the lifestyle before committing to ownership.

When traditional financing seems out of reach, creative alternatives can still make your RV dreams possible:

1. Used RVs as a Stepping Stone

Consider purchasing an affordable used RV with cash or a smaller loan as your entry point. After establishing a payment history and improving your credit, you can upgrade to your dream RV.

“I started with a $10,000 used travel trailer that I could afford with minimal financing,” explains Jamie from Texas. “After two years of on-time payments and credit improvement, I was able to trade up to a Class C motorhome with much better loan terms.”

2. Home Equity Options

If you own a home with equity, consider:

Home equity loan
Home equity line of credit (HELOC)
Cash-out refinance

These options often offer lower interest rates because they’re secured by your home, though they do put your home at risk if you default.

3. Personal Loans

Some borrowers with bad credit may qualify for personal loans, though these typically:

Have higher interest rates
Offer smaller loan amounts
Feature shorter repayment terms

4. RV Rentals as a Bridge Solution

Rent RVs for vacations while building your credit
Test different RV types before committing to purchase
Build RV experience that some lenders value
Save money toward a down payment while enjoying the lifestyle

5. Dealer Financing and In-House Programs

Some RV dealers offer in-house financing or work with lenders who specialize in bad credit situations. While rates may be higher, these programs can provide a path to ownership when other options fail.

Tips for Refinancing Your RV Loan After Credit Improvement

Refinancing your RV loan after improving your credit can save thousands in interest costs. Monitor your credit score regularly, maintain perfect payment history on your current loan, reduce other debts, and apply for refinancing once your score increases by 50+ points or after 12-18 months of on-time payments.

Many RV owners with bad credit start with less favorable loan terms but don’t stay there permanently. Strategic refinancing can dramatically reduce your costs once you’ve established a positive payment history.

The key is understanding when and how to refinance:

Monitor your credit religiously: Set up free credit monitoring to track your score improvements.
Make every payment on time: Even a single late payment can derail refinancing plans.
Reduce your overall debt: Pay down credit cards and other loans to improve your debt-to-income ratio.
Document income increases: Higher or more stable income strengthens your refinancing application.
Wait for significant improvement: Most lenders want to see:
- At least 12-18 months of on-time payments on your current RV loan
- A credit score increase of 50+ points
- Reduced overall debt
Shop multiple lenders: Don’t just go to your current lender; compare offers from several sources.

One FastLendGo customer shared: “I started with a 19.95% rate due to my 550 credit score. After 18 months of perfect payments and credit repair, I refinanced at 9.99%, cutting my monthly payment by $175 and saving over $30,000 in interest over the loan term.”

Potential Refinancing Savings

Original Loan	After Credit Improvement	Monthly Savings	Total Interest Savings
$50,000 at 19.95% for 15 years	$45,000 at 9.99% for 15 years	$297	$53,460

Understanding Full-Timer RV Financing with Bad Credit

Full-time RV living presents unique financing challenges with bad credit. Some lenders won’t finance full-timers regardless of credit, while others specialize in these loans but require stronger applications. Expect higher down payments (15-25%), proof of sustainable income, and possibly higher interest rates than recreational-use RV loans.

Financing an RV as your primary residence differs significantly from vacation-use financing. Lenders view full-time RVs differently because:

Higher usage means faster depreciation
Insurance requirements differ
Risk assessment changes when the RV is your only home

If you’re planning to live in your RV full-time with bad credit, here’s what you need to know:

Lender Policies on Full-Time RV Living

Specialized lenders: Some lenders like FastLendGo specifically offer full-timer programs, even with bad credit
Excluded lenders: Many traditional lenders (including Southeast Financial and Good Sam) explicitly exclude full-timers
Higher scrutiny: Expect more detailed financial verification
Income stability: Demonstrating sustainable income becomes crucial
Higher down payments: Often 15-25% for full-timers with credit challenges

“The key difference for full-timers is proving income sustainability,” explains an RV financing specialist. “Lenders want assurance that your income source won’t be disrupted by your mobile lifestyle.”

Remote workers, retirees with pension income, and those with established mobile careers often have the most success securing full-time RV financing with bad credit.

Special Considerations for Full-Timer Financing

When applying for full-timer financing with bad credit:

Be upfront about your intentions: Misrepresenting your planned RV use can constitute loan fraud
Prepare detailed financial documentation: Including:
- Remote work authorization letters
- Pension/retirement income verification
- Self-employment history and tax returns
- Emergency fund documentation
Have a permanent address solution: Lenders need a stable mailing address (often a mail forwarding service designed for RVers)
Secure proper insurance: Full-timer insurance differs from recreational policies
Consider domicile state carefully: Some states are more favorable for full-time RVers

Final Thoughts: Is Bad Credit RV Financing Right for You?

Bad credit RV financing can make your travel dreams possible, but requires careful consideration of the higher costs involved. Before committing, honestly assess whether you can afford the higher interest rates, calculate total loan costs including interest, and consider if improving your credit first might be more financially prudent.

While bad credit shouldn’t automatically disqualify you from RV ownership, approaching financing with clear eyes is essential. Ask yourself these critical questions:

Can I truly afford the higher payments? Budget for not just the loan, but also insurance, maintenance, fuel, and campground fees.
Is the extra interest worth it? Calculate the total cost difference between financing now with bad credit versus waiting and improving your credit first.
How will this loan impact my broader financial goals? Consider whether the debt load might delay other important financial objectives.
Am I comfortable with the risk? With higher interest rates comes increased risk of becoming underwater on your loan if you need to sell.

For many people, the freedom and joy of RV travel outweigh the additional costs of bad credit financing. One FastLendGo customer shared: “Yes, I’m paying more in interest than I would with perfect credit, but the memories we’re making with our children now are priceless. We decided not to wait until some future ‘perfect time’ that might never come.”

If you decide to proceed with bad credit RV financing:

Choose the shortest loan term you can comfortably afford
Make extra payments whenever possible to reduce principal
Continue working on credit improvement for future refinancing
Consider a less expensive RV to start with
Maintain perfect payment history to rebuild your credit

Remember that an RV purchase with bad credit can actually become part of your credit improvement strategy if managed wisely. On-time payments on an RV loan can help rebuild your credit profile while you enjoy the RV lifestyle.

The road to RV ownership may have a few more twists and turns with bad credit, but with preparation, realistic expectations, and the right financing partner, your camping adventures can begin sooner than you might think.