RV Financing

[mberry]

Good grief! I was lucky enough to have recently purchased a home. Now I want to purchase an RV. It appears you need to have a higher credit score than the national debt! Mine is in the low 600's and they look at me like I'm some creep just out of prison or something. Isn't there anywhere where I can get financing? I'm not asking for more than I can afford for Pete's sake and I can and will repay the loan. Sheesh it's frustrating when there are so many good deals out there!

Anyone? Beuler? Beuler?

Thanks for listening anyway.

Mark.

 

[CumminsBu]

I'm looking into boat loans and they won't think about it us less you are over 700.

Try a Credit Union or a local bank. A down payment larger then 10% always helps.

Good Luck.

 

[Jefff929]

We just bough a car.



We had to use my credit rating and her income to make it work.

 

[WyoJim]

I just got an E-mail from Costco that they are arranging RV loans.

 

[EGroeneveld]

I am sorry but I don't think the low 600s is considered that great. Specially with a new home purchase. Most of the time 'good' starts at 680 from what I have seen and read.

 

[JDiepstra]

I am sorry but I don't think the low 600s is considered that great. Specially with a new home purchase. Most of the time 'good' starts at 680 from what I have seen and read.

Correct. No offense, but having just taken on the debt of a house, they are going to want to see you in the 700's! RV dealers are going out of business left and right, like everyone else. Next thing you know they will need a bailout as well!

 

[BrianJ]

As others have said, and again no offense intended, but low 600's is not all that good, especially in this credit market. I wouldn't even have the nerve to apply for an RV loan with a score lower than 700. Many big RV lenders have got out of the market (GEMB, for example), which isn't helping much.

 

[BigPapa]

Fella's, fella's. Haven't you been watching the news, reading the papers? This is the problem with the economy right now. Nobody will lend anybody money. We had a guy in the shop the other day wanting to buy a new motorcycle. He had a 725 credit score and $5K down on a $13K bike and NOBODY would buy it!



This means no sales for the RV industry or anyone else depending on credit. So then these businesses can't afford to pay their employees so they lay them off. Now, they can't pay their bills so they default on their car notes, RV notes, credit cards, and mortgages. So, now the banks have taken another large loss so now they don't have the money to lend.



It's the vicious cycle of a bad economy.



Scott

 

[69RoadRunner]

Sorry, BigPapa, but I have to agree with the others.



Loose credit got us into the financial problems we're in today. The pendulum has swung pretty far the other direction, but it's not a bad thing.



If you just bought a house, and your credit rating is in the low 600s, it doesn't surprise me that you're having trouble getting an RV loan.



Start by getting your credit report. I don't know the details, but if you're denied credit, you're supposed to be able to get a free credit report. You can also get a once a year free credit report from the big 3 credit agencies through the government.



The Federal Trade Commission's Information on Free Annual Credit Reports



Make sure there aren't any errors. An error could falsely lower your score. High credit card debt lowers your score, too. Pay them down.



I wish you well on your RV search. What kind of RV are you looking to buy?

 

[TboneMan]

You are also in Nevada. A quick search reveled NV as the highest rate of mortgage foreclosures in the country (as of Sept. 08) with 1 in 91 households in some sort of trouble.



Do doubt that loans would be tough to get in that state.

 

[BrianJ]

Fella's, fella's. Haven't you been watching the news, reading the papers? This is the problem with the economy right now. Nobody will lend anybody money. We had a guy in the shop the other day wanting to buy a new motorcycle. He had a 725 credit score and $5K down on a $13K bike and NOBODY would buy it!



This means no sales for the RV industry or anyone else depending on credit. So then these businesses can't afford to pay their employees so they lay them off. Now, they can't pay their bills so they default on their car notes, RV notes, credit cards, and mortgages. So, now the banks have taken another large loss so now they don't have the money to lend.



It's the vicious cycle of a bad economy.



Scott

There is no problem getting loans if you have good credit (over 700) for anything you want to buy and realistically qualify for. There are a variety of issues facing the RV industry, and consumer lending is NOT the biggest. Commercial credit is more of an issue as dealers are having a hard time getting financing for inventory/dealer orders. Realistically the current market is just stopping the lending for those that are not in a financial place to be financing an RV anyway, which is not a bad thing. It was that loose credit policy that lead to this mess and people borrowing way more than they should or could afford. I blame the people putting themselves in that position as much as I do those extending the credit, as ultimately we have to be resonsible for our own actions and decisions.

 

[BigPapa]

You're taking me wrong. I'm not saying they should be able to borrow the money and I agree that fast and loose credit (by greedy financiers) is what started this mess. I'm just telling you my opinion of what's going on now. I'm in the motorcycle business, and we can't get people loans that 6 months ago were bullets. 6 months ago the example I used would have been able to buy anything in our store. Today we can't get him a loan.



Scott

 

[meanmatt]

This subject really pisses off alot of people and I'm going to add some fuel to the fire. 1st off if you just bought a house the worst thing you can do is go out and buy more big ticket items . Most the time your credit number will take time to recover after a mjor purchase . This protects the banks intrest. Rember the credit score is a product of the banking industy to rate the risk of its customers.

If your credit score is under 700 you are a dead beat in my book . I wouldn't rent my rentel property out to you .

I'm just an average truck mechanic and my credit score is always 800+.

It's not that hard to pay bills on time and not over extend yourself . I remember buying my first house before all the big booms started . the morgage company tried to rake me over the coals . I had to have zero other debts to qualify for the morgage. Which was no problem . I was living with in my means that simple . That is the moral of the story live with in your means . Don't try to live likes the Jone's down the street ,chances are if they loose one paycheck they are heading straight into bankruptcy.

 

[69RoadRunner]

You're taking me wrong. I'm not saying they should be able to borrow the money and I agree that fast and loose credit (by greedy financiers) is what started this mess.

Scott

Greed was on both ends. Borrowers were greedy when they applied for loans they couldn't afford. Lenders assumed real estate values would continue to go up, so if the person defaulted, they wouldn't lose much.



Both sides are equally responsible for making sure the borrower can pay back the loan.

 

[BrianJ]

Exactly...



I place more of the blame and responsibility on the borrowers / consumers. They know their situation best and should educate themselves enough to know what they can or cannot afford before extending themselves with debt. Was credit easy to get and do the lenders deserve SOME blame, sure, but bottom line we each need to take responsibilty for our actions. Not that this is a new thing, just need to look back over the years for other examples, such as how greedy consumers have helped liability and malpractice insurance skyrocket through frivilous lawsuits, which in turn has had a big impact on corporate liability and health care costs in the US.

 

[mberry]

This subject really pisses off alot of people and I'm going to add some fuel to the fire. 1st off if you just bought a house the worst thing you can do is go out and buy more big ticket items . Most the time your credit number will take time to recover after a mjor purchase . This protects the banks intrest. Rember the credit score is a product of the banking industy to rate the risk of its customers.
If your credit score is under 700 you are a dead beat in my book . I wouldn't rent my rentel property out to you .

Wow Matt. Yes, you angered me with your deadbeat comment, but I'll get over it because that's just not me and you don't know me from Adam. I'm very happy for you and your credit score in this economy but let's not make this personal. :-laf

Just for the record, I made choices to feed and clothe my child rather than pay some bills when we went to a single income while my wife was out on maternity leave. I never knew how expensive having a child would be. If that's a deadbeat, so be it.

I live well within my means and haven't been late on any payment in 3 years. There are mistakes on my credit report that I have disputed and know the bank is lying, but I can't prove it with any paper. If the mistakes and irregularities could be removed, I might be close to your score Matt.

I know my score is low. I also know exactly what it means. I am working to improve it any way I can but I will admit I am impatient. I don't have any debt other than my home and one vehicle that I couldn't pay off with one paycheck. This is on purpose. I did that before and I got burned because of my own stupidity and easy credit. I sold my first house in 2004 so I could get out of debt. Yeah, I guess I am a deadbeat. I would rather have paid what I owed than declare bankruptcy and leave my creditors hanging.

Thank you to all of you

Signed,

Mark - The Deadbeat.

 

[BigPapa]

Greed was on both ends. Borrowers were greedy when they applied for loans they couldn't afford.

The borrower is always greedy. It's not their money. Not their responsibility. It's the banks money. It's their responsibility to determine who to loan their money to.



Let's look at it this way. It's your truck. Loan it to who you want to. When the person you loaned it to tears it up or gets in trouble, who's going to be responsible?



I could have borrowed 120% of the value of my house when I refied 7 years ago. That's stupid lending. I had enough since not to and I'm not defaulting although I just took a 30% pay cut effective Feb. 1st.



Banking's kinda like being a parent. My kids will eat chocolate until their sick. It's my responsibility to say enough or I'm the one that's going to have to clean up the mess.



Scott

 

[meanmatt]

You have to be very black and white when it comes to rental properties . I hold myself to the same standard . Now back to the rv issue . I admit those new rvs are nice but considering how fast they depreciate buying new just isn't worth it . I bought a used 5th wheel for cash many years ago and never looked back . Pic is posted in the show me your rig section . Probably one of smallest 5th wheel made .

 

[HBarlow]

Exactly...

I place more of the blame and responsibility on the borrowers / consumers. They know their situation best and should educate themselves enough to know what they can or cannot afford before extending themselves with debt. Was credit easy to get and do the lenders deserve SOME blame, sure, but bottom line we each need to take responsibilty for our actions. Not that this is a new thing, just need to look back over the years for other examples, such as how greedy consumers have helped liability and malpractice insurance skyrocket through frivilous lawsuits, which in turn has had a big impact on corporate liability and health care costs in the US.

I agree. So do I. It is not the responsibility of lenders to hold a consumer's hand and help him or her make the payment. If I borrow more than I can repay and get into trouble it is my fault, only my fault. If each now-troubled loan were carefully analyzed it could probably be determined that many loan seekers who are now in trouble inflated their claimed income or "forgot" to list some unrecorded debts such as debt held by relatives or borrowed against insurance policies, IRAs, etc to obtain the loan in the first place.

I have watched and waited for years shaking my head in wonder as hundreds of thousands of average Americans have financed homes they could barely or not even afford and then refinanced them two or three years later rolling their accumulated credit card, personal loan, and car loan debt into their next mortgage only to run the personal debt up again and refinance again three years later. When housing prices were climbing with a strong economy they got away with it. Now that the bubble has burst the party is over and the bills are due.