How to Finance a Used Boat with Bad Credit
The fact that you weathered a challenging financial situation in the past does not mean that your life draws to a close. An impaired credit history and a less than ideal credit score do not necessarily mean that you are able to bring an end to financing certain purchases. For example, you may desire to finance a used boat with bad credit. If that is an objective, there are strategies and tactics that you can employ that enhance your ability to obtain financing to purchase a used boat even when your credit history and score are not top notch.
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Instructions
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Prepare and gather all supporting documentation necessary to make a loan application. These materials include an income statement and an asset statement.
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Identify lenders that offer both financing to individuals seeking to purchase a watercraft and those institutions that are willing to lend money for the purchase of a used boat. Not all lenders are willing to extend loans for the purchase of a used boat. Of course, you also need to identify a lender or lenders who have the ability and willingness to at least consider doing business with a borrower with less than perfect credit.
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Determine what other assets you own that have equity available for collateral. The prime example of such an asset is real estate. If you own real estate--including your personal residence--that has available equity, this is useful in your efforts to finance a used boat with bad credit. Similarly, if you have some sort of financial account--a retirement plan, for example--such an investment may be helpful to you in obtaining boat financing as well.
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Make application for a used boat loan.
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Advise the lender that you do have additional collateral available to you beyond the used boat itself. A lender is far more likely to do business with you in regard to the purchase of a used boat in light of your poor credit status if you supplement the collateral on the loan using real estate or an investment account with a definite cash balance.
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Tips & Warnings
Consider consulting with a loan broker. A loan broker is able to assist in identifying financing options, even for people with challenging credit scores and histories. Depending on the state you live in (Florida, California and Hawaii), there may be loan brokers that specialize in boat financing.
Think twice before taking on additional debt to purchase a used boat, particularly when your credit history is less than sterling. Unless you need the used boat to generate income, waiting to make such a purchase until your credit situation and overall financial status improve may be a wise decision.
