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Best boat loan rates for November 2022

Raija Haughn is an associate writer for Bankrate.com specializing in personal and home equity loans. She is passionate about helping people make financial decisions that will benefit them long term. Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information. Bankrate logo The Bankrate promise The interest rate percentage on the loan. Your rate will depend on individual factors like your credit score, income and debt-to-income ratio. Loan term: Loan amount: Bankrate has also identified each boat lender highlighted as "best for" particular situations based on our research. Comparing these and other factors will help you find the right lender for you and determine if a boat loan is the right choice for your finances.

How to apply for a boat loan

1

Identify the costs

2

Check your credit score

3

Choose your loan type secured or unsecured

4

Research lenders and compare rates

5

Choose a lender and apply

6

Prepare necessary documents

7

Accept the loan and start making payments

How to choose the best lender

Shop around and compare lenders based on: 1

Approval requirements

debt-to-income ratio 2

Interest rates

cost of your loan 3

Loan amounts

4

Repayment options

5

Unique features

Payoff 6

Customer service

reviews Consider your own financial health and credit history. Lenders that offer the lowest APRs and higher loan amounts tend to require good credit.

On this page

The Bankrate promise

Founded in 1976 as the , a print publisher for the banking industry, Bankrate has a long track record of helping people make smart financial decisions. We've maintained this reputation over four decades by prioritizing facts and experience over hype and hearsay, and quickly responding to economic trends that offer our users a more relevant experience.

Advertiser DisclosureThe listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies.Definition of terms Account for all personal income, including salary, part-time pay, retirement, investments and rental properties. You do not need to include alimony, child support, or separate maintenance income unless you want it to have it considered as a basis for repaying a loan. Increase non-taxable income or benefits included by 25%.Apply

Check Your Personal Loan Rates

Answer a few questions in two minutes or less to see which personal loans you pre-qualify for. It's free and will not impact your credit score.Bankrate’s scores for personal loan lenders evaluate 11 data points related to loan costs and terms, as well as customer experience.The annual percentage rate (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.The range of loan amounts that a lender will service. The maximum value is the largest amount a lender will give although this amount may not be available to borrowers who don’t have good or excellent credit. Amount ranges may vary for non-loan products. Term refers to the amount of time you have to repay the loan.The minimum credit score typically required to qualify for a loan with a given lender. Exact thresholds are not always disclosed by a lender and in certain cases the minimum score is the best estimate based on publicly available information. Credit score refers to FICO 9.0 unless otherwise stated. 4.6Bankrate ScoreAPR from6.99- 21.49with AutopayLoan Amount$5k- $100kTerm: 2-7 yrMin. Credit Offer DetailsLender InfoBankrate's ViewLowest rate is for excellent credit only. Rates 6.99% - 21.49% APR w/autopay.*Loans from $5,000 - $100,000Same-day funding available (conditions apply)We guarantee your best-funded loan experience ever*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are .50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 6.99% APR with a term of 3 years would result in 36 monthly payments of $308.73. 2022 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.Apply on partner site4.8Bankrate ScoreAPR from7.96- 35.97with AutoPayLoan Amount$1k- $50kTerm: 2-7 yrMin. Credit Offer DetailsLender InfoBankrate's ViewPersonal loans up to $50,000 with low fixed rates that will never changeAffordable monthly payments that fit your budget and no prepayment penalties Fast Funding —You should receive your funds within a day of clearing verifications†No obligation and no impact to your credit score when you check your rateUse your loan through Upgrade to pay on high interest credit cards, make a large purchase, finish that home improvement project, or almost any life event!Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.96%-35.97%. All personal loans have a 1.85% to 8.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/. Check rate with Bankrate4.6Bankrate ScoreAPR from7.99- 35.99Loan Amount$2k- $50kTerm: 3-4 yrMin. Credit Offer DetailsLender InfoBankrate's ViewGet a personal loan up to $50,000 with a fixed APR from 7.99% to 35.99%Get money in as little as one business day, upon approval and verificationJoin more than 450,000 customers at a trusted company with an A+ BBB ratingUse it for almost anything: consolidate debt or other unexpected expensesDISCLOSURE UPDATE AS OF 08.2022 *Trustpilot TrustScore as of June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. “Best Egg” is a trademark of Marlette Holdings, Inc., a Delaware corporation. All uses of “Best Egg” refer to “the Best Egg personal loan”, “the Best Egg Secured Loan”, and/or “Best Egg on behalf of Cross River Bank or Blue Ridge Bank, as originator of the Best Egg personal loan,” as applicable. The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000– $50,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 7.99%–35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–8.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 600 FICO score and a minimum individual annual income of $100,000 to qualify for our lowest APR. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. Best Egg products are not available if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories.Check rate with Bankrate4.6Bankrate ScoreAPR from8.99- 29.99Loan Amount$5k- $40kTerm: 2-5 yrMin. Credit Offer DetailsLender InfoBankrate's ViewNo prepayment penalties, application fees, late fees, or hidden fees. Because no one wants to do thatYou can consolidate all your credit card payments down to one monthly, affordable, fixed-rate payment between 5.99% and 24.99% APR"This does not constitute an actual commitment to lend or an offer to extend credit. Upon submitting a loan application, you may be asked to provide additional documents to enable us to verify your income, assets, and financial condition. Your interest rate and terms for which you are approved will be shown to you as part of the online application process. Most applicants will receive a variety of loan offerings to choose from, with varying loan amounts and interest rates. Borrower subject to a loan origination fee, which is deducted from the loan proceeds. Refer to full borrower agreement for all terms, conditions and requirements."Check rate with Bankrate4.5Bankrate ScoreAPR from9.95- 35.95Loan Amount$2k- $35kTerm: 1-5 yrMin. Credit Offer DetailsLender InfoBankrate's ViewPersonal loans from $2,000 to $35,000 online.Competitive rates from 9.95% - 35.99% APR and terms from 24 to 60 monthsChecking your loan options has no impact to your credit score.Fast Decisions, see your loan options in minutesFunding as soon as next business daynullCheck rate with Bankrate Close X

The Bankrate guide to choosing the best boat loan

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What is a boat loan

A boat loan is similar to an . In this case, a boat loan gives you the money to purchase a boat. This can be anywhere from a small boat to a more luxury craft, depending on your financial situation and desires. Some lenders offer loans specifically for boats. However, personal loans can also be used to purchase boats. Looking for an online boat loan from a personal loan lender can give you more options to find the least expensive option for you. Most lenders will ask the borrower to fill out a loan application, which can be fairly thorough. Lenders will also likely ask for information like tax returns and proof of assets. Don't be surprised if the lender asks to see a detailed account of your personal finances - they want to make sure they're giving a loan to someone who can pay it back. The application process is typically fast, and approval is largely based on your credit score and ability to repay. Though banks typically require 10 percent to 20 percent down for the purchase of a boat, you may be able to finance 100 percent of the cost.

Compare boat loan rates in November 2022

Lender Loan Amount APR Funding Time Minimum credit score $5,000 – $100,000 6.99% – 21.49% (with autopay) As soon as the same day Not disclosed $1,000-$50,000 7.96%-35.97% As soon as the same day Not disclosed $2,000-$50,000 7.99%-35.99% As soon as the next business day 600 $600-$50,000 7.74%-17.99% Within 1 to 2 days of approval Not Specified $5,000-$100,000 7.99%-23.43% Within a few days of approval 680 $5,000-$40,000 8.99%-29.99% Within 3 business days of approval 640 $2,000-$40,000 7.99%-35.99% As soon as the next business day 560 $2,000-$35,000 9.95%-35.99% As soon as the next business day 580 $5,000-$50,000 5.75%-31.44% Within 1 to 2 business days of approval 680 Check rate with Bankrate Min. credit score: Not disclosed Fixed APR From: 6.99% –21.49% Loan amount: $5,000– $100,000 Term lengths: 2 to 7 years Min. annual income: $50,000

Pros & Cons

Pros

No added fees No down payment required Mobile app available

Cons

Must have excellent credit to apply No prequalifying online Eligibility requirements not available on website

Eligibility & More

Check rate with Bankrate Min. credit score: Not disclosed Fixed APR From: 7.96% –35.97% Loan amount: $1,000– $50,000 Term lengths: 2 to 7 years Min. annual income: $30,000

Pros & Cons

Pros

Rate discount if you have an Upgrade checking account No prepayment penalty Mobile app available

Cons

Origination fee High APR cap of 35.97 Cosigners not allowed

Eligibility & More

Check rate with Bankrate Min. credit score: 600 Fixed APR From: 7.99% –35.99% Loan amount: $2,000– $50,000 Term lengths: 3 to 4 years Min. annual income: $0

Pros & Cons

Pros

Offers secured and unsecured loans Accessible to fair credit borrowers No prepayment penalty

Cons

Origination fee Only two repayment options Not available in all states

Eligibility & More

Check rate with Bankrate Min. credit score: Not disclosed Fixed APR From: 7.74% –17.99% Loan amount: $500– $50,000 Term lengths: 1 to 5 years Min. annual income: $0

Pros & Cons

Pros

Wide range of loan amounts No fees Mobile app available

Cons

No same-day funding No discount for auto-pay Must be a credit union member

Eligibility & More

Check rate with Bankrate Min. credit score: Not disclosed Fixed APR From: 7.99% –23.43% Loan amount: $5,000– $100,000 Term lengths: 2 to 7 years Min. annual income: $30,000

Pros & Cons

Pros

Wide range of loan amounts No fees Flexible repayment terms

Cons

High minimum loan amount No same-day funding Good credit required

Eligibility & More

Check rate with Bankrate Min. credit score: 640 Fixed APR From: 8.99% –29.99% Loan amount: $5,000– $40,000 Term lengths: 2 to 5 years Min. annual income: $30,000

Pros & Cons

Pros

Accessible to low credit borrowers Money management tools included on website No late fees or prepayment penalties

Cons

No same-day funding Origination fee Limited borrowing range

Eligibility & More

Check rate with Bankrate Min. credit score: 560 Fixed APR From: 7.99% –35.99% Loan amount: $2,000– $50,000 Term lengths: 3 to 5 years Min. annual income: $0

Pros & Cons

Pros

No prepayment penalties Cosigners allowed Option to change payment date

Cons

High maximum interest rate Origination fee No same-day funding

Eligibility & More

Check rate with Bankrate Min. credit score: 580 Fixed APR From: 9.95% –35.95% Loan amount: $2,000– $35,000 Term lengths: 1 to 5 years Min. annual income: $14,400

Pros & Cons

Pros

Low minimum credit score No prepayment penalties Mobile app available

Cons

High minimum APR Origination fee Cosigners not allowed

Eligibility & More

Check rate with Bankrate Min. credit score: 680 Fixed APR From: 5.75% –15.75% Loan amount: $5,000– $50,000 Term lengths: 3 to 5 years Min. annual income: $40,000

Pros & Cons

Pros

No prepayment penalties No late fees Mobile app available

Cons

Origination fee Not available in some states Cosigners not allowed

Eligibility & More

How boat loans work

Banks and other lenders have tailored their products to fit nearly every budget and lifestyle. However, there are two main categories that loans usually fall into: . Both of these options for financing a boat with a loan have pros and cons, and some borrowers may only qualify for secured loans. The loans and rates available to you will depend on the lending institution and your financial history. It's important to understand the difference between the two types of loans before signing up for any financing.

Secured boat loans

A secured loan means that the money being lent is backed by collateral - something of value that can be used to recoup the cost of the loan if the borrower fails to make the payments. Homes, vehicles and other valuable items are commonly used as collateral. The boat itself could also be considered collateral for a secured boat loan. Secured loans offer borrowers two main advantages. They usually feature lower interest rates than unsecured loans because the lender is taking on a lower risk due to the collateral. Secured loans are also accessible to borrowers who may not have the best credit history. Even those with faulty credit might be able to qualify for secured loans after doing a little homework on available lenders in the area.

Unsecured boat loans

An unsecured loan doesn't require collateral, but that doesn't mean it comes without strings attached. Unsecured loans usually have higher interest rates and more restrictions than secured loans. The application process is also more difficult for unsecured loans. Many people decide to go the route of personal loans when looking into boat financing options. Personal loans are unsecured loans that can offer better rates than traditional funding sources. Personal loans may also offer more flexibility in things like loan amounts and repayment periods.

Financing your boat with a personal loan

Personal loans typically have competitive interest rates and flexible repayment terms. If you have a good credit score and sufficient income, a personal loan may be a great fit for you. You can also make extra payments that go 100 percent toward the principal - or pay the entire loan off early in some cases. A personal loan is unsecured, meaning your boat or another asset won't be used as collateral. An unsecured loan is entirely based on your creditworthiness and verifiable income. Once your loan request is approved and funded, you receive the entire amount in your bank account, minus fees such as origination fees. You then can negotiate with the boat dealer or private party like a cash buyer.

What to consider before getting a boat loan

Although there are a few choices for budget boats, most of them cost well into the thousands. Anyone in the market for a luxury boat can expect the price tag to be far higher than what most families have on hand for recreational expenses. Once you have your sights set on the boat of your dreams and are ready to look at financing the purchase, consider all factors that could affect your final decision. The price tag is just one of the expenses attached to owning a boat. Maintenance and insurance can quickly turn into big-ticket items. If you plan on keeping the boat at a marina, expect to pay monthly rent for a storage area and administrative fees. Anyone preparing to take out a loan should also take an honest look at their personal finances and future earnings. Once the contract is signed, the money must be paid back. Look closely at the fine print and ensure your finances can handle the payments.

Where to get a boat loan

You can get loans for boat purchases from banks, credit unions, online lenders and other lending institutions. Asking your personal bank for financing options is a good place to start. Having a positive existing relationship with a bank can go a long way toward getting you approved with a good rate. Many boat dealers now offer financing options of their own. However, this isn't always the case, and any financing that is available from a boat dealer should be checked against rates offered by other lenders. Researching online marketplace lenders can be another cost-effective method for financing a boat. When other loan companies can't provide the right option, an online lender could be the ticket to cruising the lake in a new family boat.

New vs used boat loans

Boat loans are available for both new and used boats. The biggest difference is in how much you will need to borrow. Generally, new boats are going to cost more, so you will need to borrow more money. The exception to that is if you are deliberately choosing a used boat that would be an upgrade of the price of a new boat because of the boat's size or features. The other difference may be in where you can get a loan. If you buy a new boat, you may be able to get financing from the dealer. Used boats, such as those you buy from an individual, may not have dealer financing as an option. However, online lenders will still be available.

How to calculate how much boat you can afford

To decide how much you can afford a boat, consider factors like the following: The APR: Look into what your interest rate is likely to be so that you can get an estimate of how much your monthly payments will be. Your monthly income and expenses: You should know how much of your income is currently used up. How much will you be able to put into living expenses and savings if you have a loan? Other current debts: If you have other debts that you could try to pay off sooner, you may want to factor those in. Repairs and maintenance: How much will it cost you to keep a boat? Determine where will you store it, how much will boat insurance cost, what any needed repairs will cost and so on.
Once you figure out how much you can afford to pay for a boat, look into the cost of boats around you to make your decision.

FAQs about boat loans

If you need a loan to finance a boat purchase, you should start by checking your credit score and shopping around to compare lender rates. Be wary of high interest rates and added fees, especially if you do not have a high credit score and low debt-to-income ratio.

While used boats are much less expensive than new boats, prices vary significantly based on boat type, model years and history of use. To make sure you're getting a good deal, you should compare the boat's value with the given price using a guide like .

You can lease a boat, but this can be cost-prohibitive depending on what type of boat you rent and for how long. In some cases, a long-term lease on a boat could end up costing you more than buying a boat. If you're thinking about leasing a boat, consider an alternative like chartering or boat sharing.

Generally, it is best to save up money for a boat before taking on the purchase. However, taking out a loan to cover the expense makes sense if you do not have the cash up front, but are confident you'll be able to pay it off quickly. Personal secured and unsecured loans tend to be the best option since there are basically no restrictions on how you use the funds. If you're a homeowner, you could also consider a home equity loan or line of credit. These loans tend to have lower rates, but you will be at risk of losing your home if you do not make payments.

The term of the loan depends on the type of loan you choose, the lender you choose and the amount you borrow. Personal loans tend to have maximum terms of 7 years or less, while home equity products can have terms up to 30 years.

If you have strong credit, you have a good chance of qualifying for a lender's lowest rates. If you choose to go with a personal loan, rates tend to start around 3 percent. The average personal loan rate is currently around 10.5 percent, so anything less than that would be considered a good interest rate for a personal loan.

Financing a boat could be the right choice if you have good credit, qualify for reasonable terms, and are confident you will be able to make the payments on time. However, if you have fair to bad credit, it may be smarter to work on your credit before making the purchase or pay cash if you are able to.

You can finance a yacht, but only if you can qualify for a large enough loan to cover it. The average cost of a yacht is , and prices range to more than $15,000,000.

The bottom line

If getting out on the open water has been a lifelong goal,many boat loan financing options are available. Depending on your credit and income, you can find secured or unsecured boat loans that fit your needs and budget. Before jumping in, consider that most financial experts don't recommend personal loans for discretionary purposes, especially if you already carry credit card or other debt. If you take a personal loan or a boat loan, have a plan to pay it off. Use our to see how much your monthly payment might be.

Methodology

To select the top boat lenders, Bankrate considers several factors that indicate loan cost, lender trustworthiness and eligibility. Factors include details such as credit requirements, APR ranges, fees, loan amounts and flexibility to account for a wide range of credit profiles and budgets. Bankrate also considers boat-specific offerings and emphasizes factors such as loan amounts that make a difference when purchasing a boat. Each lender has a Bankrate rating, which consists of three categories. These categories include: Affordability: The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score. Availability: What the minimum loan amounts are, eligibility requirements and loan turnaround are considered in this category. Customer experience: This category covers customer service hours, if online applications are available, online account access and mobile apps.