Obtaining an RV Loan with Bad Credit in San Antonio

There’s something about the open road that gives people a sense of freedom. While some prefer a convertible car, others love the versatility of an RV for long trips throughout the country. 

However, securing the funding to purchase the RV of your dreams can be challenging, especially if you don’t have a solid credit history. Often, drivers seeking an RV loan with bad credit in San Antonio must work with a more forgiving institution like River City Federal Credit Union.

Is bad credit stopping you from securing an RV Loan? Call one of our finance professionals today to discuss your options!

Why is it More Challenging to Get an RV Loan with Bad Credit in San Antonio, Texas?

Similar to other types of loans, lenders often use a series of criteria to determine how risky an applicant is to insure. 

For example, if the potential borrower has a solid credit history, it indicates they pay their premiums on time and are more likely to pay off the loan in the future. On the other hand, borrowers with bad credit are at a higher risk of missing payments and defaulting on their RV loan. 

3 Tips for Successfully Obtaining an RV Loan with Bad Credit in San Antonio, Texas

Even though there is no guarantee that a lender will approve your RV loan, there are several things you can do to improve your chances of securing funding with poor credit. 

Increase the Down Payment Size 

One of the most effective ways to increase your chances of obtaining an RV loan with bad credit is to pay a higher down payment. Since many lenders are worried about the uncertainty of financing a borrower with a poor credit history, offering to make a large initial payment can help offset some of the risk.

In some instances, certain institutions may even require putting up to 20% down as part of the initial down payment. 

Pay Off Other Debts and Build your Credit First

Typically, having poor credit is only one factor lenders use to determine whether or not to approve an RV loan. Another criteria often referred to is outstanding debt. 

If your current debt-to-income (DTI) ratio is higher than average and you have poor credit, gaining approval for a loan can be extremely difficult. However, paying off outstanding debt can help lower the DTI ratio and establish good faith with the lending institution while building your credit. River City FCU also has a suite of credit building financial products.

Report Additional Income or Savings

In some instances, additional income or savings can be beneficial when applying for an RV loan. The extra funds act as collateral for the lending institution and can make funding less risky. 

If you don’t have any unreported income or savings, it may be possible to seek out a co-borrower with additional funds and a higher credit score to balance out the loan's risk profile.

Hit the Open Road with An RV Loan Through River City Federal Credit Union

While obtaining an RV loan with bad credit in San Antonio, Texas, may seem daunting, there are options and institutions that can help. 

River City Federal Credit Union has a team of dedicated experts who will work with you to find the best way to fund your dream RV through flexible financing options or credit-building products. 

For more information on RV loans, schedule a time to speak with one of our team members.