Instantly pre-qualify for a boat loan without impacting your credit score

A boat loan is an installment loan with fixed monthly payments typically over 1 to 20 years. Interest rates and loan terms vary based on the lender or bank, the size of the loan, your credit score, your income, and whether the loan is secured by the boat or unsecured.

The main difference between an unsecured and secured loan is that an unsecured loan does not require the borrower to put up any collateral such as the boat purchased. Unsecured loans sometimes make a purchase easier and requiring less documents. The bad news is that because the loan is unsecured, the lender is taking a bigger risk on the borrower and will typically have higher interest rates.

Generally, annual percentage rates range from 6% to 36%, and terms range from two to seven years. These loans are attractive to borrowers who do not have assets like a car or a house, but still want some financial assistance to purchase a boat.

Secured loan requires the borrower to put up some form of collateral. Secured loans typically use the purchased boat as collateral. While it is riskier for the borrower to put up an asset that the bank can seize if you default on the debt, interest rates are lower, borrowers have a higher borrowing amount, and longer repayment terms (month terms) are available. With a secured boat loan, you may also need to make a down payment, which means you’ll need cash up front.

Many lenders can provide loans even if you have bad credit. However, you may have higher interest rates, lower loan amounts and repayment terms. Typically, anything under 630 is considered a bad credit rating and tend to have higher loan rates.

Many lenders allow cosigned loans or join applications. These are loans where someone with better credit co-signs the loan with you. However, the person who cosigned for the loan is also responsible for the loan so if you default on the payment, it could hurt their credit as well as your own.

The interest rate is how much the lender charges in interest to a borrower for a loan. It is represented to a borrower as a percentage of the amount borrowed.

The interest rate is one of the most important things to look at when considering a loan. It adds a significant amount to the overall repayment terms, and even just one percentage point here or there can make a big difference. You also need to consider the APR which includes fees and charges.

APR is an acronym for annual percentage rate. The APR combines the charges, fees, and payments to tell the borrower the total of what the loan will cost per year. The lower the APR, the less you are going to pay.

The APR calculation on loans will vary depending on the lender, usually starting at 3% and capping at 35.99%.

A better credit score may help a borrower get a lower interest rate. Although some lenders do not only use credit score when considering you for a loan. Your income will always be an important factor when determining your loan. Lenders will typically also look at your past financial history to look for any delinquent loans, late payments, foreclosures, bankruptcies, and other factors before they determine your interest rate.

LightStream Terms and Conditions:

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% 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 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66. Truist Bank is an Equal Housing Lender. © 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. You can fund your loan today if today is a banking business day, your application is approved, and you complete the following steps by 2:30 p.m. Eastern time: (1) review and electronically sign your loan agreement; (2) provide us with your funding preferences and relevant banking information; and (3) complete the final verification process. After receiving your loan from us, if you are not completely satisfied with your experience, please contact us. We will email you a questionnaire so we can improve our services. When we receive your completed questionnaire, we will send you $100. Our guarantee expires 30 days after you receive your loan. We reserve the right to change or discontinue our guarantee at any time. Limited to one $100 payment per funded loan. Truist teammates do not qualify for the Loan Experience Guarantee.

Upgrade Terms and Conditions:

Personal loans made through Upgrade feature APRs of 5.94% - 35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% 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 $343.33. Over the life of the loan, your payments would total $12,359.97. 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 lending partners. Information on Upgrade’s lending partners can be found at upgrade.