As soon as I realized that my personal financial picture was a little bleak, I started thinking about taking out a personal loan. I wasn't really looking forward to going into debt, but I knew that if I wanted to solve a few short-term problems, a loan would be the way to go. I talked with a few of my local financial institutions to get a good idea of what they could offer me, and then I sat down to go over the paperwork. It was incredible to see how much money I could save by securing a lower interest rate. Check out my blog for more information about loans.
When it comes to vacationing, a recreational vehicle, or RV, is the way to go. Whether you choose a family-friendly model that provides you with all the accommodations of home or a luxury model that feels more like a resort than a vehicle, you have options. You also have options when it comes to the type of loan you secure for the vehicle. Learn more about these options.
Different Financial Institutions
With an RV loan, you have several options when it comes to the financial institution you choose to secure a loan with. Traditionally, you can secure your loan through a credit union, traditional bank, or an online bank. All of these options have benefits, but the benefits of each one are largely based on each person's situation.
For example, for someone with a mixed credit history, securing a loan through a bank that they have a long-standing account with might help them gain approval given their relationship. It is best to research your options to see which type of institution is best to partner with.
Secured vs. Unsecured
Another dynamic to consider is whether or not you go the secured or unsecured route. The purchase of an RV comes at a considerably higher cost than that of a traditional vehicle. As a result, while some buyers will be able to secure 100% financing without any collateral, for some people, collateral is necessary.
Any time collateral is required for an RV loan, it is considered a secured loan. The collateral can be any type of asset, but the main requirement is that it meets a certain value threshold. Your lender will be able to let you know what type of loan you need to secure.
Preapproval vs. Dealership Financing
You should also think about the option to secure preapproval or to get financing at the dealership. With a preapproval, you secure the details of your loan before you head to the dealership, and with the other option, you wait until you arrive at the dealership and pick out an RV.
Preapproval does have some benefits over on-the-spot dealership financing because it allows you to learn what your buying power is and where your payments might fall before you start shopping. This extra knowledge is a great tool you can use to help you plan for the purchase.
It is important to keep in mind that the loan process will vary from person-to-person. As a result, it is best to speak with a loan professional for specific questions about recreational vehicle loans.
Share29 October 2020
