Good things do come in small packages – even when it comes to RVs. What small RVs lack in size, they more than make up for in freedom. Unlike their larger counterparts, these fun-sized campers aren’t limited to wide-open, asphalted RV parks. They can go almost anywhere the road takes you – the wilderness, across the country, or your favorite local campground.
Financing your small RV can be a relatively easy if you do a bit of homework in advance. Follow a few simple guidelines, and you’ll be hitting the road in a small RV sooner than you think!
Check Your Credit History
This is something you should start as soon as you start thinking about purchasing an RV. Request a free copy of your credit report from each of the 3 nationwide reporting agencies through annualcreditreport.com. Or you can contact the credit bureaus individually: Equifax Credit Information Services: 1-800-685-1111, Experian: 1-888-397-3742, TransUnion Corporation: 1-800-916-8800. You’ll want to check your report from all three bureaus because mortgage lenders usually take credit scores from each of these reports and base your rate on the median score. Errors on just one report can affect your interest rate – and your monthly payment – even if the other two reports are accurate. Although disputes are generally resolved within 30 to 60 days, the process can take longer if you have to mail documents back and forth.
Keep Those Credit Cards in Your Wallet
Start paying down your card balances. If you have to add new charges, keep them to 10% or less of your available credit, whether or not you pay off your credit card bill in full every month. Ironically,you shouldn’t close any credit cards during this period, either. If you close a card that has a high credit limit but keep your balance the same on your other cards, it will look as if like maxing out your available credit, which can hurt your credit score.
Don’t open or even apply for any credit cards for at least 6 months before you purchase an RV. Lenders look at “credit inquiries,” which show that other lenders have asked for your credit record and indicate that you might be about to take on a lot of new debt. Inquiries made within the past several months could mean you’ve taken on new debt that hasn’t yet been reported.
Once you start shopping for a loan, keep your loan inquiries within a 30-day range. Inquiries about loans made over a longer period of time could negatively reflect on your credit score because it appears like you’re you may be taking out multiple loans.
Put Together Your Down Payment
The typical down payment for an RV loan is 10%. Once you have an idea of what your small RV will cost, start saving up. Put down even more if you can – you’ll end up saving money in finance charges over the life of your loan.
Shop Around for the Best Financing
Most RV buyers get their loan either through the dealership or through a direct lender, like a bank or credit union. Dealership financing is convenient – you get your loan where you get your RV. You may also have access to manufacturer-sponsored incentives or special purchase offers that you can’t get through other lenders.(These programs often require a strong credit rating; check your credit score to see if you qualify.)
If you’d rather get financing through a direct lender, you’ll be able to get and compare as many finance plans as you want. Plus, you’ll know how exactly much financing you can get before you step foot in a dealership, which could put you in a strong position to negotiate price or add-on features.
Want to learn more about financing? Download our free ebook: The Complete Guide to Financing Your RV!
Contact RV Wholesale Superstore!
Whether you’re ready to buy or still deciding which RV is best for you, the professionals at RV Wholesale Superstore are ready to help. Visit us in-person at 5080 W. Alexis Road, in Sylvania, OH or call us at (844) 601-1171
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