Credit Unions And Boat Loans
So many lakes, so little time. Make your dream of owning a boat a reality with a boat loan! A boat loan is an installment loan with fixed monthly payments over a specified timespan. Factors such as interest rate and loan terms will vary based on the lender, size of your loan, and whether the loan is secured or unsecured.
Applying for a boat loan is similar to applying for an auto loan or personal loan. After establishing a budget, you’ll need to begin researching lenders. Next, you’ll typically be asked to provide information such as the purchase price of the boat, boat make and model, loan amount, and other personal information.
Financing options for new and used boats include secured and unsecured loans. A secured boat loan is backed by collateral, which the lender can take as a form of repayment if you default on the loan. In this case, the boat acts as the collateral. When applying for a secured boat loan, the boat’s value factors into how much you can borrow. At Arkansas Federal, we offer boat loan terms up to 180 months so you can choose the time span that works best for you.
An unsecured boat loan does not use any asset or property as collateral. Since unsecured loans are not attached to any specific asset, they typically charge higher interest rates and can be seen as riskier to lenders. Despite this drawback, an unsecured boat loan may offer a wider variety of options to use. Unsecured boat loans also come with shorter terms, which tend to be between five to seven years.
Why Choose a Credit Union For Your Boat Loan?
Choosing the right lender is one of the most important parts of applying for any loan. Different lenders include banks, credit unions, and private lenders. When researching boat loans, try exploring credit union options. There are some benefits to financing your boat loan through a credit union rather than a bank or outside lender.
Applying for a boat loan with a credit union may be in your best interest if you’re looking to cut down on fees and obtain a good rate. Credit unions offer affordable monthly payments on boat loans that are typically lower than the average bank or private lender. Credit union boat loans generally have lower interest rates and fewer fees associated with their loans.
Since credit unions are member-owned and run, being a part of one makes you more than just a customer. Credit unions are willing to work with you and help find the best boat loan option for you.
At Arkansas Federal Credit Union, you can finance up to 100% of a new or used boat, including taxes and other application fees, with approved credit. Enjoy the financial freedom you need with flexible boat loan terms and fixed, low interest rates through a free online application making the loan process easy.
What To Consider About a Boat Loan
Before you commit to a boat loan with a credit union, there are a few things you may want to consider. When applying for a boat loan, be sure to take all the typical information into account like boat loan rates and terms.
Review your credit history prior to applying. A low credit score can affect the terms of your loan or potentially prevent you from qualifying. Maintain a high credit score by paying your bills on time or in advance, keeping credit card balances as low as possible, and disputing any errors that may negatively impact your score.
While interest rates are typically fixed and vary widely based on the individual lender, certain factors can affect it. Things like the boat type, model year, loan term and amount, and your credit history can affect your interest rate.
When establishing your budget, be sure to factor in additional costs other than the monthly payments required for your boat loan. Ongoing expenses can include things such as boat insurance, maintenance, storage, repairs, and fuel costs.
If you are not purchasing a new boat, consider getting a marine survey. During this process, an inspector thoroughly examines the vessel, details the boat’s condition, and makes a note of any repairs or safety concerns.
Learn More About Credit Unions and Boat Loans
Experienced boaters know the importance of being prepared before going out on the water, so why not take the same approach with your boat loan? Get prepared by researching and making a plan. Outline your budget and compare offers from multiple lenders in order to find the option that best suits your financial needs.
Credit unions often have affordable monthly payments that are lower than the average bank or private lender. In addition to this, credit unions also generally have fewer fees associated with their loans, as well as lower interest rates.
If you’re browsing credit union options, consider choosing Arkansas Federal for your boat loan. With low competitive rates and convenient terms, it’s a great choice. There’s also no cost to apply, and the application is easy.
Enjoy affordable payments with fixed, low rates and flexible terms. Arkansas Federal Insurance Solutions also offers insurance to help protect your boat. Choose the coverage package that’s right for you so you can enjoy your time out on the water.