Which FICO Score Is Used For RV Loans? Can I Get An RV Loan?

It is a credit score world. When you are looking to finance anything, your credit score contributes to the final decision. Every major purchase will be influenced by your credit score and the bank’s judgment. It is best to shop around to get the best deal possible.

The FICO score 8 is what is used by most lenders when it comes to granting RV loans. If your score is above 670 and below 739 then you are in good shape to get a good rate on your RV loan. However, it is up to the bank or lender which FICO score they use. Some will us 2, 4, 5, 8 & 9.

To learn more about this system, just continue to read our article. It has the information you want to know about so you can be prepared when you go for your next RV loan. Different lenders will use different scores and criteria before granting you a loan.

What is The FICO Score?


This credit score system was invented by Fair Isaac Corporation and is now called FICO. This is a data analytics software company that designed the FICO credit system.

Their system is used by about 90% of all major lenders and these scores were created to determine the customer’s credit worthiness. 5 factors are used to determine an individual’s credit score and those are:

- Payment History (35%)

- Amounts Owed (30%)

- Length of Credit History (15%)

- New Credit (10%)

- Credit Mix (10%)

FICO has created roughly 10 different scoring levels and they number 2, 4, 5, 8, 9, 10 & 10T. The lenders are free to use any one of those levels to determine if you are credit-worthy enough to provide a loan.

Most lenders use Fico 8 but 9 is often used as it takes into account medical bills.

What FICO Score do RV Lenders use?


Most lenders only talk about scores of 670 to 840, they do not talk about the FICO level score they actually use. If your credit score is between those numbers, there is a good chance you will get the loan. However, that may not always be the case.

The final decision is always left up to the lender and they may have other criteria that they look for before green-lighting the loan. Generally, since 90% of all major lenders use FICO 8 then that will be the FICO score they will use.

Some lenders have switched to FICO 9 because many customers have outstanding medical bills and that FICO level is more forgiving than other FICO levels.

While some owners have said that RV loans are different from car loans, the lenders may use a different FICO score for that loan application. However, those owners also quoted FICO 8 being used for an RV loan which is one of the FICO levels used for auto loans.

If you want a credit score number the range for RV loans is 660 to 700 approx. The key is to shop around as you may get better rates from other lenders. Some will loan on lower scores but you pay a higher interest rate.

Can I Get an RV Loan With a 600 Credit Score?


It is possible as some lenders will accept lower credit scores. They just pump up the interest rate somewhat and then make the approval. Often dealers have lenders they use on a daily basis and they will steer you to one of their favored financing partners.

But the best thing to do when you know you have a low credit score is to shop around. Use the company that will give you the best rates and terms for your situation. It has been said that if the dealer knows you are not going to use their financing packages, they will become more generous.

This is one of your bargaining chips if you can get pre-approved from an outside lender. Using your bank where you have been a customer for years is a bonus and may help get you a favorable rate.

If you are looking at an older RV and not a newer one, it will be tough to get loans on RVs that are older than 10 to 15 years.

What is The Lowest Credit Score To Buy an RV?


It is said that there is no truly universal low FICO credit score boundary. The final decision will be up to the lender if they will grant the loan or not. Some lenders will go as low as 550 while others will stop at 600.

Others will allow 580 as the minimum credit score while still more lenders will stop at 670. Just be forewarned that the lower the score and bad credit will trigger higher interest rates.

You will have to make sure you can afford those higher rates before you sign the loan agreement. Because RVs are more expensive than cars, it is harder to pay cash for one. Usually, you will need a loan to make the purchase.

Before you apply for a loan, it is best that you review and understand all federal and state laws regarding loans. Those laws provide you with a lot of useful information as well as your rights as the borrower.

Both of those pieces of information can help you negotiate a better deal when you are looking at the terms of the loan offered.

Some Final Words

Financing is a tricky world. Navigating it can be very frustrating even when you think you have a great credit score and did well paying off your mortgage and credit cards.

The final loan decision is in the hands of the lender and they have a lot of leeway to say no. It may not be fair but that is the way it is when it comes to borrowing other people’s money. Just watch your credit score and make sure you do not have a lot of current debt to succeed.

Leave a Comment: