Now that the pandemic has altered all of our vacation arrangements for summer, we no longer worked up to flaunt our recreational cars on the country road. Thus, the market’s pricing for RVs has significantly increased.
However, the RV market has achieved record sales during the COVID-19 affliction. The highest monthly total was recorded in June since August 2018. A 10% increase was also noted from the same month last year. These fascinating statistics show that the RV market continues to grow as it is expected to reach 77% by 2026.
How Much Would a Recreational Vehicle Cost?
Recreational vehicles are priced according to the style and features. For your reference, the least expensive moderately-appointed camper trailer pulled behind a truck would range from $10,00 to $30,000.
From a few thousands of dollars to probably a million, you can go on a trip with comfort. Apparently, recreational vehicles provide comfort for a price.
Purchasing a recreational vehicle with cash is an option for people who can readily afford the luxury. However, for those who dream of possessing an RV through a loan, take into account that there are factors you should study in order to declare a loan grant.
RV Loans Basics
There are plenty of financing options you can choose from if you’re planning for an RV loan. You can look up to financial institutions like banks, credit unions, dealerships, and online lenders to confront all your queries on RV loans. Legitimate loan agencies like My Financing USA provide a responsive climate to their potential clients.
You can resort to secured loans, where the vehicle you are paying for becomes the collateral. Moreover, you can also choose to apply for unsecured loans offered by some banks. Of course, this type of loan is more like a personal loan without collateral. It is a loan without a guarantee on the bank’s part, so the application process is stringent as expected.
As for the loan term, standard conditions would run from 5 to 20 years. The determining factors for the term are the vehicle’s price, age, and the borrower’s capacity to finance the purchase through a loan.
How to Guarantee an RV Loan Grant?
The average credit score for you to qualify for RV loans is 650. Nonetheless, some banks could tender a loan without any credit check. Consequently, the APR (Annual Percentage Rate) could be more significant than any average RV loan.
If you have a stained credit history, secured loans might not be the best option for you. But if you have been looking after your credit ratings, you now have an edge in your loan application.
A savings account can also be a crucial factor that can help you with your application. It would help if you had regularly contributed, as evidence that you have the potential to pay for RV loans.
To initiate the application, you’ll fill up a form that would contain information on your identity, financial background, and employment. Remember to supply only the truth and never fabricate details to exaggerate your financial capacity.
Know Why Your RV Loan Application is Rejected
There are only two outcomes of your RV loan application—approved and denied. If your loan application is rejected, you might have wondered what went wrong and which part has turned down your application.
Having been denied a loan is quite discouraging that you might have missed asking the institution why the application went sideways. And because some lenders have employed undisclosed criteria in RV loan approvals, you might have been deprived of these unmentioned reasons even after knowing that the application is rejected.
The most apparent grounds for disqualification are multiple unsettled debts, insufficient documentation, low credit score, and invalid income. Even so, there are obscure reasons that you won’t know unless the lender is brutally honest with you.
Being Unresponsive
Because you have indicated your contact details in your application form, you have to expect random phone calls from your lender. Missed calls are signs that you are inconsiderably disinterested in the loan.
Additionally, this will show that you have poor communication means, making it hard for the lender to contact you if your loan is granted by good fortune.
Irregular Job History
Financial institutions will initially qualify you if you have been working in your current job for six consecutive months. If this is not the case, your application could be dismissed immediately, or they would be extra stringent with the other decisive factors of the loan approval.
Varying Addresses
This goes the same with your employment status. You should be a resident of your current home address for at least six months during your RV loan application. Your address is considered as identity proof. If you own businesses, you have to include your establishments’ address to complete your financial details.
Multiple Loan Engagements
Taking out multiple loans at once could either make or break your RV loan application approval. Aside from the fact that it brings financial stress and tension to the borrower, the lender of the current loan you are applying for will feel skeptical about your capacity to pay for several loans.
Let’s say that you are confident that you can settle multiple obligations simultaneously; still, it is normal for the financier to hesitate in granting your loan.
Falsified Documents
Forging documents or manipulating the details in it is incredibly offensive. Know that applying for a loan is winning the creditor’s trust at the same time. It would be best if you don’t solely look forward to loan approval because your financial integrity matters the most.
Either way, if you falsify any document submitted to your lender, you can face real consequences such as fraud. If you happen to get caught in the middle of paying for the loan, your RV could be taken back for foreclosure.
Immodesty
Because of your fear of getting rejected for an RV loan, you might resort to impressing the lender with arrogance. Be aware that a loan assessor knows that immodesty is a sign of insecurity. As a result, your application will be turned down based on the attitude you have shown during actual meetings.
Takeaway
Facing a loan rejection is dispiriting, especially because you’ve wanted to possess your recreational vehicle for a long time. After all, it is an investment that would suffice your desire for luxury. At least, study your rejection letter and concentrate on your application deficiencies. An RV is useful for a Road trip.
About the Author
As an esteemed credit analyst and expert, Lauren Cordell writes content that could help potential borrowers carry off a loan grant with no trouble. Besides writing financial and credit pointers, she’s also fond of flicking through travelogues and trade journals.
