How Bad Credit Affects My Boat Loan Application

Those with a bad credit score may find that when applying for a bad credit boat loan, the following could occur:

You May Lose The Loan Entirely

If your credit history lists a number of cases where you've defaulted on loans or made several late payments, the lender may decide that there is a risk you will do the same with your boat loan.  If a lender decides that your loan would be too great a risk for them, they may reject your application altogether.

You May Have Higher Interest Rates

Some lenders do offer loans to applicants with bad credit, but because an applicant with bad credit is a greater risk, these lenders will take steps to protect themselves against this risk.  One way lenders offset this risk is by raising a loan's interest rates - that way, if the borrower defaults, the lender will not lose too much money.

You May Have Higher Final Closing Costs

 If an applicant has bad credit, a bank may take extra measures to insure the loan or protect themselves against possible default on the loan.  These measures could mean extra processing fees, which the lender will most likely pass on to you.

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