Best Boat Loans

Company Name	Estimated APR	Minimum Credit Score	Loan Amount	Loan Terms
Lightstream	3.99% to 19.99% APR with auto-pay	660	$5,000 to $100,000	36 to 144 months
SoFi	6.99% to 22.28% APR with auto-pay	Not disclosed	$5,000 to $100,000	24 to 84 months
Upstart	5.35% to 35.99% APR	300	$1,000 to $50,000	36 or 60 months
Best Egg	5.99% to 35.99% APR	550	$2,000 to $50,000	36 or 60 months
Credible	3.99% to 35.99% APR	Varies by lender	$600 to $100,000	12 to 84 months
OneMain Financial	18% to 35.99% APR	Not disclosed	$1,500 to $20,000	24, 36, 48, or 60 months

Understand the Costs of Owning a Boat

There's a reason many people joke that B-O-A-T stands for "bring out another thousand." In addition to the costs involved in buying a boat, there are myriad expenses and fees required to use and maintain a boat throughout the year.

Common costs of owning a boat include:

• Cost of a trailer to transport your boat, which can vary
• Annual or monthly charges for boat insurance (varies)
• Boat storage, which can cost several thousand dollars per season
• Costs involved in winterizing a boat and preparing it for storage (when applicable)
• Marina fees, which can vary
• Maintenance costs, which can vary widely depending on the type of vessel and its age
• Boating equipment and accessories
• Fuel costs
• Expenses involved in acquiring a boat license

At the end of the day, there's a lot more involved in paying for a boat than coming up with the cash for the purchase price. You can finance some of the costs of boat ownership within your boat loan, yet you should also set a monthly or annual budget that will account for all the other boating expenses you'll pay throughout the year.

What is a Boat Loan?

A boat loan is a personal loan that comes with a fixed monthly payment, a fixed interest rate, and a set repayment schedule that will never change. These loans let boating enthusiasts get the financing they need to purchase the vessel they want, and they can use any additional funds for upgrades, equipment, and ongoing maintenance expenses.

Secured Boat Loans vs. Unsecured Boat Loans?

While the boat loans we highlighted in this guide are unsecured, there are also secured boat loans to be aware of. The main difference in these two types of loans is that one requires collateral and the other does not.

• Unsecured boat loans do not require any collateral, so they are not secured by the boat or any other assets you own.
• Secured boat loans require collateral, so the lender can take possession of your boat if you don't pay your loan back.

While secured boat loans require you to put your boat up as collateral for the loan, they may come with lower interest rates since the loan is backed up with assets. Secured boat loans can also be available to borrowers with shaky credit since the boat itself can be repossessed at any time.

Before you decide on the type of boat loan you want, it can help to check your credit score to see where you stand. If you have a good credit score, or any FICO score of 670 or higher, it's likely an unsecured boat loan will work for your needs and be more convenient overall.

Where to Get a Boat Loan

Whether you opt for an unsecured personal loan or a secured boat loan, there are several types of institutions you can turn to for funding.

• Online lenders: Online lenders like Lightstream and Upgrade offer unsecured loans that work well for boat financing, as well as the financing of related equipment and upgrades for your boat. Rates and terms are very competitive, and online lenders let you complete the entire funding process without visiting a loan office.
• Credit unions: Credit unions also offer boat financing, and members can qualify for exceptional rates and terms. Examples of Credit unions that offer boat loans include Chevron Federal Credit Union and PenFed Credit Union.
• Traditional banks: Traditional banks like Chase and Citi also offer boat financing, as well as personal loans consumers can use for boat expenses.
• Boat dealers: If you buy a boat from a dealership, the company may have their own financing options available. Make sure to compare in-house boat financing with online loans and boat financing from traditional lenders.

How to Get a Boat Loan

While the steps involved in getting new or used boat loans varies by lender, you'll find a general overview of moves required to get boat financing below.

• Step 1: Find the boat you want, which will help you get an idea of how much you need to borrow.
• Step 2: Look for boat loan companies that offer the amount of financing you need, and use a loan calculator to see what your monthly payment might be.
• Step 3: Check your rate with at least three or four lenders that offer boat financing.
• Step 4: Compare each lender based on their boat loan rates and lender fees, and make sure to watch out for hidden charges.
• Step 5: Decide which lender you want to move forward with, and check their qualification requirements before you apply.
• Step 6: Fill out the lender's loan application with the information they request, such as your contact details, Social Security number, your employment data, and your income.
• Step 7: Wait for your loan to be approved, which could take several hours up to a few weeks.
• Step 8: See if your lender needs any additional documentation to approve your loan, and send it right away if they do.
• Step 9: Receive your loan funds as a direct deposit into your bank account.
• Step 10: Use your boat loan funds to purchase your boat, then get out on the water as soon as you can.

What are the Repayment Periods for Boat Loans

Repayment periods for boat loans vary widely by lender, and they can even vary based on the amount of money you borrow. As an example, Lightstream lets you borrow up to $100,000 in boat financing then repay it over up to 144 months. However, other loan companies offer shorter repayment periods that last up to 60 months or 84 months at most.

Boat Loan Alternatives

• Boat rentals: If you can't qualify for a boat loan or you're not quite sure you want to take on the responsibility of boat ownership, renting a boat can work as well. Websites like GetMyBoat.com let you rent nearly any type of boat in a variety of destinations around the world, and you get to enjoy boating with less hassle and stress overall.
• Home equity loans: If you have considerable equity in your home, a home equity loan can also fit the bill. This type of loan requires you to use your home equity as collateral, yet you get to repay your loan with a fixed monthly payment, a fixed interest rate, and a fixed repayment schedule.
• Home equity lines of credit: Home equity loans also rely on the equity you have in your home as collateral, and they come with variable interest rates. Instead of a lump sum of cash, HELOCs extend a line of credit you can use when you need it.
• Credit cards: You can also use a credit card to finance your boat, but interest rates can be incredibly high. If you are thinking of using a credit card for boat financing, look for one that offers 0% APR on purchases for as long as possible.

Conclusion

The best boat loans can help you get into the boat you've always wanted, but you need to make sure you shop around to find the right fit. Factors to consider include the boat financing rates you're being offered, the repayment plans you can choose from, and your monthly payment.

Also make sure you set aside some money in your budget to pay for boat upkeep, maintenance, and all the fun accessories you'll want to buy along the way. Boating can be an expensive hobby, so having your finances in order first is crucial.