If you want to buy a boat but a shortage of cash has taken the wind out of your sails, a boat loan could be the answer.
Boat loans aren’t any one particular type of loan. You could use a personal loan, the equity in your home, or dealer financing to buy a boat. We chose online personal loan lender LightStream as best for boat loans, thanks to its very low interest rates, loan amounts of up to $100,000, and no origination fees.
If a personal loan isn’t for you, consider using the equity in your home for a loan or line of credit, or see what financing options are available with an authorized boat dealer.
Why trust Credible

The Credible editorial team is independent and unbiased — lending partners do not influence our editorial content. From rates and fees to customer experience, our expert editorial staff analyzed 899 personal loan data points across 31 lenders to simplify comparing personal loans. Using data-driven methodologies, we scored criteria that are important to you. This approach allows us to objectively rank personal loans so you can find the best loan for your situation. To learn more, read our methodology below.
Compare rates on loans for boats
Advertiser DisclosureOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 20 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
pros
- Same-day funding available
- High maximum loan amount
- No origination fee
cons
- Good credit required
- No prequalification process
- Not available in Vermont
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
pros
- Secured loans available
- Low minimum income requirement
- Scored second in J.D. Power's Consumer Lending Satisfaction Study
- Funds in 1-3 business days
- High close rate on loans through Credible platform
cons
- Origination fees
- No discounts
- Not available in DC, IA, VT, or WV
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
- Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full reviewOverview
Prosper is the only remaining true P2P marketplace in the peer-to-peer lending space that connects borrowers with individual investors for some loans. If you apply for a loan with Prosper, the funding may come from an individual who has chosen to invest in you.
Prosper offers personal loans between $2,000 and $50,000 with terms between 2 and 5 years, and funding as soon as one business day. You can use a personal loan through Prosper for a variety of purposes, including debt consolidation and home improvement. The platform has excellent customer service reviews on Trustpilot, as well.
pros
- Offers peer-to-peer lending (individuals can invest in personal loans)
- Can fund in 1 business day
- Open to borrowers with fair credit
- Low minimum APR
cons
- Origination fee
- Not available in Iowa or West Virginia
- No discounts
Eligibility
Available in all states except IA and WV
Time to get funds
On average, within 5 days of accepting your offer
Loan uses
Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes
Read full reviewOverview
Rocket Loans delivers no-frills same-day personal loans with a generous autopay discount to good-credit borrowers and some borrowers with fair credit. APRs and available loan amounts are competitive — Rocket Loans offers $2,000 loans up to $45,000 loans. Plus, the company offers small business loans if you apply directly through its website.
However, you'll only have a choice between two repayment terms — 3 or 5 years — and origination fees can be as high as 9%. If you have fair credit, you may qualify, but won't be able to add a cosigner or get a secured loan to improve your rate.
pros
- Funding as soon as the same day
- Excellent Trustpilot rating
- Funds can be used for small business purposes
- Offers an autopay discount
- 640 minimum credit score required
cons
- Origination fee up to 9% of the loan amount
- No cosigned or secured loans
- Only two repayment term options: 36 or 60 months
Fees
Late fee, origination fee up to 9%
Eligibility
Not available in IA, NV, WV, PR, MD
Time to get funds
As soon as same business day
Loan purposes
Debt Consolidation, Credit Card Refinancing, Home Improvements
Read full reviewOverview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
- Borrowers with bad credit considered
- Funds as soon as the next business day
- 2-year loan terms available
cons
- No discounts offered
- Origination fee
- Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Read full reviewOverview
Reprise may be an excellent option if you need a loan with bad credit. The lender says it will consider applicants with FICO scores as low as 560, and offers secured loans as well as some cosigned loans to help you qualify. Loan funds can be available the next business day once you’re approved. Plus, the company has a 4.7 Trustpilot rating — indicating generally satisfied customers.
But Reprise is not for everyone. Available loan amounts are relatively low at $25,000, and the minimum repayment term is relatively high at three years. The lender also charges origination fees, does not offer discounts, does not consider income from self-employment, and is not available nationwide.
pros
- Loans for bad credit
- 4.7 Trustpilot rating
- Secured loans available
- Cosigners considered
- Next-day funding available
- Easy to contact
cons
- Does not accept self-employment income
- Minimum 3-year loan term
- Relatively low maximum loan amount ($25,000)
- Origination fees up to 6%
- Not available nationwide
- No mobile app
- No discounts for autopay or direct pay
Fees
$15 late fee except where the state has a different limit (ie. NM), return payment Fees - $20 except where state has a different limit (ie – NM), and no prepayment penalty
Eligibility
Unavailable in CO, CT, HI, IA, ME, MD, MA, NV, NJ, NY, SD, VT, WA, and WV
Min. income
Sufficient disposal income
Time to get funds
1-7 business days depending on loan security type
Loan uses
Credit card refinancing, debt consolidation, emergencies, major purchases, medical and dental expenses, moving expenses, special occasions, unexpected expenses, vacation and travel
Read full reviewOverview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with bad credit considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full reviewOverview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
- Flexible eligibility requirements
- Offers secured options
- Competitive bad-credit loans
- Physical presence
cons
- Availability
- Origination fees
- High starting APR
- Low maximum loan amount
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Read full reviewOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 20 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
pros
- Same-day funding available
- High maximum loan amount
- No origination fee
cons
- Good credit required
- No prequalification process
- Not available in Vermont
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
pros
- Secured loans available
- Low minimum income requirement
- Scored second in J.D. Power's Consumer Lending Satisfaction Study
- Funds in 1-3 business days
- High close rate on loans through Credible platform
cons
- Origination fees
- No discounts
- Not available in DC, IA, VT, or WV
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
- Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full reviewOverview
Prosper is the only remaining true P2P marketplace in the peer-to-peer lending space that connects borrowers with individual investors for some loans. If you apply for a loan with Prosper, the funding may come from an individual who has chosen to invest in you.
Prosper offers personal loans between $2,000 and $50,000 with terms between 2 and 5 years, and funding as soon as one business day. You can use a personal loan through Prosper for a variety of purposes, including debt consolidation and home improvement. The platform has excellent customer service reviews on Trustpilot, as well.
pros
- Offers peer-to-peer lending (individuals can invest in personal loans)
- Can fund in 1 business day
- Open to borrowers with fair credit
- Low minimum APR
cons
- Origination fee
- Not available in Iowa or West Virginia
- No discounts
Eligibility
Available in all states except IA and WV
Time to get funds
On average, within 5 days of accepting your offer
Loan uses
Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes
Read full reviewOverview
Rocket Loans delivers no-frills same-day personal loans with a generous autopay discount to good-credit borrowers and some borrowers with fair credit. APRs and available loan amounts are competitive — Rocket Loans offers $2,000 loans up to $45,000 loans. Plus, the company offers small business loans if you apply directly through its website.
However, you'll only have a choice between two repayment terms — 3 or 5 years — and origination fees can be as high as 9%. If you have fair credit, you may qualify, but won't be able to add a cosigner or get a secured loan to improve your rate.
pros
- Funding as soon as the same day
- Excellent Trustpilot rating
- Funds can be used for small business purposes
- Offers an autopay discount
- 640 minimum credit score required
cons
- Origination fee up to 9% of the loan amount
- No cosigned or secured loans
- Only two repayment term options: 36 or 60 months
Fees
Late fee, origination fee up to 9%
Eligibility
Not available in IA, NV, WV, PR, MD
Time to get funds
As soon as same business day
Loan purposes
Debt Consolidation, Credit Card Refinancing, Home Improvements
Read full reviewOverview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
- Borrowers with bad credit considered
- Funds as soon as the next business day
- 2-year loan terms available
cons
- No discounts offered
- Origination fee
- Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Read full reviewOverview
Reprise may be an excellent option if you need a loan with bad credit. The lender says it will consider applicants with FICO scores as low as 560, and offers secured loans as well as some cosigned loans to help you qualify. Loan funds can be available the next business day once you’re approved. Plus, the company has a 4.7 Trustpilot rating — indicating generally satisfied customers.
But Reprise is not for everyone. Available loan amounts are relatively low at $25,000, and the minimum repayment term is relatively high at three years. The lender also charges origination fees, does not offer discounts, does not consider income from self-employment, and is not available nationwide.
pros
- Loans for bad credit
- 4.7 Trustpilot rating
- Secured loans available
- Cosigners considered
- Next-day funding available
- Easy to contact
cons
- Does not accept self-employment income
- Minimum 3-year loan term
- Relatively low maximum loan amount ($25,000)
- Origination fees up to 6%
- Not available nationwide
- No mobile app
- No discounts for autopay or direct pay
Fees
$15 late fee except where the state has a different limit (ie. NM), return payment Fees - $20 except where state has a different limit (ie – NM), and no prepayment penalty
Eligibility
Unavailable in CO, CT, HI, IA, ME, MD, MA, NV, NJ, NY, SD, VT, WA, and WV
Min. income
Sufficient disposal income
Time to get funds
1-7 business days depending on loan security type
Loan uses
Credit card refinancing, debt consolidation, emergencies, major purchases, medical and dental expenses, moving expenses, special occasions, unexpected expenses, vacation and travel
Read full reviewOverview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with bad credit considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full reviewOverview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
- Flexible eligibility requirements
- Offers secured options
- Competitive bad-credit loans
- Physical presence
cons
- Availability
- Origination fees
- High starting APR
- Low maximum loan amount
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Read full reviewMethodology
Credible evaluated 31 lenders using nearly 900 data points to find the best boat loans. We began by selecting lenders that offer personal loans specifically for boats or include boats under the purpose of large purchases. We focused on lenders offering boat loans through the personal loans marketplace in the last 12 months. Loan amounts, minimum and maximum interest rates, discounts, funding time, and other considerations also factored into our evaluation. Each data point was verified by a senior editor to make sure it was accurate at the time of publication.
Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.
How much does a boat cost?
According to a 2024 report by the marine industry company Boats Group, new boats sold for $174,000 on average worldwide, while used boats sold for $211,500. Before you keel over at those numbers, bear in mind they represent a global average of boats ranging in size from under 26 feet to over 80 feet.
The typical recreational boater or weekend angler is probably in the market for something more modest and less expensive — a runabout or fishing boat, possibly pre-owned.
Here are general price ranges for some popular types of recreational boats. Remember that prices can vary greatly depending on size, age, features, and manufacturer. Luxury models will have much higher price tags than the ranges below.
- Jon boat (non-motorized, 10-16 feet): $650 to $4,000
- Sailboat (22 feet): $5,000 to $30,000
- Bass boat: $10,000 to $70,000
- Pontoon boat: $18,000 to $60,000
- Runabouts: $50,000 to $100,000

Note
The average amount for a boat loan approved through the Credible marketplace was $22,981, as of April 2025.
If you want to shop online for new or used boats, you can use sites including Boat Trader or Boats.com. You can even bid on a boat on eBay.
Boat loan rates and average FICO scores
Based on Credible personal loans data from March 2024 to March 2025, the average interest rates that borrowers seeking boat loans prequalified for are as follows. Note that the borrowers who saw the lowest rates generally had the highest FICO credit scores, and vice versa.
| | | Average disbursed loan amount |
---|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
How to compare boat loans
Buying a boat can be a significant and years-long investment. As such, it’s important to compare features across loans and loan types. Start with the following:
- Eligibility requirements: Aside from the basic qualifications for a loan (such as credit score, income, etc.), some lenders will also assess the age, value, and condition of the boat before financing it.
- Used boat restrictions: Some lenders may not allow used boat loans, as they can be considered more risky due to age. Find a lender who can finance the boat you want, whether it’s used or new.
- Loan amounts: Depending on the lender and type of loan, you can find loan amounts ranging from less than $25,000 to well into the millions. The right lender can offer the loan amount you need for your new or used boat.
- Collateral: Boat loans are often secured by collateral, such as your boat (or home if you use home equity). Secured loans often have lower interest rates, but the lender can take your collateral if you default.
- APR: The annual percentage rate (APR) accounts for the loan’s interest rate and any upfront fees. The APR is a useful tool for comparing loans as opposed to relying on interest rate alone. APRs for boat loans can range from just under 7% to 36%, depending on your credit and whether the boat secures the loan.
- Repayment terms: You can find varying repayment terms from different lenders, but the standard range for secured boat loans is between 10 to 20 years. Repayment terms for unsecured personal loans typically top out at 7 years, but some personal loan lenders offer up to 12-year repayment terms for boat loans.
- Fees: Expect origination fees with some lenders, especially if you have bad credit. Fees vary, but personal loans may charge an origination fee up to 12% of the loan amount.
- Time to fund: Once you’re approved for a personal loan, you could receive the money to buy it as soon as the same or next business day. Loans that use your home's equity could take a month or more to process, but may also be relatively fast once approved.
- Customer reviews: Read up on customer reviews for different lenders to get a sense of their customer service and reputation. Trustpilot and Better Business Bureau (BBB) are good websites to check out.
What is a boat loan and how does it work?
When you take out a personal loan for a boat, you’ll receive the funds in a lump sum upfront to purchase the boat, or you’ll take delivery of the boat if you finance through a dealer. You’ll then begin making monthly payments for the duration of the repayment term — both the payment amount and interest rate are typically fixed, meaning they won’t change. Some personal loans for boats have repayment terms of up to 12 years.
To qualify for a boat loan, you’ll ideally have a good to excellent credit score (some specialized boat lenders may have a lower minimum), and a debt-to-income ratio (DTI) that's 36% or less. You'll also need to provide proof that you can afford payments, which generally means steady employment with sufficient income. Specialized boat lenders and dealers often require a down payment of 10% to 20% of the cost of the boat and typically evaluate the age, value, and condition before financing, especially if it’s used. Appraisals aren’t generally required for an unsecured personal loan.
Boat loans can be unsecured or secured. While each type of loan can be used to buy a boat, their mechanics are a little different.
- Unsecured boat loans: Unsecured loans like personal loans can be more expensive than secured loans because they typically have higher APRs. But they can be a better choice if you don’t want to deal with an appraisal or down payment. The interest rate you qualify for is based primarily on your credit profile — if you have good to excellent credit, you may qualify for a low APR, especially if you have a low DTI and a strong income. Unsecured personal loans are available from online lenders, banks, and credit unions.
- Secured boat loans: Banks, financing companies, and boat dealers typically offer secured loans. It’s common to secure a boat loan with the boat itself. If you were to default on the loan, the boat could be repossessed. If you finance a boat purchase with home equity, your home would serve as collateral for the loan — you could lose your home if you stop making payments. Secured loans tend to have lower interest rates than unsecured loans since the lender takes on less risk.
Pros and cons of a boat loan
Consider the benefits and drawbacks of getting a boat loan.

Pros
- Fast funding
- Long repayment terms available
- Lower APRs with secured loans
- Can finance a new or used boat

Cons
- Could pay more in interest
- Down payment may be required
- Higher APRs with unsecured loans
- Risk of losing collateral
- More limitations for used boat financing
Pros
- Fast funding: With many lenders, you can expect to receive your funds or take delivery of the boat the same day or within days of applying.
- Long repayment terms available: A longer repayment term gives you lower monthly payments relative to a shorter repayment term for the same loan amount.
- Lower APRs with secured loans: If your loan is secured, the lender takes on less risk and is generally willing to offer a lower APR.
- Can finance a new or used boat: Many lenders offer boat loans for new boats, but you may have to do some digging to find a specialized lender offering used boat loans. However, unsecured personal loans don’t require appraisals and can be a good option for used boat loans.
Cons
- Could pay more in interest: While longer repayment terms give you more time to pay off the loan, you will likely pay more in interest, especially if you have a higher APR.
- Down payment may be required: Some secured boat loans require a down payment of 10% to 20% of the boat’s purchase price.
- Higher APRs with unsecured loans: Without collateral involved, a lender takes on more risk. The lender passes that onto you in the form of a higher APR, which means a higher-cost loan.
- Risk of losing collateral: While a secured loan can net you a lower APR, the risk passes onto you, so if you default, you could lose your collateral.
- More limitations for used boat financing: Some lenders have strict requirements for used boats. You'll likely need to get a used boat professionally inspected by a marine surveyor before a specialized lender will provide the funds. You may be able to get an unsecured personal loan without getting an inspection, but foregoing a used boat inspection is not recommended.
How to get a boat loan
Here are the steps to get a boat loan.
- Check your credit: Before taking out any type of loan, check your credit report for any errors. You can visit AnnualCreditReport.com for a free credit report, and examine it for potential inaccuracies. Fixing mistakes can sometimes boost your credit score.
- Choose your boat type: Do you want to get a sailboat to sail the high seas or are you planning a fishing expedition to catch the largest trout? The type of boat can determine a lender’s decision or impact your rate, so determine what you’re looking for first.
- New or used: Many lenders offer loans for new boats and they’re widely available, whereas used boat loans aren’t as common. You may face additional hurdles to get a used boat funded.
- Save for a down payment: With secured boat loans, you typically must provide a down payment equal to 10% to 20% of the boat’s retail price. This will affect the cost of the loan and how much your monthly payment will be.
- Compare lenders: When shopping around, compare the APR, loan amount, repayment period, and time to fund with different lenders. You may also be able to prequalify to see your rates before applying.
- Prequalify: Prequalifying with multiple lenders won’t impact your credit. But it should be noted that prequalification doesn’t mean you’ll get the loan (and it might not be available for all types of boat loans). Your final rate may also differ after you apply.
- Apply for a loan: Fill out the application and submit. Once you formally apply, the lender will perform a hard credit pull, which will ding your credit temporarily. You may also have to submit additional documentation, such as W-2s, pay stubs, or bank statements, to prove you can afford payments.
- Buy your boat: Once your loan is approved, review the loan documents and sign if the terms are acceptable. Some lenders can fund your purchase as soon as the same or next business day. Some can take up to a week.
Learn More: How To Get a Personal Loan
How to get a boat loan with bad credit
While it may be possible to get a boat loan with bad credit, you will typically pay a higher APR. Try one or more of these strategies to get your boat loan approved.
- Secured loan: An unsecured personal loan might be tough to get approved for with bad credit. Instead, you may want to go for a loan that requires collateral, like the boat itself or home equity.
- Get a cosigner: A cosigner is someone who is jointly responsible for the loan with you and agrees to make payments if you default. This takes some risk off the lender, which can help you get approved or get a better rate. But it could jeopardize your relationship with your cosigner if you make late payments (as these can hurt their credit) or are unable to repay the loan.
- Add a co-borrower: A co-borrower also signs the loan with you, but unlike a cosigner, they have equal access to the funds.
- Lower your loan amount: If a higher loan amount for a more expensive boat is beyond your reach, consider lowering your amount for a less expensive boat.
- Research bad-credit boat loan lenders: You can find boat loan lenders that specialize in lending to those with bad credit. For example, SeaDream may finance loans up to $100,000 with interest rates from 9.95% to 17.99% for bad-credit-borrowers, while Southeast Financial has a specific program geared toward bad-credit borrowers.
Alternatives to boat loans
A loan isn’t the only way to pay for a boat, although it might be the least expensive or carry the least risk. Here are some alternatives:
- Home equity loan or line of credit (HELOC): Tapping into the equity you’ve built in your home for a loan or line of credit could offer some advantages, such as a lower interest rate than a personal loan. However, both alternatives involve using your home as collateral, putting it at the risk of foreclosure if you default. Also, you’re likely to face home appraisal fees and other costs.
- Family loan: Let’s say you have a favorite aunt or uncle who served in the Navy and you think a boat loan could keep the family’s nautical traditions alive. Borrowing money from family isn’t always informal, though. You should sign a written agreement that spells out the terms. Also, IRS regulations require some family loans to charge interest that might need to be reported as income.
- 401(k) loan: Borrowing from a retirement fund to pay for a boat is possible, but probably not the most responsible option. If you change jobs before repaying the loan, the unpaid balance will come due immediately. You’ll also be limiting the 401(k)’s potential growth while the money’s not present in your fund.
FAQ
How long is a boat loan?
Open
Dealers and other specialized lenders typically offer 10- to 20-year repayment terms for a secured boat loan. If you get an unsecured loan, repayment terms may be available up to seven or 12 years, depending on the lender. Several factors can influence the length, such as:
- The age of the boat: This factor typically only applies to used boats. As mentioned, most lenders have a requirement for the age of the boat. Some may also have higher minimum loan amounts and rates based on age.
- Loan amount: If you have a larger loan amount, you may be eligible for a longer repayment period.
- Type of boat: Depending on the materials and features of the boat, you can expect a lender to appraise it differently, which can impact the boat's value and loan amount. For example, a small sailboat would likely have a shorter loan term relative to a yacht.
What is a good interest rate on a boat loan?
Open
Some lenders offer minimum APRs in the 7% range, which would be a very good interest rate if you can get it. But you typically need exceptional credit (an 800 FICO score or higher) to qualify for a lender’s best rates on any type of loan.
LightStream offers some of the lowest APRs of any online personal loan lender. Rates start under 7% APR; the average boat loan interest rate was 9.29%, according to Credible personal loans data.
What credit score do you need for a boat loan?
Open
Credit score requirements vary by lender, and some lenders don’t have minimum credit score requirements. However, you would probably need a FICO score of 540 or higher to qualify for a boat loan from most personal loan lenders that offer them. With a bad or fair credit score, you would likely be offered a much higher APR than someone with good or excellent credit.
With a secured boat loan that uses the boat as collateral or a joint personal loan, a lender might be less strict about your credit score.
Can you finance a used boat?
Open
In some cases, you can. Requirements for used boats are usually more strict than for new ones, and not all lenders offer used boat financing. Specialized boat loan lenders might scrutinize the age of your boat, and may not fund one above a certain age.
It’s best to consult a certified professional marine surveyor for an inspection, as many specialized lenders won’t finance a boat otherwise. Additionally, insurance companies may not provide coverage on a boat that hasn’t been surveyed. A professional marine surveyor can also lend insight into any underlying issues and give you confidence in your buying decision.
Where to get a boat loan
Open
You can get a boat loan from certain online lenders, banks, and credit unions. Prequalify with several lenders, then compare options to dealer financing, if it’s available for the boat you want to purchase.
Can you refinance a boat loan?
Open
Yes, it is possible to refinance your boat. You may have the option of doing so even before your current repayment period ends. When you refinance your current boat loan, the new loan will pay it off. You might want to refinance for a lower APR, to remove a co-borrower, or to change your monthly payment.
Meet the expert:
Barry Bridges
Barry Bridges is the personal loans editor at Credible. Since 2017, he’s been writing and editing personal finance content, focusing on personal loans, credit cards, and insurance.