Whether you’re inspired by Ian Malouf’s superyacht Mischief or need a luxurious self-owned water baby, a boat purchase is definitely an option. Now, unless you come from generational wealth, it’s not easy to buy a boat in the blink of an eye with a bad credit score.
So, what’s the solution?
It’s simple – you’ll have to arrange for a borrowing which finances your priceless experience. The main confusion arises when you can’t decide between a bad credit boat loan and a personal debt.
Don’t let your attention run leeway if a boat purchase is on your to-do list!
1. Boat Loans with Bad Credit
The boat loans are specifically designed for each debtor according to the selling amount of the vessel. Additionally, these loans come with different terms and payback conditions for interest rates on the basis of the credit profile of the lender and the boat’s price.
Secured vs unsecured loans for boat purchase
Usually, boat loans are available in two forms, I.e. secured and unsecured loans.
Secured loans require collateral against which a debt is offered. The assurance merchandise for collateral is typically the marine vessel to be purchased. On the other hand, in unsecured loans, credit is offered without any collateral on the basis of your financial profile.
Both the secured and unsecured boat loans consider the entire financial profile along with the debt size. However, secured loans offer you the availability of higher loan amounts with longer repayment periods and lower rates.
But there’s a catch. With secured loans, you forfeit the right to your beloved boat if you default on any payments. In addition, the lender might also require you to make a down payment with cash at the time of sanction.
Unsecured loans, without any collateral, offer a convenient option for bad credit holders with tailored debt solutions.
2. Personal loans
Personal loans are typical debts that can cover a range of specific expenses. For instance, you can get personal debt for medical expenditures, home renovations etc.
Interestingly, you can also get a personal loan to finance your boat purchase with a bad credit score. If you want, you can include the boat accessories’ expenditure in the requested loan amount with these personal loans.
However, it doesn’t offer the same personalized borrowing experience as the specifically designed boat loan. Moreover, unless already specified, personal loans come with a fixed date of repayment. That being said, some lenders offer you an early payout facility and extra repayment options to settle your debt as soon as possible.
Considering a boat purchase with bad credit history may seem like a directionless venture, but it’s not. Depending on your requirements, you can easily acquire a reasonable borrowing sum to own a marine vessel.
In both the personal debt and boat loan, the requested amount can be sanctioned in a secured or unsecured manner. Depending upon your income, the price of the boat and your credit score, the interest rates will fluctuate. However, unsecured loans can be approved much more quickly than secured debt, I.e. within 48 hours.
If you’re leaning towards a tailored experience that considers the purchasing amount of a sailing vessel, a bad credit boat loan must be your choice. However, if you want to cover the other expenses with boat purchases like registration fees etc., choose personal loans without any hesitation.