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“Can I get a better rate?”

Whenever you’re financing a big purchase like a boat or RV, of course you’re going to want the best terms possible. You’re probably accustomed to the rates you received for your auto or mortgage loan. Recreational loans tend to be a little bit higher, and they can throw some customers for a loop.

Having a high interest rate can lead to you spending a significant amount of money that you otherwise wouldn’t have spent. The idea of paying almost as much in interest as the vessel itself is enough to make any sane person want to vomit. This isn’t something you necessarily have to worry about too much if you have an excellent credit score, but not everyone is so lucky.

It’s a question the specialists here at First Approval Source hear all the time, and we get it! A poor rate can dig at you and cause a lot of irritation. That is why we do everything we can to ensure our customers receive the best rate possible.

What steps can i take?

It may seem challenging to get your interest rate lowered, but it’s not as hard as it looks. Here’s how the experts at First Approval Source get these rates reduced every day.

Find a loan calculator

Before you even start the process of shopping for your loan, it is best to find and use an online loan calculator. A loan calculator allows you to enter the information for your purchase (the amount borrowed, down payment, desired rate, and desired term length) and determine how your monthly payments will look. This way, you can know what your terms would look like at the interest rate that you had in mind. It’s a great tool to use for you to have at least an idea of what you’re looking for when comparing terms from different lenders.

Okay, so now you’ve used your loan calculator, and you know exactly what you want in a loan. Unfortunately, the banks have come back with rates that are too high for your liking. So, what can you do?



Make a higher down payment

The first solution is to make a higher down payment. This may seem obvious, but why? Simply put, making a higher down payment lowers the cost to borrow. The bank sees your loan as less risky when you put more money down. The less money they have to loan, the less risk they have. Having less risk means they can afford to give you a lower rate.

But that might not be a solution for everybody. Making a higher down payment requires you to have more disposable income saved up and ready to spend, which isn’t as easy for some people. You’re not always prepared to spend more than you wanted to up-front. Fortunately, that’s not the only way to get your rate lowered. There are other ways that don’t require you to spend more money up-front than you planned on and allow you to keep that “rainy-day” fund.


Try for a shorter term

Another solution would be to sign for a shorter term. A shorter term means higher monthly payments, but it still reduces the bank’s risk. Like we said before, lower risk = lower interest rate. Of course, this is where you have to be careful. A lower rate doesn’t *necessarily* mean lower overall cost. This would involve a little bit of homework to determine how much less you’d pay in interest versus how much more you’d pay monthly and see if it’s worth it (Your old math teacher would be proud). So obviously, if the terms work out in your favor this way, you should take them! If you have the means to make the higher monthly payment, it is definitely worth doing to have that lower rate.


Applying through multiple lenders

Understandably, there may be some hesitation to do this out of fear of the impact it would have on your credit. This would not be advised very early on in the process, but it’s a smart strategic move once you’re in the final stages of the purchasing process. The easiest way to do this is by working with a financial service provider. For example, First Approval Source works with over 17 different banks and credit unions across the country. We made sure to partner with multiple banks so that we can assist customers with varying levels of credit. Having a relationship with these banks has allowed us to consistently deliver competitive terms for our customers. With years of knowledge and experience, our expert team knows which banks will give you the highest chances of approval, and we let them battle it out to provide you with the best rates possible. Having multiple lenders requires them to essentially fight over you. They want to give you a loan, and they will compete to give you the best rates. Plus, having multiple lenders allows you to easily compare your options and find the best rate and terms that you’d like.


Don’t fret too much over a high rate when you’re looking to finance your newest boat or RV. There are avenues you can take to mitigate it and lower the rate to something you’re happier with. For more tips on your next loan, click here! Apply for a loan today at and receive the terms you desire.

Are you ready for a loan now?

Apply with our online credit application and receive same-day approval with qualified credit