Industry Partners


“My Rate Is Too High!”

You may have heard about rising interest rates lately. While the RV industry is not immune, there is not necessarily any need to fret. RV loans tend to be a little bit higher than say a home or auto loan,and having a high interest rate can lead to you spending a significant amount of money that you otherwise wouldn’t have spent.

Even with concerns over interest rates, there are a few simple steps you can take to ensure you still receive favorable terms for your RV loan. 

Make sure your credit is healthy

Since RV loans typically come at a higher risk for lenders, they will usally be more selective when it comes to approvals. Ensuring your credit score is at a good level and that your debt-to-income ratio is low can help you obtain approvals at more favorable rates.

Of course, we’d all love to have perfect credit, but that’s not always the case. Fear not, there are places you can go to that will provide subprime RV loans if your credit isn’t excellent. However, you should still be sure to take any steps you can to help your credit, whether that’s paying off previous debt or continuing to make on-time payments. If your credit isn’t excellent, or if you just want to try to get a lower rate, there are still more strategies you can employ.

Make a higher down payment

One strategy 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 strategy 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. 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 loan 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 for your RV loan that you’d like.


Don’t fret too much over a high rate when you’re looking to finance your newest 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.

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