Of all investments out there, a boat or Jet Ski is undoubtedly a unique and intriguing one. Not only is it an asset just like your house, but a boat also allows you to explore the wonders of nature, spend more time with your family outdoors, and learn new life skills.
In any case, you’d have to apply for a boat loan to get the funds needed to purchase a boat. However, if your credit score is not up to the mark, you might have second thoughts about it. Thankfully, you need not be distressed! Bad credit boat loan providers exist in Australia to help individuals like yourself get the help you need.
Let’s see how you can go about it.
Start by Checking Your Credit
The common practice across Australia is to consider a score between 300 and 550 as poor credit. So, start by assessing how deep in the waters you are. Now, carefully review your credit report and check for discrepancies or errors.
Often, such errors are responsible for dragging your credit score down. If any, get them rectified to raise the score. This is not to say that you won’t be sanctioned a bad credit boat loan otherwise, but a hike of even 10 points can do wonders.
Circle in on a Budget
The next step is to compare different kinds of boats. Whether you want one for fishing escapades or recreational time with family and friends, you can make your pick.
The amenities on the boat, along with performance ratings, will determine the final price. It’s always better to ascertain your requirements and choose a boat that matches those instead of buying the most trending thing in the market.
Have a Concrete Boat in Mind
It is extremely important that you pick out the boat you wish to purchase beforehand and stick to it. In case of second thoughts, do not apply for a poor credit boat loan yet.
This is because the lending institution will ask you specific questions such as the boat’s model, make, condition, engine miles, etc. So, have a solid answer ready!
Compare Lenders
For any loan, the smart move is to shop around and gauge your options. However, this becomes even more important in the case of a poor credit boat loan.
This is because such loans generally carry a higher rate of interest. So, applying to several lenders will increase your chances of bagging reasonable interest rates. Once you’ve found the ideal lender from the pack, take the process further with them.
Consider the Total Cost
Many loan applicants fixate their minds on down-payment and monthly payments only. While these two are definitely what make up the poor credit boat loan, they’re not the all-in-all.
Check with your lender for other charges, such as loan processing fees, delayed payment charges, etc., to evaluate the total cost of the loan.
Does it Float Your Boat Already?
If bad credit was the sole reason holding you back from purchasing a new boat, this guide should have dispelled all fears. Research, and apply for a bad credit boat loan with a reliable lender.
Don’t forget to account for the cost of owning a boat – operation expenses, fuel charges, maintenance and repair expenses, insurance charges, and moorage costs. Informed choices will make the process easier and streamlined.
