Skip to main content

A recreational vehicle, commonly known as an RV camper, is a unique hybrid between a car and a home. RVs are an efficient and exciting way to explore the country without undergoing the hassle of taking flights. What is more, you are assured of built-in accommodation at any location you choose to visit.

However, RVs come at a high price, so consumers take advantage of RV loans to finance these large and one-of-a-kind purchases. If you feel you are ready to buy an RV, prepare yourself for success by following these steps first, as outlined by Bankrate.

Two RVs parked on a concrete pad.
RV | Getty Images

Come up with a budget

Before going shopping, it is vital to have a clear understanding of what you will need in your RV and what is pocket-friendly to you. Depending on how much money you are willing to spend, you can find an RV for as low as $5,000 or more luxurious ones at more than $1 million.

Evaluate how large you want your RV to be. Smaller campers are cheaper than larger ones. You may need a big one if you have a large family. Remember to include recurring costs such as insurance, fuel, storage, and maintenance.

Save up for a down payment

Be ready to pay at least 10 to 20 percent of the purchase price as a down payment on your RV purchase. A larger down payment means lower monthly installments and vice versa. While the interest rates depend on your credit alongside other factors, most current rates start at 4.29 percent.

Evaluate your credit score

 Your credit score is a crucial indicator that helps determine the total amount of money you will pay for an RV.  It is essential to know your credit score beforehand and take the necessary steps to improve it.

A high credit score will give you low interest rates for your RV loan. You will get the best rates with a credit score in the mid-700s or way higher. Because you will not be informed in advance of the report used to gauge your credit score, you should run your credit score with Equifax, Experian, and TransUnion.

Decide on the type of loan you want

There are two types of loans that you can choose from unsecured personal loans and secured vehicle loans. With an unsecured personal loan, you get fast funding, and you do not incur the risk of having your RV repossessed in case you fail to pay your installments on time.

IfHowever, ifou do not have a good credit score, secured vehicle loans may be an ideal choice for you. These loans have lower interest rates and are easier to get. Bankrate personal loan calculator can help you determine the best personal loan for you.

Compare offers from different lenders

It is always wise to compare lenders. You can try banks, online financing companies, or credit unions. Better still, you can apply with the company you are purchasing the RV from. The terms of the loan may also change from one lender to the next. It may come as a surprise that you can save thousands of dollars by looking for the best deal on financing.


Like you would negotiate for other significant investments, make sure to negotiate prices and the terms of the loan with your lender. Carry out extensive research on reputable sites such as RVT and RV.

Do not shy away from asking for the price that best fits your pocket. Also, compare prices beforehand so that you can know what other lenders are charging.


The Different RV Classes, and Which You Should Buy