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rcttsoul2 02-06-2016 14:41

I need a Bad Credit Boat Loan
 
Iv applied to a few boat loan website and got denied.
The first denial said: We don't loan for Sailboats
The second said you need a 690 Credit score or higher ( mine is 640's )
The third said you qualify for a normal motor boat but you need a 730 score or higher to qualify for a Sailboat, please point me in the right direction.

alctel 02-06-2016 14:48

Re: I need a Bad Credit Boat Loan
 
Could go for a cheaper boat?

HighTemp 02-06-2016 14:56

Re: I need a Bad Credit Boat Loan
 
I am not sure why ones credit score would be valid for a motor boat and not for a sail boat. I thought it was solely based on your previous payment history, then ones current ability and willingness to repay per the terms of the loan agreement.

Did you ask them the reason behind their decision and exactly why 640 is good enough for one and not the other? By their logic, you are a worthy credit risk for a $1 million dollar motor yacht, but too much of a risk for a $200K sail boat.

Something doesn't seem to add up, at least to me, but then again, I am no Banker.

rcttsoul2 02-06-2016 15:03

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by HighTemp (Post 2135144)
Did you ask them the reason behind their decision and exactly why 640 is good enough for one and not the other?

Yes I asked them, they said Sailboats are more risky and more difficult to REPO.

And Im not asking for $200,000
Im only asking for $7,000 or so, this add caut my eye, once I know im approved Ill go look at it, I dont want to wait someones time if I am unable to buy it.
The Sailboat I would like to buy

Phisher 03-06-2016 05:38

Re: I need a Bad Credit Boat Loan
 
Pull your credit report and see what is negatively affecting it. There might be some issues you can fix. 7k is not a lot of money. Get a second job and pay cash!! Boats are very expensive you should do your due dilligence as the boat may need more than 7k in repairs/upgrades.

kmacdonald 03-06-2016 05:48

Re: I need a Bad Credit Boat Loan
 
You should be able to put that on your credit card.

skipmac 03-06-2016 06:11

Re: I need a Bad Credit Boat Loan
 
No sailing isn't just for the rich and elite. I hardly think owning a 22' boat would put one in the class of rich and famous. However, boating does cost some money unless you are one of the lucky few that finds a freebie, fixes it up on their own for nothing and sails on the very, very cheap.

I would caution you that buying the boat is just the beginning. Unless it comes on a trailer you will be paying every month for a place to keep it. There are also lots of other ongoing expenses to keep a boat going so even after the initial purchase you will still be paying.

Boatguy30 03-06-2016 06:12

Re: I need a Bad Credit Boat Loan
 
Personally I think credit ratings are a scam. They are used for so many things beside loans like car insurance rates and even job applications.

And it's easy for a dishonest business to overbill and then turn it into a collections agency. Personally I prefer cash, but getting hit on insurance rates and other things is BS.

Fiveslide 03-06-2016 06:30

Re: I need a Bad Credit Boat Loan
 
The age of that boat will hurt your chances as well. It's 30 years old, different banks have different age limits, but 30 years is getting iffy for all the banks I've ever dealt with.

I love old boats, I have old boats. Like I love simpler, older cars. Banks do not.

If you're serious about buying one, go ahead start setting aside what you think you can afford for a payment every month. Take at least that amount again for a maintenance fund, set it aside. Slip fee, set it aside. Liability insurance, set it aside. Gas money, as little as it may be, set it aside. A little more each month to represent miscellaneous costs of use(bar tab money) and ownership, set it aside. You'll have cash for a nice boat before the year is over.

And there WILL be another great boat when you have cash in hand.



Sent from my XT1080 using Cruisers Sailing Forum mobile app

oldragbaggers 03-06-2016 06:44

Re: I need a Bad Credit Boat Loan
 
If you are a member of a credit union you might have a better chance getting a personal (signature) loan for that amount, or a cash advance on a credit card. But, as other's have rightly stated, that is just the beginning.

jwing 03-06-2016 07:23

Re: I need a Bad Credit Boat Loan
 
If you need to borrow $7000 to buy a boat, you should not be buying that boat. Either save up until you can have the cash, or buy a smaller boat.

rcttsoul2 03-06-2016 07:31

Re: I need a Bad Credit Boat Loan
 
As far as budget goes im covered, im not poor, I can afford a $500 monthly payment comfortably and more if needed, I have also considered buying the Catalina 275 Sport for $80,000 on a 20 year loan the payments would be a little over $500 per month, but to get the loan you need 10% cash down of $8,000 that I would need to save vs. putting $650 down payment and sailing RIGHT NOW, just need yall to point me in the right direction to acquire a loan for an old sailboat for $6,500.

jrbogie 03-06-2016 07:33

Re: I need a Bad Credit Boat Loan
 
i've owned several sailboats since my teens. never had a boat loan. for that matter i've never had a car loan. could be that's partly why i was able to retire in my mid fifties. nobody NEEDS a boat loan.

SouthernPride 03-06-2016 08:05

Re: I need a Bad Credit Boat Loan
 
So true, interesting how the banks have a heavy investment in the credit rating companies.

I love this country, the USA, but we are going, gone ?, downhill fast...:((( more and more and more expats every year.

S/V Illusion 03-06-2016 08:14

Re: I need a Bad Credit Boat Loan
 
Look at it as a good thing. Financially, it's never a good idea to finance a depreciating asset. If you really need a loan to buy a boat, you shouldn't be doing it.

Phisher 03-06-2016 08:27

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by S/V Illusion (Post 2135602)
Look at it as a good thing. Financially, it's never a good idea to finance a depreciating asset. If you really need a loan to buy a boat, you shouldn't be doing it.

EXACTLY!!

valhalla360 03-06-2016 08:48

Re: I need a Bad Credit Boat Loan
 
If you can afford $500/month and coming up with $7k requires a loan, there is something you aren't telling us.

Fibonacci 03-06-2016 08:50

Re: I need a Bad Credit Boat Loan
 
Talking from someone who might have some insight. As a retired Certified Financial Planner - my advise --- very simply---- only buy what you can afford. By "can afford", one should only spend 1/3 of their available liquid assets on a boat (new or used). So whatever cash you are able to get your hands on ONLY allot 1/3 towards the purchase of a boat (sail or motor). Never, never borrow to buy a boat. Unless you have assets that are earning a high interest rate than what the bank/lender is offering you is the ONLY exception. This is just good business sense.

Once you have a boat, you will discover many - many unforeseen expenses (even on a new boat). These expenses add up very quickly, everyone I have encountered have surprise at the unforeseen expenses.

I haven't even mentioned the on-going maintenance costs and operating cost, that you will experience.

Just my financial advice - from someone who has seen it all (other peoples bad financial decisions)!

sailpower 03-06-2016 09:02

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by rcttsoul2 (Post 2135564)
As far as budget goes im covered, im not poor, I can afford a $500 monthly payment comfortably and more if needed, I have also considered buying the Catalina 275 Sport for $80,000 on a 20 year loan the payments would be a little over $500 per month, but to get the loan you need 10% cash down of $8,000 that I would need to save vs. putting $650 down payment and sailing RIGHT NOW, just need yall to point me in the right direction to acquire a loan for an old sailboat for $6,500.

Marine loans aren't like car loans.

Most marine lenders aren't interested in a 7k loan. Minimum used to be 25k. Even then 30 year old boats require high down payments sometimes as high as 30%-40% down.

7k you could put on a credit card cash advance, right? I don't know why you would but that is your decision to make.

Maine Sail 03-06-2016 09:06

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by rcttsoul2 (Post 2135564)
As far as budget goes im covered, im not poor, I can afford a $500 monthly payment comfortably and more if needed, I have also considered buying the Catalina 275 Sport for $80,000 on a 20 year loan the payments would be a little over $500 per month, but to get the loan you need 10% cash down of $8,000 that I would need to save vs. putting $650 down payment and sailing RIGHT NOW, just need yall to point me in the right direction to acquire a loan for an old sailboat for $6,500.

I don't know of any legit boat loan lender that will loan for anything less than 20-25K and even then it depends upon survey value and a good chunk of money down. No lender is going 100% LTV on a 30 year old boat unless they are insane or charging 45% interest..

All lenders I know of require a survey and insurance so your $500.00 per month quickly becomes more $$$ and you've not even dipped into the maintenance & upkeep bucket yet..

For $6500.00 get a home equity line or personal credit line or slap it on your credit card. Pay it back in 13 months...

The easiest answer is called saving your money. Take the $500.00 per month you suggest to be able to spend on a boat, sock it away for 13 months and you now own the boat free and clear, saved interest, and now have $500.00 clams to throw at it each month, in maintenance, and you will.....

a64pilot 03-06-2016 09:42

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by Fibonacci (Post 2135630)
Talking from someone who might have some insight. As a retired Certified Financial Planner - my advise --- very simply---- only buy what you can afford. By "can afford", one should only spend 1/3 of their available liquid assets on a boat (new or used). So whatever cash you are able to get your hands on ONLY allot 1/3 towards the purchase of a boat (sail or motor). Never, never borrow to buy a boat. Unless you have assets that are earning a high interest rate than what the bank/lender is offering you is the ONLY exception. This is just good business sense.

Once you have a boat, you will discover many - many unforeseen expenses (even on a new boat). These expenses add up very quickly, everyone I have encountered have surprise at the unforeseen expenses.

I haven't even mentioned the on-going maintenance costs and operating cost, that you will experience.

Just my financial advice - from someone who has seen it all (other peoples bad financial decisions)!




Read this, then read it again, sleep on it and read it one more time.
Not trying to be a smart a$$, but your way to financial freedom, not slaving for the man, whatever you call it is through this method.
Borrowing money for any reason is a recipe for disaster, once you get ahead enough that your saving and paying cash for everything, it's like you got a 20% raise in pay, cause when your paying cash, you always get a better deal, and your not paying interest, you save both ways.

sailorboy1 03-06-2016 09:45

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by rcttsoul2 (Post 2135564)
As far as budget goes im covered, im not poor, I can afford a $500 monthly payment comfortably and more if needed

well a $7k boat loan is really a personal loan as it is doubtful that would be worth the banks time for a secured boat loan

BUT

If you have $500+ comfortably per month to spend, yet your credit score is 640, I would say your money management needs work. :whistling:

BTW - boats aren't low operational cost toys

Sojurnr 03-06-2016 09:47

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by Phisher (Post 2135612)
EXACTLY!!

My sentiments exactly.

If you can afford $500 a month, why don't you get some plans and start building a modest one? When finished you'll have something you know everything about, the pride of having done it yourself and a debt free boat.

Just my $.02

JK

Cheechako 03-06-2016 10:03

Re: I need a Bad Credit Boat Loan
 
Talk with someone you have a relationship with, your bank, etc.

Sailorbob8599 03-06-2016 10:04

Re: I need a Bad Credit Boat Loan
 
If you are wanting to finance the whole $7k purchase price, then you sure as hell can't afford the boat.
You need to understand, it's not the initial cost of the boat that's expensive, it's the moorage, insurance, maintenance and general upkeep ... which is never ending.
I spent that amount of money last year on sails alone and that wasn't even a full suit for my little 24' cutter. (30' sail plan).
You do intend to look after it don't you? If not, it will very quickly become one of those derelict vessels tied to the dock that nobody ever comes near, and every marina already has a number of those. There are half a doz such vessels on the dock where I keep my boat and it's a god-awful shame. I could take any one of them and with a few weeks hard work, turn them into a good looking vessel again. But no, they sit there and deteriorate more and more every month, the dirt and filth so thick on their decks it's pathetic and yet, at some time in their existence they were somebody's pride and joy but hard times has reduced them to what they are today.

scgilligan 03-06-2016 10:09

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by rcttsoul2 (Post 2135148)
.. and more difficult to REPO.
...

Difficult to repo an asset that tops out at 7Knots and cannot be pulled into an enclosed slip/garage that is less than 50' tall? Seems odd. Lol.
I got that same excuse when buying my previous motorcycle..hard to repo because you can hide it easier...wanted me to have other collateral.

I have heard tell that Essex is good for boat loans, but I have no personal experience with them. I do know that their website says minimum boat loan is something like 10-15K for pleasure boat (used)..interest rates go up with age..and I think they require 690 minimum beacon score also. If you are at 640s, just take that 500/mo and clear up some bad credit..you should be 690 in no time I would think.

I hear all the people saying "buy with cash" etc. and that would be the best way to go, but I understand your predicament also..I have marginal credit due to divorce, etc. but make good money. Good enough to pay the payments without much of an issue. I make those things that I want work out, but have a little more trouble putting together a large sum of cash at once..things come up to take that stash along the way. Does that mean you should not have a boat? Not to me..there are a million reasons I should not have a $22,000 motorcycle, but I make the payments and ride it hard just the same. :thumb:

When I find the way to get a decent boat, whether financed or not, that is what I will do. I'd rather finance enjoyment/happiness than have none at all.

Dave22q 03-06-2016 10:13

Re: I need a Bad Credit Boat Loan
 
Loans on an old boat generally reflect your personal credit much more than the value of the asset. I would be amazed if you could get your loan on a similarly aged motor boat unless it's because your target boat is not trailer-able. I suspect that if you need 7,000 to buy this boat, you may not be able to afford her. You might be better off carefully figuring your budget and buying a trailer-able day sailer.

rcttsoul2 03-06-2016 10:37

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by Dave22q (Post 2135709)
Loans on an old boat generally reflect your personal credit much more than the value of the asset. I would be amazed if you could get your loan on a similarly aged motor boat unless it's because your target boat is not trailer-able. I suspect that if you need 7,000 to buy this boat, you may not be able to afford her. You might be better off carefully figuring your budget and buying a trailer-able day sailer.

The boat I want to buy comes with a trailer, I even called and asked, it has a 4 HP outboard, he says ready to sail right now, he says its in the dock right now, we can go and sail it once you know you have the ability to buy it.

Cadence 03-06-2016 10:59

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by rcttsoul2 (Post 2135564)
As far as budget goes im covered, im not poor, I can afford a $500 monthly payment comfortably and more if needed, I have also considered buying the Catalina 275 Sport for $80,000 on a 20 year loan the payments would be a little over $500 per month, but to get the loan you need 10% cash down of $8,000 that I would need to save vs. putting $650 down payment and sailing RIGHT NOW, just need yall to point me in the right direction to acquire a loan for an old sailboat for $6,500.

If you can afford $500/mo. save it and buy cash in a year.
Then you will have $500/mo. for all of the expenses involved with owning a boat.

ohdrinkboy 03-06-2016 11:00

Re: I need a Bad Credit Boat Loan
 
For the bank, the administration of dealing with a boat loan for $7k is a losing money proposition. With overhead, documentation (boat documentation is not easy), and loan maintenance it just isn't profitable.

Mainesail gave you sound advice.

Captain-Avenger 03-06-2016 11:09

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by S/V Illusion (Post 2135602)
Look at it as a good thing. Financially, it's never a good idea to finance a depreciating asset. If you really need a loan to buy a boat, you shouldn't be doing it.

I might tend to disagree with this. I will be in the market soon to buy a trawler, looking in the neighborhood of $180K. I could easily sell some of my stocks to cover the entire $180K, however my investments are earning more than say a $150K boat loan would cost in interest. Is it wiser to give up higher paying investments and suffering the tax consequences of a large cash out (pretty high capital gains on my investments), or pay the lower interest rate of a boat loan and tax manage my stock sales over several years to manage taxes better? I have an 849 credit score, haven't been late on a payment or bill in over 30 years, and have no idea why they won't give me that last point, so I am looking at one of their better rates.

Some times a short term loan makes sense.

Bertie68 03-06-2016 11:23

Re: I need a Bad Credit Boat Loan
 
I don't know how it's in the US, but here in Spain it's said that there are two kinds of sailors (or in general, boat owners): those that can afford to pay a huge amount for having a boat afloat in the marina and use it two or three sundays a year, and those others that live in some kind of "boat induced poverty" but sail as often as they can.

Doing the math, in my town I'd have to pay about 3000/yr just for the mooring of a 30' boat, and that's quite difficult to justify taking into account the actual sailing time (well, I'd probably spend the whole weekend that way, but the rest of my family maybe it's not so enthusiastic about that lifestyle). Still I don't lose hope...

So that's how it looks in this part of the world, and regrettably I had to chose the 2nd option in the poll :frown:

kmacdonald 03-06-2016 12:53

Re: I need a Bad Credit Boat Loan
 
With todays interest rates it makes no sense to use your own money. Low interest loans are the way to go. Just don't get upside down with a long term.

rcttsoul2 03-06-2016 13:37

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by Captain-Avenger (Post 2135749)
I have an 849 credit score,

Captain-Avenger............ can you Co-Sign for me ?..........
Well I found a local credit union that might finance me with $0 down payment, 6% yearly interest with payments of $197 per month for 3 years, I am sure hoping it gets approved, please everyone, pray for me.

Lepke 03-06-2016 13:56

Re: I need a Bad Credit Boat Loan
 
There are people and banks that make risky loans, but don't expect normal interest rates. Try Craig's list.
I sold a business in 1979. One person trying to get financing found an investment bank in SF. One of the owners was the mayor. They only wanted 3% a week.
Make sure you have good health insurance.

Fiveslide 03-06-2016 14:34

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by rcttsoul2 (Post 2135722)
The boat I want to buy comes with a trailer, I even called and asked, it has a 4 HP outboard, he says ready to sail right now, he says its in the dock right now, we can go and sail it once you know you have the ability to buy it.

That trailer will be nice to have, you can save money on a slip in the winter. But I don't think you will find it practical to launch and retrieve a fin keel Catalina 25 every time you want to sail. It is the fin keel isn't it? You'll probably want to keep the slip, I would.

Sent from my XT1080 using Cruisers Sailing Forum mobile app

Jsta_Rebel 03-06-2016 14:57

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by rcttsoul2 (Post 2135564)
As far as budget goes im covered, im not poor, I can afford a $500 monthly payment comfortably and more if needed, I have also considered buying the Catalina 275 Sport for $80,000 on a 20 year loan the payments would be a little over $500 per month, but to get the loan you need 10% cash down of $8,000 that I would need to save vs. putting $650 down payment and sailing RIGHT NOW, just need yall to point me in the right direction to acquire a loan for an old sailboat for $6,500.

Can't help with a bank, but I can give you an idea how to buy your boat.. There are many people who have the dream of sailing the Caribbean. There are many Americans that go to the USVI (St. Thomas & St. Croix) buy a boat, and start in on fixing her. Then reality sets in one way or another and their dream falls to the wayside for one reason or another. They put the boat up for sale, and it sits for a couple of years with no love. The Lagoon in St. Thomas is full of them as is Vessup bay, Charlotte Amalie and you will even see a couple in honeymoon Bay off Water Island. The people that have these boats are desperate to get rid of them and will take payments especially if you have money to put down on it. Look online in the Virgin Islands Daily News and possibly the Island Trader St. Thomas and you should find what you're looking for. I would also imagine that you could do the same thing I the states if you try. Bottom line is that you sometimes need to think outside the box to make your dreams a reality. Usually you get screwed if you're in a hurry or deal with a bank.. BTW, You do know that the bank will want you to insure your boat if they loan you money on it. Good luck trying to get insurance on an older boat listing the bank as "Payee and additional insured".

Good luck with your dream, and I hope it works out for you better than it does for many whom have tried what you are trying to do.

rcttsoul2 03-06-2016 15:21

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by Jsta_Rebel (Post 2135888)
Good luck trying to get insurance on an older boat listing the bank as "Payee and additional insured".

I got my car insurance company Geico to full coverage insure that boat for $18 per month

Jsta_Rebel 03-06-2016 15:30

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by rcttsoul2 (Post 2135901)
I got my car insurance company Geico to full coverage insure that boat for $18 per month

Try and get Geico to insure anything in USVI or any Island in the Caribbean. Not saying the op is here, but I am, and Geico does t exist here.

StuM 03-06-2016 15:36

Re: I need a Bad Credit Boat Loan
 
Quote:

Originally Posted by jwing (Post 2135558)
If you need to borrow $7000 to buy a boat, you should not be buying that boat. Either save up until you can have the cash, or buy a smaller boat.

Especially if you need to borrow $7000 to buy a $7000 boat!


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