my husband and I would like to purchase a boat in the next month. We have bad credit form past troubles but both have a very good income and are trying to repair our credit. Does anyone know of places that will finance?
2006-07-01 16:31:12 · 2 answers · asked by gmckfanusc 2 in Business & Finance ➔ Credit
Better to save up for the boat and pay cash for a used one. Then start putting gobs of money in savings. Do you own a house? If so, you don't need to worry about your credit score. You should NEVER borrow to buy a depreciating asset (cars, boats, computers). If you ever need a loan for a house, having lots of money in savings will look better than any credit score. All the credit score does is tell the banks how well you manage your money. A large bank balance does that better than your credit score.
BTW - have you had boats in the past? If not, you need to realize that they are giant holes in the water and will suck up every extra penny you have - that's what ours seems to do.
2006-07-02 12:06:53 · answer #1 · answered by homeschoolmom 5 · 0⤊ 0⤋
You'll probably be able to get financing from any regular source, but at a higher rate than what is offered to folks with better credit because of the perceived risk. Same would go for a car or house. You pay for your bad credit through the interest rate you pay.
The boat serves as collateral for the loan and that's why this type of credit is easier to get than others. Of course, just like buying a car or house, the lender may not finance the total cost of the boat, but just what they believe they could recover if you default and they have to repossess it.
2006-07-01 19:25:25 · answer #2 · answered by HoneySuite 5 · 0⤊ 0⤋