How to Get Boat Loan Preapproval
Key takeaways
- When you apply for a preapproved boat loan, the lender will do a thorough credit check and send you an offer with the rates you’ll likely get when you apply.
- Your credit score will go down by around five points after you apply for boat financing preapproval.
- You can also prequalify for a boat loan, which won’t affect your credit.
Can you get preapproved for a boat loan?
Yes, some lenders offer boat loan preapproval.
A preapproved boat loan will show you the interest rates, loan amount and repayment terms you’ll likely qualify for with a particular lender. You can take your preapproved boat loan offer to a dealership or use it to finance a used boat.
Boat leases
Did you know? You can get lower monthly payments by leasing a boat as opposed to financing one. Once you finish your lease, you can walk away or choose to buy the boat.
How to get preapproved for a boat loan
1. Choose a boat
Before you fill out an online boat loan application, choose the type of vessel you want and estimate the cost of your boat.
2. Check your budget
Use a boat loan calculator to make sure you can afford your monthly payments. Here’s what you need to know to get started:
- Loan amount: The loan amount will be the cost of your boat minus a down payment of 10% to 20%.
- Interest rate: Boat loan rates start as low as 6.49% as of October 2024, but you’ll pay much more for a bad credit boat loan.
- Loan term: Boat loan terms typically range from 10 to 20 years.
3. Apply for preapproval
When you apply for a preapproved boat loan directly with a lender, you’ll need to provide information about your identity, employment and income. You may also need to provide documents that prove your identity and income, like your driver’s license, tax returns or W-2s.
The lender will do a hard credit pull, which will temporarily knock a few points off your credit score. If you qualify, you’ll get a preapproval letter that you can take with you to a dealership.
Rate shopping tips
Do all of your boat loan shopping within 14 days to minimize the impact to your credit. Multiple hard credit pulls for the same kind of loan will only count as one as long as you do it in a two-week rate-shopping period.
Preapproval vs. prequalification
Some boat lenders offer prequalification rather than preapproval. Both prequalification and preapproval allow you to see potential rates before you formally apply for a boat loan, and neither is a guarantee that you’ll qualify for a loan.
Here are the key differences between prequalifying and getting preapproval:
| Preapproval | Prequalification |
|---|---|
|
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Prequalify for a boat loan with up to five lenders in a few minutes without impacting your credit.
Frequently asked questions
Being preapproved for a boat loan means the lender has pulled your credit report and determined that you’re likely to qualify for a loan when you formally apply.
Your lender will send you the rates and loan terms you’re likely to get. This offer will be valid for a certain period of time, typically two to three months.
Yes, getting preapproved for a loan temporarily causes your credit score to drop by around five points because the lender will do a hard credit pull to check your credit. You can’t get a preapproved boat loan without affecting your credit, but you can prequalify for a boat loan with no impact to your credit score.
Preapprovals generally last two to three months, depending on the lender. A preapproved boat loan offer from U.S. Bank lasts 60 days, for instance.