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Best boat loans of November 2024

Updated Oct 16, 2024

What to know first: The best boat loans offer competitive rates and terms to help you quickly finance a weekend water getaway craft or a dreamboat with an affordable payment. Some lenders offer high loan amounts with long terms for expensive boats. The approval process is mostly dependent on credit, with the lowest rates going to those with the best credit profiles.

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PERSONAL LOANS

LightStream: Best overall boat loan

4.7

Est. APR
6.99- 15.89%
Loan term
2-12 yrs*
Loan amount
$5k- $100K
Min credit score
695
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PERSONAL LOANS

UPGRADE: BEST FOR BUYING BOAT ACCESSORIES

4.7

Est. APR
9.99- 35.99%
with AutoPay
Loan term
2-7 yrs
Loan amount
$1k- $50K
Min credit score
580
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PERSONAL LOANS

Best for bad, low or no credit boat loans

4.8

Est. APR
7.80- 35.99%
Loan term
3-5 yrs
Loan amount
$1k- $50K
Min credit score
300

PERSONAL LOANS

Best for consolidating debt for future boat financing

4.7

Est. APR
8.99- 35.99%
Loan term
2-5 yrs
Loan amount
$5k- $50K
Min credit score
620
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PERSONAL LOANS

PROSPER: BEST FOR FAIR CREDIT BOAT LOANS

4.6

Est. APR
8.99- 35.99%
Loan term
2-5 yrs
Loan amount
$2k- $50K
Min credit score
640

PERSONAL LOANS

SOFI: BEST FOR LOWER CREDIT LUXURY BOAT LOANS

4.7

Est. APR
8.99- 29.49%
with all discounts
Loan term
2-7 yrs
Loan amount
$5k- $100K
Min credit score
300

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Compare boat loan rates from Bankrate’s top picks

Taking the time to get acquainted with all of the best boat loan lender’s terms is a great way to start your boat loan shopping. You may cross some off the list right away because you don’t qualify based on your credit score, or you need a higher loan amount or longer term than some of the lenders offer. 

LENDER BEST FOR EST. APR LOAN AMOUNT LOAN TERM MIN CREDIT SCORE
LightStream Overall 6.94%-25.29% with AutoPay $5,000-$100,000 2 - 7 years 695
Upstart Bad, low or no credit 7.80%-35.99% $1,000-$50,000 3 - 5 years No requirement
Achieve Consolidating debt for future boat financing 8.99%-35.99% $5,000-$50,000 2 - 5 years 620
Upgrade Buying boat accessories 9.99%-35.99% $1,000-$50,000 2 - 7 years 580
Prosper Fair credit boat loans 8.99%-35.99% $2,000-$50,000 2 - 5 years 640
SoFi Buying a luxury boat 8.99%-29.49% $5,000-$100,000 2 - 7 years No requirement

A closer look at our top boat loan lenders

Taking an even deeper dive into our top boat loan lenders, we focus on how each lender differs from one another and why they stand out. When available, you’ll also find data on how Bankrate users use their loans to give you extra insight to help you choose the right lender and loan for your marine-craft financing plans.

LightStream: Best overall boat loan

 

LightStream
Rating: 4.7 stars out of 5
4.7

Overview: Owned by Truist Bank, LightStream has been an online loan marketplace since 2012. It provides loans up to $100,000, more than most of our best personal loan lenders offer.

Est. APR
6.99%–15.89%
Loan amount
$5k– $100k
Min credit score
695

Upstart: Best for low or no credit 

Upstart
Rating: 4.8 stars out of 5
4.8

Overview: Upstart is an online lending marketplace that connects applicants to over 100 banks, lenders and credit unions. It claims its flexible lending model allows it to offer significantly lower rates than a traditional lending model would. 

Est. APR
7.80%–35.99%
Loan amount
$1k– $50k
Min credit score
300

Achieve: Best for consolidating debt for future boat financing

Achieve
Rating: 4.7 stars out of 5
4.7

Overview: While many lenders offer consolidation loans, not many offer a discount just for taking out the loan. Individuals who use at least 85 percent of their Achieve funds to consolidate debt are eligible for a rate discount. 

Est. APR
8.99%–35.99%
Loan amount
$5k– $50k
Min credit score
620

Upgrade: Best for buying boat accessories

Upgrade
Rating: 4.7 stars out of 5
4.7

Overview: Over the last five years, Upgrade made over $24 million in credit available to its customers. The online consumer lending platform is headquartered in San Francisco and opened its doors in 2016. Unlike many of our best online lenders it has multiple offices across America.

Est. APR
9.99%–35.99%
Loan amount
$1k– $50k
Min credit score
580

Prosper: Best for fair credit boat loans

Prosper
Rating: 4.6 stars out of 5
4.6

Overview: Prosper started in 2005 as an online peer-to-peer lender. It specializes in low-interest loans and is the only peer-to-peer lender in our fleet of best boat loans. In almost 20 years, the company has connected customers with $27 billion in loans. 

Est. APR
8.99%–35.99%
Loan amount
$2k– $50k
Min credit score
640

SoFi: Best for buying a luxury boat

SoFi
Rating: 4.7 stars out of 5
4.7

Overview: SoFi is an online lender offering a suite of member benefits and competitive loan products. It's one of our newer boat loan lenders and was founded in 2011 by Stanford graduates. Since then, it's become one of the most popular companies in the personal loan marketplace with over 7.5 million members. 

Est. APR
8.99%–29.49%
Loan amount
$5k– $100k
Min credit score
300

What is a boat loan?

A boat loan is financing you take out to buy a new or used watercraft. It’s typically an installment loan, meaning you receive all the funds at once and make fixed payments for a set period. The loan may be used for just the boat itself, or you can finance all the bells and whistles you need for fishing, water skiing or entertaining. You can take out an unsecured personal loan to buy your boat, or secure a loan on your boat through a dealership or bank.

Types of boat loans

The lenders featured on our rate table mostly offer unsecured personal loans to buy boats. An unsecured loan doesn’t require collateral, and generally comes with higher interest rates than secured loans because the lender doesn’t have any collateral to sell if you default.y pose a higher risk to the lender. They may be easier to get, especially if you’re buying an older used boat, since the lender doesn’t vet the boat to approve your loan. 

You don’t need a down payment and funds at some lenders may be available the same day you apply. However, fees may be higher, and repayment terms at most lenders are not more than seven years. That could make your payment higher than a secured loan option. 

Secured boat vs unsecured boat loan: Which is best?

When a secured boat loan makes sense

  • You want the most competitive rates.
  • You have high credit scores and strong income.
  • You want a longer term than unsecured personal loans offer.
  • You have the cash for a down payment.
  • You’re buying a brand new boat.

When an unsecured boat loan makes sense

  • You don’t qualify for dealer boat financing.
  • You have some bumps in your credit history.
  • You’re buying a used boat that dealers won’t finance.
  • You don’t have cash for a down payment.

Pros and cons of getting a boat loan

Green circle with a checkmark inside

Pros

  • No down payment for unsecured personal boat loans.
  • Terms of up to 20 years for secured loans or 12 years for unsecured.
  • No lien on the boat so it can’t be repossessed if you default.
  • Fast cash if you’re competing for a used boat purchase with a private owner.
Red circle with an X inside

Cons

  • Unsecured loan origination and administrative fees may exceed 10 percent.
  • A large payment could affect your ability to qualify for other debt.
  • Rates could be higher than credit cards for bad credit borrowers.
  • Secured boat loan lenders may not approve your boat if it’s an older used model.

Is a boat loan a good idea?


Nationally recognized student financial aid expert

If a boat is a luxury, as opposed to a necessity, buying a boat with a boat loan may not be a good idea. You may have trouble making the loan payments. The value of the boat will depreciate over time. There will also be ongoing costs involved in keeping the boat even if you don’t use it, such as insurance, maintenance and storage. You may be better off renting a boat if you don’t use the boat very frequently.

Senior Loans Writer

Committing to a boat loan makes sense if you’re more than just a once or twice-a-year weekend water warrior, and don’t have the cash to buy one outright. Like any recreational purchase, make sure you budget for the initial and ongoing costs. You’ll need some way to get the boat to the water, a place to store it and will spend money to maintain it before, during and after your local boating season. Pick the shortest term you can afford so you can enjoy payment-free boat ownership sooner rather than later. If you have a tough time finding a secured loan for an older used boat, an unsecured personal loan may be a good alternative.

How to get a boat loan

Getting a boat loan can be a quick and relatively painless process if you know what to expect. Before starting your search, have a clear idea of exactly how much you need to borrow, what you need from the loan and the rate you can afford. 

  1. Create a budget: Calculate how much boat you can afford before you start the process. Besides the monthly payment, consider how much cash you’ll need for a down payment if you plan to buy new from a dealership. If you can’t afford to own and maintain a boat or only want to use it once or twice a year for a few days, consider renting a boat instead.
  2. Check your credit score and employment stability: Like any loan, the best credit scores will get you the lowest rates, largest loan amounts and longer terms. You’ll also need to document a steady income to qualify.
  3. Decide on the type of boat you want: A new boat will typically come with a high price tag, a down payment requirement and a secured loan. If you’re buying used, it may be easier to budget for an unsecured loan since the loan isn’t based on the boat’s features. 
  4. Shop around: Look at multiple lenders before completing full applications. Make sure you meet the basic credit score requirements and that the lender offers a loan for the amount you need. From there, create a list of the top three to four lenders. 
  5. Prequalify: Find lenders that allow you to prequalify first. Prequalification is a process that allows you to check your predicted interest rates and approval odds without any negative impact on your credit score.
  6. Compare offers and apply: Banks, credit unions and marine dealer finance companies usually require that you be present for certain portions of the process. After applying, most lenders let you know within minutes if you’re prequalified. Funding timelines will vary by lender and loan security.
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Where to get a boat loan

Find out where to get the best boat loan.

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How to compare boat loans

What makes a lender "best" for a boat loan depends on your plans for boat ownership. Look at these factors when choosing the best boat loan lender.

  • Learn the lending requirements: Know the lender's credit score minimum, fees, loan amount range and loan terms before you apply.
  • Used boat restrictions: Check the lender's age and model requirements beforehand. Secured lenders may not finance a preowned boat, making unsecured loans a better choice.
  • Member benefits: Banks and credit unions may streamline the boat loan process or offer rate discounts if you’re a regular customer.
  • Rates and terms: APRs and terms may vary significantly between secured and unsecured lenders. A high credit score and stable income typically get you the best rates and terms.
  • Fees: Consider fees when applying for a secured or unsecured loan, which can run into the double-digits at some lenders.

Alternatives to boat loans 

There are other ways to finance a boat or cover additional costs like repairs. Keep in mind that these options could put you at risk of losing your home, since they are both secured by your home. 

  • Home equity loans can also be used to finance a boating-related purchase by securing a loan against your house. Home equity loan rates are usually fixed with terms that can be spread out for 30 years. One major drawback with this choice is by tying your home’s equity for the boat purchase, you risk losing your home, or netting a much smaller profit if you have to sell the home.
  • Home equity lines of credit (HELOCs) are like credit cards secured by your home, and may be a good option if you have several boat-related costs to cover over time. You can use, pay off and reuse the line of credit as often as you wish during the draw period. The payment is only based on the amount you’ve used. 

Frequently asked questions about boat loans

How we made our picks for best boat loans

Bankrate's trusted personal loans industry expertise

48

years in business

30

lenders reviewed

20

loan features weighed

665

data points collected

To select the best boat loans, Bankrate’s team of experts evaluated over 30 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories: