Best Boat Loans for Bad Credit in 2025
Loans for scores as low as 550
Bad credit boat loans at a glance
What is a bad credit boat loan?
Bad credit boat loans are exactly what they sound like — loans that people with low credit scores can use to buy a boat. While many boat lenders only work with borrowers with good credit, a few will extend loans to applicants with credit scores below 600.
Borrowers with low credit scores typically qualify for the highest interest rates, which makes their boat loans more expensive to pay off.
How to find a bad credit boat loan with LendingTree
1. Answer a few questions
Take two minutes to share a few details about your identity and the kind of boat you’re buying.
2. Compare your offers
We’ll connect you with up to five of our lending partners. You can compare rates and choose the lender offering you the cheapest boat loan.
3. Get your money
You’ll fill out an application with the lender, and they’ll send you the money if you’re approved.
Alternatives to bad credit boat loans
Home equity loan or HELOC
Home equity loans and home equity lines of credit (HELOCs) are loans backed by your equity — or ownership — in your house instead of your boat. HELOCs and home equity loans often come with low interest rates, but you might lose your house if you miss your payments.
Paying with cash
If you’re willing to take the time to save up for a larger down payment — or for the entire boat purchase — you can put your money toward the costs of owning a boat rather than high monthly boat loan payments.
Leasing a boat
You can lease a boat if you’re looking for lower monthly payments with many of the same benefits as boat ownership. Just be aware that leasing a boat won’t help you build equity, or ownership, in the boat, and at the end of your lease, you will have to give the boat back.
What to do if you aren’t approved for boat financing with poor credit
1. Improve your credit
The best thing you can do to improve your chances of approval for a boat loan is to work on your credit score. You can go the do-it-yourself route to improve your credit by 100 points in 30 days or try professional credit counseling. Either way, higher scores lead to better odds of approval and lower interest rates.
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2. Find a cosigner
Applying for a boat loan with a cosigner with strong credit will increase your odds of approval. You may also qualify for lower interest rates, especially if your co-applicant has excellent credit. Just know that if you miss your payments, your cosigner’s credit score will take a hit, since they’re also responsible for the loan.
3. Consider co-ownership
Sharing boat ownership — and costs — with a trusted friend or family member could be a smart financial move. You could apply for a joint loan, increasing the likelihood that you’ll qualify. Meanwhile, you’ll lower your monthly payments and the ongoing costs of ownership.
Have an open and honest discussion about expectations before taking on joint ownership of a boat in order to avoid the resentment that often comes with mixing relationships and finances.
4. Look at used boats
Used boats can sell for a fraction of the purchase price, decreasing the total cost of your low credit boat loan. It’s easier to qualify for a smaller loan, so looking at less expensive used models may be your best bet for approval.
Frequently asked questions
Yes, you can get a loan if you have bad credit, but you might have a difficult time qualifying if you don’t have a cosigner or don’t offer a large down payment. Before applying for boat financing with poor credit, consider taking some time to improve your credit score first.
While a few lenders are willing to work with borrowers who have credit scores as low as 550, you’re more likely to get low rates with a score above 670.
Assuming you have bad credit and qualify for an APR of 19.95% (the maximum APR for My Financing USA), your monthly payment will be $578.77 if your loan term is 10 years, $525.78 if your loan term is 15 years or $508.47 if your loan term is 20 years.
Boat loan terms are typically 10 to 20 years, though some lenders may offer longer or shorter options. Keep in mind that the longer your loan term, the more you’ll pay in interest. For this reason, it’s wise to select the shortest loan term you can comfortably afford.
Typically, lenders require that you provide a down payment between 10% and 20% of the total cost of the boat. Some lenders may offer zero-down boat loans, but putting money down will reduce the amount you pay in interest, lower your monthly payment and keep you from becoming upside down in your loan.
Our methodology
We reviewed over a dozen top boat lenders to determine the five best bad credit boat loan lenders. Each of these lenders also satisfied one or both of the following criteria:
- Offered boat loans to consumers with credit scores of 639 or below on the LendingTree platform in 2024
- Confirmed availability to borrowers with bad credit on their website
From there, we prioritize lenders based on the following factors:
Accessibility: Lenders are ranked higher if their boat loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus and offer reliable customer service.
According to our standardized rating and review process, the best boat loans for bad credit come from iNet, SeaDream, My Financing USA, Southeast Financial and Boatzon.