To get lower boat loan interest rates, know your recent FICO score by obtaining a credit report from the three main credit bureaus, TransUnion, Equifax and Experian. Correct any mistakes, which can decrease your credit score and affect the loan process, suggests Credit.com. If you have a low credit score, aim to increase your score for several months before getting a boat loan.
Find out the required credit scores of different lenders, and make sure your credit score meets their minimum score requirement, recommends Credit.com. Lenders generally offer lower interest rates to borrowers with high credit scores.
Consider getting a home equity loan, which may feature low interest rates as it requires your home as collateral, explains Credit.com. This type of loan lets you use the funds for almost any purpose. Home equity loan payments are typically tax-deductible. However, make sure to make payments on time, as the lender can seize your home if you default.
Compare local boat prices to know the approximate loan amount you need for your boat purchase, advises Credit.com. More importantly, determine the amount you're capable of paying back based on your income and expenses. Contact three or more lenders, preferably different types of lenders such as a boat dealer, a national bank and a peer-to-peer lending service, to discover the best loan terms and interest rates.