By Alex Noga, Marketing Coordinator at Telhio Credit
Union
Many families are feeling ready to get back out there and do
more with their families this summer. While some might not be comfortable
hopping on a flight and heading to the beach, one thing many families are
looking into is recreational vehicles (RV). RVs are a great way to stay with
your pod of people while traveling to new places. 2021 can be the year to make
up for lost time and make new memories with the family - but if this is
uncharted territory that you're unsure how to navigate, we're here to tell you
all you need to know to finance your first RV.
First things first, you need to set a budget. How many
people need to fit in this RV? What are your must-haves, and what are you
willing to compromise on? These expectations are important to establish upfront
because the more you want, the more expensive the RV will be. Do some research
online or tour RVs in person to get a feel for what you want and how much those
wants cost. Once you know how much you're willing to spend, then you can talk
to your bank about financing.
Having an idea of what you're willing to spend is necessary,
but so is having a good credit score and a comfortable down payment that will
help you secure your future RV loan. The higher your credit score and down
payment are, the smaller your monthly payment and interest will be. Experts say a
credit score in the 700s and at least a 10 to 20% down payment will secure
you a loan with the best interest rate. Though, we highly encourage you to discuss
your options with your lender.
You may be wondering - will this be just like my car loan? Since
RVs are not a necessary item like cars, most lenders will require you to take
out a different loan rather than a typical automobile loan. RVs loans typically
have repayment terms of one to 15 years, while some can go for 20 years. Another
thing to be prepared for is proof of insurance. Most lenders will need proof of
insurance, so make sure you talk to your insurance provider and get enough
coverage that will meet your lender's requirements.
Don't worry - nobody expects you to be an expert when buying
your first RV. Let Telhio Credit Union do the hard work for you and answer any
questions you have. Visit telhio.org/personal/auto-loans or call 614-221-3233 and start
planning your vacation in RV style!
