How to Get a Boat Loan with a Credit Union

An Arkansas summer staple is going out on the lake and spending time with family and friends. Thanks to Arkansas Federal Credit Union, getting a loan for your dream boat has never been easier. In fact, you can apply online in minutes.  

While investing in a boat can be a major financial commitment, we have loans to help make boat-buying a breeze. If you’re looking for a credit union for boat loans, Arkansas Federal is the credit union for you. Apply online today or visit one of our local branches to start the process of getting a boat loan today. 

Types of Boat Loans

There are a variety of boat loans available to first-time and returning boat owners. It’s important to be aware of each option so you can make the best decision for you and your particular situation. 

Secured Loans

Secured loans are backed by some sort of collateral. This means that if you default on your loan, there is something that the bank or credit union can collect as their property. Because your collateral ensures this type of loan, secured loans can have lower interest rates than other boat loan options.

Unsecured Loans

An unsecured loan is considered to be riskier for lenders because they aren’t backed by any sort of collateral. With this type of loan, lenders will typically charge higher interest rates, but it might give you more options with how you are able to use it.

Second Mortgage

This is a more high-stakes type of loan. Choosing to take out a second mortgage means using your house as collateral should you fail to meet the demands of the second loan. A second mortgage might have a lower interest rate than other loan options, but you could lose your home if you default on the loan.

When considering your options for credit union boat financing, it’s important to note that the longer your term, the more interest you’ll pay in total.

When looking for a boat loan, be aware that interest rates will vary from lender to lender. It would help if you did research into credit union boat loan rates to find the best rate available to you.

Difference Between a Loan With a Credit Union vs. A Commercial Bank

It may seem like there isn’t a big difference between credit unions and commercial banks, but there are some major differences, especially when it comes to loans. 

Credit unions are member-owned institutions, which means that they aren’t focused on making profits. Instead, gains made are given back to members in the form of better rates and benefits. 

Commercial banks, on the other hand, are focused on making profits. This means that working with a commercial bank for a loan might mean paying more for your loan. Credit unions tend to be more willing to work with loan applicants and might even be willing to work with people who wouldn’t qualify with commercial banks.

What to Consider Before Applying for a Boat Loan

Before applying for any loan, there are a few important things to consider. Having a good credit score could open you up to better boat loan options. This could mean a lower interest rate or a shorter loan term. If your credit score isn’t the best, it might be a good idea to work on improving your credit score before applying for a loan.

Any other credit you have or may need to take out is important when applying for a loan. If you have a lot of credit, it may hurt your ability to get a good boat loan, and because a boat loan is a larger loan, it might hurt your ability to take out credit in the future. 

Boats can be very expensive to own. Aside from just the cost of buying a boat, it’s important to consider the costs involved with the upkeep and storage of your boat. These additional costs can add up quickly. Before jumping into buying a boat, you should make sure you know you can afford all of the expenses that come with owning a boat.

Apply for a Boat Loan Today

Buying a boat is a major financial investment. Before you decide to buy a boat, it’s important that you’re aware of all of the loan options you have. Arkansas Federal Credit Union offers boat loans with competitive rates and competitive terms so that you can get a boat loan with affordable payments. 
Applying for a boat loan with Arkansas Federal is free, quick, and easy. In fact, you can apply for a boat loan online in under 20 minutes. For more information on the boat loans we offer, you can visit your local branch to speak with one of our loan specialists.