Is a bad credit score stopping you from purchasing your dream boat and setting out into the sea? If that is the case, then this article will help you know all about boat financing with bad credit.

Australia has one of the best boat loan programs for people with bad credit issues. With not much hassle, you can qualify for this program and get a chance of getting a boat loan.

Once you know how boat financing with bad credit works, you can then go ahead and purchase your dream boat and sail away. Let’s deep dive into knowing all about bad credit scores and how to improve them.

The Advantages and Disadvantages of a Boat Loan

Boat loans in Australia are issued by boat manufacturers and dealers and sometimes even lenders for people who wish to purchase a boat. These loans are generally secured by the boat. However, many lenders sometimes also offer unsecured boat loans to people who have a good credit score.

Given below are some of the advantages and disadvantages of boat loans that you can consider before going for them.


  • A secured boat loan may offer you lower interest rates.
  • You can get a loan term of around 20 years based on the loan type and value of the boat.


  • Many lenders require a down payment of 10% to more than 20%.
  • The interest rate depends entirely on the type and condition of the boat.
  • Going for a secured boat loan can cause you to lose it.

Things to Consider Before Going for a Boat Loan

Going for a boat loan will always work in favour of you. You can choose to finance your boat in numerous ways, but a boat loan will provide you with safe and secure finance for your brand-new boat.

These three steps mentioned below will help you better understand what you can consider before shopping for a boat loan.

  • Take a Look at Your Credit Score

Your credit score can possibly be one of the limitations in your boat loan or boat financing deal. Firstly, you should check your credit score. The next thing to remember is that different lenders have different standards for credit scores. The general is 700 and higher and is considered good.

It is advisable to get a copy of one of your credit reports if your credit scores are low. This way, you can find out what factors are affecting your score.

  • Finish-Off Other Debts

Apart from your credit, your lender can also consider other factors to determine whether to approve your loan application. They focus on your debt-to-income ratio, which helps them decide better.

To calculate this ratio, you need to divide your monthly financial expenses by your monthly gross income. You can decrease this ratio by paying off your excess debts. Doing so can improve your chances of getting a boat loan.

  • Apply for Prequalification

You can apply for prequalification for a boat loan to make your purchasing process smoother. Having an idea of how you wish to finance your purchase helps ease the process. The only thing needed in prequalification is a soft credit check, which shouldn’t affect your credit scores.

You can apply to several lenders for prequalification and choose the one with the best terms. With this option at hand, you can compare the financing terms of several lenders and their offers.

Final Words

Following the steps mentioned above to finance a boat with a bad credit score is all you need to take a step closer to purchasing that boat you’ve been eyeing for so long! So, go ahead, pick your favourite boat and get sailing!

Make sure you research well before choosing your lender and follow the dos and don’ts of the process.

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