Best Boat Loans for Bad Credit in 2026
Loans for scores as low as 550
| Lender | Best for | Starting APR | Term | Amount | |
|---|---|---|---|---|---|
|
Fast loan decisions | 4.00% | 12 to 84 months | Up to $100k |
Learn more about how we chose the best bad credit boat loans.
Bad credit boat loans at a glance
Best for: Fast loan decisions – Southeast Financial
- Starting APR
- 4.00%
- May provide same-day credit decisions
- Offers boat refinancing
- Offers private-party financing
- Offers joint loans
- Doesn’t finance houseboats or speedboats
- Only lends to U.S. citizens
- Doesn’t offer loans in Alaska or Hawaii
If you’re strapped for time, consider applying for a boat loan with Southeast Financial Credit Union (SFCU) . The company offers loan decisions in as little as three hours, and its long repayment terms make monthly payments for luxury boats more affordable. You can use its loans whether you plan to buy from a private party or a dealership.
However, its boat loans are exclusive to U.S. citizens. You also won’t qualify for a boat loan with the lender if you live on your vessel full time or if it’s a speed boat.
Southeast Financial Credit Union (SFCU) offers a lot of flexibility when it comes to loan requirements, but you’ll need to meet the following criteria to qualify:
- Credit score: 600+
- Annual income: $25,000+
- Citizenship: Must be a U.S. citizen
- Residency: Can’t live in Alaska or Hawaii
- Boat age: No older than model year 2005
- Boat restrictions: No houseboats or speedboats, and can’t have salvaged, Lemon Law, flood or frame damaged title
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
Answer a few questions
Take two minutes to share a few details about your identity and the kind of boat you’re buying.
Compare your offers
We’ll send you offers from up to five trusted lenders. Compare rates and choose the lender offering you the cheapest boat loan.
Get your money
Finalize your loan with your lender, and you’ll be on the water in no time — you could see money in your account in as soon as 24 hours.
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. A cosigner won’t own the boat with you. In essence, they’re putting their credit on the line to vouch for you. 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.
How we chose the best bad credit boat loans
We reviewed over a dozen top boat lenders to determine the five best bad credit boat loan lenders.
According to our standardized rating and review process, the best boat loans for bad credit come from Boatzon, iNet, My Financing USA, SeaDream and Southeast Financial.
To make our list, lenders must satisfy 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.
LendingTree partners with dozens of lenders, but partners and non-partners receive equal treatment in our scoring and review process. Read more about our editorial guidelines.
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 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 ), 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 five 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.