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Credit score and boat loan interest rates

Written by

Shaun McGowan

Applying for a boat loan and want to know what interest rate you’ll get with your credit score? Several factors can influence your boat loan interest rate and, while many of these differ between lenders, one that never goes overlooked is your credit score.









How your credit score and boat loan interest rates work

Your boat loan interest rate is calculated based on your credit score, which reflects your ability to make repayments as a trustworthy borrower.

The higher your credit score is, the lower your level of risk is as a result and the better your chance at gaining approval and a great interest rate.

Lower credit scores don’t necessarily mean you will only be approved for boat loans with high interest rates, it just means that you’ll be required to provide more supporting information if you want to access a better deal from a lender, or you will have to use a lender that deals specifically in bad credit personal loans.

In short, a higher credit rating just makes it easier to get lower boat loan interest rates - so there’s very little reason not to consider understanding and improving your credit score before applying.

What boat loan interest rate will your credit score get you?

If you are only taking your credit score in to account when applying for a boat loan:

  • Excellent credit scores provide access to the lowest rates on offer.
  • Average credit scores may result in a boat loan interest rate up to 5 per cent higher.
  • Low credit scores almost always result in very high interest rates.

It’s also important to understand that interest rates aren’t the only indicator of a good deal on boat finance, and that boat loan interest rates are determined by several factors, not just your credit score:

  • Your personal credit history
  • The amount you wish to borrow
  • The length of the loan period
  • The value of any collateral - if any - used on the loan
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Important: No matter what your credit rating, you’ll find much better rates when you apply for a secured boat loan vs an unsecured personal loan, as the value of the collateral (the boat) greatly decreases the risk to the lender.

Secured boat loans are for boats 8 years old or less, if you are buying an older boat you will be required to take out an unsecured personal loan.

How to get a better credit score and better boat loan interest rates

If you’re wanting to get a better boat loan interest rate by improving your credit score, you have two main options to consider.

First, you can hold off on making your boat loan application while you take steps to improve your credit score, pay off any defaults or outstanding debts, correct any errors on your credit report, and wait for any negative events to be cleared from your report over time.

The second option is to apply for the boat loan at a higher interest rate, and then refinance your boat loan further down the line once you’ve made consistent repayments and improved your credit score to a higher rating level.

Only you will be able to decide which option is more suitable for your situation.

If you’re unsure of how to progress forward with your application, you may find it helpful to speak to a financial expert or a broker who can assist with your application.

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About the Author

Shaun McGowan from



Shaun McGowan

Shaun is the founder of and is determined to help people pay as little as possible for financial products. Through education and building world class technology. Previously Shaun co-founded and Lend.