Saturday, September 3, 2016

RV Loans - Are you Impatient To Move The Process Along? - Stay On A Steady But Sure Path Forward Toward Paying down Debt

                                         Please feel free to post comments and questions at the bottom of this post. 
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What should I do prior and until my RV Purchase? 

Personal finances, loans and other stuff to consider.

If you are like us and have decided to full time RV then you have a lot on your plate to consider. Yes, I am impatient but my wife puts things into perspective ever time I express my displeasure in waiting for a bit.

Consider your personal finances. I maybe know one or two couples that could purchase an RV outright for cash. I am certainly not one of them.  To that end my wife and I are proceeding in a logical progression of knocking down dominoes one by one.

How do you create a better credit score to insure you will get that loan?

Sometimes this is something that can be very hard to do. But consider this, lenders will give you better rates and longer terms with a better credit rating. It isn't just as simple as that rating. First you want to have 100% on time payments to any account you currently have. Next your debt ratio needs to be in the average to excellent range.

If your Debt ratio (credit used) is in the 60% range you are below average. If you want an excellent rating you want to keep your debt in the 30%-35% range.

What does this mean to me when getting an RV loan?

Lenders look at the following things on your credit rating:

On time payments
Your oldest credit line
Your percentage of credit used
Recent inquiries about your credit
New accounts recently activated
Your total available credit

In order to have the best available chance at getting a loan and getting a loan with a good interest rate is of course to pay down your debt.

Paying down debt in preparation for full time RV'ing

Consider your loans and your debt. Which of the loans you currently have can be paid down quickly?

Think about what you will take with you in an RV. What do you really need?  You need clothing, household items, linens, tools and electronics. Your RV will have appliances, entertainment systems, beds, furniture and places to store the things you will be taking along.

That leaves a lot of things you don't need. Do you have a loan for furniture? Pay it off.  How about a second car? Sell it. A revolving charge such as Paypal. Pay it off.

The idea is pay down your debt.

I hope this helps anyone that read this, and I hope you meet your goals so you can get on the road.

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