How to Qualify for a Boat Loan

Unless you are well off, chances are you cannot purchase a boat outright. You will need to qualify for a loan. When this is the case, there are few things you should line up in advance so that you will be able to qualify for the loan with no problem. Here are some tips on how to prepare for that loan application and get approved with no problem.


Step 1

Obtain a copy of your current credit report. If possible, pull a credit report from each of the three main reporting bureaus. This is because you may not be aware of which bureau the loan institution chooses to use, and there may be line items on one report that do not appear on the other two. Reading your credit report before applying for the boat loan gives you the chance to have incorrect data updated or removed.

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Step 2

Gather documents about your current debts. This will include all outstanding credit card debt, mortgages, along with auto or any other type of loans. The idea is to determine how much of your current monthly income is already committed to other debts.


Step 3

Assemble documentation that prove your currently monthly income. For persons who are employed with a company, your paycheck stubs will include all pertinent information. For persons who are self-employed, an income statement showing your gross income will be required, along with an income/expense statement to show how much you are paying in taxes and what other expenses you have related to your work.

Step 4

Take along copies of your most recent tax returns. These help to also establish your credit worthiness and serve as another means of verifying your annual income.


Step 5

Compile a listing of personal references. Ideally, this will not be just family members, but also others who are familiar enough to offer a positive opinion about the way you conduct yourself. Hearing from personal references that you are reliable and tend to keep your word will go a long way toward helping you get that boat loan.


Never try to enhance the truth about a given situation. Be straightforward about any past financial problems you have had, including what you did to overcome those obstacles. This will present you in a much better light with a loan officer than trying to discount a past issue as being of no real importance.


While you may want a yacht, it is best to apply for a boat loan that will allow you to purchase a boat that is within your budget. Keep in mind that there is always the chance of upgrading at a later date after paying off a few bills and establishing a solid payment record with the bank or loan company.

Things You'll Need

  • Current credit report

  • Most current tax returns

  • Employment or self-employment documents

  • Proof of income

  • List of current creditors and amounts owed

  • Personal references