How to Finance a Boat With No Money Down

If you're ready to get your dream boat and spend all day on the water, you're probably thinking about the fish you'll catch and the sun tan you'll acquire. However, the first thing you need to think about is how to finance the boat. Financing a boat with no money down can be a bit tricky. In the following steps, you'll learn some ways you can accomplish that.


Step 1

Before you're able to finance a boat with no money down, you'll need to check your credit. Lenders will use your credit score information to determine whether you're considered a safe risk or not to grant a loan to, essentially determining whether or not you will be able to receive the boat with no money down. If your credit is above average or excellent, there's a great chance that you'll be able to finance the boat with no money down. You can get a free copy of your credit report at Annual Credit Report. See "Additional Resources" for a link to the website.


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Step 2

Next, determine a budget for your boat. You know what you can afford and what you would rather not spend, so it's up to you to make that decision. Look at some boats and prices and think about what kind of boat you'd really like. Then, create a budget that you will stick to when purchasing a boat.


Step 3

Consider collateral-based loans. Collateral-based loans are a great way to finance a boat with no money down. A collateral-based loan either uses your boat or something else owned by you to secure the loan for your boat. This means that if you should go into default with your boat loan, the bank has the right to take the collateral to satisfy the balance or remainder of the loan. Your bank or the bank you choose can give you more information on collateral-based loans and you can learn more at Wise Geek. See "Additional Resources" for a link to the website.


Step 4

Shop around for a good interest rate. Different banks have different interest rates when it comes to financing and loans. By shopping around, you can receive the best interest rate on your loan, even with no money down. One great place to check the current interest rates, compare, and find the lowest is This will allow you to check not only your personal bank but the interest rates of thousands of other banks as well. From there you can contact the banks to determine whether they will help you finance the boat.


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