|I called a bank asking for a boat loan this afternoon and the rep offered me a "Unsecured Personal Line of Credit." Anyone have any experience with this. I'm looking for a $10K loan but most companies won't finance something that low. And if they do, it's some high rate like 11%. Any help is greatly appreciated.|
|I work for a bank. It's going to come down to how good your credit is and your income, for a personal line of credit, but they can run as high as 16%. if you own a home, you can take out a home equity line of credit (HELOC) for around 4-5%, assuming good credit, depending on the equity you have in your house. the boat dealer you buy your boat should go through a bank who finances the deal, and again, assuming good credit, you can qualify for anywhere between a 5-7% loan rate.|
|Definitely do a line of credit on your home instead of a personal line of credit. All interest payments are tax deductable on a home equity line of credit and the interest rate is much lower. Like Joe said, 4-5% vs. maybe 7 or 8% on a personal line.|
|So other than the rate being a bit lower and the interest being tax deductible, I assume there is nothing really too bad about a Personal Line of Credit... please correct me if I am completely misunderstanding this.|
|Check with your local credit union. Sorry Joe.|
|JT since you are right there, my credit union finances new and used boats, RVs, airplanes etc. |
A personal line of credit causes the interest rate to increase because the loan is unsecured. If you finance a used boat try to use the boat to secure the loan to help get the lowest interest rate possible.
|Thanks Bruce, I checked with my credit union and they also finance boats, etc. but they would not finance a boat over 10 years old. I'm looking at a 90 Bu. |