Bad Credit RV, Motorcycle, Boat Loans in South/North Dakota, and Minnesota

Where Borrowers Find Loan Approvals

Bad Credit RV, Motorcycle, Boat Loans in South/North Dakota, and Minnesota

Today’s post might as well have been called “boys toys loans“, because all of these loans were taken out by men of different ages living in three different States. We are in Minnesota, South Dakota, and North Dakota. We are discussing lenders and borrowers in towns such as Sioux Falls, Rapid City, Sturgis, Fargo, Bismarck, Minneapolis, and we will be visiting a lake known as Mille Lacs Lake.

We have a boat loan, along with a motorcycle loan, and a used RV loan to detail today. This is a fairly long read, which I think is coming in at over 2400 words, so you may not want to read the whole thing in one sitting. If you are interested in getting a loan to buy a motorcycle, RV, or boat, and you have a bad credit rating, you will find this somewhat interesting. All of these loans taken out on these machines, were approved for borrowers who have bad credit scores, but decent work backgrounds and employment histories.

If you are interested in getting approved for an RV loan or a boat loan, or trying to get used RV financing, your situation will be completely unique, I am sure. However, you may find some help if you use the pre-application form at the bottom of the page to make your request for funding known to the lenders who have access to the site.

$65,000 Used RV Loan With Bad Credit

Up in North Dakota, Andrew decided that he and his wife were ready to take on one of their dreams. They needed to borrow $65,000 in order to make their dream of buying a recreational vehicle a reality. He did a lot of research in regards to interest rates from banks, and interest rates from RV dealers. Of course, if he had had really good credit with the banks, the latter option would be better. Unfortunately for Andrew though, his credit rating was very poor and he worried that his bank in Fargo would not approve him. Nevertheless, he decided to go down to his branch (which is the Gate City Bank in Fargo North Dakota on 2nd Ave., North) and talk to a loan officer about getting approved for a used RV loan.

You can see, if you are reading closely, that Andrew actually has two big problems – One, is that he has a very bad credit rating, and in the table below you can see exactly how bad that is (607), and Number Two, he wants to purchase a used RV instead of a new one. It’s always a problem these days if you want to purchase a used RV or boat (or motorcycle, since we are discussing motorcycle loans below as well) because the banks don’t usually feel comfortable about having a used RV down on the loan agreement as the ultimate security and collateral on the note. But nevertheless, Andrew went down to see a loan officer at his branch to apply for credit.

Andrew made his appointment with the loan officer for his lunchtime break from work, and the whole appointment worked out quite well because he had to stop by Thurlow Welding and Machine to pick up some supplies (Andrew is a self-employed welder by trade). Ah ha! You say, another problem for the banks. This is correct, because banks also have a problem with lending money to self-employed applicants, as they associate self-employment with insecurity in regards to monthly income (being self-employed myself, I have never experienced a problem getting credit from a bank, but that’s because we have had a steady cash flow for over a decade now). So anyways, Andrew got to his appointment on time with the branch loan officer down in North Fargo.

He could tell by the questions being asked of him that he was going to be declined for credit – without question. Indeed, the bank declined on his application for $65,000 for a used RV. All three of the above reasons were cited as reasons why the bank couldn’t go ahead and qualify him for the loan. So once this embarrassing moment was over (Andrew, like anybody else, is a little embarrassed walking out of a bank after being declined for credit) Andrew vowed never to ask for a red penny again, or give a bank any more of his hard-earned money in interest payments. He was going to go private.

Somewhere along the line Andrew ended up finding our website and used the application form (at the bottom of the page) to put in his request for a used RV loan. He was ultimately approved for his $65,000 RV loan, but it wasn’t with one of our lenders directly. One of our lenders contacted him about an RV dealership he knew of in Grand Forks, North Dakota, that was giving fairly low interest rates on their financing and they were just about to launch financing for their used RVs. Andrew jumped on the opportunity.

Andrew contacted the RV dealership up in Grand Forks (to those who are not familiar with North Dakota, Grand Forks is straight North of Fargo up through Highway 29/81 which is just west of the Minnesota/North Dakota border) and set up an appointment for the next weekend.

On Saturday of the next weekend Andrew drove up to Grand Forks for his appointment with the RV dealership. After speaking with the salesman, he realized that he was going to be able to buy a really nice use RV for $65,000, and get financing over a long-term. He was told by the sales associate at the dealership that if he purchased an RV from them they would finance it over a 35 year term which is allowed by law because the RV is considered a mobile home, and the banks have to be allowed to lend people money based on a mortgage when it comes to a home.

So we did have a happy ending for Andrew and his wife, and below in the table you can see the particulars of this loan. The next weekend Andrew took possession of the RV and it was in perfect shape (a clean 2009 Gulfstream), and they drove over to Bismarck to visit his brother and sisters. Andrew grew up in Bismarck North Dakota. His entire youth was spent there. They had a wonderful time, and they both felt that this Gulfstream RV was just what they needed.

You will notice in the table that is monthly payment was very manageable at $366.84. The total interest paid back to the lender (which was actually financed by the First Community Credit Union located in Valley City (4th St., Northeast) came out to just over $91,000, with a total pay back of just over $156,000.

Applicant’s Loan Request Data Value
Loan Principal $65,000
Loan Product Type Used RV Loan
Loan Cost Per $100 n/a – 35 year term
APR 8%
Total Interest Paid to Lender $91,213.77
Total Paid Back To Lender $156,213.77
Monthly Payment Amount $366.84
Loan Term/Period 35 year term
Areas/Cities Bismarck, Grand Forks, Fargo
State(s) North Dakota
Country United States
Classification of Lender Private lender
FICO Score 607

$80,000 New Boat Loan With Bad Credit 

The second loan today is in regards to a new boat loan in Minnesota. The borrower in this case lives almost exactly half way between St. Paul and Minneapolis just off of Snelling Ave., North and University Ave., West. Our applicant, James, had recently bought some property up in Garrison Bay which is on the Mille Lacs Lake not far North from Minneapolis. To get there he takes the old Highway 169 straight through Princeton, Zimmerman, and Milaca. No place at the lake is worth having unless you have a boat, and it was always James’s dream to have a boat and the place at the lake.

He had to get financed though, because he didn’t have any cash stashed away to buy a boat outright, especially after he just got a loan for the property. He was going to have to get a secondary loan to the tune of $80,000 for a brand-new Mastercraft boat. He really wanted to have a full-fledged wake boarding boat for the family – his boys aged 12 and 13 were avid wake-boarders.

Just like Andrew above over in North Dakota, James has a bad credit rating with a low FICO score of 567. This is extremely low and this put him in a position where not only banks were going to decline him, even boat dealerships would decline him. The dealerships can only twist arms at the banks so far back. James did try to get approved with the bank that he does business with in Minneapolis called the Associated Bank, but he was declined – politely and professionally, but declined nonetheless. His credit rating was just way too low and his repayment history was a little bit shaky as well. He decided that he to was going to have to try to find some private lending option.

James makes pretty good money as an investment broker, but not as much money as you would think. Most people think that investment brokers are all very rich, when in fact there are millions of them who make a modest living. He only deals with 401(k) investments. Unfortunately for James, his debt-to-income-ratio was also unsatisfactory in the bank’s eyes, and yet another reason for his disqualification of credit.

James found and used the application form below to put in his request for private lending. He got his answer back fairly quickly (in two hours), and began communicating with a private lender who happened to be a boat owner as well, and knew how much the new Mastercraft boats cost, and how these Mastercraft boats hold their value over the years if they are taken care of properly.

They struck up a good conversation, and the lender decided to meet with James at his nearest convenience. They decided to meet for brunch at the Nicollette Island Inn (highly recommended by the way), and casually discuss their options as far as getting private money provided to James so he could buy his Mastercraft boat. The lender in this case works for a small firm in downtown Minneapolis that focuses on consumer level loans to borrowers who have subprime credit, but yet have steady incomes and good jobs. The interest on this kind of a loan is usually quite high, but in this case James got lucky and found a lender who gave him the money for 7% over a five-year term.

In the table you can see the particulars of this loan. Take special note of the total amount of interest paid back to the private lender of $14,230.

Applicant’s Loan Request Data Value
Loan Principal $80,000
Loan Product Type New Boat Loan
Loan Cost Per $100 n/a – 5 year term
Total Effective APR on Loan 7%
Total Interest Paid to Lender $14,230.66
Total Paid Back To Lender $94,230.66
Monthly Payment Amount $1,549
Loan Term/Period 5 year term
Areas/Cities Minneapolis, St.Paul, Rochester
State(s) Minnesota
Country United States
Classification of Lender Private lender
FICO Score 567

$33,000 Motorcycle Loan With Bad Credit

Our third and final loan today comes to us from a little ways the West over in Rapid City, South Dakota. This is a motorcycle loan for $33,000 and in keeping with the theme of the post today, this borrower has a poor credit rating also with a 635 fico score. In this case the borrower wants to buy a brand-new Harley-Davidson from a friend of his who just bought a new Harley-Davidson and claimed bankruptcy. So, he was getting quite a deal here. The applicant (Danny) has long been a biker of modest means. Danny is a carpenter who spends almost all of his free time and money riding motorcycles, fixing up motorcycles, and painting motorcycles with airbrush techniques. He is an artist like you see on that American Chopper show on TV.

Being that the Sturgis Bike Rally (which you can see superimposed in the inset picture) is so close to Rapid City (Sturgis is a very short drive up Highway 79/90/14), Danny has not missed the rally since 1985. He is a longtime participant in the Sturgis rally and gets allot of his business contacts for his part-time work there. Danny was hoping to drive his brand-new Harley into Sturgis for the next rally, and he already had the bike picked out that he was most excited about. The only problem is that his credit score was low at 635 and his employment history is somewhat scattered, as he was unemployed due to physical injury for six months prior to applying for this motorcycle loan.

He did try to get approved with his bank in Rapid City and was turned down as well (Danny’s bank is the Black Hills Community Bank on Mount Rushmore Road, very close to his favorite tattoo parlor called Tombstone Tattoos). Unfortunately Danny, realized that he was going to have a lot of trouble getting approved from a conventional banking establishment anywhere, and not just his own town. He was going to have to find some other method of getting financed.

Danny was adamant about buying this motorcycle and he was adamant about getting approved with some kind of lender, so he was willing to dig a little deeper. He started using the Internet to look for lenders in his neighborhood, that were perhaps private or high interest type lenders. He did find FUSA, and entered his pre-application information in one of the forms (below). He was contacted by a lender (three days later) who actually lives on the other side of the State in Sioux Falls.

This private lender spoke with Danny on the phone and they set up an agreement that was delivered and signed over the next week. They decided not to meet or anything like that. They just sent the paperwork by FedEx and they used Skype to talk to each other long-distance. The lender in this case is a broker who lives and works in Sioux Falls.

The loan amount (or principal) is exactly $33,000, and the lender wanted to be paid biweekly. When calculated out this came to a biweekly payment (every two weeks) of $486, and a total interest payment of over $5000 over a three-year term. You can see this information in the actual loan agreement table found below.

Applicant’s Loan Request Data Value
Loan Principal $33,000
Loan Product Type Motorcycle Loan
Loan Cost Per $100 n/a – 3 year term
Total Effective APR on Loan 10%
Total Interest Paid to Lender $5,013.42  
Total Paid Back To Lender $38,013.42 
Biweekly Payments $486.02
Loan Term/Period 3 years
Areas/Cities Sioux Falls, Rapid City, Sturgis
State(s) South Dakota
Country United States
Classification of Lender Private lender
FICO Score 635