Southeast Financial

RV Finance and Insurance

Here we will provide honest information To help you make the right decisions, when shopping for RV financing.

RV financing plays a big role when shopping for RV’s. You need patience
and some knowledge to come away with the best RV finance rate and over
all a great deal. We will try to give you some RV financing tips.

Once you decide to buy a RV, you need to know what type of RV financing you
are looking for. RV financing is very similar to cars, the good news is
that banks and finance companies look at RV buyers in a positive light,
What you ask?? well history show that 98.5 percent of RV buyers repays
the loan without defaulting.

It is very important that the buyer comes in with a level head and not let
his emotions control the thought process.

When buying a recreation vehicle you have to figure out how long you are willing
to finance your RV. The typical terms are from 8 to 20 years/ Another
aspect to consider is the down payment. As you already know the more down
payment the lower your payment will be, and you possible can get a better
deal with a higher down payment.

Another very important factor to consider is your credit. Your credit can make or
break your deal and your dreams, It is very likely that you won’t be able to get
an RV unless you have very good credit or even above average credit. We will
try to cover more in detail of what to expect with bad credit and pretty much
all your options in RV Financing.

 

Securing Recreational Financing: Understanding Your Credit

In today’s world it is imperative that you understand how your credit can impact your financial choices. It is essential that you know the fundamentals of credit reporting and monitor your credit reports on a regular basis. To obtain a loan, particularly a recreational loan, you must have higher than average credit to secure the best interest rate possible.

Understanding your credit report and leveraging your credit profile can be very difficult. In order to help you better understand your credit Southeast Financial has assembled this comprehensive resource guide to help you better understand your credit report in order to obtain a sensible recreational loan.

STEP ONE: Obtain Credit Reports

The first step to understanding your credit is to obtain and review a copy of your credit report annually. There are many online sources for credit reports including: Fico Scores/Reports , CreditReport.com, and MySafeCredit Each of the sites will let you see your credit scores from the three nationwide consumer credit reporting companies, Equifax, Experian and TransUnion.

 

STEP TWO: Understanding Your Report

Unfortunately reviewing and comprehending your credit report can often be confusing. Southeast recommends that you download the Understanding credit reports brochure at Credit Education , to guide you though the process.

STEP THREE: Ensuring Report Accuracy

After you read the brochure you should have a better understanding of how to read your credit report. The next step is read your report and look for errors. It is imperative that your report reflect an accurate depiction of your credit profile. Mistakes happen frequently and errors are posted to your credit report without your knowledge. You can’t allow this to go unchecked.

If you have been a victim of identity theft or have filed for bankruptcy, it is even more important that you monitor your credit and you act quickly in the event of a discrepancy. To find out more information about identity theft, you may visit a website sponsored by the Federal Trade Commission http://www.consumer.gov/idtheft/ .

Repairing your credit may take some time and effort on your part. A stronger credit report will save you thousands of dollars in interest savings and give you the freedom to secure the financing you need to purchase the recreational unit of your dreams.  We will be happy to recommend a company that can help you with this.

STEP FOUR – Understanding Recreational Loans

What are the key credit report factors taken into consideration when applying for a recreational loan? First and foremost, lenders want to know that your monetary obligations are current and up to date. For example, delinquent accounts, charge offs, and or a history of late payments to your creditors won’t entice a lender to offer a loan on your behalf. If you owe money to creditors, make sure that you’ve paid them off first and ensure that your credit report reflects the payment.

Lenders will not approve loans for those that disregard their financial responsibilities. It’s important to understand that a recreational unit is a discretionary item. Why would a bank lend you money to have fun in a recreational unit if you can’t make your mortgage payment.

Identity Theft Victims

If you’ve been a victim of identity theft, you will need to clear up the matter before applying for a loan. This may require legal council. Please refer to our resource noted it step three. A lender will not be able to make an informed loan decision until this matter is resolved and your credit profile is accurate.

Poor Credit or Bankruptcy

If you’ve filed for bankruptcy or are looking to rebuild your credit, there are lenders that are available to help. Credit unions and sub-prime lending sources are available in these situations. (Note: Most prime lending sources that offer better market interest rates will not finance to someone who has recently filed for bankruptcy. Typically, lenders will require a minimum of 3 years positive credit reestablishment.) Be mindful however, interest rates and loan terms for high risk loans will not match those offered by prime lenders. Typically, these recreational loans have higher interest rates and shorter terms.

Lenders will also evaluate the credit history noted on your credit report to make an informed decision on a recreational loan. They will look at comparable installment credit and duration of that credit history. For instance, a lender would like to see that you’ve had installment loans of equal or greater size, in positive standing, for sometime. This will give the lender peace of mind in knowing that a potential customer can afford a recreational item. Lenders don’t feel comfortable financing discretionary purchases for someone who has limited or no comparable credit in their past. This is just too risky for them. You need to show that you are solid as a rock and your positive comparable credit history will help guide their decision.

Lastly, lenders will calculate the debt noted on your credit report, along with your annual income to produce a ratio of installment debt to income. Typically, lenders require that your debt to income ratio, including your recreational payment, fall within the 30-40% range based on your gross income.

Lenders realize that life is full of uncertainties. For example, if you were to lose your job or become seriously ill - this would require a shift in your monetary expenditures. Lenders feel that a debt to income ratio above this range would increase the risk of default and could cause you financial harm.

Although there are additional factors considered in a recreational loan, you have now been equipped with the essential information pertaining to better understanding your credit and how lenders base their decision on your credit profile.

Southeast Financial is structured to aid you in obtaining the best possible loan based on your credit profile. We know what our lenders are looking for and will work to find you the best recreational loan on the market today.

How to Understand Credit Rating Points

Every consumer who has a credit file also has a credit score that is compiled by adding up a number of points based on his credit rating. While there are actually different types of scores, the Fair Isaac Corp. score, commonly known as a FICO score, is the most commonly used number. While the exact formula by which it is calculated is not public, it is influenced by your credit rating points in several areas, such as bill-paying history and available credit. If you understand these points, you can use them to better understand your credit score.

Instructions

1. Obtain your current FICO credit score from a free website . To understand your credit rating points, it helps to know your score so you can work backwards and evaluate the various factors that go into its calculation.

    2.   Obtain your current credit report from at least one of the three major credit reporting bureaus. The three major bureaus (Experian, Equifax and Transunion) are all required to give you a free copy of your credit report once each year. You will need at least one of these reports to get the information that will help you understand the credit rating points that went into calculating your credit score.

3.  Check the section on bill paying and note whether your credit report contains any negative information, such as late payments and collections. According to Bankrate, the way in which you pay your bills accounts for 35 percent of the credit rating points that make up your score.

4.  Tally up your available credit on all of your open accounts, even if you are not currently using them. Bankrate warns that if you have too much available credit, it can negatively impact your credit rating points because potential lenders will be afraid that you might use your available credit and rack up debts that you cannot afford to pay. Bankrate says that available credit accounts for 30 percent of your credit rating points.

5.  Calculate the amount of time you've had your oldest accounts. Bankrate says that your credit rating points are boosted by old accounts that you've held for a long time with the same lender or credit card issuer. The length of your credit history counts for 15 percent of your credit rating points.

6.  Count the different types of credit accounts to see how many you have of each type. Bankrate says that lenders like to extend credit to consumers who have a wide range of accounts. If your credit is spread out between installment loans and revolving credit cards, you'll get more credit rating points. This mix contributes 10 percent to your credit score.

7.  Count the number of recent inquiries that are listed on your credit report. Every time you apply for a loan or account and the potential lender pulls a copy of your credit report, it will be noted. If you have a large number of applications in a short period of time, lenders will worry that you may be desperate for money or that you are planning to run up bills prior to declaring bankruptcy. Too many applications will bring down your credit rating points. This accounts for 10 percent of your points.

  

    8.  If your score doesn't seem to line up with these five areas, recheck your credit report and see if there is any erroneous negative information.