If you’re thinking about buying a boat, you’ll have to prepare for the lending process. Just like buying a home or a new vehicle, you’ll want to make sure your finances are in the best possible condition. When you’re ready, you’ll be able to compare competitive terms from yacht financing companies in Deerfield Beach, FL.
Pay Off Your Credit Card Debt
In addition to your credit score, lenders will also examine your debt-to-credit ratio. This ratio looks at how much of your total credit is still available. For example, if you have three credit cards and each card has a $500 limit, you have $1,500 of total credit. If you owe more than $750 in total on those cards, you have a poor debt-to-credit ratio. Try to pay down those cards before applying for a yacht loan.
Review Your Credit Reports
Improving your credit score is essential since boat lenders rarely approve loans to applicants with scores below 700 points. First, request credit reports from the three main bureaus and review each report for errors. Correcting errors or catching cases of identity theft can help you boost your score right away. Using your credit cards responsibly and paying off charges quickly will also help you boost your score.
Get Pre-Approval Letters
You should apply for loans with several different yacht financing companies in Deerfield Beach, FL. This will help you compare loan terms and rates. In addition to finding the lender with the most favorable terms, having at least one pre-approval letter will help you show the yacht seller that you’re a serious buyer. They will be more willing to negotiate with you when they know you’re ready to buy.