Will getting a yacht loan affect your credit score?

When repayments are made on time, every time, loans can be a good tool to use to increase a credit score. However, if you regularly miss your repayments or pay your loan off late, you could see your credit score suffer as a result.

Read on below to find out more about how a yacht loan can affect your credit score.

If you’ve always dreamed of owning your own yacht or sailboat, you’ve come to the right place. Your credit score should not hold you back from making that dream a reality, and with Tiger Finance, it won’t. A bad credit yacht loan allows those with less than perfect credit scores to be approved for a yacht or sailboat loan.

If you’re interested in getting approved for a yacht or sailboat loan, and you don’t have perfect credit, read on below.

Will getting a yacht loan affect your credit score?

Applying for a loan will generally always have an effect on your credit score. However, how your loan affects your credit score depends on you.

If you manage to make repayments on time and have no issues with defaults, you may find that your credit score increases from what it was when you first got approved for your yacht loan. Good repayment history is important for a credit score, and you may see your credit score grow over the life of the loan.

On the other hand, a yacht loan may affect your credit score if you fail to meet your repayments. If you miss repayments regularly, you could see your credit score reduce to reflect the payments you have missed.

If you are late with your repayments, a default could end up being listed on your credit file, depending on how late the payment is. As well as having a default listed, your lender may add late charges to your repayment fees. Before listing a default, your lender must send you two separate notices requesting payment and letting you know the debt may be listed on your credit file.

In both cases, late payments and defaults may harm your credit score. Your repayment history, including any missed payments, may remain on your credit report for two years. Defaults will stay on your credit report for five years, regardless of whether or not you have paid off the overdue amount.

Can a loan improve your credit score?

Being approved for a loan can be one way to improve your credit score, as long as you are able to meet your repayments. You may find that when you make your regular repayments, you see your credit score improve over time.

Having a record of consistent payments can help to improve your credit score over time. If you do have bad credit but you have a loan, making your repayments consistently and on time can improve your credit score with every repayment made. Loans can be used as a tool to increase your credit score as long as you are consistent with paying them off.

Debt does not have to be a bad thing, as long as you’re in control of it. Proving that you regularly pay off your debt shows lenders that you are capable of managing your funds. If you can make at least the minimum repayments due on any loans by the due date each month, lenders will see that you are a reliable borrower.

Where does Tiger Finance come in?

Tiger Finance can have you approved for a yacht loan quickly and easily, no matter what your credit score is. With our same-day approvals and low-interest loans, we can find a flexible loan to suit your needs with no problems.

We have helped countless Australians with both good and bad credit ratings to be funded for their dream yacht. The lending criteria from other lenders can be unfairly strict when you have bad credit, and it can hold you back.

With Tiger Finance, we can help to get you a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved. You won’t find an easier way to get approved for your dream yacht or sailboat.

How we can help

Our loan experts can make the entire process simple and pain-free. We can find you the right loan quickly and easily. If you’re ready to sail away in your new sailboat or yacht, call us today for your free initial consultation with one of our loan specialists.