Open an Account
Apply for a Loan
Schedule Appointment
As the weather gets nicer, many people start dreaming about taking the boat out on the water and enjoying good food and conversation with friends or family. But if you don’t already have a boat, this dream can sink quite quickly — especially if you’re unsure whether to choose a boat loan vs. a personal loan. While both are popular options for borrowers, there are some differences between them and features that may make one option better for you than the other.
Understanding Your Financing Options
Boat loans are specifically for financing a boat, while a personal loan can be used for any purchase. If you get a loan directly from a boat dealer, the loan will need to be used to purchase a boat at that dealer. With a boat loan or personal loan through a credit union or a bank, you can purchase a boat from anywhere.
When you’re weighing your options, there are a few things that can have a large impact on your decision you’ll want to pay attention to.
Secured vs. Unsecured Loans
Secured loans require collateral (in this case, the boat), and the value of the boat can affect your annual percentage rate (the cost of the loan, which is the interest and fees). Unsecured loans aren’t backed by collateral and are instead dependent on your creditworthiness.
With a secured loan, if you don’t repay the loan, your lender can seize your collateral. With an unsecured loan, you don’t risk losing the asset because collateral isn’t tied to the loan. However, you will need a good credit score and finances to ensure you get the best offer.
Loan Term
If you’re paying off your loan over a longer period, you’ll have smaller monthly payments, but you’ll pay more interest over the life of the loan. With a shorter term, you'll pay more per month but less interest over time.
Annual Percentage Rate (APR)
This percentage shows the true cost of your loan, which will help you compare your loan options. The rate consists of your interest rate and origination fees, which are calculated yearly. If there aren’t origination fees, then the APR is simply your interest rate.
Interest
This is dependent on your credit score and income. The higher your credit score, the better your rate, terms, and loan amount. Because an unsecured loan is based on your creditworthiness, you may end up paying more in interest if your credit score isn’t optimal.
Down Payment
This is how much you’re putting down on the boat, which can lower your monthly payment and reduce your interest. Typical down payments range from 10-30%. Some lenders may offer loans with no down payment, but keep in mind that this will likely increase your monthly payment.
How To Narrow Down Your Loan Options
Boat loan vs. personal loan: Not sure which loan is right for you? Here’s what to consider before you decide:
- Determine how much your budget will allow for a down payment, monthly payments, and maintenance.
- Decide if you want a new or used boat and how each will impact your budget.
- Consider if you’re looking for the best possible rate or more flexible terms.
- Check your credit score and consider your employment stability — you will need to prove you have a steady income to qualify.
- Know that if you’re a member of a credit union, you may have better rates, a streamlined process, and the convenience of multiple financial products with the same institution.
- Think about how secured loans tend to offer better rates because the boat serves as collateral, but personal loans may offer greater flexibility, such as allowing you to purchase a boat from a private seller.
- Determine if you’re OK with using your boat as collateral. If you don’t want to, you may want to choose an unsecured personal loan.
Boat Loan vs. Personal Loan Rate Comparison
At 7 17 Credit Union, we’re here to help you make confident financial choices with helpful resources and competitive loan rates to support your goals. Knowing how much you can borrow and what it will cost you over time can make planning easier. Here’s a quick look at boat and personal loan options available through 7 17 Credit Union, with example amounts and rates to help you plan.
Boat Loan Rates
As of April 2025, these are the current boat loan rates at 7 17 Credit Union:
|
Amount |
Term |
Interest Rate As Low As |
APR As Low As |
|
$0-$15,000 |
120 months |
8% |
8.3% |
|
$15,001-$25,000 |
144 months |
8.25% |
8.4% |
|
$25,001-$75,000 |
180 months |
8.75% |
8.79% |
|
$75,001-$99,999 |
240 months |
9% |
9.03% |
Personal Loan Rates
As of April 2025, these are the current personal loan rates at 7 17 Credit Union:
|
Minimum Loan Amount |
Term |
Interest Rate As Low As |
APR As Low As |
|
— |
24 months |
7.5% |
8.98% |
|
— |
36 months |
7.75% |
8.76% |
|
— |
48 months |
8% |
8.78% |
|
— |
60 months |
8.25% |
8.88% |
|
$7,500.01–$10,000 |
72 months |
8.5% |
9.04% |
|
$10,000.01–$15,000 |
84 months |
8.5% |
8.97% |
|
$15,000.01–$25,000 |
96 months |
8.75% |
9.03% |
|
$25,000.01 and above |
120 months |
8.75% |
8.89% |
Make Your Boat Ownership Dream a Reality
Financing a boat doesn’t have to be complicated. With the right information and support, financing can be simpler than you think. We’re here to help you explore your options and find what works best for you. Connect with us or stop by a 7 17 branch to learn more.
