August 2020

Frequently Asked Questions Regarding RV & Camper Financing

It’s no secret that the price of summer items tend to trend down as autumn approaches. Lawn mowers, grills and recreational vehicles may see a drop in their sale prices during August and into the fall.

If you’ve always wanted to purchase an RV or camper, it might be wise to start planning as summer winds down. But what does that entail?

Recreational vehicles and campers are bigger ticket items, and you may have questions you would like answered before committing to the purchase. Here are some frequently asked questions regarding RV financing that you may find helpful.

1. What Is RV Financing And How Does It Work?

RV financing is the term used for how you will be paying for the vehicle. Just like getting a car, that may consist of money you have saved for the purchase as well as obtaining a loan to help you pay for the balance. Start by comparing your income and expenditures to help you figure out your budget, and what you can realistically spend on an RV, right now. Next, we can help walk you through your loan options & qualifications for getting pre-approved, financing rates and timeframe for purchase and repayment. Knowing exactly how much you already have, plus how much your loan would be will help you shop for the RV that fits within your budget.

Use our Budget Calculator to help determine realistic monthly payments towards your new RV.

2. What Is A Recreational Loan?

First Source offers a Recreational Loan, made specifically for this type of purchase. It's great for helping finance your outdoor activities. Try our Recreational Loan Comparison Calculator to help you get a general idea of the numbers. We are happy to answer any questions you may have about getting pre-approved for a Recreational Loan and we'll help you prepare so you go in with the negotiating power of knowing exactly what you can afford.

3. How Will My Credit Score Affect My Chances of Getting a Loan?

As with other loans, your credit score can affect whether you are approved for a loan, as well as the rate you secure. Even a small difference in interest rates can create a big difference in what you pay over the life of the loan. If you are worried that a low score may prevent you from purchasing an RV, we can help advise you on how you might improve it before you fully apply for a loan.

4. What Additional Costs Should I Expect As An Owner?

Consider your destinations and fuel costs, permits to park and camp, insurance, storage during winter, supplies you stock onboard, and of course maintenance. You may also want to consider a down payment. Saving to put money down up front can put you in a stronger negotiating position on the purchase price, reduce your loan amount and help you owe less on the vehicle over time.

Camp Smarter

Begin planning next summer’s big adventure by visiting our Recreational Loans for RV's and Campers page to learn more. Get started with the application process below.

If you’re not ready to apply for a Recreational Loan, and have questions, we are here to help. Call 315-735-8571 to talk about your options or make an appointment with one of our friendly and knowledgeable representatives today.

Credit cards are a powerful financial tool and as the saying goes, “with great power comes great responsibility.” If you are looking to get your first credit card, these tips can help you use it in a smart, financially-sound way. If you abuse your credit card, intentionally or unintentionally, you could find yourself in financial distress.

Credit cards can help build your credit score. Good credit scores can, in turn, allow you to access better loans and mortgage rates, higher limits on future credit cards and more. Credit cards can also damage your credit score if you use them unwisely. Avoid maxing them out, always pay your monthly statement on time and pay more than the minimum if you can. Try to pay in full whenever possible.

1. Consider Becoming An Authorized or Joint User First

Not comfortable with having your own credit card yet? See if a relative will let you become an Authorized or Joint User on their card. If you become one, you will be issued a card with your name on it but the primary cardholder will be held accountable for charges and payments. Some credit card companies may report credit activity for you as the Authorized or Joint User, and if the card is being used wisely by all parties, you could earn good credit yourself.

2. Treat It Like Cash

If you don’t have the money now or won't in the near future to pay off the purchase, you may not want to put it on your card. You'll increase your risk of accruing interest and expanding what you owe. This can put you into debt which can be hard to get out of and hurt your credit score.

3. Pay The Balance In Full Or Close To It Every Month

Make sure you pay off your purchases at the end of every billing cycle. This way, you’ll avoid paying interest, possible late fees and avoid damage to your credit score. Making only the minimum payments will cause the interest to really add up, costing you more money in the long run.

4. Use It To Build Your Credit

When you pay off your balances every month, you establish a positive credit history. You demonstrate to credit agencies and lenders that you can handle the responsibility of credit. This will become important when you want to buy a car, rent an apartment, or buy a home. Your credit score shows how financially responsible you are and is used by those checking to predict your future responsibility. On the flip side, late or consistently missed payments can damage your credit score, making you a higher risk to future lenders.

5. Always Check Your Statements

Unfortunately, credit card fraud is a very real thing. Check your statements every month to make sure there aren’t any unrecognizable charges. If you see a purchase that you didn’t make, report it to the credit card company immediately.

6. Avoid Scams and Fraud: Don’t Share Your Info With Anyone

Credit Cards are private and one way to help you avoid fraud is by never sharing your card information with others. Don’t let others use it, even close friends or family members. Beware of phishing scams where someone calls pretending to be the credit card company and asks you for personal information to “verify who they’re speaking with”, such as the security code on the back or your billing zip code. Your credit card company will already know this information and will not call you asking for it.

7. Look For A Good Rewards Program

A rewards program is designed to give card holders everything from merchandise to miles and even cash back, just for using that card. While cards for first-time users may not have a breadth of rewards available, it can’t hurt to look. Every card’s rewards formula is different, so make sure you understand what your rewards options are before you decide.

Pay Smarter

With a First Source credit card, you get the purchasing power of Visa®, for safe and secure transactions thanks to the EMV chip technology. We offer great options like non-variable rate cards and variable rate cards with reward options.

Learn more about our credit card options and benefits to see if one is right for you. Get started with the application process below.

If you have more questions, feel free to give us a call at 315-735-8571 or make an appointment with one of our friendly and knowledgeable representatives today.

Article adapted from BALANCE Financial Fitness Program.