Boat Cash: Use Your Watercraft for a Loan

Rare, expensive, or unique items like boats, yachts, and jet skis carry value beyond their pure market value (the amount you could earn by simply selling your boat). If you've got outstanding loans, you could consolidate them with your aquatic equity at a more favorable interest rate, and save the extra cash for your time on the water. Or, if you want to get some work done in another area of your life, you could earn fast cash with a boat pawns and put it toward your next project. Any kind of boat can work as collateral, and you'll always be able to keep using your watercraft as long as you're making payments.

How to Apply for and Receive Boat Loans

There are just a few rules that apply to boat owners. They are similar to the rules which apply to car title loans, mortgage equity loans, and other pawns - loans that use possessions as collateral. Here they are:

  1. You must own your watercraft free and clear
  2. Your watercraft must be insured
  3. You must agree to make regular monthly payments on your title loan

Apart from these rules, there are a few advantages to using a boat to get quick cash. First, while a lot of lenders will require a credit check before investing in your loan, since your boat is a high-value item, you're more likely to get a fair interest rate with a boat title loan - regardless of your credit score.

Also, with most lenders, you can set up a payment plan based on your monthly income which you can tailor to your needs. With high-value vehicles like a boat, you stand to get more money and lenders will be even more flexible. The more value your item has, the more interest lenders will show in helping you. This is one primary reason people rely on boat title loans!

If you're looking for instructions on how to get started, what you should do is shop around among banks and other lenders, describing your boat in a favorable fashion, and try to find the best interest rate and most advantageous payment plan for your needs. You can do that online by working with a specialist, right here on - it's usually a bit faster than driving from place to place or calling lenders on your own. You can compare offers with one phone call and talk to an expert for advice.

Misconceptions about Boat Title Loans

Most people's main concerns about boat title loans have to do with the amount they'll have to pay for their loans - i.e. their interest rate - and the chance that they could lose their boat if they don't play their cards right. These are legitimate concerns, but with the right precautions, and the right lender, you can keep your vehicle and get a decent rate no matter what happens in the next year.

The only way to lose your vehicle is to default on your loan, meaning that you stop making payments entirely. The best way to avoid default is to make your payments on time, and if something occurs preventing you from coming up with your payment, to get in touch with your lender and ask for a short deferral, or delay. Most lenders will be lenient with you as long as you keep in touch with them. The scariest thing for a lender is a lack of communication, so as long as you're honest with them, and tell them what you need, they should be willing to help you out.

The amount you have to pay each month depends on how much you take out for your boat title loan, how much interest you're charged, and how long you'll be making payments. To minimize your monthly payments, you can take out a longer payment plan, which at a fixed interest rate will cost you more in the long run. For large loan sums, lots of people enter 20-30 year payment plans, and they can be very helpful. But consider how much money you need. The less you can afford to take out in a loan, the easier it will be to finish your payment period.

Earn Cash from Your Boat without Offering Collateral

There are other ways to make money off of your water vehicle without offering it to a bank or lending agency as collateral. For example, a lot of people only use their family boat on vacation, say one month out of the year, when a clear demand for boat rentals exists year-round among vacationers. If you live near a common boating area, you could rent your vessel to interested parties, families, or groups of vacationing friends for decent money. Some people will pay thousands for a single weekend of fun on your vehicle. You should keep a few things in mind about this, though:

  • You will need Boat Rental Insurance
  • Have them sign a release form
  • Look into their criminal background, credit, and intentions
  • Keep some information/collateral from them just in case
  • Check local listings for boat rental rates to determine your price

With the proper precautions, and a little bit of effort into extra insurance, your boat can turn you a good amount of profit in a single year. Even if you don't live near a good boating spot, with a proper hitch you can rent your boat to those who would like to travel to a boating location. You should be careful about potential travel damages, and factor those into your price. However, if you're not interested in trusting other people with your vehicle, you can still make some immediate cash from your boat with a boat title loan.

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