How Can You Finance a Horse?
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
How Do Horse Loans Work?
Is a Horse Loan the Same as an Equine Loan?
Financing Options for a Horse
Secured or unsecured loans Fixed or variable interest Solo or cosigned loans
Loan Terms for Financing a Horse
Credit history and credit score Income Debt to income ratio (your gross monthly income compared to your monthly debts) Loan amount
Pros of Using a Personal Loan to Finance a Horse Purchase
All types of borrowers can qualify. Personal loans are available through different lenders, some of which specialize in working with borrowers who have low credit scores. This means that regardless of what your credit score is, you may be able to get a personal loan large enough to fund your horse purchase. You don’t have to dip into your savings. It’s a good idea to keep enough money in your bank account to cover any potential emergencies. By taking out a personal loan, you’re not using those funds. Better interest rates than credit cards. Credit cards traditionally come with higher interest rates than personal loans. If you don’t qualify for a 0% intro APR card, financing with a personal loan may save you money.
Cons of Using a Personal Loan to Finance a Horse Purchase
It is unnecessary debt. A horse is a luxury purchase. Make sure you can afford to pay back what you borrow. It will increase your debt to income ratio. Taking on debt can negatively impact your debt to income ratio. That could hurt your chances of being approved for and/or getting a good rate on future loan products like a mortgage or car loan. Late or missed payments can damage your credit score. If you are not able to make all your monthly payments on time, your credit score could take a hit.
How Do You Use a Personal Loan to Finance a Horse?
Applying for a Personal Loan for Financing a Horse
Proof of identity Driver’s license Government issued ID Income verification paperwork: Tax returns Pay stubs Bank statements Proof of address: Bank statements Utility bill Proof of insurance
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