- Lenders for campers report the loan and each monthly payment to the credit bureaus. If you are late on a payment, the lender reports this to the credit bureaus and the late payment affects your credit score. Your first late payment can lower your credit score as much as 100 points, with each additional late payment worsening your score further. A low credit score will make it difficult for you to get approved for loans in the future.
- Most camper loans are secured loans, meaning that the lender has the right to repossess your camper if you don't pay your loan. Laws in some states allow lenders to repossess as soon as you are late on a payment, whereas other states give you a grace period of up to two months before repossession. If a lender repossesses your camper, it can then sell it and use the proceeds to pay off your loan.
- If the sale of your camper does not cover the full balance you owed on the loan, the lender can pursue you for the remainder of the balance. If the lender gets a court judgment, you could be forced to pay the balance plus fees the lender has incurred during the repossession process. The sooner you pay off this balance, the less it will cost you in interest and collection fees.
- If you anticipate that you will not be able to make a payment on your camper loan, call the lender right away to discuss the situation. If you think you will be able to catch up on payments, let the lender know when to expect the next payment. Otherwise, consider selling the camper yourself and using the proceeds to pay of the loan. If you don't think the sale will produce enough funds to pay the loan, ask the lender about a short sale agreement. In a short sale, the lender agrees to take less than the balance of the loan and not pursue you for the remainder.
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