Finova Financial is a lending institution that prides itself on being a leader in the financial technology industry. Their goal is to make financing accessible for a broad range consumers who find it difficult to obtain financing with traditional banking institutions.
What Makes Them Great?
Finova Financial offers a viable alternative to emergency lending institutions and auto title loans by providing a quick loan option via their Car Equity Line of Credit (CLOC) loans. This loan comes with a set 12 month repayment term at interest rates not to exceed 30%.
For consumers in a financial bind with few options, the CLOC loan can be a useful financial alternative that won’t put them into insurmountable debt. With approximately 70 million Americans spending more than $138 billion dollars on fees and interest, Finova’s car equity loan is a refreshing alternative. In addition, Finova Financial does not charge a fee for prepayment or early payoff; however, they do charge a $75 DMV lien fee and Document Stamp Tax based on the cost of the vehicle.
Do I Qualify?
Finova’s CLOC loan is available to borrowers 18 years and older with a valid driver’s license and a lien-free title to their vehicle. Although they are more lenient than many banking institutions with regards to credit history, they do have some specific requirements of which you should be aware:
Finova Financial does not require a high credit score or credit history, so if you have poor credit you won’t have to worry about being turned away.
Free and Clear Title
In order to secure financing, Finova Financial requires that the vehicle have sufficient equity to cover the loan. The loan applicant must be the owner named on the title, and the title must be free of any liens or encumbrances. The amount of the loan is dependent upon the value of the vehicle, so you should have an idea of your car’s value before applying.
States of Operation
It is important to note that Finova Financial only operates in Arizona, California, Florida, New Mexico, South Carolina and Tennessee, so although you can apply online, you may not be able to procure a loan in your state. They will require proof of residency to ensure that the title holder lives in a state where Finova Financial operates.
Finova Financial requires that the loan applicant have prepaid comprehensive and collision insurance for the duration of the loan, and Finova Financial must be named as an additional payee. Before you submit your application, be sure to contact your insurance company and have the documentation on hand for your coverage. Alternatively, you may purchase a Debt Cancellation Addendum through Finova Financial for an additional fee.
Although Finova Financial does not require good credit for CLOC financing, the loan applicant cannot be in bankruptcy at the time of the application. So, if you are in bankruptcy, wait until the process is complete before submitting your CLOC loan application.
How Do I Work With Them?
Finova Financial uses innovative technology to provide an easy online application process. Simply provide your name and contact information, driver’s license number, and VIN, and you will be provided with a loan amount and APR based on your vehicle’s value. If there are any discrepancies, the website provides an easy form to request a call back from a Finova Financial representative.
When you have reviewed your quote and are ready to complete your application, Finova Financial will require documented proof of title ownership, residency, and income. Be sure that your title is lien-free and that you meet their insurance specifications. If you fulfill all of the requirements in your online application, same day funding is available.
For car owners in dire straits, Finova’s CLOC loan can be a real lifesaver. With the high interest rates and fees out there for title and emergency loans, we are happy to see Finova Financial stepping in to fill the gap for people with poor credit who are unable to secure financing through traditional banking institutions. What we appreciate about Finova’s CLOC financing:
- Easy Online Application
- Set 12 Month Term
- 30% Interest Rate Cap
- No Penalties for Prepayment or Early Payoffs
While we would not recommend this type of loan for someone with good credit, it is a helpful alternative to predatory title loans for people who are in need of temporary assistance. Although the interest rate is higher than some personal loans or credit cards, the short term of the loan and opportunity to pay it off early without penalties make it an attractive option. In addition, making regular payments on your CLOC loan will improve your credit history and allow you to apply for other types of financing in the future.
OK, Let’s Get Started
For more information on Finova’s Car Equity Line of Credit, or to get pre-approved visit their website today. Or else compare Finova Financial to other lenders here.