Finova Financial offers a viable alternative to emergency lending, providing a quick loan option via their Car Equity Line of Credit (CLOC) loans. This means you can get a short-term loan or cash advance based on the value of your car.
What Is Finova Financial?
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 of consumers who find it challenging to obtain loans with traditional banking institutions.
Finova Financial Loans
Finova Financial offers short-term loans using your car as collateral. This loan comes with a set 12-month repayment term, interest rates are lower than the national average, and they charge no prepayment or early payoff fees.
For consumers in a financial bind with few options, the CLOC loan can be a practical financial alternative that won’t put them into insurmountable debt. With approximately 70 million Americans spending more than $138 billion on fees and interest, their 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.
How to Qualify for a Finova Financial Loan
The 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:
Credit History
Finova Financial does not require a high credit score or credit history, so you won’t have to worry about being turned away if you have poor credit.
Free and Clear Title
To secure financing, Finova Financial requires that the vehicle have sufficient equity to cover the loan. In addition, the loan applicant must be the owner named on the title, and the title must be free of any liens or encumbrances. Finally, the loan amount depends on 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 procure a loan in your state. In addition, they will require proof of residency to ensure that the titleholder lives in a state where they operate.
Insurance Requirements
Finova Financial requires that the loan applicant has prepaid comprehensive and collision insurance for the loan duration, and Finova Financial must be named as an additional payee. Therefore, 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.
Bankruptcy
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 to Apply for a Finova Financial Loan
Finova Financial uses innovative technology to provide an easy online application process. 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. In addition, the website offers an easy form to request a call back from a Finova Financial representative if there are any discrepancies.
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. In addition, 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.
Finova Financial Prepaid Card
Finova Financial also offers a pre-paid Mastercard that allows you to request a loan when you need it. If you set up a direct debit of your paycheck into the account, you can get paid up to 2 days earlier. With the card, you can easily make purchases, pay bills online, and avoid overdraft fees. In addition, you can withdraw money in over 24,000 free MoneyPass ATMs and reload your card in more than 1,000 locations nationwide.
The funds in your card are FDIC-insured as all your deposits are held at MetaBank, a Member of the FDIC, which also issues the Finova Financial pre-paid card.
If you want to apply for the Finova Financial pre-prepaid card, you can do so on their website; no credit check is needed.
Finova Financial Final Review
For car owners in dire straits, a CLOC loan can be a real lifesaver. Or for people looking to get in their paycheck earlier, and the accessibility of applying for an emergency loan through their prepaid card too.
With the high interest rates and fees out there for emergency loans, Finova Financial steps in to fill the gap for people with poor credit who cannot secure financing through traditional banking institutions.
Although the interest rate is higher than some personal loans or credit cards, the short term of the loan and the 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.
Get Started with Finova Financial
You can visit Finova Financial website to start a CLOC loan application or to apply for a pre-paid card that allows you to request a short-term loan with them at any point. The whole process is completed online so that you can do this from the comfort of your home. Alternatively, they also offer a phone number for customers who prefer to complete the process on the phone or have any more questions about their products and services.
