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An In-Depth Wells Fargo Auto Loans Review: What You Need To Know

Taking out a car loan comes with making important decisions. That is why this Wells Fargo auto loans review will provide you some essential details that you must know and should carefully consider before signing any car loan document from the company.

Wells Fargo Auto Loans Review

Based on an Experian study published in March 2020, the American people do already have an existing $1.3 trillion in auto loan debt as of 2019, which is an 81% increase as compared to how much it was back in 2009.

Furthermore, to date, Americans owe more by average as compared to a decade ago. In fact, the average debt is $19,231 already, which has increased by 25% from 2009 as well.

Meanwhile, according to a study by the Federal Reserve, around 35% of American adults rely on an auto loan to pay for car purchases in the same year.

Although the increase of the number of American people taking out a car loan seems to continue this year and the years to come, according to a Finder article, “the percentage of Americans with car loans has actually decreased over the past few years.

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Nevertheless, one thing’s for sure – Americans do get auto loans to be able to purchase vehicles that they have been eyeing for.

Now, similar to any other loans out there, there are a lot of lending companies or financial institutions that provide auto loans. In fact, the industry is pretty much competitive.

Among the financial institutions that offer auto loans is Wells Fargo. Yes, it is one of the very well-known banks in the country.

But just like what we always say whenever we make reviews, as borrowers, we owe it to ourselves to research before we deal with any lending company or financial institution. It is our responsibility to know the details and be informed to avoid regretting it in the end.

Having said that, in this Wells Fargo auto loans review, we are going to provide you some if not most of the details that we though borrowers need to know before signing any auto loan document from the said financial institution.

In particular, we are going to provide you answers to the following – most commonly asked – questions:

  • What is Wells Fargo?
  • What auto loan products do Wells Fargo offer?
  • What do borrowers need to know about Wells Fargo auto loans?
  • Who qualifies for a Wells Fargo auto loan?
  • How to apply for a Wells Fargo auto loan?
  • What are the pros and cons of Wells Fargo auto loans?

WHAT IS WELLS FARGO?

Wells Fargo and Company or simply known as Wells Fargo is an American multinational financial services company.

While it is headquartered in San Francisco, California, the company does have central offices across the United States.

Based on its market capitalization, Wells Fargo is the world’s fourth-largest bank. More so, it is ranked as the fourth-largest bank in the US based on total assets.

As earlier mentioned, Wells Fargo is a multinational financial services company. It particularly engages in banking, investments, insurance, mortgage, as well as consumer and commercial finance.

Furthermore, the financial institution operates through various segments, which include Wholesale Banking, Community Banking, as well as Wealth and Investment Management, and many more.

The Community Banking segment in particular offers a complete line of financial products for both individual consumers and small businesses, which include checking and savings accounts, credit and debit cards, as well as student, small business, and automobile lending. The latter being our highlight in this review.

By the way, recently, the bank was involved in an auto insurance scandal, which in a way tarnished the bank’s reputation.

If you want to know more about it, and how the company managed such a challenge in their business, watch the video below by The Young Turks:

WHAT AUTO LOAN PRODUCTS DO WELL FARGO OFFER?

Wells Fargo is definitely one of the biggest rather largest auto lenders in the country today.

But although it is known to have a really good reputation when it comes to the products and services it provides, as borrowers, it is important that you still look into the details — in this case, about what particular auto loan products does the company provides.

First and foremost, it is important to take note that starting annual percentage rates (APR) will be based on the lender’s credit scores and the amount of income and debt he or she has.

Wells Fargo offers a variety of auto loan products, which include the following:

  • New Car Financing – This product is available for those who want to buy a new car directly from a dealer. Generally speaking, this does have a fairly low starting APR — somewhere around 4%.
  • Used Car Financing – This product is ideal for people who are either planning on buying a used car from a dealer, or those who are opting to buy from a private car seller. If you choose to buy from a private seller, the ARS is usually around 7%.
  • Lease Buyout Financing – This product is applicable to those who leased a car and eventually decide to keep it by the end of the lease term. If you opt to buy the car instead, the APR usually are close to 4.5%

While it does offer a good variety of auto loan products, unfortunately, Wells Fargo does not offer auto loan refinancing for borrowers who have an existing car loan but are not satisfied with their current rate.

You see, based on the firm’s list of auto loan products, as a car buyer or as a borrower, you really also need to take time to consider what kind of product you will go for. If we are going to base it on APR though, buying a new car does have better rates. But again, the final rates will depend on your qualification, particularly, your creditworthiness.

So, the better your credit score is, the more likely you are to get better rates.

WHAT DO BORROWERS NEED TO KNOW ABOUT WELLS FARGO AUTO LOANS?

As we mentioned earlier, this Wells Fargo auto loans review will provide you with important details you need to know before applying for an auto loan from the firm.

Apart from APR, there is actually more information that you, as a borrower needs to know to avoid confusion or worse, regretting the decision you made.

In particular, we are going to provide you information on the following:

  • Loan Amounts
  • Interest Rates
  • Loan Terms
  • Fees and Penalties
  • Discounts
  • Disbursement of Funds
  • Limitations
  • Other Information

Now, let’s get to it one by one —

Loan Amounts

While it is important to have a specific amount in your head, it is also important to consider the loan amounts offered by the lending company or financial institution you are looking for. By doing so, it helps you reconsider your options, or you can stick to it and just specifically look for a lender that could cater to your needs.

At Wells Fargo, it is important to note that the funding a borrower gets from an auto loan depends on a number of factors including credit score, credit history, as well as the type of car the borrower is eyeing for.

Wells Fargo, however, provides funding that starts from $5,000 and without an upper limit. Please take note, though, that the amount borrowed will depend also on the state you are from.

But technically, compared to other lenders, Wells Fargo definitely has one of the best and most flexible loan amounts.

Interest Rates

Another important thing to factor in when looking for an auto lender is the interest rate. Every lender does have their own rates and qualifications on specific rates.

However, as a general rule, people with high credit scores usually end up having the best rates possible. Meanwhile, borrowers with fair or poor credit score get a higher interest rate.

The company’s auto loan rates usually range from 0% to 11%, with an average of 4.99%. But for your reference, here’s what APR you can expect based on auto loan type:

  • New Car Financing – around 4%
  • Used Car Financing – around 7%
  • Lease Buyout Financing – around 4.5%

Again, as mentioned, the final APR will depend on several factors especially your credit score. Thus, we highly recommend working on having a high or excellent credit score to be able to take advantage of lower rates and other perks.

Loan Terms

Loan terms refer to the length of time you are going to repay the loan. It’s definitely another factor to consider when taking out a loan as you need to gauge if you are able to pay off the loan based on agreed terms.

As compared to other lenders with a lot of loan term options, some even offer long repayment periods, with Wells Fargo, the firm’s auto loans do only offer repayment periods between 60 months and 75 months (average).           

So, if you are looking at repaying on a longer-term, you may then consider other lending companies instead.

By the way, it is important also to keep in mind that if you will opt for long repayment terms, this could probably lead to paying more in interest over the life of the loan as compared to paying it off in a shorter period of time.

Fees and Penalties

Apart from APR, another money-related factor to consider when taking out a loan, or in this case, an auto loan, is fees and penalties.

Although Wells Fargo does not charge early payment fees, which means a borrower can repay the loan any time before it is due without having to worry about such charges, Wells Fargo borrowers could run into potential late fees and a credit score impact if they make a late payment.

In addition, a borrower may have to pay additional charges in specific states because of insufficient funding in his or her account.

Currently, the company decided to halt lending money to most independent car dealerships because of the financial fallout brought by the current COVID-19 pandemic. Just so you know if you are intending to get into this.

Discounts

Being one of the country’s largest auto lenders, it is not surprising that Wells Fargo offers perks.

In particular, the firm offers discounts to borrowers who are already Wells Fargo customers, as well as those in the military.

Disbursement of Funds

If you need quick credit decisions, and fast funding (in as soon as same-day), then Wells Fargo may just be the right match for you.

Yes, the firm could provide you with the amount you need as soon as the same day you applied for an auto loan — provided, of course, you pass all the requirements and qualifications.

Limitations

While some auto lenders may provide funds for any type of vehicle, with Wells Fargo, there are some limitations.

There are certain vehicles that are not eligible for Wells Fargo financing. This includes large commercial-type vehicles (like dump trucks) as well as vehicles that auto manufacturers have already discontinued.

This is very important also when taking out an auto loan. Make sure that the vehicle you are purchasing is eligible for the lender’s auto loan products.

Other Information

Apart from the details and/or information we have already mentioned, Wells Fargo also has another feature that borrowers must look into.

Unlike other auto lenders, the firm allows borrowers to change the due date on your payment loan once over the entire period of the loan. This may come very handy if a borrower fell short on cash one month or that he or she wants to line up the car loan payment due date with his or her paycheck schedule.

To be fair, this kind of feature is not that common among lenders, so, it’s nice to take advantage of it if the need arises.

WHO QUALIFIES FOR A WELLS FARGO AUTO LOAN?

As part of this Wells Fargo auto loans review, we are also going to provide you what you need to be able to borrow money from the firm.

First off, you have to have fair to excellent credit score. Based on Wells Fargo’s Q1 2020 quarterly report, during the first quarter of the year, nearly 34% of auto loans issued by it went to borrowers with FICO scores under 680.

So, if your credit score is somewhere around that, there is a chance that you can also get approved for an auto loan.

Apart from the FICO score, auto loan borrowers must also present a copy of the following financial documents during the application process:

  • Social security number
  • Previous and current residential addresses
  • Employment history and status of current employment
  • Proof of income
  • A statement that details your rent or mortgage payments on your home or apartment

In addition, you will also need to provide details on the vehicle you intend to apply for an auto loan. Details such as the following:

  • VIN
  • Year
  • Make
  • Model
  • Mileage

Similar to other types of loans, when applying for a Wells Fargo auto loan, make sure you are:

  • A U.S. citizen or a permanent resident card holder
  • At least 18 years old (or 19 years old depending on the state)
  • Employed or are self-employed

HOW TO APPLY FOR A WELLS FARGO AUTO LOAN?

At the moment, the only way to apply for a Wells Fargo auto loan is by filling out a credit application with a dealer within the firm’s network. Currently, Wells Fargo does have 11,000 partner dealerships.

Unfortunately, though, a list of their network of dealers is not available on their website, which means borrowers need to call and ask dealers directly if they work with Wells Fargo.

Once you found a dealer that is within the firm’s network, you will then have to fill in an application form that dealers send over to Wells Fargo underwriter for assessment and approval.

It is important to take note that Wells Fargo conducts a hard credit check, which may affect your credit score.

Once approval is granted, expect funding in as soon as the same day as the auto loan application.

WHAT ARE THE PROS AND CONS OF WELLS FARGO AUTO LOANS?

To sum up this Wells Fargo auto loans review, at the same time, to help you make an informed decision, we are also listing down the things that we like and the things that we do not like about Wells Fargo auto loans.

As you know, while the firm has its share of good things, like any other lenders out there, it does have its share of flaws as well. As borrowers, it is important to know it all so you get to consider them when making a decision.

Anyway, here’s our list of pros and cons for your reference:

PROS

  • Wells Fargo does have better rates as compared to other auto lenders out there.
  • The firm can fund your up to 100% of the amount of the vehicle you are purchasing.
  • Fees are included in your monthly payments instead of charging them upfront.
  • Wells Fargo auto loans do not require down payment.
  • It offers discounts to Wells Fargo customers availing an auto loan, as well as those working in the military.
  • It does not have a minimum credit score requirement, which makes it appealing to all types of customers.

CONS

  • You need to go through a dealership within its network in order to avail of a Wells Fargo auto loan.
  • The company website is not as informative as other websites — it does not include a list of partner dealerships.
  • Wells Fargo does not offer a refinancing option.
  • Wells Fargo auto loans are only available for up to 75 months.
  • The company, unfortunately, has been involved in a recent auto insurance scandal that may deter customers from using the bank’s auto loan products.

FINAL THOUGHTS ON WELLS FARGO AUTO LOANS

Wells Fargo may have its share of highs, but, it sure does have its lows as well, which is not surprising. After all, there’s no such thing as a perfect company or auto lender for this matter.

Given all the facts we share, are you considering taking out an auto loan at Wells Fargo?

We do hope that through this Wells Fargo auto loans review, we were able to provide you with all the information you need in order to come up with the right decision.

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SunTrust Bank Auto Loans Review: The Best Auto Lending Company For You

While there are a lot of auto loan options out there to help finance your dream car, in this SunTrust Bank auto loans review, we are going to provide you essential information to help you understand why it’s one of the auto lending companies you should take into consideration to get a loan from.

SunTrust Auto Loans Review

According to a Finder report, “Americans had $1.3 trillion in auto loan debt in 2019,” which is an increase of 81% since 2009, according to an Experian study published in March 2020.

Furthermore, in the same Finder’s report, it says that American people who get auto loans owed more on average compared to that of a decade ago. By end of 2019, American auto loan borrowers owed $19,231 on average — a 25% rise from 2009.

In addition, according to a study by the Federal Reserve, it was found that around 35% of American adults rely on car loans to pay for or buy their vehicles in 2019 alone.

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Based on the experts’ view, the number of auto loans shows no sign of slowing down. In fact, experts project that it will continue to rise in the year and the years to come.

This assumption is not surprising at all especially with the recent events in the country and in the world, more and more people will definitely aim to buy their own vehicle to get them around – providing them ease and safety transportation service.

Now, as the demand when it comes to auto loans increases, more and more lending companies are opening its doors to auto loan borrowers as well. One of them is SunTrust Bank through LightStream.

For those who do not know, LightStream is an online lending division of SunTrust that offers auto loans for both new and used sealer purchases, as well as refinancing, lease buyouts, private party purchase, classic cars, and unsecured loans for borrowers with a good or excellent credit score.

In this SunTrust Bank auto loans review, we are particularly going to answer some very important questions that borrowers usually ask. This includes the following:

  • Who is SunTrust?
  • What is SunTrust LightStream?
  • What auto loan products are offered by SunTrust LightStream?
  • What do borrowers need to know about SunTrust Bank auto loans?
  • Who qualifies for a SunTrust Bank auto loan?
  • How to apply for a SunTrust Bank auto loan?
  • What are the pros and cons of a SunTrust Bank auto loan?

WHO IS SUNTRUST?

Headquartered in Atlanta, Georgia, SunTrust Bank is an American bank holding company. It is the largest subsidiary of SunTrust Banks, Inc., having an asset of $199 billion as of March 31, 2018.

In 2019, SunTrust Bank merged with a fellow regional bank, which is the BB&T. Both of them created a new bank called Truist, which is currently positioned as the country’s sixth-largest bank, having a combined asset amounting to a total of $442 billion.

Although the two banks merged, both retained their own branding as well as products, which is why SunTrust still exists.

Now, SunTrust Bank offers a wide variety of banking products, as well as lending, credit cards, mortgages, and wealth management. Among the products offered by SunTrust Bank is an auto loan, which is offered through LightStream.

The bank also offers unusual perks to its customers in 10 southeastern states and the District of Columbia. As of the last quarter of 2016, SunTrust Bank had 1,400 bank branches and 2,160 ATMs in the U.S.

WHAT IS SUNTRUST LIGHTSTREAM?

As mentioned earlier, SunTrust Bank offers a wide variety of products and services, which include auto loans through LightStream.

LightStream is the online division of the bank, which makes providing loan services to customers easier for SunTrust Bank.

LightStream offers a full spectrum of auto loans to borrowers with very attractive credit and equally healthy finances.

The online lending division of SunTrust bank offers a variety of auto loan products for private party purchases, new and used dealer purchases, lease buyouts, refinancing, as well as classic cars and unsecured loans.

The SunTrust LightStream auto loan is specifically ideal for borrowers with good or excellent credit with a “background of solid financial management,” those who want to get an immediate response to their auto loan application (as LightStream gives a decision as soon as a few hours after filing of an auto loan application), and those who want maximum flexibility (because LightStream does not have any restrictions on car make, model as well as mileage).

Meanwhile, if you want to know more about LightStream auto loans, check the video below by Honest Finance. He shares a very insightful review, and we thought you got to check this out:

WHAT AUTO LOAN PRODUCTS ARE OFFERED BY SUNTRUST LIGHTSTREAM?

Again, as mentioned, LightStream is SunTrust online division, which caters to auto loans.

One thing that LightStream is popular is that it offers a variety of auto loans to its customers.

Customers may choose on the following auto loan options:

  • New Dealer Purchase
  • Used Dealer Purchase
  • Private Party Purchase
  • Refinance
  • Lease Buyout
  • Unsecured Auto Loans

We just want to point out that LightStream’s classic car option does not have any restrictions on make, model, age, or mileage.

Furthermore, unsecured auto loans basically mean your car will not be used collateral in case of default payments.

In addition, you can use SunTrust LightStream auto loans to refinance, as well as buy out a lease, and even to finance an RV or a motorcycle purchase.

By its list of products offered alone, as compared to other auto lending companies, SunTrust definitely has an edge. It’s safe to say that their line-up of auto loan products is well-thought-out. They ensured everything is covered, and that they have a product that fits every kind of auto loan borrower – leaving no room to look elsewhere.

WHAT DO BORROWERS NEED TO KNOW ABOUT SUNTRUST BANK AUTO LOANS?

As we always say, when eyeing for a loan – whether it be an auto loan or not – it is important to shop and compare. Look around and see what auto lenders offer. Compare their loan offers before making a decision, before sealing the deal.

By doing so, you get to choose the best deal possible – leaving no room for regrets. Well, as borrowers, the last thing you want is to realize you actually cannot afford to pay off the loan, which means, you might end up broke or in a bad light.

With that said, as part of our SunTrust Bank auto loans review, we are going to share with you some of the most vital information regarding what they offer.

In particular, we are going to share with you information on the following aspects:

  • Loan Amount
  • Interest Rate
  • Loan Terms
  • Refinancing Options
  • Fees and Penalties
  • Collateral

Now, let’s discuss the items one by one to give you clarity and a better understanding of what to expect with SunTrust Bank auto loans —

Loan Amount

When borrowing money from a bank or any lending company or financial institution for that matter, make sure you have already determined the amount of money you need to purchase the vehicle. That way, you get to save time and energy – focusing only on banks or lending companies that offer loan amounts based on how much you need.

SunTrust Bank, through LightStream, offers loan amounts from as low as $5,000 up to $100,000.

Compared to other lending companies and financial institutions offering auto loans, SunTrust’s LighStream definitely has one of the highest loan amounts.

So, if you are looking at borrowing money within this range, SunTrust’s LightStream is definitely a good fit for you.

Interest Rate

Another very important thing that every borrower needs to consider when getting an auto loan is the interest rate or the annual percentage rate charged by the lending company or the bank. This will help you gauge if you are able to pay off the loan or not. Needless to say, this helps you determine if the loan is worth it or not.

Take note that every financial institution has its own rate – thus, the importance of shopping/looking around and comparing before anything else.

For your reference, here’s how much SunTrust’s LightStream charges for auto loans depending based on loan category:

  • New dealer purchase – 3.49% to 8.34%
  • Used dealer purchase – 3.49% to 8.34%
  • Private party purchase – 4.99% to 9.19%
  • Refinance – 3.49% to 8.34%
  • Lease buyout – 4.99% to 9.19% (with autopay discount)

The interest rate varies depending on certain factors like your credit score or creditworthiness, your location, loan amount, loan terms, etc. So, if you want a concrete detail, it is best to check with SunTrust’s LightStream as soon as you can.

As we have mentioned, SunTrust Bank offers unusual perks. One of them is that if you have been offered a lower rate by another lender, what SunTrust does is that it will offer .10% points less than the rate that you have been approved for. Of course, the evidence must be submitted.

In addition to SunTrust Bank auto loan perks, if a borrower sets up auto pay, he or she gets an additional 0.50% off from LightStream.

Loan Terms

Another important thing to factor in when deciding where to borrow money from is the loan terms or the length of time you are going to repay the loan.

Every lender has its own loan terms. As for SunTrust’s LightStream auto loans, the loan terms are flexible. The minimum length of borrowing is 24 months, while it can also be as long as 84 months.

However, like in any other type of loan, the lengthier the loan term is, the bigger the interest becomes. Meanwhile, if you opt to repay the loan as soon as possible, you definitely can enjoy a lower interest charge.

Refinancing Options

As mentioned earlier, SunTrust Bank through its online division, LightStream, offers a variety of auto loan options, which include refinancing.

Yes, you can borrow money from LightStream intended to help pay off any existing auto loan.

Fees and Penalties

Some lenders may offer lower rates, but they charge a lot of fees and penalties, which can be burdensome for borrowers. Imagine paying off an interest plus fees and penalties.

Anyway, as a borrower, you also need to take into consideration the fees and penalties charged by the lender before making any concrete decision.

At the end of the day, you want to save as much money as possible, right? An auto loan is useless if you are paying way more than what you are supposed to pay.

What we particularly like about SunTrust Bank auto loans is that they do not charge an origination fee, late payment fee, as well as prepayment penalties. On the latter, it means you can repay the loan in full anytime you want before the scheduled end of the term without having to worry about prepayment penalties.

Collateral

Unfortunately, the auto loan offered by SunTrust Bank’s LightStream is only applicable to borrowers with good or excellent credit. Those with unattractive or poor credit score may consider looking for other auto loan providers.

Now, SunTrust Bank auto loans can either be secured or unsecured. Secured auto loans mean your vehicle automatically becomes the collateral of the loan, which means, in case of default payment, the bank has all the right to get the vehicle from you.

Meanwhile, with SunTrust’s unsecured loans, the company requires borrowers to have an excellent credit score. According to the bank, borrowers must have the following to get approval for the unsecured auto loan:

  • Minimum of five year’s substantial credit experience in different credit account types
  • Excellent payment records, with no delinquencies or record of bankruptcies
  • Proven ability to save money

WHO QUALIFIES FOR A SUNTRUST BANK AUTO LOAN?

Borrowers, it is important to know that every lending company or financial institution have their own set of requirements or qualifications.

These requirements or qualifications are set to make the approval of auto loan applications easier.

Ideally, before anything else, borrowers must first and foremost check the requirements set by the lender to help save time and effort.

As for SunTrust Bank auto loans, please take note of the following requirements or qualifications:

  • Must have a good or excellent credit score (at least 660 to qualify for lowest rates and most lenient terms)
  • No delinquencies or record of bankruptcies
  • Must have a proven ability to save money
  • Must have sufficient income to cover debts
  • Must have at least five years of credit history
  • Must own a variety of account types

In addition, you must of course be of legal age and a U.S. citizen or a permanent residence cardholder to be able to obtain a SunTrust auto loan via LightStream.

HOW TO APPLY FOR A SUNTRUST BANK AUTO LOAN?

At this point in our SunTrust Bank auto loans review, we are going to talk about how to actually apply for an auto loan at SunTrust Bank.

Following below step-by-step guide will definitely help make the auto loan application easier.

First, go to the SunTrust Bank website, and choose the type of loan you want to apply for — in this case, it’s auto loan — and then, click “Apply Now.” You will then be directed to the LightStream loan application portal.

Second, fill in all the details required to process your auto loan application. At this point, you have to indicate whether it’s an individual or a joint application. You will also be asked to input your desired loan amount and the loan term that you prefer. Once done, click, the “Next” button.

Third, fill in your personal information, which includes your contact details, place of residence or address, citizenship, work status, as well as your annual income, monthly housing costs, and your assets. When done, click the “Next” button.

Fourth, create a user ID and input your preferred password to be able to access your account. Then, choose a security question and answer. This enables you to access your account in the future.

Lastly, confirm your application details, and then submit them.

Please note that SunTrust Bank may provide funding for you as soon as the same day of your application provided you review and sign loan documents by 2:30 p.m. Eastern time, provide your bank details, and have completed the verification procedures.

By the way, SunTrust provides a satisfaction guarantee. In case, however, you are not happy with your loan experience with the company, the lender will give you $100 in return.

WHAT ARE THE PROS AND CONS OF A SUNTRUST BANK AUTO LOAN?

This review will not be complete if are not going to share with you what we like and what we do not like about SunTrust Bank auto loans.

Without anything else to say, here’s our list of pros and cons of SunTrust Bank auto loans:

PROS

  • It provides a variety of auto loan options, which include dealer or private party purchases, refinancing, classic car loans, and lease buyouts.
  • Fast auto loan processing, which allows borrowers to receive funding in as soon as the same day of the loan application.
  • Offers some of the best auto loan rates in the market today — definitely cheaper as compared to its competitors.
  • Beats competing for APR offers by offering a 0.10% points off (with conditions).
  • Does not charge an origination fee, late payment fee, as well as prepayment penalties.

CONS

  • It only caters to borrowers with strong credit.
  • It does not offer a phone or email application process, which could be an issue for non-tech savvy borrowers.
  • It has very strict requirements for auto loan approval.

FINAL THOUGHTS ON SUNTRUST BANK AUTO LOANS REVIEW

To sum it all up, SunTrust Bank auto loans through LightStream offers great deals. It comes with perks such as a rate match guarantee, as well as a customer satisfaction guarantee. Needless to say, the bank offers one of the lowest rates in the industry today.

Unfortunately though, qualifying for a SunTrust auto loan can be quite daunting. It has very stringent requirements. Unless you have very good credit, and you meet all the qualifications set, then, there should be no problem at all.

So, do we recommend SunTrust auto loans?

With everything we have shared in this SunTrust Bank auto loans review, we definitely say, yes, we do recommend it especially to borrowers with excellent credit records. They definitely will benefit a lot from it.

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Finova Financial Personal Loans Review: What Borrowers Need To Know

A Finova Financial personal loans review such as this will definitely help you decipher whether the company is the best choice for this category or not. Needless to say, it will provide you all the necessary information to get into an informed decision.

Finova Financial Personal Loans Review

First of all, a personal loan, according to the Chamber of Commerce is “a type of short term unsecured loan ranging anywhere from $100 to $100,000 (typically around $8,000) with fixed or variable interest rates that consumers can use to buy expensive things or consolidate debt.”

A personal loan is like people’s go-to kind of loan whenever they need money to fund a home renovation, travel, events, etc. — almost anything and everything.

With personal being the easiest type of loan to get, it’s not surprising that based on statistics, as reported by the Chamber of Commerce, personal loan balances in the United States doubled in just a span of four years. Imagine, from $72 billion in 2015, it increased to $143 billion at the beginning of 2019.

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In a report by TransUnion, it says that personal loan has become mainstream. It has been used by people of all backgrounds, regions, and income brackets across the country for various purposes.

With the current situation, with people losing jobs, getting laid off, and all that because of the pandemic, it is not surprising is personal loans will surge. People need to survive, and one of the options they know is to get a loan — to borrow money from lending companies (if borrowing money from friends and family members are s not feasible).

Good thing there are a number of lending companies across the country. People do have a lot of options to choose from. In fact, one of the choices is getting personal loans from Finova Financial.

With that said, we are going to share with you some of the most important details you need to know about Finova Financial personal loans.

In particular, we are going to talk about the following:

  • Who is Finova Financial?
  • What do you need to know about Finova Financial personal loans?
  • Who qualifies for Finova Financial personal loans?
  • How to apply for a Finova Financial personal loan?
  • What are the alternatives to Finova Financial?

WHO IS FINOVA FINANCIAL?

Finova Financial is a Florida-based company that aims to lessen the cost and hassle related to car title loans.

Finova Financial loans are advertised as lines of credit. However, they are totally different from the usual revolving credit that is associated with a credit card or a personal line of credit. With Finova Financial personal loan, you get the money in a lump sum, and not as a credit limit.

According to Finova, the company’s loans are designed to help address the major drawbacks of car title loans. Typically, it costs 300% APR according to a 2015 report by the Pew Charitable Trusts. Needless to say, it usually is due in a few months, which leaves a lot of borrowers in a debt spiral or at risk of losing their car or vehicle.

As compared to traditional personal loans, Finova Financial personal loans are different as they come secured by collateral — in Finova’s case, it’s your car or vehicle.

Just to refresh your memory, secured loans require borrowers to put something up for collateral, which is your guarantee that you will pay for the loaned amount.

To know more about what a secured loan is, you may check the video below by Common Cents Mike. It’s very informative and gives you just the right information about this type of loan.

Although it requires collateral, generally, secured loans are easier to acquire approval from, and also, it offers better interest rates as compared to unsecured loans.

As mentioned, Finova Financial uses your car as collateral for your loan.

Furthermore, it offers auto title loans that come with same-day funding, the online application process, longer loan term, as well as the ability to make payments across 30,000 MoneyGram locations in the country.

Although there’s the risk of losing your car or vehicle is unable to pay for the loan, according to Finova, the company makes sure to try to work things out with borrowers who are having trouble making payments first before they get into a default situation. This is absolutely good news given the fact that some lenders are too strict they would not have time for any settlement first.

WHAT ARE THE PROS AND CONS OF FINOVA PERSONAL LOANS?

Just like any other reviews we made, in this Finova Financial personal loans review, we are going to share with you some of the benefits and downfalls of Finova Financial personal loans.

PROS

  • It offers low APR rates that range from 18% to 30%. Definitely competitive rates as compared to other lending companies that offer secured personal loans.
  • It does not charge prepayment fee when you pay the loan early or before the maturity date. Unlike other lending companies, if you wish to pay your loan earlier, you may do so without having to worry about being charged for a repayment fee.
  • Accepts poor credit. As long as you own a vehicle and are not in bankruptcy, you are welcome to apply for a Finova Financial personal loan.
  • Does have a prequalification process. Unlike other lending companies, potential borrowers can review rates before submitting a full loan application, which usually requires a hard pull on your credit.
  • Fast funding time. Once your personal loan application is approved, and all documents and forms are signed and returned, borrowers may get their loaned money on the same day.
  • Provides funding and accepts payments through MoneyGram. If you are someone who’s doesn’t mind getting the funds through a third-party channel, then this one’s ideal for you. Finova Financial sends funds via MoneyGram. In the same way, they also accept monthly payments made either online or at one of MoneyGram’s 30,000 locations.
  • It gives borrowers the ability to apply online or through their mobile devices. With Finova Financial, the loan application is definitely convenient as you can do it from home or wherever you are. All you got to do is go online and provide all the necessary information required.

CONS

  • It requires collateral. Unfortunately, Finova Financial personal loan is a secured loan, which means it needs collateral specifically your vehicle. More so, the company requires that the vehicle must have prepaid comprehensive and collision insurance that comes with a deductible $500 or less.
  • It lacks transparency. Another downside we found is that it’s hard to determine the APR range for the loan, which means rates may not be between 18% and 30% for every state.
  • Finova charges additional fees. While they do not charge a prepayment fee, borrowers may have to pay multiple fees with Finova Financial, which include an origination fee, credit investigation fee, as well as a DMV lien fee, and a lot more. Make sure to check with them before you submit your application.
  • Limited availability. Unfortunately, Finova Financial does not offer personal loans in all 50 states. Only those living in Arizona, Florida, California, Oregon, New Mexico, Tennessee, and South Carolina can apply for a Finova Financial personal loan.

WHAT DO YOU NEED TO KNOW ABOUT FINOVA FINANCIAL PERSONAL LOANS?

Now that you already know about what the company is all about, it’s time to know more about the Finova Financial personal loan particularly on the following aspects:

  • Loan Amount
  • Loan Terms
  • Annual Percentage Rate (APR)
  • Fees and Charges
  • Collateral

Loan Amount

When it comes to the amount of money a borrower can loan from Finova Financial, it actually varies depending on certain factors like your equity in the car, the value of your car, your monthly income, as well as the state where you live in. That is why if you are interested to get a personal loan from them, it’s best to check with them directly.

Loan Terms

Unlike other lending companies out there that have various options when it comes to loan terms, Finova Financial personal loans are available for 12-month terms only.

Annual Percentage Rate (APR)

The annual percentage rate or APR for a personal loan at Finova Financial varies depending on the state where you live in. However, stated in different communication channels, it says that the company’s APR for a personal loan is within 18% up to 30%.

It is important to note though that these rates do not include finance and other fees.

Fees and Charges

As we have mentioned earlier, Finova Financial does not charge prepayment fees. So, if you wish to end your loan sooner than scheduled, you may do so without having to worry about getting charged for such a fee.

However, as a borrower, you must be aware that Finova Financial do charge various fees, which include the following:

  • Extra Fees – Unfortunately, not all fees are included in the APR you receive from the company. Apart from the rate you qualify for, you will also be charged a $25 “credit investigation fee”. In addition, the company also charges a $75 DMV lien fee, filing fee that costs between $0 to $30 depending on the state you are from, and documentary stamp tax, which varies depending on the loan amount.
  • Origination Fee – Another fee that the company charges its borrowers is an origination fee, which costs between $0 and $30.
  • Late Payment Fee – In case you pay late for your monthly loan payments, you will also be charged $15 as a late payment fee.
  • MoneyGram Fees – Many Finova Financial borrowers do not have a bank account that is why the company would usually use MoneyGram to transfer money to them. In the same way that borrowers use MoneyGram locations to make their loan payments. For the latter transaction, MoneyGram charges a flat fee of $11.50 for every payment made amounting to $900 and below. So, ideally, you must have a debit or credit card to make payments to avoid getting charged for this.
  • Insurance Costs – Another important thing that borrowers must be aware of is that Finova Financial requires borrowers to prepay for 12 months of comprehensive and collision insurance, or if not, buy an optional form of insurance from the company, which is known as a “debt cancellation addendum.”

Collateral

As mentioned, all personal loans through Finova Financial have secured loans, which means they require borrowers to put up their car as collateral. Essentially, if you do not have a car or any form of vehicle, you are automatically disqualified for this type of loan. Consider getting a loan from another lending company instead.

WHO QUALIFIES FOR FINOVA FINANCIAL PERSONAL LOANS?

At this point in our Finova Financial personal loans review, we are going to talk about who actually qualifies for the loan.

If you are planning to apply for a loan – whether it be at Finova Financial or other lending companies – it is always best to check their requirements or qualifications first. It’s always best to self-assess before you submit an application to avoid wasting time and effort.

To qualify for a Finova Financial personal loan, you must meet the following requirements:

  • Must be at least 18 years old with a valid driver’s license
  • Must be able to submit proof of income
  • Must have a proof of U.S. residency
  • Must own the vehicle and have a lien-free car title
  • Have adequate equity in your car
  • Must not currently be in bankruptcy
  • Must have a prepaid comprehensive and collision insurance coverage for the loan term

If you meet all of the above requirements, then, you may continue rather proceed with your loan application with Finova Financial.

If you notice a credit score is not mentioned. That is because Finova Financial does not require a specific credit score to qualify for personal loans. Needless to say, the fact also that the loan is a secured loan, credit score becomes unnecessary. The collateral as well as the borrower’s proof of income should be enough to decide whether the borrower is capable of paying off the loan or not.

HOW TO APPLY FOR A FINOVA FINANCIAL PERSONAL LOAN?

Now that you already know the criteria to get approved of a Finova Financial personal loan, it’s time to discuss how to apply for the loan.

Finova Financial allows loan applications to be made online through its website. So, if you are someone who prefers online loan application over in-person loan application, this one’s a good option.

To apply, all you have to do is follow the following steps:

STEP 1: Gather all required documents as well as your personal information.

During the application process, just like in any lending company, you will be asked to provide some personal information such as your contact information, your proof of income, etc. Furthermore, you will also be asked to present your car title as well to ensure you own the car or vehicle for collateral.

STEP 2: Fill out the loan application form on the company website.

Head over to Finova Financial website, and fill out the online application form as soon as you have already decided to push through with the loan application. The whole application process should not take you long if you have already collected all the necessary documents mentioned earlier.

STEP 3: Sign all loan documents.

Once Finova Financial approves your loan, you will be asked to review your loan document, and if you find everything in order, sign, and return the document to them.

STEP 4: Receive the loaned amount.

As we have said, the process is fast and convenient. In fact, depending on what time of the day you sign the loan documents, it is possible for you to get your funds on the very same day. Otherwise, you will have it the next business day.

You see, the whole process is quite easy, simple, and straightforward. Again, only if you have all the documents required and if you have already self-assessed beforehand.

WHAT ARE THE ALTERNATIVES TO FINOVA FINANCIAL?

Unfortunately, not all borrowers are fortunate enough to get approved of a Finova Financial personal loan. So, in this case, we have some alternative suggestions for Finova.

These alternatives are also applicable to those who think Finova loans are still an expensive option as compared to other personal loan options.

1. Apply for an auto equity loan from a bank or credit union or a secured loan from an online lender.

This depends on your credit history as well as the condition of your car or vehicle. If you think you could qualify for an auto equity loan, then consider getting it from a trusted financial institution or lending company.

2. Get a payday alternative loan from a credit union that you are a member of. As mentioned, to be able to be eligible to apply for a payday loan, you must be a member of a credit union first. So, if you want to avail one, make sure to join the union first.

3. Ask family and friends for a loan. Some of us are fortunate enough to have family and/or friends who are willing to loan money. Sometimes though we are not aware of it until we ask. So, before you even think about loaning money from a lending company or a financial institution, consider asking your family and friends first. You may also loan money from them through lending circles or a loan agreement, whichever works.

4. Ask your employer for a paycheck advance or use an app that provides such a service. Another option is to do a paycheck advance. Check your company policies if this is allowed and if yes, then, consider this option as well.

5. Seek assistance from charities, religious organizations, as well as nonprofit organizations. Depending on the purpose of the loan, especially if it’s a matter of life and death, another option you may consider is to seek assistance from kindhearted people/organizations.

6. Make money by doing side hustle. If you have extra time, consider making money by doing work from home jobs, or by selling stuff online. With technology and the internet, you can definitely do this. However, this idea is applicable only to those who do not need the money as soon as possible.

FINAL THOUGHTS ON FINOVA FINANCIAL PERSONAL LOANS REVIEW

Getting personal loans is inevitable especially during trying times. That is why it is nice knowing that financial institutions or lending companies do exist. At least, during financial difficulties, we have an option where to loan money from.

Finova Financial is just one of the many options where you can borrow money from. While it is cheaper as compared to traditional personal loans, it requires you to have a car to serve as collateral for the loan though.

So, do you find it a perfect fit for your financial needs?

We hope that through the information we have provided in this Finova Financial personal loans review, you were able to assess whether it’s the right lending company for you or not.