Finova Financial auto equity loans review August 2018 | finder.com

Finova Financial auto equity loans review

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This online lender offers short-term loans up to $5,000 — secured by your car title.

If an unexpected expense comes up and you need a loan of under $5,000 to cover it, an auto title loan might be an option worth exploring. With the rise of online lenders, providers like Finova are becoming an alternative to bank loans by offering cash loans that don’t require a checking account.

It offers loan terms of 12 to 24 months and multiple ways to transfer your payments through MoneyGram, debit card and credit card. But convenience isn’t free. Some payment options come with additional fees, among other potential drawbacks to keep in mind before signing a contract.

State availability

  • Finova Financial offers auto equity loans in the following states: Arizona, California, Florida, New Mexico, South Carolina, Tennessee and Oregon.

If you don’t reside in one of those states, check our short-term loan directory to see what loans are available where you live.

Min Loan Amount$750
Max. Loan Amount$5,000
Loan Term12 to 24 months
Loan SecuritySecured
Turnaround Timeas little as one business day
RequirementsMust live in AZ, CA, FL, NM, SC, TN or OR. Must own your car outright, have a valid car insurance policy and be a US citizen or permanent resident.
  • Own your car outright
  • Live in one of the states Finova services
  • Car insurance policy must include prepaid comprehensive and collision coverage — or purchase additional coverage through Finova
  • Age 18 years or older
  • US citizen or permanent resident

How does Finova Financial work?

Finova offers short-term loans to consumers without the best credit. If you own your car and meet its eligibility requirements, you could get an auto equity loan that uses your car title as collateral.

Finova’s Consumer Loan on Car (CLOC) program evaluates the details you provide in a short application about your car and financial situation to determine how much you’re able to borrow. Finova offers loans of $750 to $5,000 to residents in Arizona, California, Florida, New Mexico, South Carolina, Tennessee and Oregon. Every state enforces its own terms, so review the Rates and Legal Notices page on Finova’s site if you’re curious about the specific terms available in yours.

If approved, your funds are disbursed by check or to your MoneyGram account. Finova prefers that borrowers make loan repayments through MoneyGram either online, through the money service’s mobile app or at one of its 32,000 retail locations. But the convenience of online payments isn’t free, resulting in a monthly fee that isn’t calculated into the interest of the loan.

Depending on your loan, Finova also charges filing, DMV lien, credit investigation and origination fees — fees that aren’t included in the final interest rate. These fees can add up quickly, so make sure you understand all that apply to your specific loan before signing a contract.

Is an auto equity loan the same as an auto title loan?

Not exactly. It’s similar to an auto title loan in that both types of loans use your car title as collateral. But Finova sets itself apart by giving you more time to pay back your loan — usually between 12 to 24 months. Still, if you fail to pay back your loan within the terms outlined in your contract, Finova can take ownership of your vehicle to satisfy what you owe.

Both types of loans are costly forms of credit, so it pays to compare your options before applying for either loan.

What are the benefits of a loan from Finova Financial?

  • No bank account required. Finova encourages repayments through MoneyGram, opening up the option of paying with cold, hard cash at any of its 32,000 locations — no bank account necessary.
  • Fast turnaround. Complete a short application, and a Finova representative contacts you to complete the process. If you’re approved, your loan can be transferred to your MoneyGram account within hours.
  • More time to repay. Depending on your specific loan, you’ll have between 12 to 24 months to repay what you borrow from Finova Financial, typically resulting in lower payments and an overall more manageable loan compared with traditional auto title lenders.
  • Bad credit is OK. Like most online lenders, Finova Financial appears to care more about your ability to repay your loan than your past bumps in your credit. Your credit score is unlikely to be the deciding factor in the approval process.

What should I watch out for?

  • Comprehensive and collision insurance required. You’re required to add Finova as a payee on your insurance policy in case of an accident over the life of the loan. If your policy doesn’t already include comprehensive and collision coverage, Finova offers a “debt cancellation addendum” — but, like most convenient options, for a fee.
  • Multiple fees. Depending on your state of residence, you could be charged fees that aren’t included in your interest rate. These fees could drive up the cost of your loan, so be sure to carefully read your contract to be sure you can afford the extra charges.
  • Available in select states only. Finova Financial offers auto equity loans to residents of Arizona, California, Florida, New Mexico, South Carolina, Tennessee and Oregon. If you don’t live in one of these states, you won’t be able to use its services.

Compare more short-term loan options

Rates last updated August 20th, 2018
Unfortunately, none of the short term loan providers currently offer loans in your state. Learn more about short term loans in your state to find an alternative.
Name Product Product Description Term of Loan Turnaround Time Max. Loan Amount
LendYou Payday Loans
Apply online with this loan-connection company offering unrestricted short-term loans at high maximums — fast turnaround.
Varies
1 business day
$15,000
CashNetUSA Loan
Apply for a short-term loan with an easy online application and dedicated customer service.
Varies by state
1 business day
Varies by state
Check into Cash Payday Loan
With 1,000 branches in 30 states, get $50 to $1,000 in days from this direct lender.
Varies by state
1–2 business days
$1,000
Jora Installment Loans
Installment loans with repayment terms up to 30 months, depending on your state.
4–30 months, varies by state
1–2 days
$2,600
ACE Cash Express Payday Loans
Quick payday, installment and title loans with no prepayment penalty and a 72-hour satisfaction guarantee. Funds can be loaded on an ACE Elite™ Visa® Prepaid Debit Card.
Varies by state
Generally receive the money the next business day
Varies by state
BadCreditLoans.com
With straightforward, simple qualifications, these loans offer easy approval for people with poor credit.
3 to 36 months
Varies
$5,000
LendUp Payday Loans
LendUp offers $250 loans for first-time borrowers. Good credit is not required. Visit the site to see if available in your state.
7–30 days
generally receive the money the next business day
$250

Compare up to 4 providers

A note on Finova Financial's debt cancellation addendum

Because you’re using your car title as collateral for a loan, Finova requires you to carry auto insurance on your vehicle. Your policy must include at least a $500 deductible and coverage under your insurer’s comprehensive and collision policy that’s prepaid up through the length of your loan term.

If you carry only basic insurance, Finova requires you to take out an insurance policy — or “debt cancellation addendum” — through the company. This is in addition to your loan. In this circumstance, the debt cancellation addendum is not voluntary, adding extra costs — potentially thousands of dollars — to the amount of your loan. The total is determined by how much you borrow and your driving history, but your loan contract should break down the costs.

You might be able to reduce the cost of Finova’s insurance addendum if you repay the full amount of your loan within 90 days. At this point, your insurance cost is halved. However, because the question of insurance can make your auto equity loan that much more complicated and expensive, if you don’t have the necessary coverage, it may be better to look elsewhere for a loan.

Is it safe to use Finova Financial?

Yes. Finova Financial’s site is protected with SSL encryption. But it reserves the right to distribute the information it collects — including your personal information and general financial situation — to affiliate services for marketing purposes. You can opt out of this by contacting Finova directly.

What do customers say about Finova Financial?

Although Finova Financial isn’t reviewed by Trustpilot or accredited by the Better Business Bureau, customers on other review sites generally rank Finova positively. Reviews touch on Finova’s helpful customer service and quick response time, usually one to two days, as reasons to go with the service.

However, more than 10 complaints on the Better Business Bureau’s site contributes to Finova Financial’s overall F rating. Most object to the insurance or debt cancellation addendum you’re required to take out on your vehicle before you can take out a loan. Opting in to the addendum can add thousands of dollars to the cost of your loan. But if you have comprehensive and collision insurance on your vehicle, you aren’t required to take out additional insurance through Finova.

Am I eligible?

To apply for Finova Financial’s Consumer Loan on Car (CLOC) program, you must meet basic eligibility requirements:

  • You must own your car outright.
  • You must live in one of the states Finova services: Arizona, California, Florida, New Mexico, South Carolina, Tennessee or Oregon.
  • Your car insurance policy must include comprehensive and collision coverage that’s prepaid through the length of your loan term. Or you must purchase additional insurance through Finova to meet this requirement.
  • You must be at least 18 years old and a US citizen or permanent resident.

How do I apply?

Visit Finova’s website to begin the short loan application.

On the homepage, you’ll enter your name, phone number, email address and car model before continuing to the full application.

Once you’ve begun the application, provide Finova with the year, make, model and mileage of your vehicle. This information determines how much your vehicle is worth and how much Finova can lend you.

After you enter information about your vehicle, you’re directed to the final page. A Finova representative will call you to discuss your application and complete the loan process.

Step-by-step application with screenshots

What happens after I get the loan?

After your funds are either transferred to your MoneyGram account or sent to you by check, you can use your money however you’d like. But receipt of your loan means starting the repayment process.

Finova prefers customers repay their loan through MoneyGram. If you’d rather pay by check or phone, talk to a customer service representative.

Finova offers terms of 12 to 24 months in most states it services, and loans require regular monthly payments over the full life of your loan. Read your contract to make sure you understand your repayment terms.

Bottom line

Finova Financial offers longer terms than the average auto title loan you might elsewhere, and you don’t need a bank account to get one. But fees can make your loans expensive, especially if you opt into Finova’s debt cancellation addendum.

Compare your auto title loan options or look into other short-term loans before signing any contract to make sure you’re getting the best rates and terms you’re eligible for.

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