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Finova Financial auto equity loans review

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Short-term loans up to $5,000 — secured by your car title.

finder.com’s rating: 2.4 / 5.0

★★★★★

Finova Financial offers fast, short-term loans that your car’s equity as collateral. It’s an option if you don’t have a bank account. But convenience isn’t free. Some payment options come with additional fees, among other potential drawbacks.

$750

Min. Amount

$5,000

Max. Amount

as little as one business day

Turnaround time

Details

Product NameFinova Financial Auto Equity Loans
Min. Amount$750
Max. 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 or TN. Must own your car outright, have a valid car insurance policy and be a US citizen or permanent resident.
Go to Finova Financial's website

How does Finova Financial work?

Finova offersshort-term loans backed by your car title as collateral. Finova’s Consumer Loan on Car (CLOC) program works by ting 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, though terms may vary by state.

How much does a Finova loan cost?

Finova Financial auto equity loans come with APRs capped at 30%. These are included in the APR. However, other fees that might not be wrapped in the APR include:

  • Filing fee. This fee up to $75 covers the lien on your car.
  • Credit investigation fee. Finova charges a $25 fee when you make your first payment to cover the cost of checking your credit.
  • Origination fee. Finova might charge a $25 or $30 origination fee to borrowers from certain states.
  • Insurance. You need to have comprehensive and collision insurance, prepaid for the life of your loan with a deductible of $500 or less. Or, sign a voluntary debt cancellation addendum.

This can all add up to an APR well over 30%. Be sure to consider the total cost of your loan before signing the 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.
  • Extra fees. Depending on your state of residence, you could be charged fees that aren’t included in your rate. Read the fine print to make sure you’re getting the loan you signed up for.
  • 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.
  • Small loan amounts. You can’t borrow more than $5,000 with this lender.
  • MoneyGram repayment fee. If you choose to make your repayments online through MoneyGram, you could have to pay a fee each month.

Compare more short-term loan options

Updated November 15th, 2019
Name Product Filter Values Max. Loan Amount Loan Term Turnaround time
$5,000
9 to 36 months
1 business day
Comes with the option to change your due date so you won’t fall behind on repayments.
$35,000
6 months to 6 years
As soon as the next business day
Get connected with multiple lenders you might qualify with — even if you have bad credit.
$1,000
Varies by state
1 to 2 business days
Plus, get access to check cashing, cell phone top ups, bill pay and more at one of its many storefronts.
Varies by state
Varies by state
As fast as same business day
Sign up for its discount program to get access to coupons and deals on everything from dining out to tax services.
$15,000
Varies
Same business day to 1 business days
Get offers from potential lenders in minutes by filling out just one online form.
$50,000
Varies
Same business day to 1 business days
Fill out a simple online form to compare offers from several lenders that may be able to help.
$2,600
Varies
1 to 2 business days
Get access to tools to help you plan a career move, make some extra cash or search for a better-paying job.
$10,000
90 days to 72 months
As fast as same business day
Explore its online education center to get tips on budgeting, how to prioritize your bills and more.

Compare up to 4 providers

Must read: 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?

Finova Financial isn’t reviewed by Trustpilot or accredited by the Better Business Bureau (BBB) as of August 2019. But 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 17 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:

  • Own your car outright
  • Live in an eligible state
  • Comprehensive and collision coverage
  • Over 18
  • US citizen or permanent resident

How do I apply?

  1. Click the Go to Site button on this page.
  2. Enter your name, phone number, email address and car model. Click How much can I borrow.
  3. Follow the directions to complete the application with information about 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.
  4. Review and submit your application.

After submitting your application, a Finova representative will call you to discuss your application and complete the loan process.

Step-by-step application with screenshots

Go to Finova Financial's site

What happens after I get the loan?

If approved, your funds are disbursed by check or to your MoneyGram account.

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, either online through the money service’s mobile app or at one of its 32,000 retail locations. Paying online comes with a fee, however. 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.

Finova financial alternatives

Don’t know if this lender is right for you? Look into these alternatives instead:

  • Auto title loans. This choice might come with higher APRs than Finova Financial — and you have to own your car upfront. But there might be more title loan providers available in your state.
  • Payday alternative loans (PALs). Just need a few hundred dollars? Some Federal credit unions offer these short-term loan alternatives with APRs capped at 28% and no hidden fees.
  • Pay advances. Apps like Earnin allow hourly workers to get advances on money they’ve already earned for emergency expenses.
  • Get a side gig. If your income isn’t enough for you to make it month-to-month, taking on another job (or asking for a raise) is a more sustainable long-term solution.

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.

Frequently asked questions

Short-term loan ratings

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★★★★★ — Good

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★★★★★ — Poor

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