What sets CFS apart from other financing programs, more specifically a credit card?
The process of assessing the factors which either grant or deny a loan is called “underwriting.” CFS subscribes to different set of underwriting guidelines than all other forms of credit, including a credit card. In fact, these underwriting guideline are our own, developed right here within the walls of CFS. In many cases, with respect to a borrower’s credit score, CFS is able to go lower than a credit card. This allows us to approve loans in situations where the borrower might otherwise be denied.
Another key advantage CFS has when compared to most other forms of financing is that our loans are “simple interest” rather than “compound interest.” Credit cards are all compounding interest. Credit card POS does not give interest rate specific to customer’s credit, so all consumers with credit cards get hit with the same high, compounding interest rate.
Credit cards are a line of credit, which is different from an unsecured, short-term loan. With CFS, the consumer pays off the loan and is done with it. The credit impact of paying off a short-term, unsecured loan is very positive as opposed to having an open line of credit that isn’t being used. Open lines of credit can be a drain to your credit rating.
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About The Author: Tony Orlando is CFS’ Vice President of Partner Development. More than 15 years Automotive retail, OEM and third-party lead provider experience. Two years dealership sales and service experience and 13 years with both import and domestic OEMs. This is Tony’s second automotive startup company. He spent three years with TrueCar cultivating its business in the Southwest states. Maintains relationship with over 600 franchised automotive dealers and industry leaders. Tony has a Business Administration and Marketing degree from Mary Washington College Fredericksburg, VA.
Legal Disclaimer: The application generally takes 2-3 minutes. CFS will promptly fund the repair amount once repairs are completed and documents are executed. All loans are subject to approval pursuant to standard underwriting criteria. The CFS 60-Day Interest Free Program applies to approved customers who pay their entire loan off on time with no missed payments. Available amounts, terms and the Annual Percentage Rate (APR) will be based on an evaluation of your credit history and your state of residence. The interest rate is fixed for the life of the loan and could range from 9.99% to 36.00% APR.