If you have bad credit, you know first hand the struggle of getting approved for nearly anything that requires a credit score. You may find it’s almost impossible to find a bank that will approve your loan application because they rely heavily on your FICO score. And if that score is less than stellar, you’ll most likely find yourself between a rock and a hard place.
But what if there was a bank that didn’t rely only on your credit score for loan approval? Prestige Financial is this type of bank.
What you should know about Prestige Financial
Prestige Financial works with vehicle dealerships throughout the United States to help provide approved consumers with vehicle loans. Rather than looking only at your credit score, they look at several pieces of information to decide if you’re approved for a loan.
Their application process is simple, and they will contact you within one business day to let you know if you’ve been approved.
What you need to get approved for a loan
You can apply for your loan on their website or by giving them a call. If you’re approved, you will need to send in the following items, according to their website:
- A pay stub from the last 30 days
- A utility bill from the past 30 days
- Proof of vehicle insurance
- Six personal references outside of those living with you
- A copy of your driver’s license
If you’ve had a bankruptcy, you’ll need information such as the case number or your repayment plan as well.
If you apply for a loan, you may not include self-employment income or use a co-signer. They do allow joint applications for those who are married or have joint credit.
Once you’re approved for a loan, Prestige Financial will provide you a preapproval email with the monthly payment you qualify for. They will also refer you to a dealership in your area with the type of vehicle you’d like to buy.
They work with “preferred dealers” who are familiar with their loans and processes. According to Prestige’s website, these dealers understand how to work with those who have filed for bankruptcy. If the dealership you’re initially referred to doesn’t have the type of car you’re interested in, they will provide you with another referral.
One impressive feature that Prestige Financial offers is the ability to lower your interest rate. Seem too good to be true? The program is called Rate Reduction Rewards. It’s available to all borrowers, but you do need to opt in to the program. Make sure you opt-in to receive electronic communication as well.
As long as you make your monthly payments on time and keep your insurance coverage, Prestige Financial will drop your interest rate by up to 0.5% every three months. This could give you a 2% interest rate reduction in a calendar year, just for making your payments on time! It’s not too often you have the chance to lower your loan interest rate just by making your payments.
Pros of Prestige Financial
If you have less than stellar credit, working with Prestige Financial could give you the chance to take out a loan for a vehicle. Since they look at items other than your credit score, you could qualify for a vehicle loan.
Instead of looking for a dealer, Prestige Financial sends you directly to dealerships they work with who are already familiar with their processes. This could save you some time and reduce the stress associated with the car buying process.
Their Rate Reduction Rewards program is a unique program that could reward you for making your payments on time. A lower interest rate could result in the savings of hundreds or even thousands of dollars throughout your loan.
Cons of Prestige Financial
Unfortunately, if you’re self-employed, you’ll have to look elsewhere for loan approval. The same is true if you require a co-signer for your loan.
If you’re in the middle of a bankruptcy proceeding, you may need to wait until further along in the process to receive approval on a loan. For a Chapter 7 bankruptcy, they require your case to be filed and documents to be viewable on the court’s website. For Chapter 13 bankruptcy, they need the repayment plan to be confirmed.
Even if your loan application isn’t approved, Prestige Financial will hold on to your application if your situation changes. In the meantime, you can work on your budget for buying a vehicle and keep making progress toward your financial goals.