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Innovative Funding Services Auto Loan Review

Getting an auto loan isn’t something to take lightly. Once you take out a loan, you’re responsible for it for the foreseeable future.

Here, we review Innovative Funding Services, or IFS. You’ll learn about the company, what it offers and for whom it’s best suited. Hopefully, you’ll have a good sense of whether IFS is the right choice for you.

About Innovative Funding Services auto loans

Since 2007, Innovative Funding Services has specialized in off-lease purchases and auto loan refinancing.

Based in Leander, Texas, the company services all 50 states. It says its goal is to streamline the auto funding process for consumers.

Innovative Funding Services auto loans: At a glance

Before you close on a loan, it’s important to shop around. Comparing different lenders will help you take a loan that best suits your needs. Luckily, Innovative Funding Services says it will take care of most of that legwork for you, partnering with more than 10 lenders.

Innovative Funding Services specializes in three types of loans:

  • Refinancing: If you’re looking to lower your monthly payment, IFS can help you refinance your loan at a lower rate. To get a better sense of how refinancing can help you, try out our auto refinance calculator.
  • Lease purchase: When your lease is ending, IFS can assist with the entire process — including the paperwork — to buy out your lease.
  • Fleet car purchase: If you need to purchase vehicles for your business, IFS can help.

Ultimately, many of the specifics of each of these services — such as APRs and loan terms — will vary according to the lender with whom you decide to work. However, IFS provided LendingTree with a range of what its partner lenders offer. Rates and terms as of March 11, 2019 were:

  • APRs: 3.99% to 18%
  • Loan terms: 36, 48, 60 and 72 months available

It also offers a range of supplemental services:

  • Vehicle service protection: Also known as an auto warranty, this service protects you from having to cover expensive repairs due to mechanical problems.
  • GAP insurance: Most insurances will only pay the market value for your car if it is totaled or stolen. GAP insurance covers the difference between the amount you’ll receive from insurance and what you’ll pay for a new car.
  • Road Hazard Protection: This covers the cost of damages you may sustain while driving, such as a chipped windshield or dents.

Always make sure to ask questions and verify that you understand what you’re agreeing to before signing on the dotted line.

How to apply for financing

Getting the process started to apply for financing through Innovative Funding Services is fairly simple. You start by filling out its introductory application to see what pre-approvals are offered to you.

This initial application focuses on what type of loan you’re seeking and whether it’s an individual or joint application. It’ll also ask for your name and address, your gross annual income and your rent or mortgage monthly payment. You will have to provide your Social Security number and date of birth. Viewing your funding options with Innovative Funding Services won’t ding your credit.

Within two business days, you’ll be contacted by one of IFS’ financial advisors to go over your loan options.

After gathering all the necessary information, Innovative Funding Services will help match you with a loan from one of more than 10 partner lenders. (Note that while IFS is licensed as a registered lender, it does not fund any loans itself). Finally, it’ll interface with the lender during the loan process to try to streamline the paperwork.

The fine print

  • There is no application fee: You can view your pre-approvals and talk to a financial advisor for free. When you match with a lender and go to apply for the loan, fees may vary. However, if you decide to work with IFS, there will be a $200 origination fee added to your loan to cover the costs of processing.
  • Your loan options are dependent on your financial situation: After you apply and view your pre-approvals, your financial advisor will help match you to the loan that best matches your financial qualifications, including credit score and debt-to-income ratio.
  • There are some minimum requirements: To be approved for financing through Innovative Funding Services, you need to meet the following requirements:
    • Minimum credit score of 500
    • Minimum gross income of $1,500 monthly
    • Model year 2010 or newer with 150,000 miles or less
    • Must be employed or have verified sources of income
    • No repossessions or open bankruptcies
    • Must not be past due on current auto loan or mortgage

Pros and cons of financing through Innovative Funding Services

We’ve laid out some of the highlights and lowlights of working with IFS.

Highlights of Innovative Funding Services auto loan financing

  • Good customer service reputation: It’s always worth noting when a company has good reviews. IFS has an A- rating with the Better Business Bureau.
  • Plenty of loan options: Innovative Funding Services works with a network of over 10 lenders to provide you with a variety of loan options with a range of terms and interest rates.
  • Personalized attention: Everyone who applies through IFS will talk one-on-one with one of its financial advisors.
  • Options for those with mid-to-low credit scores: IFS accepts credit scores as low as 500, which is much lower than the industry average of 661 for used cars and 717 for new cars, according to Experian’s State of the Automotive Finance Market report for the third quarter of 2018.

Lowlights of Innovative Funding Services auto loan financing

  • Limited options for outright buyers: IFS offers options to refinance an existing loan or buy out a lease. But it doesn’t have a purchase option.
  • May not be suitable for those with older vehicles: It only provides financing for vehicles model year 2010 or newer with 150,000 miles or less.
  • Fees and requirements may vary: While IFS doesn’t charge an application fee and has a set of minimum requirements, the lender it pairs you with may have other fees. Plus, you’ll pay a $200 origination fee.

The bottom line: Who are Innovative Funding Services auto loans best for?

Innovative Funding Services might be right for you if:

  • You feel like you need help through the financing process: One thing that’s unique about IFS is it stays with you even after it matches you with the right lender. It works with the lender to help streamline the process through closing the loan.
  • You’re looking for auto funding for your business: IFS specializes in helping you finance company cars.
  • You have less-than-perfect credit: IFS accepts credit scores as low as 500, which is much lower than the industry average.

If you’re unsure what type of auto loan would be best for you, Innovative Funding Services may be a good option. Between servicing all 50 states, partnering you with a financial advisor to help you find the loan that’s your best fit and offering options for those with less-than perfect credit, IFS services a wide variety of consumers.

It’s important to shop around for auto loans and research your options before you commit. This will help you find out if Innovative Funding Services might be a good fit for you.


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