Your auto loan refinancing experience with Kia Motor Finance could feel overwhelming and intimidating. You wish to avoid a few dangers because you don’t refinance your Kia Motor Finance loan frequently, which is completely understandable.
In This Article...
Reasons you should not refinance
If your overall interest rate ends up being greater after refinancing your Kia Motor Finance auto loan, you shouldn’t do so. This means that if you wind up with a weaker financial product and a higher interest rate, you shouldn’t refinance your loan. Let’s look at the following illustration:
If your current monthly payment is $450 at 13 percent, you shouldn’t accept a loan at 13 percent even if the monthly payment is only $400 because your lender extended the loan’s term. Although it is undoubtedly conceivable, we strongly advise against it.
We’ve heard countless success stories from customers who successfully refinanced their Kia Motor Finance car loans. While maintaining the same loan period, several of our clients wished to lower their monthly Kia Motor Finance payment. Other clients extended the loan duration to 60, 72, and even 84 months in order to further minimize the monthly payments.
Other customers chose the cash-out loan from among all of our loan offerings because they had positive equity in their automobilethat is, the outstanding Kia Motor Finance loan sum was lower than the value of their car.
However, a common query we have from clients is, “I haven’t been fantastic at completing my payments therefore my credit score hasn’t really improved much yet. But I truly want to cut my payments each month. Should I refinance, accept a higher interest rate, and extend the loan’s term?
Such a refinancing is not one that we support. You’re committing yourself to much greater payments over a long period of time, which is a poor financial decision. Avoid being both a penny-wise and a pound-fool!
Can I skip a car payment?
Are you wondering if Kia Motor Finance will let you postpone a car payment since you’re strapped for cash? Yes, you are able to postpone one or more payments on your current auto loan. However, you must first discuss the deferral with Kia Motor Finance. Simply refusing to pay puts you at danger of collection calls and, eventually, a repossession.
Call Kia Motor Finance at 1-866-331-5632 and describe your position, if possible. The objective of Kia Motor Finance is for you to make your payments for the duration of the loan. You will ultimately pay more for your loan because finance charges will continue to be added to the outstanding debt. However, if you work successfully with Kia Motor Finance, they may postpone one or more installments as a courtesy and to assist you in making your payback.
Having said that, if you’ve been timely with your most recent payments, you may be able to refinance your Kia Motor Finance loan and lower your monthly payments. You may determine how low your payments could be in three easy steps without having to skip a payment or two.
Does Kia Motor Finance have a grace period?
The grace period for late payments under the Kia Motor Finance policy ranges from 7 to 15 days. Grace periods differ from lender to lender, and as a result of the coronavirus outbreak, banks are now much more understanding with their customers.
The minimum late fee we’ve seen was 5% of the monthly payment amount, although late rates vary greatly every loan. However, unless you have an emergency, we strongly advise against taking advantage of Kia Motor Finance’s grace period. You would be endangering your credit, which could have a long-lasting, detrimental effect on your personal finances.
Instead, we advise you to see if refinancing will lessen your monthly load and perhaps even generate unforeseen cost savings. Giving us your phone number and following our three easy steps will earn you a definite offer that is 100% online and won’t affect your credit.
How long does Kia Motor Finance take to repossess my car?
State-by-state variations in repossession laws range from three to five months after you ceased making payments on your Kia Motor Finance loan. What constitutes a default is specified in each unique retail and installment contract, the agreement you signed when you obtained your vehicle and Kia Motor Finance loan.
In some states and contracts, being in default for 45 days (or a month and a half) even results in a repossession. As soon as you stopped paying payments and as long as you haven’t paid the Kia Motor Finance late fees, you are in default.
You are still in default even if you make up all of your past-due payments and make Kia Motor Finance whole. To stop being seen as being in default, you truly need to pay Kia Motor Finance everything you owe, including fees.
What occurs if a car payment is missed, Kia?
Your auto loan will go into default if you repeatedly skip payments. As a result, you’ll start receiving calls from collection agencies, your credit score will suffer, and eventually your car may be repossessed.
Here’s the issue, I suppose
The loan provider also does not want you to miss payments on your loan. A repossessed car would be much more preferable to them than the money they are owing. Call your dealership to try and work out a payment plan if you have defaulted on your auto loan or believe you are in danger of doing so. Almost always, a situation can be made.
Is Kia Finance able to let me skip a payment?
FAQs about Loan Deferment You will be able to skip the payments that would have typically been due throughout the agreed deferment period if Kia Motors Finance approves your request for a payment deferral on your account. Although interest will continue to build up as usual, there won’t be any late payment penalties assessed.
How many days may your auto payment be late?
Vehicle Loan Grace Period Depending on the lender, grace periods for auto loans might vary, but most banks grant a 10-day grace period before considering a payment to be overdue. After then, there will probably be a late fee.
What happens if I don’t pay my auto loan on time?
Repossession can result from two or three consecutive missed payments, which lowers your credit score. Additionally, some lenders have implemented technologies to remotely disable vehicles after even a single late payment. You can deal with a missing payment in a number of ways, and your lender will probably cooperate with you to find a solution.
The key to minimizing the harm is having an informed, honest dialogue with your lender, regardless of whether you just forgot to mail the payment or can’t afford the whole amount.
If I have already paid more than half, can my car be taken away?
You are able to voluntarily discontinue your finance agreement[AN1] once you have paid at least half of the TAP. This entails returning the keys to the lender and ending the contract early with no further obligations.
The vehicle must meet the requirements for its age and mileage and be in good condition. Fair wear and tear is permissible with voluntary termination of a car loan, but the lender may charge you for anything above this.
If you find yourself with negative equity auto financing, this entitlement, which was included in the original agreement to safeguard you against car depreciation, can help you save a significant amount of money (owing more on the finance than the car is worth).
Nevertheless, you should be aware that a “Voluntary Termination” flag will be placed on your credit report. While lenders are not permitted to use this information adversely, they may limit the duration or request a deposit on future loans to assist prevent you from again reaching negative equity.
Can my car be repossessed if I have paid more than half?
According to the “thirds rule,” your auto finance repossession rights kick in once you’ve paid off more than half of your hire purchase loan. After that point, your lender is prohibited from taking your car without following the correct procedures. However, once you’ve paid half, you can take your car back to the dealership at any time.
Does putting off a car payment damage credit?
Deferments, or pay periods where you skip some or all of your payments, are permitted under many auto loans. This only means that you are permitted to postpone paying that debt till later, not that you don’t still owe it. Deferments are utilized in crises when you have either a sudden, unanticipated cost or an unforeseen temporary decline in your income. For instance, it would be wise to ask for a deferment if you were temporarily laid off from work or if storm damage necessitated urgent house repairs.
Your credit score is not harmed by deferments. Since you prearranged it with your lender, a postponed payment counts as “paid according to agreement,” as opposed to just missing or paying it late. That’s particularly crucial if you’re already experiencing the kind of emergency that necessitates a delay.
How do I modify my payment date on my Kia?
Working out a new vehicle loan due date requires communication, just like it would with any other lender. Contact Kia Motors’ Finance division by calling (866) 331-5632.
Which bank is Kia Finance using?
Experian and fico are the two credit-checking organizations used by Kia Motor Finance to double-check a customer’s information and tally each other’s work. Consequently, they provide you your fico score based on the information supplied by Experian.
How does Kia finance loans work?
They will do a soft credit check rather than a hard one if you wish to buy or lease a car in installments, so it won’t effect your credit score. However, if you miss an installment, they will report it to their credit agency, which will lower your credit score.
The lowest credit score that Kia will take is 680, which is in the very good category, making it quite difficult to obtain financing for a Kia. As a result, you should have high moral standards and never skip a payment. When your credit score reaches 680, you will be qualified to purchase a Kia. Getting an automobile from a prestigious firm is difficult because of its status; this rule applies to numerous companies, including BMW and Audi. The maximum duration of the financial plan is 72 months, or 6 years. Additionally, if you have good credit, your interest rate may be zero percent.
As a result, in order to obtain your ideal car model from Kia Financial, you will need to have a strong credit score and a reliable source of income.
Simply fill out an application for financial services on the company’s website, including your bank information so they may verify your credit, and you will receive a response regarding the loan within two weeks or so.
What does the company see in a customer’s credit?
The following are a few of the considerations for determining an individual’s credit:
A credit report is a written record that contains information about a person’s financial, credit, and personal facts. Account number, terms, conditions, and your payment history, including the sums borrowed or taken out, were all used to start the account. The number of creditors who have sought your reports, court-ordered judgements, tax liens, and bankruptcies are all considered.
- When you are in need of a loan and in every element of your life, having a good credit score is crucial. The loan provider will first evaluate you based on your credit score. That report will determine the interest rates on your loans and the bank’s dealings with you.
What is Kia Motors’ finance?
This Kia dealership assists consumers with financing for either leasing or purchasing a new vehicle. You will benefit more if you have a solid credit score or a better profile because they have relevant plans with adequate amounts of time and interest. The approval rate for Kia Motors Finance is 98 percent, and you may apply online to save waiting in line at the dealership for paperwork to be processed.
With a lease, you can request a model for a specific period of time and pay the price in installments. You can then reapply to lease the same model or any other model after that.
This funding may be approved in a month, or it may be approved soonerin as little as two to three weeks.
Conclusion
Therefore, having a good credit score can benefit you in a variety of ways, such as lowering insurance rates and obtaining loans with no interest. Therefore, maintain a good grade because large corporations favor employees who are moral and will never forget to pay a bill so that the business is burdened. If your credit score has been poor for any reason, you can raise it in the near future thanks to one of the greatest companies in the industry that Mercedes uses for credit checking.
Does a payment that is seven days late impact credit?
Generally speaking, it takes at least 30 days after a missed payment for a late payment to appear on your credit reports. Your credit reports and credit scores could be impacted by a late payment. Here is how the procedure often unfolds. [Time 1:25]
Highlights:
- Credit reports and credit ratings may be impacted by even one late or missed payment.
- Generally, it takes at least 30 days after you miss a payment for late payments to appear on your credit reports.
- After the payment due date, late fees may be immediately charged.
If you are having problems making credit card payments on time due to a job loss or furlough, or if you accidentally missed the due date, you may want to know how long a late payment will take to appear on your credit reports and whether there is any kind of grace period.
Credit reports and credit ratings may be impacted by even a single late or missed payment. The simple answer, however, is that although you may still be charged late penalties, in general late payments won’t appear on your credit reports for at least 30 days from the date you missed the payment.
Lenders and creditors may not report a payment as late to the credit agencies if you are only a few days or weeks late and you make the entire late payment before the 30-day grace period expires. Remember that making a partial payment will usually be considered late if you are unable to make the entire amount.
The general procedure is as follows:
Next is the due date for your payment, which is noted on your bill or statement. It’s the deadline by which you must make a payment in order to avoid late fees and interest charges. It’s ideal to make payments on time, each and every time, as your due date is typically the same (for instance, the 15th of every month).
The reporting date, which is often the day your account information is reported to the major credit agencies, is the third date. (Keep in mind that not all creditors and lenders report to all three credit bureaus; some may only report to two, one, or none at all.)
The reporting date generally occurs at least 30 days after the payment due date, giving you time to catch up on missed payments before they appear on your credit reports. It may take 60 days for some creditors and lenders to disclose late payments.
It’s crucial to remember that even if late payments are not immediately reflected on credit reports, late fees may still be charged right away after the due date.
Your lender or creditor should record your account as current if you are able to make up any missed payments within 30 days or more. However, any late payments that may have previously been reported will stay on your credit reports for seven years.