Consumer Portfolio Services: Understanding a Unique Financial Tool
The phrase “Consumer Portfolio Services ” refers to an innovative financial tool created by the lender CitiFinancial Auto. It is an agreement between the lender and borrower that allows a consumer to purchase a vehicle using special financing options.
In essence, Consumer Portfolio Services is a form of credit available to consumers who have difficulty accessing traditional forms of lending. This can be because of poor or limited credit history, self-employment income, or other factors.
CPS offers both new and used vehicles for financing, and features a variety of benefit programs that include loan term lengths, zero down payment, and deferred payments. CPS also assists with refinancing existing vehicle loans, helping customers reduce their monthly payments and overall costs.
How Does Consumer Portfolio Services Work?
When applying for Consumer Portfolio Services, the applicant is evaluated based on their ability to repay the loan over the agreed-upon loan terms. The lender considers various factors, including current income, credit score, employment history, and other information. Upon approval, the loan agreement will specify the interest rate, repayment term, and any fees associated with the loan.
It is important to note that borrowers may not receive the best possible interest rate when using Consumer Portfolio Services. This is because CPS specializes in providing services to people with limited access to other credit sources. As such, borrowers may end up paying slightly higher interest rates than through more traditional lenders.
Benefits Of Consumer Portfolio Services
Consumer Portfolio Services offers several key benefits for those looking to finance a car:
- Quick and easy application process
- Zero down payment options available
- Flexible repayment terms
- Several special programs available
- Discounts available for certain buyers such as military personnel
Drawbacks of Consumer Portfolio Services
Although Consumer Portfolio Services can be a great tool for people who need access to car loans but have been shut out of traditional lending, it does come with some drawbacks:
- Higher interest rates than traditional lenders
- Restrictions on certain vehicles (i.e. limited model years, etc.)
- Strict guidelines for qualifying applicants
It is important to carefully weigh the pros and cons of Consumer Portfolio Services before committing to this type of agreement. Doing so will help ensure a successful borrowing experience.
Finding The Right Car With Consumer Portfolio Services
After evaluating Consumer Portfolio Services and deciding it is a good fit for your needs, the next step is to shop for the right car. When looking for a pre-owned vehicle, it is important to research the available models and prices. Additionally, you should consider the specifics of the loan itself, such as the repayment terms, applicable fees, and other important details.
Finally, be sure to ask questions throughout the process. Working with CitiFinancial Auto customer representatives or other car loan professionals can help ensure that you are receiving the best deal available when it comes to obtaining a car loan via Consumer Portfolio Services.
Overall, Consumer Portfolio Services can provide a valuable service for those who do not qualify for traditional car loans. This financial tool can open doors for consumers with limited credit history or other special circumstances.