Kia Finance: Approval & Account Guide

Last year, I made the choice to buy a brand-new car, and I when I made that decision I told myself that the car would
be a Kia for sure. Security, the long-term warranty, and the price—these were the factors that led to Kia being the
clear winner within my budget. However, the financing question was the other side of the coin? That was like trying to go
through a maze while blindfolded.

The process of applying for a Kia loan turned out to be quite teaching for me – I even got into my account and learned
a lot about it as I have been with them for over a year. Thus, I decided to share this guide with you to ease your life
by letting you skip the confusions I underwent and at the same time empowering you to walk the Kia financing plan the
right way.

Whether you want a brand-new Sportage or a certified pre-owned Sorento, you should first know the financing options
as they can reduce the cost by thousands and the related stress can disappear completely.

What Is Kia Finance and How Does It Work?

Kia Motors Finance is the primary finance department of Kia America. Basically, it is the financial institution from
Kia that eases the purchase and leasing process of the cars. When you finance your vehicle with Kia Motors, you will get
the money for your new Kia from Kia directly instead of getting it from either a bank or a credit union as is common with
most conventional financing options.

The financial offer preferred by my local Kia dealership was the primary reason I chose Kia finance for my Seltos plus
the ease of having everything under one roof. All the details about my car payment, warranty and service records would be
with one company.

In simple terms, the drama is acted out like this:

You visit a Kia dealer and select the car of your choice. Next, the finance manager looks at your credit and tells you
the financing alternatives. If you qualify for Kia Motors Finance, they will give you terms based on your credit rating,
the amount paid upfront, and the specific car that you are purchasing. After that, you get the documents signed, take your
new Kia home, and begin the monthly payments.

The Different Financing Programs Kia Offers

During my visit to the dealership, I was taken aback to discover that Kia finance is not simply one loan program.
Depending on your circumstances, they provide multiple options:

• Traditional Auto Loans: This is what usually comes to mind when people mention “car financing.” You
  take out a loan to buy the car, make monthly payments with interest on it until you own it outright. I selected this
  option because I wanted to have my car after a few years.
• Lease Programs: Leasing might be your choice if you like to have a new car every few years. You need
  to pay the vehicle’s depreciation during the lease period and then return it or purchase it at the end.
• Special APR Promotions: Kia is continuously providing special financing promotions, mostly on new
  models. When I was getting my car, they had a 1.9% APR for 60 months on some models. If you meet the eligibility criteria,
  these promotions can offer you a significant amount of money concerning savings.
• Certified Pre-Owned Financing: When you are buying a used Kia from a dealer, you might still be a
  candidate for financing through Kia Motors Finance. Interest rates are generally a little bit higher than for new car
  financing, but still competitive.

Kia Finance Application Journey – My Experience

First of all, let me tell you about my application experience honestly and openly. I believe it is good to hear a true
story rather than just the cleaned-up version.

My credit score at the time of application was about 690, which put me in the “good” category, but still, not the top
one. I had a little bit of debt from the school loans and one credit card, but I made all the payments on time. When I
applied I was already scared because I did not know if this was enough to be approved or not.

The Application Steps that I Experienced

The whole procedure at the dealership took roughly two hours, even though the financing approval took place in a
matter of minutes. Here is what you can anticipate:

Step 1: Application and Credit Check

The finance manager wanted my driver’s license, proof of income (I had recent pay stubs with me), proof of address (a
utility bill sufficed), and my Social Security number. They performed what is known as a “hard inquiry” on my credit,
which caused my score to drop a little for a short period.

One thing that I got to know: In case you are hunting around different dealerships, try to make it within a 14-day
limit. Credit bureaus normally classify several auto loan inquiries made within that period as one and hence will not
affect your score that much.

Step 2: Offer Evaluation

The finance manager notified me of my approval around 15 minutes later. I got a 4.9% APR for 60 months with a down
payment of $3,000. The monthly installment will be close to $425.

I inquired if I could get a better rate by providing a larger down payment. He told me that my credit score—rather than
the down payment—largely determined my interest rate. Still, a bigger down payment would entail lower monthly payments and,
in turn, lesser interest paid over the loan tenure.

Step 3: Document Signing

This phase took the most time as there was a lot of paperwork involved. The finance manager went through each document
with me, namely the retail installment contract, the warranty details, and the GAP insurance offer (more about this
later).

Understanding Your Interest Rate and Terms

The Kia finance interest rate that you will receive will be determined by various criteria. Participating in the
process and having conversations with other Kia owners led me to discover the following points that matter the most:

Your Credit Score: This is the major parameter. People with excellent credit (740+) can qualify for promotional rates
that go as low as 0% to 2.9%). With good credit (670-739), you are looking at rates between 4% and 8%. Fair credit
(580-669) could face rates between 8% and 15% or even more.

The Vehicle You Are Buying: New cars will generally get better rates than used cars. The year of the model is also
important. The newest models usually have promotional financing that is not open to used cars or older inventory.

Your Down Payment: This factor does not have a direct influence on your interest rate, but it does affect the loan-to-
value ratio. If you are financing an amount more than the car’s worth, the lenders consider you a high-risk customer.

Your Loan Term: Shorter loan terms (36 or 48 months) typically come with lower interest rates than long terms (72 or
84 months). I selected a 60-month term because it provided a reasonable monthly payment plus a decent interest rate.

The Real Cost of Different Interest Rates

I am going to show you how much the interest rate can affect the total amount you will be paying. For instance, if you
borrow $25,000 for 60 months at different interest rates:

At 2.9% APR, you would end up paying approximately $1,900 as interest for the whole loan period. At 4.9% APR (which I
got), the total interest payment would be around $3,250. At 7.9% APR, interest amount would exceed $5,300.

The variance of over $3,000 is due only to your interest rate. Hence this is the reason why it is always good to first
improve your credit score before applying for financing.

How to Access Kia Finance Login and Manage Your Account

When you have done financing on your Kia, online management of your account would be a necessity. The entire
experience was actually one of my favorites, as Kia’s online platform is quite user-friendly and easy to navigate.

Setting Up Your Online Account

I got a welcome letter from Kia Motors Finance about a week after I took my car home. The letter contained my account
number and the online access setting guidelines.

Kia finance login can be done in the following way:

Visit the website of Kia Motors Finance (kiafinance.com). Click on the “Register” or “First Time User” (the words may
differ).

This process might take you about five minutes. I would suggest that you do it the moment you receive your welcome
letter so that you won’t forget.

What You Can Do Through the Online Portal

As soon as you finish the Kia finance login procedure, a dashboard will be displayed to you with a number of features
that are extremely helpful:

• Payments: You have the option of either putting in a one-time payment or setting up automatic
  recurring payments that will be deducted straight from your bank account. I have enrolled in autopay so that I will never
  forget a payment, which also contributes to my credit rating.
• Loan Information: The online portal gives you access to the most current details about your loan,
  such as the remaining balance, interest rate, and the amount and date of the monthly payment. Additionally, it tells you
  how much of each payment goes to the principal and to interest.
• Payment Records: I take a look at this every couple of months to see how much I have reduced the
  debt. It is exhilarating to witness the decline of the outstanding amount.
• Contact Information Update: If you cannot stay in your current location or if your mobile number
  changes, you can make the change in the portal right away.
• Tax Papers: At the end of the financial year, Kia Finance sends out tax papers with the amount of
  interest paid by each customer, that is, buyers might claim interest deduction based on their tax situation.

Additional Payments and Early Full Payment

One enquiry that I had almost immediately was whether it is allowed to make payments in excess of the loan amount and
direct them towards the principal amount. Simply put, it is possible, and there is no penalty for paying off early with
Kia finance.

After I received my spring bonus from work, I paid an extra $500 towards my loan and directed this amount to the
principal. As a result, I not only saved on interest but also reduced my loan duration by a few months.

The correct process is as follows: Log in to your account, access the payments section, and find an
option that says something along the lines of “principal-only payment” or “additional principal.” Ensure that you are
specifying that the additional funds are going towards the principal and not merely your next month’s payment.

What Happens If You Have Financial Trouble?

Life is indeed uncertain, unemployment, urgent medical needs, unplanned costs-such unfair aspects which most people
experience at some time in their lives. It might be very hard to meet a Kia finance payment; here’s what I believe
consumer financial advocates and the Consumer Financial Protection Bureau suggest:

Reach out to Kia Finance as soon as possible: Do not allow yourself to miss a payment. And call them to explain what is
going on. They may be able to help you out in the following ways:

• Extension of payment deferral for a short term (postponing payment by one or two months or so)
• Modification of loans in terms of extending the term and lowering the amount to be paid monthly
• Hardship program for any financial emergency, based on proof

Weighing options is a positive idea: If Kia Finance is not your answer, then think of:

• Getting rid of the car to pay off the loan (should you have equity)
• Refinancing with a different lender-which you could still probably do on good credit
• Receiving credit counseling from a licensed agency (For a list of agencies, go to National Foundation for Credit
  Counseling at https://www.nfcc.org)

Realize that whatever the outcome from your actions, by not paying, you will be harming your credit
score. And eventually, this could result in repossession, yes. And that repossession goes on your credit report for a
good seven years. No lender thereafter will give you credit.

I can’t claim to have been there, but I am aware of those who have been. The difference in outcomes is
that those people who carried their problem from the beginning had better outcomes than those who kept mum.

Kia Finance FAQs

1. What is the minimum credit score for receiving “Kia finance” approval?

Ans.1. A specific credit score limit is not set, yet according to my inquiries and talks with financial managers the
score criterion of 650 or more will give you the best odds of approval. I have even heard people getting approved with
scores as low as 600, but then they had to pay higher interest rates and make larger down payments.

In case your score is less than 600, it would be advisable for you to have a co-signer or better still, work the score
up prior to application. Kia Finance accepts some subprime borrowers but the conditions won’t be so good.

If you are confused about credit scores and their impact on lending, the Consumer Financial Protection Bureau has very
useful resources (https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-score-en-315/).

2. What is the time KIA finance approval goes for?

Ans. 2. From my perspective, I got the first approval decision in about 15 to 20 minutes while waiting at the
dealership. This happened right after the finance manager sent my application using an electronic mode.

But then again, final approval and funding may take a couple of business days. The dealer allowed me to bring the car
home the same day but real loan documents and payment details were delivered to me by post a week later.

If you apply online or via a dealer during weekends, it may not be until the next business day that you will get the
response back.

Q.3. Can I make payments with a credit card?

Ans. 3. Kia Motors Finance does not accept credit cards for payment of the regular monthly payment. However, you can
choose to pay through:

• Automatic bank account deduction (ACH)
• One-time bank account payment through the online portal
• Phone payment using your checking or savings account
• Mailing a check or money order

I inquired about the possibility of using a credit card to earn reward points, though, they clarified by saying that
due to processing fees it would not be feasible for auto loan payments. Some third-party payment services even state they
could facilitate using a credit card to make car loan payments but their fees are such that they usually eat up any
rewards points you would earn.

Q.4. What occurs if I fail to make a payment?

Ans.4. I have mentioned this point before, but now let me provide the entire picture according to Kia’s rules:

• 1-10 Days overdue: A courtesy reminder call or email to you might happen, but normally there are no immediate
  consequences.
• 10-30 Days overdue: Your account receives a late fee (usually $25-$35) which is added. This is generally still not
  visible in your credit report.
• 30+ Days overdue: This is when the situation becomes serious. The delinquent payment is marked as such in the credit
  bureaus, thus resulting in a fall of your credit score by anywhere from 50 to 100 points. You will be subjected to
  collection calls and notices.
• 60+ Days overdue: Further additions of fees take place, and Kia Finance may direct repossession in accordance with
  the laws in your state.
• In case you miss a payment, do it at the earliest and contact customer service to check if they can cancel the late
  fee especially if it is your first time

5. Is Kia finance identical to Kia Motors America?

Ans. 5. Initially, it was quite a puzzle for me as well. Kia Motors America is the parent company that looks after the
sales, marketing, and operations of Kia cars in the US. Kia Motors Finance is a branch that deals only with financing and
leasing.

If you use the dealer’s financing via Kia, you are dealing with Kia Motors Finance. They are linked to the mother
company but function as a distinct lending entity.

Kia Motors Finance takes care of your loan, but in case of a problem with your car or warranty, you would reach out to
Kia Motors America or your dealer.

My Final Thoughts and Recommendations

1. Reflecting on my decision to go with Kia finance a year back, I feel content with this choice. The procedure was
   simple, the management of the account online is very easy to use, and the customer service has been quick to respond
   whenever I required assistance.
2. Nevertheless, buying a vehicle through financing is still a huge commitment. It would take me five years to completely
   pay off the loan. Hence, it’s going to be quite a while before I make the last payment. The following are some of the
   things that I would do differently if time machine was real:Down Payment grown: It is my hope that if I had saved $5,000
   instead of $3,000, I would feel much better. The reduction of my monthly payment and total interest paid is the benefit of
   the additional $2,000.
3. Shorter Term Consideration: A higher monthly payment would have come with a 48-month loan but on the other hand, I
   would have lost nothing on the interest and gained equity earlier.
4. Vehicle Price Negotiated Harder: I was so preoccupied with getting financing approval that I did not really negotiate
   much on the price that was indicated. Do not forget that the more you pay for a car, the more loan you get and lower
   prices save you money even when your interest rate is constant.
5. Insurance More Carefully: I bought insurance through the dealer’s recommended company, but later I found cheaper rates
   by shopping around. This could have saved me $30-$40 per month.

Kia Financing Ready to Go?

If buying a Kia is your plan and you are on the way to considering financing, then let me share my recommendation:
First, do your research. Know your credit score, set aside a down payment, and look at current interest rates. Besides,
get yourself pre-approved by several lenders so that you can make a comparison of the offers.

While you are at the dealership, you should not hesitate to pose questions or even argue if something seems off. The
finance manager is on the dealership’s side, not yours, so it is up to you to become the advocate for your interests.

Do go to the nearest Kia dealership to drive the cars and talk money. The current promotional rates and incentives can
also be found on Kia’s official website. If the financing is still with Kia Motors Finance, make sure you register for the
online access at kiafinance.com to utilize the various account management tools offered.

Purchasing a vehicle is thrilling, but it also ranks as one of the major financial decisions you will make. Do not rush,
read every detail thoroughly, and do not put a signature until you have full confidence with the terms.

Happy car buying! In case of any queries about my experience or if You wish to share your own Kia finance story, I will
be more than happy to receive your comments.