Payment Solutions

FAQs – Bank Loans

 

Q. What is a bank loan?

A: Our bank product is a bank installment loan, a loan that is repaid over time and with a set number of scheduled payments and backed by an agreement with both parties.

Bank installment loans, or our bank products, are underwritten, originated, and held by FinWise Bank , a Utah-chartered bank, Member FDIC. American First Finance provides service for you and your account on behalf of FinWise Bank.

 

Q. When you say, “No credit required” or “Credit not required for approval,” what does that mean?

A: No Credit Required means just that: No credit is required to possibly receive an approval. You can have a low or no credit score and still get approved.*

No Credit Needed means that you may be approved for a loan without using your credit score. Your credit will be checked, but the financing process does not solely depend on your credit score for approval.

 

Q. Do I need a certain credit score to get approved?

A: No, you do not. Your credit history is only one part of the decision process. We look at other factors besides a credit score. A certain credit score is not required for approval.*

 

Q. Do my payments get reported to the credit bureau(s)?

A: Yes, we send updates to credit bureaus no less than once per month.**

 

Q. Who is my loan with? American First Finance or the bank?

A: Your loan is underwritten, originated, and held by FinWiseBank.

American First Finance provides service for you and your account on behalf of FinWise Bank. If you have any questions about American First Finance, your loan, or FinWise Bank, American First Finance is happy to help. Contact us with your questions.

 

Q. Are bank loans cash loans?

A: It depends on if the loan is secured.

Secured installment loan products are not cash loans.

Unsecured installment loan products, however, are considered cash products.

What’s the difference?

The difference between how and where the loans are being used.

If you’re getting funds directly to your instant debit card, via ACH, or a virtual card and can choose the retailer or merchant, this is an unsecured installment loan.

A secured installment loan is where the funds from the loan are sent directly to the merchant or retailer, and the loan is secured by an interest in the property acquired.

 

Q. Can I pay off early?

A: Yes. You will save money if you pay the discounted amount during the Early Payoff Discount (EPD) period. You must make payments larger than your regularly scheduled payments by the EPD expiration date. You can make additional payments through our customer portal or by contacting our customer service team.

The Early Payoff Discount Includes:

• Amount financed
• Origination fee (if applicable)
• Applicable fees (Nonsufficient funds (NSF) fees, late fees, or state fees, where required).

You can also pay off the loan early simply by making larger payments before the final payment due date. Utilizing either of these options means you’ll pay less in interest according to the loan amortization schedule.

 

Q. What is the Early Payoff Discount Option and how does it work?

A: The Early Payoff Discount is an option for FinWise Bank installment loan customers to save money by paying the discounted amount during the Early Payoff Discount (EPD) period. You must make payments larger than your regularly scheduled payments by the EPD expiration date.

The Early Payoff Discount Includes:

• Amount financed
• Origination fee (if applicable)
• Applicable fees (NSF fees, late fees, or state fees, where required).

Check your agreement for details on the Early Payoff Discount option.

Note: This is not a “same-as-cash” program due to fees.

 

Q. What happens if I over-pay when exercising my Early Payoff Discount option?

A: If you pay more than what you owe, we’re happy to refund you the balance you overpaid. You’ll receive your refund in the same method of payment you used.

 

Q. When does the Early Payoff Discount Period expire?

A: Check your agreement for details of your specific Early Payoff Discount period.

Need help or more information? Feel free to contact us.

FAQs – Lease to Own (LTO)

 

Q. What is a “lease-to-own” transaction?

A: A lease is not a loan or credit transaction. It has several names: lease, lease-to-own, rent-to-own, or rental-purchase. With a lease, you select the item(s) and a payment solution company, such as American First Finance. American First Finance purchases the item(s) from a Merchant. You take the item(s) home. American First Finance retains ownership until you pay for the item(s) plus rental fees. Other fees may be included, such as late, non-sufficient funds, delivery, and optional Liability Damage Waiver fees. As a result, the total amount you pay for leasing an item is more than the retail cost. You can cancel your lease at any time without penalty by contacting American First Finance.

Options for Ownership

1. Finish out the length of your agreement by simply paying all the scheduled payments on your lease agreement on time.
2. Use the Early Buyout Option or the Early Purchase Option.

If you choose to no longer use or possess the merchandise, you may terminate your lease agreement at any time by processing a return with us. Please contact American First Finance if you would like to discuss a return of your leased merchandise. A copy of your contract was emailed to you when you completed the signing of the documents. For all questions regarding your account, please contact American First Finance.

 

Q: Do I own the merchandise starting on day 1 of my lease-to-own agreement?

A: No. American First Finance owns the merchandise and leases it to you. You may obtain ownership by exercising one of these three options:

1. The Early Buyout Option;
2. The Early Purchase Option;
3. Make all of your scheduled payments.

 

Q: As a lease-to-own customer, is there a way to own the merchandise? How much would it cost to own the merchandise?

A: Yes, it is possible to own the merchandise. There are three options to obtain ownership on your lease-to-own merchandise.

• You may take advantage of the Early Buyout Option; the details are in your agreement.
• You still have an option to own the merchandise after the Early Buyout Option period has passed and before the end of your agreement by using the Early Purchase Option.

As a note, paying the Total Balance owed through the Early Buyout Option or the Early Purchase Option allows you to save money on leasing fees and to own the merchandise earlier.

• You obtain ownership of the merchandise once you make all the scheduled payments to the end of your agreement term. You do not have to complete the lease early.

 

Q: I’m finished using my merchandise and do not want to own it. How do I return it?

A: If you choose to no longer use or possess the merchandise, you can terminate your lease at any time. Please contact American First Finance if you would like to discuss a return of your leased merchandise.

 

Q: Is there a “same as cash” option?

A: No. Products serviced by American First Finance are competitively priced.

As a note, your product will cost more than the retail price or cash price since fees and charges are applied in accordance with your agreement.

 

Q: What cost(s) are included in my scheduled lease-to-own payment?

A: Your regularly scheduled lease-to-own payments include leasing fees, cash price, sales tax, and a Liability Damage Waiver (LDW) fee if LDW coverage for the merchandise was selected.

If you paid a security deposit, your scheduled payments would be decreased by the amount of your security deposit, distributed across the number of payments indicated in your contract.

To determine that payment amount, divide your security deposit by the number of payments in your agreement. Then subtract that figure from the original scheduled payment amount to see your new adjusted payment value.

All applicable fees and charges are disclosed in your agreement. We encourage you to carefully read and understand the agreement before signing and to re-review your agreement if you have questions at any time. We’re also here to help if you have any questions.

 

Q: Does a lease-to-own transaction have interest?

A: No, lease-to-own transactions do not have an interest rate because they are not loans or a type of credit. However, a lease requires the customer to pay leasing fees, resulting in the customer paying more than the retail price or cash price of the merchandise they are leasing.

 

Q: What is an Early Buyout Option on a lease-to-own account?

A: The Early Buyout Option is an option that offers you the largest cash savings for your lease-to-own agreement and allows you to obtain ownership early.

You will save money if you pay the discounted amount during the Early Buyout Option (EBO) period. You must make payments larger than your regularly scheduled payments by the EBO expiration date. You can make additional payments through our customer portal or by contacting our customer service team.

The Early Buyout Option Includes:

The full cash price of the merchandise, plus:

• Sales tax.
• Any Early Buyout Option fee.
• Applicable fees: Late fees, LDW (Liability Damage Waiver) fees.
• NSF fees.

You can obtain ownership early by paying the Early Buyout during a specified period before your lease agreement ends. See your agreement for details about this option.

As a note, you are not obligated to exercise the Early Buyout Option. It is completely optional.

 

Q: Will scheduled automatic payments pay off the Early Buyout Option?

A: No. You must make payments that are larger than your scheduled automatic payments to exercise the Early Buyout Option. You can make additional payments through our customer portal or by contacting our customer service team.

Refer to your agreement for the exact number of days of the Early Buyout Option period, and other important details.

You may opt out of automatic payments at any time by contacting our customer service team.

 

*Approval is possible without a credit score, but credit history may be checked.

**American First Finance reports to the credit bureaus for all accounts except for new lease-to-own accounts opened on or after January 1st, 2024. Additionally, new Retail Installment Sale Agreements will no longer report to Data X. American First Finance will continue to report to credit bureaus for any accounts opened before this day that were previously reported on. This change does not impact AZ, CA, and FL, given that credit reporting for lease-to-own accounts opened in these states was previously discontinued.