If you need to borrow between $1,500 and $20,000 and have less-than-perfect credit, OneMain Financial personal loans can be a decent choice. However, in comparison to its rivals, this lender’s fees and interest rates can be exorbitant.
In comparison to other online loans, OneMain Financial’s loans are pricey. But because of their customer-friendly features, they are a choice for borrowers who find it difficult to qualify elsewhere. In this article, we have put together a thorough analysis of OneMain Financial below to assist you in determining whether or not to apply.
OneMain Financial Personal Loans
OneMain Financial is considered the least regarding personal loans for a few reasons. Unlike most personal loan companies, OneMain allows poorer credit scores and delivers lightning-fast funding times. Therefore, it can be something to consider if you’re having trouble getting authorized for the greatest personal loans. Furthermore, to find out what rate and loan amount you might be qualified for, you can apply for prequalification, which has no negative effects on your credit score.
Advantages of OneMain Financial Personal Loans
Secured and joint options
OneMain allows consumers to apply for loans using a vehicle under ten years old, with approval pending appraisal results. Combining personal loans with co-applicants can increase eligibility and lower rates, but may involve lender collateral and co-borrower repayment.
Select and change the payment date
Borrowers of OneMain Financial have the option to select the due date twice during repayment after signing a loan agreement. This function comes in handy when things like a new job or a different paycheck alter your income and expenses.
Quick funding
According to OneMain Financial, a loan application may be promptly approved conditionally. The fastest funding period offered by the lender is one hour for candidates who apply in person; online applicants may need to wait one to two business days to obtain their funds. While some lenders promise same-day money, most personal loans take a day or two to fund.
Direct payment for debt consolidation loans
Borrowers who combine other high-interest debts with a OneMain Financial loan may choose to have the loan money routed straight to their other creditors. Although this function saves the borrower from having to complete that step, you should still keep an eye on your accounts until they are paid off. Only if your new loan has a lower rate than your existing debts is a debt consolidation loan a viable choice, and that may be difficult to do given OneMain’s high rates.
Branch accessibility
OneMain has locations in all 44 states where it provides personal loans. While borrowers can obtain unsecured loans without going to a branch, individuals would rather apply in person with a loan officer.
Seven-day cancellation policy
During this time, borrowers are free to decide not to proceed with the loan and may do so without incurring any fees. This feature is not widely available from lenders.
Disadvantages of OneMain Financial Personal Loans
High rates
OneMain’s high yearly percentage rates are its main disadvantage. While most lenders provide single-digit starting rates on personal loans to applicants with fair or weak credit (credit scores below 690), OneMain’s starting APR is 18%.
No discount
There is no rate discount available from OneMain Financial. When establishing automatic payments on a personal loan, the most frequent discount is often 0.5 percentage points or less of the annual percentage rate. When utilizing the direct payment option on debt consolidation loans, many lenders provide you with a discount.
Origination fee
Origination fees are a standard feature of internet lenders’ OneMain loans. OneMain charges a flat cost ranging from $25 to $500 in certain areas, and a fee ranging from 1% to 10% of the loan amount in other states. Usually, origination expenses are subtracted from the loan profits, which lowers the total loan amount. Make sure the loan will suffice to pay for your costs after the application charge is deducted.
No APR
OneMain Financial, like the majority of other online lenders, enables borrowers to use pre-qualification to assess their possible personal loan offer. However, OneMain only provides information to borrowers regarding their potential loan amount and whether they are eligible for an unsecured loan, secured loan, or both. To display your rate and terms of repayment, the lender needs a formal application that includes a hard credit draw.
Credit insurance
With both secured and unsecured loans, OneMain may provide an optional credit insurance plan. It’s important to weigh the advantages and disadvantages of credit insurance before acquiring it because it raises the cost of the loan and might not be required if borrowers already have life insurance.
Who Needs OneMain Financial Personal Loans
The greatest candidates for OneMain are those with fair credit, who require a loan of between $1,500 and $20,000 right away, and who can comfortably repay the loan over two to five years. OneMain has a reputation for dealing with customers who would not be able to qualify for loans elsewhere, so it might also be the ideal option for those who have been turned down by other lenders. In addition, OneMain’s actual branch locations might be useful if you would rather talk to someone face-to-face. If you can qualify for loans with lower interest rates and fees and have excellent credit, this lender might not be the best choice.
How to Apply For OneMain Financial Personal Loans
Based on data from the lender and our experience finishing the pre-qualification process, these are the procedures to apply for a loan from OneMain Financial.
Visit OneMain Financial’s website to pre-qualify
On the OneMain website, select the check for offers button and input the desired loan amount. Next, provide your email address, name, income, and address. Provide information about your employment and whether or not you own a paid-off car. Lastly, input your SSN or ITIN along with your birthdate. At this point, there isn’t a hard credit pull.
Choose loan offers
You can see what kinds of loans you qualify for with OneMain. You won’t see the terms of repayment or your possible APR at this time. Rather, eligible candidates might receive an offer for an unsecured loan, a secured loan, or both. To present you with a complete loan offer, the lender needs a formal application, which will temporarily lower your credit score.
Send in an application
According to OneMain Financial, most candidates can find out right away whether they have been conditionally authorized after applying. Additional verification is needed for final clearance. The lender claims it can fund the majority of loans in one or two days after final clearance.
Create a plan for loan repayment
Your credit score will increase if OneMain Financial files payments to all three main credit bureaus; nevertheless, your credit score will decrease if payments are not made on time. Two strategies to manage your loan payments are to set up automated payments and to stay focused on your spending plan.
