One Main Financial Loan Reviews: When it comes to personal finance, the options available to you can significantly impact your financial stability and goals. One of the key decisions individuals face is whether to take out a personal loan, and if so, which lender to choose. OneMain Financial is a prominent player in the personal loan market, but like any financial product, it comes with its own set of pros and cons. In this comprehensive guide, we will delve into the advantages and disadvantages of OneMain Financial personal loans to help you make an informed decision.
1. Option to Choose and Change Your Payment Date
Flexibility in managing your finances is crucial, and OneMain Financial understands that. They offer borrowers the option to choose their payment date when they sign a loan agreement. What sets them apart is the ability to change the due date twice during the repayment period. This feature can be a lifesaver if your income and expenses fluctuate due to changes in employment or payday timing.
2. Joint and Secured Loans
OneMain Financial offers both joint and secured personal loans, providing borrowers with more ways to access funds. With a secured loan, you can use assets like a car, truck, motorcycle, boat, or RV as collateral, making it easier to qualify and potentially secure a lower interest rate. For those who may not meet the credit criteria on their own, adding a co-applicant for a joint personal loan can be a game-changer.
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3. Fast Funding
In today’s fast-paced world, speed matters. OneMain Financial boasts a swift loan approval process, with conditional approvals sometimes granted instantly. For in-person applicants, funds can be disbursed within an hour, while online applicants can expect to receive their funds within one to two business days. While some lenders promise same-day funding, OneMain Financial’s turnaround time is still quite impressive.
4. Direct Payment to Creditors on Debt Consolidation Loans
If you’re using a personal loan from OneMain Financial to consolidate existing high-interest debts, they offer a convenient feature. They can send the loan funds directly to your creditors, streamlining the debt consolidation process. This means less hassle for you, although it’s essential to monitor your accounts until your previous debts are fully paid off.
5. Seven-Day Cancellation Policy
OneMain Financial distinguishes itself by offering a seven-day cancellation policy. This means that if you have a change of heart within the first week of taking out the loan, you can cancel it without having to make any payments. Such a policy is a rarity in the lending industry and can provide peace of mind to borrowers.
1. High Interest Rates
One of the most significant drawbacks of OneMain Financial personal loans is their high annual percentage rates (APR). The starting APR is a steep 18%, making them less competitive compared to other lenders. While they may be an option for borrowers with less-than-perfect credit, it’s essential to recognize the cost of borrowing from them.
2. Origination Fee
Another financial hurdle with OneMain Financial loans is the origination fee. Depending on your location, this fee can range from $25 to $500 or 1% to 10% of the loan amount. This fee is typically deducted from the loan proceeds, reducing the actual amount you receive. It’s crucial to ensure that the loan still covers your expenses after this fee is applied.
3. No Rate Discounts
Unlike some competitors, OneMain Financial does not offer any rate discounts. Many lenders provide APR reductions for borrowers who set up automatic payments, but this option is not available here. If you’re looking for ways to lower your interest rate, you may be disappointed.
4. Limited Loan Amounts
While OneMain Financial offers a range of loan amounts, they do have limits. The maximum loan amount caps at $20,000, which may not suffice for significant expenses or larger financial goals. If you require a more substantial loan, you might need to explore alternative lenders.
5. Pre-Qualification Doesn’t Show APR
Although OneMain Financial offers a pre-qualification process, it does not disclose the APR during this stage. This means you’ll need to complete a formal application, including a hard credit check, to see the actual interest rate and repayment terms. It’s a bit of a hassle for those who want transparency from the start.
Minimum Credit Score
One of the advantages of OneMain Financial is that they do not have a minimum credit score requirement. However, they do expect applicants to have some credit history, so it’s essential to bear that in mind.
APR and Fees
The APR for OneMain Financial personal loans ranges from 18.00% to 35.99%. As previously mentioned, origination fees can vary based on location, with a potential range of $25 to $500 or 1% to 10%. Late fees typically range from $5 to $30 or 1.5% to 15% of the payment amount, while non-sufficient funds fees fall within the range of $10 to $50.
It’s important to note that OneMain Financial personal loans are not available in certain states, including AK, AR, CT, MA, RI, VT, and Washington, D.C. Make sure to check if your state is eligible before applying.
Where OneMain Financial Personal Loans Stand Out – One Main Financial Loan Reviews
OneMain Financial stands out in the personal loan market for several reasons:
Secured and Joint Loan Options
Their offering of secured and joint loans provides borrowers with greater flexibility and potentially better terms. However, it’s essential to understand the responsibilities and risks associated with these options fully.
Choose and Change Your Payment Date
Flexibility in payment scheduling can be a significant advantage, especially for those with fluctuating income.
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Their quick approval and funding process can be a lifesaver when you need funds promptly.
Direct Payment with Debt Consolidation Loans
The ability to pay creditors directly simplifies the debt consolidation process.
OneMain Financial operates physical branches in the states where it offers personal loans, providing borrowers with the option of in-person assistance.
Seven-Day Cancellation Policy
Their lenient cancellation policy sets them apart from many competitors, giving borrowers more time to reconsider their loan.
Where OneMain Financial Personal Loans Fall Short
Despite their advantages, there are areas where OneMain Financial personal loans fall short:
Their interest rates are relatively high compared to other lenders, which can lead to substantial borrowing costs.
No Rate Discounts
The absence of rate discounts means borrowers miss out on potential savings.
Origination fees can eat into the loan amount, potentially affecting your ability to cover expenses fully.
Pre-Qualification Doesn’t Include APR
The lack of APR disclosure during pre-qualification may be frustrating for borrowers seeking transparency.
It’s worth noting that in May 2023, the Consumer Financial Protection Bureau took regulatory action against OneMain Financial, requiring them to pay $20 million for deceptive sales practices. This included misleading customers into signing up for add-on products and failing to refund interest charges as per their policies.
Do You Qualify for a OneMain Financial Personal Loan?
OneMain Financial has relatively minimal eligibility requirements. To apply for a personal loan, you need:
- A Social Security number or individual taxpayer identification number.
- To be at least 18 years old in most states.
- Some credit history, although they do not specify a minimum credit score.
Before You Apply
Before applying for a OneMain Financial personal loan, consider these steps:
Check Your Credit
Review your credit report for errors and discrepancies that may affect your application.
Calculate Your Monthly Payments
Use a personal loan calculator to determine the APR and repayment term that aligns with your budget.
Make a Repayment Plan
Assess your budget to ensure that loan payments are manageable without compromising your financial stability.
Gather Required Documents
OneMain Financial typically requires proof of income, proof of address, and a Social Security number or individual taxpayer identification number during the application process. Having these documents ready can expedite the application.
How to Apply for a OneMain Financial Personal Loan
If you decide to move forward with a OneMain Financial personal loan, follow these steps:
- Pre-Qualify: Visit OneMain Financial’s website and use the “Check for offers” button. Provide the requested information, including your desired loan amount, personal details, employment information, and more. Pre-qualification does not trigger a hard credit inquiry.
- Review Loan Offers: OneMain Financial will present you with the types of loans you qualify for based on your pre-qualification. However, keep in mind that this stage does not show you the specific APR or repayment terms.
- Submit an Application: If you find a loan offer that suits your needs, proceed to submit a formal application. This step may involve a hard credit check, which can temporarily impact your credit score.
- Funding: Once approved, OneMain Financial aims to disburse funds within one to two business days. This can vary depending on the loan type and application method.
Comparing OneMain Financial to Other Lenders
Before making a final decision, it’s wise to compare OneMain Financial to other lenders in the personal loan market. Different lenders offer varying rates, loan amounts, and features. In most cases, the best personal loan is the one with the lowest APR.
OneMain Financial vs. LendingPoint
LendingPoint is a competitor to OneMain Financial, with some key differences. LendingPoint typically requires a minimum credit score of 660 or higher, unlike OneMain, which has no specific minimum. LendingPoint does not offer secured or joint loans like OneMain but can provide faster loan approval and funding, which may be appealing to some borrowers.
OneMain Financial vs. Avant
Avant is another alternative to OneMain Financial, particularly for borrowers with lower credit scores. Avant accepts credit scores as low as 550, making them accessible to a broader range of individuals. They do not offer secured or joint loans but may have faster approval and funding times. Additionally, Avant’s origination fees may be more competitive than OneMain’s.
What Are OneMain Financial’s Loan Terms, Fees, and Discounts?
Understanding the specific terms, fees, and discounts associated with OneMain Financial loans is essential:
- Loan Amounts: OneMain Financial offers personal loans ranging from $1,500 to $20,000.
- Repayment Terms: Loan terms vary from 24 to 60 months.
- APR Range: The APR for OneMain Financial loans falls between 18.00% and 35.99%.
- Origination Fees: Origination fees depend on your location, ranging from $25 to $500 or 1% to 10% of the loan amount.
- Late Fees: Late fees differ by state, with some loans having flat fees while others apply a percentage fee, ranging from $5 to $30 or 1.5% to 15% of the delinquent amount.
- Non-Sufficient Funds Fees: This fee ranges from $10 to $50, depending on your state.
How Can You Qualify for a OneMain Loan?
OneMain Financial does not specify strict eligibility requirements, making it relatively accessible. They do not disclose a minimum credit score requirement. To enhance your chances of approval, ensure you have:
- A Social Security number or individual taxpayer identification number.
- Reached the legal age of 18 in most states.
- Some credit history.
- Sufficient income to cover your expenses and the new loan payment.
How Long Does OneMain Take to Deposit Money?
OneMain Financial offers two funding methods: ACH (Automated Clearing House) and SpeedFunds debit card. ACH funds typically become available one to two business days after the loan closing date, while SpeedFunds are accessible on the loan closing date itself.
In conclusion, OneMain Financial provides a range of personal loan options with unique features. While they offer flexibility, fast funding, and accessibility, their high interest rates, origination fees, and lack of rate discounts should be carefully considered. Compare their offerings to other lenders in the market to determine the best fit for your financial needs.