Onemain Financial Personal Loan Review: Online And Traditional Lending For Poor Credit
OneMain Financial is a solid personal loan option for those with fair or bad credit. The lender offers both secured and unsecured personal loans. While the APRs offered by the company are high, they are much lower than what youll find with payday or bad credit loan lenders. Loan amounts range from $1,500 – $20,000 higher than many competitors in the bad credit space.
Look Into Refinancing Your Loan
If your personal loan provider offers refinancing, it may be worth looking into. Refinancing your personal loan can help you pay it off faster, make payments more manageable or possibly save money on interest. It is important to consider the following before you decide to apply for refinancing:
- If your credit score has improved since you acquired your loan, you could have better odds at getting approved for refinancing. The three major credit bureaus developed the FICO score®, which is the most well-known credit score.
Another important factor is your VantageScore®, which is designed to be measured against FICO, and is used by creditors to assist with lending decisions. OneMain customers can sign into your OneMain account to view your VantageScore now*, or get it by contacting one of the credit bureaus directly .
Payment history Do you have a good payment history? Lenders will want to see that you pay your accounts on time.
Loan amount The amount being refinanced may also influence your odds at getting approved. However, some lenders put more weight on credit score and payment history than the remaining loan amount.
However, its important to be aware that refinancing may extend the life of your loan. Carefully consider all options and consult your lender or financial advisor before making a decision to refinance a personal loan.
Whos The Best Fit For A Onemain Financial Personal Loan
OneMain Financial is a good pick for those who have less-than-perfect credit. The company works with borrowers whose scores are in the low 600s, so try OneMain Financial if you dont qualify with another lender.
OneMain Financial also offers a quick turnaround on personal loans ranging from $1,500 to $20,000. If you have an emergency and need a big chunk of change fast, it may be the right lender for you.
You can also use a loan to consolidate debt, pay for a vacation or make repairs around your home. That said, OneMain Financials APRs are high: They start at 18.00% even for those with good credit. This means your personal loan might be more expensive than other types of credit, including some credit cards. Compare offers and options before you make any decisions.
Finally, keep in mind that you cannot use your OneMain Financial loan for educational expenses, business expenses, investing, gambling or illegal activities.
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Upstart Vs Onemain Financial
Like Avant, Upstart requires a minimum 600 credit score. It also offers larger and more inexpensive loans than OneMain Financial. The maximum loan amount at Upstart is $50,000. Upstarts lowest loan rate is 4.37% APR, less than half that of OneMain Financials best rate of 18%.
Upstart funds loans in as little as 1 business day, which is as quick or quicker than OneMain Financials 1 to 2 business days for ACH transfers. However, if OneMain Financial customers are eligible for SpeedFunds by having an eligible debit card, they may be able to receive their money as rapidly as the same business day.
Editorial Note: The content of this article is based on the authors opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
You Might Owe A Prepayment Penalty
Some lenders include a prepayment penalty clause in loan contracts as a way to recoup the interest theyd lose if the loan is paid off ahead of schedule. This amount is usually set as a percentage of the unpaid principal loan balance at the time of payoff. Check your loan documents carefully and do the math before making your decision. Though youll save on interest, a prepayment penalty could reduce that benefit or negate it entirely, especially if your loan has a low, fixed interest rate or a shorter term. If you anticipate paying off a personal loan early before taking out the loan, know that not all lenders include prepayment penalties in their loan terms. LendingClub, for example, doesnt charge any prepayment fees or penalties, so you can pay off your loan early and save on interest without worrying about the drawbacks.
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Take Small Steps Toward A Big Goal
Any one of these methods can help you pay your loans off faster, but its not something that should be rushed into without doing research. As you compare options, consider speaking to your loan specialist or financial advisor to figure out which approach is the best fit for your needs.
To get a sense of where you stand, check out our personal loan calculator to estimate how quickly you can pay off your loan and continue your progress toward financial freedom.
The credit score provided is for educational purposes only. We do not guarantee that the credit score shown will be used by us or third parties to assess your creditworthiness or eligibility for any particular product or service or for employment.
This article has been updated from previous postings in May 2016 and February 2019.Matt Diehl and Joe Guida contributed to this article.
What Onemain Financial Customers Are Saying
Currently, OneMain Financial has excellent customer reviews across a number of consumer platforms.
On TrustPilot, OneMain Financial enjoys a 4.8 out of 5 rating with around 17,500 reviews. They have an A+ rating from the Better Business Bureau, and reviews elsewhere on the web tend to be mostly positive, as well.
Common complaints, especially those found on sites like Consumer Affairs, include concerns regarding personal loan fees and interest rates both of which are higher with OneMain Financial than you may find with other lenders.
Of course, both fees and rates are also determined prior to loan disbursement, are dependent on each borrower, and will be notated in the final loan documents at closing, so there are no surprises or shady tactics. To avoid being caught off-guard by fees or charges on any financial product, its imperative to read agreements carefully and thoroughly, asking any questions you may have before signing.
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What Are The Cons Of Paying Off A Personal Loan Early
Though it may seem counter-intuitive, paying off your loan early could have some drawbacks.
You might be subject to prepayment penaltiesAlthough its increasingly rare, some financial institutions charge prepayment penalties. These are fees associated with paying off a loan early. This helps the lenders counter the interest money that theyre losing. If the fee is larger than the interest youre saving, it might actually be smarter to pay off the loan on schedule and avoid the cost of the prepayment penalty.If your loan has an associated prepayment penalty, it will be written into your loan contract. Be sure to carefully review your paperwork to determine whether youll be subject to a penalty fee and what the associated costs are.At OneMain, we never charge early payment fees so customers are empowered to take charge of their finances and do what’s best for them.
It could impact your credit historyOne factor that determines your credit score is your credit history, which is the length of time youve been making regular payments. If you have a short history with few open accounts, having a personal loan could help your credit. Building a long history of loan payments can boost your credit score. If you pay off your loan before a solid credit history is established, you could miss out on the chance to build a strong credit foundation.
Yes A Credit Card Can Pay Off A Personal Loan
Well, at least in some cases.
You can use a credit card to pay off a personal loan, advised personal finance writer and credit card expert Ben Luthi. Some credit card issuers will allow you to do it directly through your online account like any other balance transfer.
If your issuer wont allow you to do it directly through their balance transfer tool, you can request credit card convenience checks instead. Some issuers even send these out unsolicited. You can write the check to your personal loan company or write it to yourself and deposit it into your checking account then make the payment.
Essentially, if you have a standard credit card, and you want to use it to pay for a standard personal loan, youll probably be able to do soas long as the loan amount is within your credit limit.
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How Much Is A Payment On A $10000 Loan
In another scenario, the $10,000 loan balance and five-year loan term stay the same, but the APR is adjusted, resulting in a change in the monthly loan payment amount.How your loan term and APR affect personal loan payments. Your payments on a $10,000 personal loan Monthly payments $201 $379 Interest paid $2,060 $12,712.
Make One Extra Payment Each Year
If the thought of bi-weekly payments seems daunting but you like the idea of making an additional payment each year, you can accomplish the same goal by committing to just one extra payment a year. This way, you’ll only feel the squeeze once a year and you’ll still shorten the life of your loan by several months, or even years. Use a work bonus, tax refund, or another windfall to make that once-a-year payment.
Another easy way to make that extra payment is to spread it out throughout the year. Divide your monthly payment by 12 and then add that cost to your monthly payments all year long. You’ll be making a full extra payment over the course of the year while hardly feeling the pinch.
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Is One Main Financial A Payday Loan
OneMain Financial Payday Loans Fort Myers, Florida Consumer Reports 3.5 stars from 36 reviews Financing company in Fort Myers, Florida Who is the owner of the organization? The address is 9861 Bernwood Pl Dr #170, Fort Myers, FL 33966, United States. One Main Financial has been in operation for seven years. Call 939-5055 or visit www.onemainfinancial.com for more information.
Where Onemain Personal Loans Stand Out
Secured and joint loan options: OneMain lets borrowers use a vehicle to secure a loan or add a co-applicant to an application. Either option can help improve a borrower’s chance of qualifying and getting a lower rate than they would on their own. With a secured loan, the lender will appraise the vehicle and require it to be insured.
Choose and change your payment date: A borrower can pick their payment date when they sign a loan agreement, as long as its within 45 days of the day they accept the offer. After that, they can change the payment date twice during the life of the loan.
Fast funding: The lender is one of few that says it can fund a loan the same day a borrower submits an application. With other lenders, the time from application to funding can be one or two days.
Branch access: OneMain operates branches in each of the 44 states where it offers personal loans. Though a borrower can get a loan without visiting a branch, those who are more comfortable interacting with a loan officer in person can do so at a OneMain branch.
Seven-day cancellation policy: Borrowers have seven days to change their mind and cancel the loan without having to make payments. Few lenders offer this feature.
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How Do I File For A Personal Loan
It is necessary to provide the following details in a personal loan agreement:
Is Paid In Full Better Than Settled
It is always better to pay off your debt in full if possible. While settling an account won’t damage your credit as much as not paying at all, a status of settled on your credit report is still considered negative.
How much would payments be on a $5000 loan? Using a personal loan APR of 7.63% as an example, here’s a simple breakdown of what the personal loan payment calculator can show you for a $5,000 loan and $10,000 loan. … How your loan term and APR affect personal loan payments.
|Your payments on a $5,000 personal loan|
What is the monthly payment on a 20 personal loan?
The monthly payment on a $20,000 loan ranges from $ 273 to $ 2,009, depending on the APR and how long the loan lasts. For example, if you take out a $20,000 loan for one year with an APR of 36%, your monthly payment will be $2,009.
Can you get a personal loan with a credit score of 550? Yes, you can get a personal loan with a credit score of 550. You could consider getting a secured personal loan, applying for an unsecured personal loan with a co-signer, borrowing from family and friends, and checking with local credit unions which usually have a lower requirement over credit score.
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How Does Onemain Financial Verify Income
OneMain Financial may seek financial information such as paystubs, bank statements, or tax returns in order to verify income received. In other circumstances, they will simply rely on information from credit reports. In any case, you will also need to fulfill the other standards of OneMain Financial in order to be considered for loan approval.
Your Credit Score Could Be Affected
When you pay off a personal loan, your credit mix and credit history changes and the results may affect your credit goals.A personal loan appears on your credit report as an installment loan account, which includes the specific loan amount and repayment schedule. Because payment history is the biggest factor in determining your credit score, a solid record of on-time, monthly payments can be beneficial for your finances in the long term. When you pay off your personal loans early, youre potentially losing out on months of a positive payment history. At the same time, the credit age of all your accounts and maintaining a well-managed mix of creditlike credit cards, student loans, or auto loan accounts, to name a fewalso affects your score. Considering those key measures, paying off a personal loan early may actually cause a temporary dip in your credit score.
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Does Paying Off A Loan Early Hurt Your Credit Score
Generally, no. If you have many debts and are trying to get them under control, don’t worry. However, if you have few debts and a short history, you may be missing an opportunity to build a history of on-time payments. You should consider the tradeoff of building your credit history vs. continuing to pay interest, especially if your rate is high.
What Happens If You Never Pay Your Debt
If you dont pay your credit card bill, expect to pay late fees, receive increased interest rates and incur damages to your credit score. If you continue to miss payments, your card can be frozen, your debt could be sold to a collection agency and the collector of your debt could sue you and have your wages garnished.
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What Was Onemain Financial Called Before
Also How long does it take SoloSuit to file? You can either respond manually or use SoloSuit to file an attorney-approved response. There’s usually a time limit to when you can file a response, usually between 20 to 30 days depending on the type of lawsuit and the state.
Is OneMain a collection agency?
One Main Consumer Loan, Inc.. is a debt collection agency located in Evansville, Indiana. The PACER website holds legal records confirming that consumers who believed they were being harassed by One Main Consumer Loan, Inc.
How much are debt settlement fees? Debt settlement companies typically charge a 15% to 25% fee to tackle your debt this could be a percentage of the original amount of your debt or a percentage of the amount you’ve agreed to pay.
What Type Of Personal Loan Is Without Collateral
Unsecured loans are loans that do not need any sort of collateral to be provided. Unsecured loans are those that are not secured by the borrowers assets instead, lenders grant them based on the borrowers creditworthiness. In this kind of loan include personal loans, school loans, and credit cards, among other things.
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Can You Pay Off A Onemain Financial Loan Early
In the event that you choose to pay off your personal loan early, you may do so at any time and OneMain will not charge you a prepayment penalty. If you want to pay off your loan early, you can do it in the following ways: To make a single payment for the whole outstanding debt, click here. When you make your normally scheduled monthly payment, include an additional payment in your total.