Company Profile
OneMain Financial is the U.S.’s largest financial company that focuses solely on lending. With over 100 years of consumer finance experience, OneMain Financial is a suitable option for those looking for personal loans or auto loans.
Boasting over $152 billion in loans to 2.4 million customers since 2005, OneMain Financial is no amateur when it comes to providing responsible and fair lending services. They specialize in helping borrowers with credit scores of between 601 and 660 who would otherwise have little to no access to credit. Borrowers with nonprime credit scores typically have difficulties accessing credit from banks and credit card companies, making OneMain Financial a helpful resource in times of great need.
OneMain Financial has evolved a lot over the last century. Its story dates as far back as 1910, when a different corporation, Interstate Finance Corporation, first started. After a long bout of company acquisitions and corporate mergers, OneMain Financial was finally procured by Springleaf Financial in 2015. Thus, the OneMain that we know of today was born.
Nowadays, OneMain Financial adheres to its social, economic, and ethical values by staying true to their customer service, smart and equal lending, and reaching out to their community.
Services And Features
With a seasoned company such as OneMain Financial, you’re bound to enjoy a lot of the services and features they have to offer.
OneMain Financial’s loan specialists are equipped to guide borrowers through the approval process, which can be conducted online or at one of their 1,500 local branches located in over 40 states. Finding a branch is easy with their online system.
There are many ways that OneMain Financial clients can choose to manage their accounts, too. Not only are they available online and by phone, but also via the OneMain Financial app, which allows customers to view account summaries, set up payments, and even view their credit score through VantageScore®.
Since many financial institutions require high credit scores in order to approve loan applications, it’s no surprise that many borrowers find themselves with very few options in times of emergency or financial stress. But OneMain Financial prides itself on being a lender that serves communities that are deemed “credit insecure” by the Federal Reserve Bank of New York. This means that individuals can potentially get approved for a loan without needing a perfect credit score and actually begin to rebuild their credit.
OneMain Financial also features fixed rates to ensure that you’ll never have to pay anything besides what was agreed upon at the loan origination. Plus, they have no prepayment fees; so, if you get the chance to pay your loan off early, there is no penalty.
Loan Types And Terms
OneMain Financial offers unsecured personal loans, secured personal loans, and auto loans. A secured loan requires collateral.
Customers can borrow $1,500 - $20,000, with either a 24, 36, 48, or 60-month term. The APR can range from 18% to 35.99%. Also, depending on where you live, there may be some minimum or maximum limitations on how much you can borrow.
OneMain Financial may not have a prepayment fee, but it does charge an origination fee, late payment fees, and insufficient funds fees.
Origination fees can be either a flat fee ($25 - $400) or a percentage fee (1% - 10% of your loan). Late fees range from $5 - $30 or 1.5% - 15% of your monthly payment or delinquent portion. Depending on which state you’re in, these fees can significantly add to your loan responsibility.
Since OneMain Financial serves over 40 states across the country, some of the loan requirements will vary. For example, in some states such as Alabama, California, Ohio, or Virginia, there are minimum loan requirements. So, if you need a loan under $2,000, you may want to search elsewhere if you live in any of these states.
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
i. Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. OneMain charges origination fees. Depending on the state where you open your loan, the origination fee may be either a flat amount (ranging from $25 to $400) or a percentage of your loan amount (ranging from 1% to 10%), subject to certain state limits on the fee amount. Loan proceeds cannot be used for postsecondary educational expenses such as college, university or vocational; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.
ii. Additional conditions for secured loans: Secured loans require a first lien on a motor vehicle that meets our value requirements, titled in your name with valid insurance. Active duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral. If you are covered by the MLA, you are not eligible for secured offers.
iii. Minimum and Maximum Loan Amount Restrictions:
Borrowers in these states are subject to these
minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you
are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia:
$2,600.
Borrowers (other than present customers) in these states are subject to these
maximum unsecured loan sizes: North Carolina: $7,500. An unsecured loan is a
loan which does not require you to provide collateral (such as a motor vehicle)
to the lender.
Application process
OneMain Financial streamlines the application process for all of their customers. In many cases, borrowers can complete the entire process in just 1 day, and that includes receiving the funds!
To apply for a personal loan, first fill out their online application. It asks for your information, the last 4 digits of your social security number, source of income, and monthly net income. You’ll also have to state whether or not you have a motor vehicle, and whether it’s leased or owned. It’s important to note that this initial application is not supposed to affect your credit score.
The next step would be connecting with a OneMain Financial loan specialist. Further verification of your application is necessary in order to approve you for the loan requested. You may be asked for proof of residence, such as a driver’s license, lease agreement, or utility bill with your name and address printed on it, and proof of income, such as your recent pay stubs or tax return.
OneMain Financial will also request collateral for larger loans. So, if your credit score is on the lower end, be prepared to submit your motor vehicle as collateral for your loan. Keep in mind, that your vehicle cannot be older than 10 years in order to qualify.
Your loan specialist can be reached by phone or in one of their various branches. They’ll discuss your options with you and even take the time to create a monthly budget with you in order to support you in your repayment plan.
Once you’ve signed the agreement, OneMain Financial will initiate the transfer. So, if you have a debit card, the instant electronic transfer means you can start using those much needed funds within a few hours.
Paying your OneMain Financial loan is easy. Choose between online, in a branch, electronic debit, by phone, by mail, or with their convenient mobile app. There are also select retailers such as CVS®, 7-Eleven, Casey’s General Store® or Family Dollar that have PayNearMe services, a free service which can take payments for your OneMain Financial loans
Customer Support
Years of experience has afforded OneMain Financial with millions of clients. But how happy are these customers?
According to OneMain Financial’s reports, over 85% of their customers would do business with them again. Plus, consumer review sites like Trustpilot give them a 4.8 star rating.
However, another trusted institution, the Better Business Bureau, lists over 250 reviews of OneMain Financial, resulting in only a 1.45 out of 5 rating.
Despite the mixed reviews, OneMain Financial is still aiming to be customer-centered, as their latest Customer Bill of Rights was released in December 2020. It stated, among other things, how their customers had the right to an affordable and easy to understand loan generated within a fair and “no-pressure” environment.
This “no-pressure” environment refers to when OneMain Financial tries to upsell their customers with different types of insurance products. At the time of the loan agreement, your loan specialist will talk to you about credit life insurance, disability insurance, and unemployment insurance. Each of these products have many stipulations and will increase the cost of your loan, thereby making your monthly payments more expensive.
OneMain Financial customers can get general account support by phone: (800) 742-5465. Just remember, their hours are Monday to Friday from 7am - 7pm Central time.
Furthermore, no one can deny OneMain Financial’s philanthropic efforts. They committed $1 million for COVID-19 relief and are regularly donating to various charitable organizations that aid in emergency disaster responses.
Summary
OneMain Financial is a good option for borrowers who have a credit score in the low 600s. This could be extremely helpful for many potential customers who may not have a lot of credit options in emergency situations.
A noteworthy disadvantage to OneMain Financial would be their high APR rates (up to 35.99%) and collateral requirements. Of course, that is to be expected, since many of their customers may not have the credit scores to prove they can successfully repay the loan.
If you have great credit, you’ll notice that OneMain Financial may not offer you the most affordable APR rates. With the lowest APR clocking in at 18%, borrowers with higher scores may need to look elsewhere.
With large personal loans, however, expect to put your motor vehicle (either car, RV, or boat) up as collateral. But don’t let that scare you away from considering OneMain Financial as your lending institution. Their online, mobile app, and branch services give customers a variety of ways to access and manage their personal loan accounts.
As a company that has been in the financial game for generations and offers an easy application process, OneMain Financial is a handy option for those looking for personal or auto loans. Whether it’s for a last minute car repair, a vacation, or an auto loan, OneMain Financial may just be the lender you need when life calls for some extra funds.
