OneMain Financial: Reviews and Ratings
We’ve all been in a jam before where we needed a bit of extra cash to cover an unexpected cost or purchase. While credit cards and personal loans can help bridge these financial gaps, it’s important to research your options to find the most affordable solution thoroughly. OneMain Financial is one of the major players in the personal loan industry, but is it the right choice?
In this in-depth review, we’ll examine OneMain Financial reviews and ratings closely to gain insights from real customers. We’ll also review their loan services, the application process, and key factors like interest rates.
If OneMain doesn’t seem like the best fit, we’ll explore some alternatives worth considering. By the end, you’ll have a clear picture of what to expect from OneMain and whether they should be your top choice when it comes to getting financing.
Company Overview
OneMain Financial is a leading provider of personal loans, particularly for individuals with poor credit. With over 100 years of experience in the lending industry, OneMain Financial has built a reputation as a trusted lender.
The company offers flexible loan terms and competitive interest rates, making it a viable option for those seeking financial assistance. OneMain Financial is dedicated to helping its customers achieve financial stability and security, providing the necessary support to navigate their financial challenges.
An Overview of OneMain Financial Services
Brief Description of Loan Options
OneMain Financial offers a variety of personal loans from $1,500 up to $20,000 with flexible repayment terms stretching up to 72 months. Unsecured personal loans are their bread and butter, requiring no collateral. Customers can also get a “Restart Loan” designed for those with past credit issues. On the auto side, they provide secured auto purchase loans or refinance existing auto loans.
Loan Terms and Rates
For personal loans, interest rates typically range from 19.99% to 35.99% APR, depending on individual credit profile and lien status. Average loan amounts are around $7,000, with standard repayment periods of 3-5 years. Refinanced auto loans often have lower rates of 18.99-26.99% APR. OneMain aims to streamline the loan process for swift approvals and funding.
Eligibility Requirements and Credit Scores
To qualify, applicants need at least $1,000 monthly income from work or benefits and a minimum credit score of around 600. Loan proceeds cannot be used for any business or commercial purpose, illegal purposes, or postsecondary educational expenses.
Those with limited or damaged credit may still get approved. Income and employment must be verified along with a soft credit pull during the application. Customers must be U.S. residents between 18 and 70 years old.
OneMain Financial Customer Reviews
Positive Experiences
Recurrent themes in positive OneMain reviews mention friendly, helpful customer service from knowledgeable representatives answering questions from pre-application through repayment. Several customers commented on the loan amounts fitting their needs and fast approval turnaround, often within a day. Getting approved despite less-than-perfect credit was also a plus for many.
Common Complaints
On the flip side, OneMain regularly receives gripes about high interest rates on personal loans, which can climb above 30% APR in some cases. Despite this, OneMain Financial provides competitive loan offers tailored to individual financial situations.
There are also frequent grumbles over excessive prepayment penalties that block customers from paying off loans early or switching to a cheaper lender. Some customers claim loan amounts were lower or repayment periods shorter than expected after approval.
Overall Rating Summary
Aggregating feedback across Google, Trustpilot, and OneMain’s BBB page, the company earns around 4.11 out of 5 stars. While happy with approvals and customer service, many borrowers feel loan terms favor the lender over borrowers’ long-term financial interests. FICO-score reviews are slightly higher, suggesting OneMain may perform better for lower-risk borrowers versus subprime customers.
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Applying for a Loan with OneMain Financial
Steps for Applying Online or In-Person
You can start an application online, over the phone with a representative, or in person at one of the 700+ U.S. branches. During the prequalification process, applicants can receive personalized loan offers matched to their specific financial situations.
The online form takes around 15 minutes and requires basic personal and employment information along with bank account access for automated payments. In-person visits usually wrap applications in 1-2 hours with supporting documents.
Documents Required
OneMain requests proof of identity, such as a driver’s license; proof of income, such as pay stubs or tax returns; proof of residence, such as a utility bill; and bank account information and routing numbers to set up auto payments. Those refinancing auto loans need vehicle information and loan papers.
Approval Timeline
For online applications, pre-approvals can happen within hours or the next business day, followed by quick funding within 1-2 days of final approval. Walk-ins may wait longer, depending on branch hours and rep availability. Late submissions may extend timelines, so applying early allows maximum flexibility in getting approved loans.
Loan Closing and Funding
OneMain Financial offers a streamlined and efficient loan closing process, ensuring that customers can access their funds quickly and without hassle. Once a loan is approved, customers have the option to receive their loan proceeds via a bank-issued debit card, ACH transfer, or check.
In many cases, funding can occur as soon as the same day, allowing customers to address their financial needs promptly. The loan closing process is designed to be straightforward, with minimal paperwork and no hidden fees, ensuring a smooth experience from start to finish.
Branch Locations and Availability
With over 1,300 branches spread across 44 states, OneMain Financial provides extensive in-person support and services. This wide network of branch locations ensures that customers can easily access loan services and receive personalized assistance.
Additionally, OneMain Financial offers the convenience of online and phone applications, allowing customers to apply for a loan from the comfort of their own homes. This combination of physical branches and digital accessibility underscores OneMain Financial’s commitment to providing convenient and accessible loan services to its customers.
Customer Service and Support
OneMain Financial prides itself on delivering exceptional customer service and support. The company’s dedicated customer service team is readily available to assist with any questions or concerns that may arise.
In addition to personalized support, OneMain Financial offers a range of online resources and tools to help customers manage their loans effectively. By focusing on building long-term relationships, OneMain Financial aims to provide the support needed for customers to achieve their financial goals and maintain financial health.
Security and Cybersecurity
OneMain Financial places a high priority on the security and cybersecurity of its customers’ personal and financial information. The company has implemented robust security measures to protect against unauthorized access, data breaches, and other cyber threats.
OneMain Financial is committed to maintaining the highest standards of cybersecurity and data protection. Regular reviews and updates to security protocols ensure the confidentiality, integrity, and availability of customer data, providing peace of mind to those who entrust their financial information to OneMain Financial.
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Pros and Cons of OneMain Financial
Pros
- Accessible financing even for those with subprime credit in the 500-650 range who have few lender options
- Physically large branch network for in-person assistance or cash pickup
- Fast online approvals and funding compared to other personal loan providers
- Flexible small loan minimums starting at $1,500 for tight budgets
Cons
- Higher than average interest rates, sometimes above 30% APR
- Strict late or missed payment penalties, including returned payment fees
- Unable to pay loans off early without substantial prepayment penalties
- Only fixed-rate loans with no discounted repayment options
- Weaker customer service reviews from less savvy borrowers
Loan proceeds cannot be used for speculative investments, including purchasing cryptocurrency assets and other speculative investments.
Thanks to its low credit bar and large presence, OneMain offers a valid financing option in some cases. However, the higher costs associated with interest rates and penalties require careful consideration of all alternatives first. Borrowers should shop around for better rates and terms, especially if their credit profiles allow for it. Customer experience also varies more for subprime borrowers.
Last Words and Alternatives to OneMain Financial
For those seeking lower rates or more favorable loan terms, exploring alternatives is advisable before committing to OneMain. Note that loan proceeds from OneMain Financial cannot be used for commercial purposes or to purchase cryptocurrency assets.
Always vet the terms of any lender or loan product thoroughly before binding yourself. With care and legwork, you may find a much cheaper option than OneMain for your particular needs. However, if none of these alternatives are practical, OneMain could still offer necessary financing for some borrowers in credit repair mode.
In closing, OneMain Financial fills an important gap as one of the few companies extending credit to subprime borrowers. While their rates are higher than average, the rapid application process and nationwide availability provide value in emergencies.
Do your due diligence first to ensure a OneMain personal loan makes financial sense compared to lower-cost competitors. Reviews vary greatly depending on individual experiences, so it’s advisable to weigh the pros and cons case by case before committing.
FAQs
What types of loans does OneMain Financial offer?
OneMain primarily offers unsecured personal loans for any purpose and auto loans for purchasing or refinancing vehicles. Loan amounts range from $1,500 to $20,000, paid back over terms from 12 to 72 months.
Can I get a loan from OneMain Financial with bad credit?
Yes, OneMain is one of the most accessible lenders for borrowers with subprime credit between 500 and 650. Depending on income and other factors, applicants with past issues like collections or bankruptcies may qualify.
How does OneMain Financial determine my loan interest rate?
Rates are largely based on individual credit health – the stronger your credit scores, debts, income level, and other details, the lower your potential interest rate will be. Rates also depend on state of residence and other loan-specific factors.
Does OneMain Financial offer secured and unsecured loans?
OneMain primarily provides unsecured personal loans that do not require collateral. Their auto loans can be either secured by the vehicle’s title or unsecured personal installment loans to finance auto purchases or pay off existing auto debt.
What is the typical loan amount and repayment term at OneMain Financial?
Most personal loans range from $1,500-$7,000, paid back over 1-3 years. For auto loans, amounts vary more but commonly fall in the $5,000-$15,000 range repaid over 2-5 years. Longer terms up to 6 years are also available depending on credit profile.
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