OneMain Financial Review

By PeterLogan

Options for those with poor credit but relatively high APRs OneMain Financial, a subsidiary of OneMain Holdings is a financial services holding company. The company was founded in Indiana in 1927 and currently has over 1,400 branches across 44 states.

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OneMain Financial is a specialist in personal loans for nonprime consumers. This means individuals with credit scores below 659. It offers loans up to $20,000, and can issue both secured and unsecured loans. OneMain Financial might charge higher interest rates because non-prime borrowers are more likely to be a risky borrower and may require more extensive service.

How to Get a Personal Loan?

Personal loans are attractive if you have a financial emergency or need to consolidate debt. Personal loans are either secured or unsecure depending on the lender. Personal loans that are secured require collateral such as a vehicle or car to secure the loan. Unsecured loans don’t require collateral.

Personal loans should only be applied for the amount necessary to reach your goal. Personal loans may have high interest rates and fees depending on your creditworthiness. You could end up paying more than the principal. Secured loans can also lead to the loss of your property. It is important that you only borrow the amount you need and that you have a plan for repaying the loan on the due date.

Alternatives to Personal Loans

It’s worthwhile to look at all other options before you commit to a personal loan. You can also use these financial tools:

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Home equity loan, cash-out refinance loan, or home equity line credit (HELOC): If your home has equity, you can borrow against it with a loan or HELOC. You can also use a cash out refinance loan to get a second mortgage for more than what you owe on the current one, and then use the difference for planned expenses. You should be aware that your home is collateral for all these options. If you fail to make your payments, the bank could foreclose on your home.

An employer paycheck advance. A paycheck advance app is different than a paycheck. You may be eligible to receive a portion of your next paycheck earlier by contacting your employer’s payroll department or human resources department. Pay advances are a great option because they don’t have interest or fees and can be deducted from your next paycheck.

How do I Qualify to Receive a OneMain Financial loan?

OneMain Financial will require the following information to apply for a loan:

  • A government-issued ID
  • Documents such as a utility bill or driver’s licence that prove residence are proof of residency
  • Documents that prove income such as tax returns and pay stubs are required
  • OneMain Financial loans are also not available in Arkansas and Alaska.

OneMain Financial does not require a minimum credit score. We reached out to OneMain Financial for more information. A representative stated that OneMain doesn’t use commercially available credit scores (e.g. FICO or Vantage Score) to make lending decisions. Instead, the company considers “a variety of criteria including credit bureau and other data sources, application data as well as any history [OneMain Financial] might have with an applicant.”

OneMain Financial does not have a minimum income requirement. However, a representative of the company stated that it requires “minimum monthly cash flow levels and debt repayments for all loans approved.”

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OneMain Financial will evaluate your application and review your household budget. They also consider your ability to repay the loan. You may be required to provide collateral if you request a larger loan amount. OneMain Financial accepts these collateral:

  • Automobiles
  • Trucks
  • Motorbikes
  • Boats
  • Campers
  • RV’s

OneMain Financial does not require an appraisal. Instead, they use an industry-standard valuation tool that considers the age, mileage and options on the collateral. They also take images of the collateral to determine its value. OneMain Financial requires that customers who apply for secured loans have full coverage insurance to protect their collateral.

Who should get a OneMain financial loan?

OneMain Financial allows you to borrow up to $20,000, and you might be able get your money the same day that your application is approved. OneMain Financial is a great option for emergency expenses such as:

  • Car repairs
  • Broken appliances
  • Medical bills
  • Unplanned emergency travel

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25% of customers are from credit-insecure areas, which means that they have little access to traditional credit. OneMain Financial’s personal loan is best for those with less than perfect credit scores or who have had difficulty getting credit in the past.