$1,500 - $20,000
24 - 60 months
18% - 35.99% APR
|Min Credit Score|
|Better Business Bureau Rating||A+|
|Time to Funding|
Same day - 1 business day
OneMain Financial Highlights
OneMain Financial is a perfect lending company for those with less than ideal credit scores. You should only take out a loan with them if you need to. The rates are on the higher side because their clients are usually high risk.
Here are some details regarding a personal loan from this lending company.
Pre Qualify with Soft Credit Pull
You can apply for a loan online, on the phone, or in-person at one of the many branches nationwide. The application is straightforward; it asks you for the necessary personal and financial information for OneMain Financial to make a decision. This section should only take a few minutes if you have all the required details.
OneMain Financial does not have a minimum credit score for the application process, which is terrific for those who need to work on their rating. The company considers multiple factors about your financial history. They look at the loan’s purpose, your work history, and your economic background to determine if you can be approved and what the rates will be on the loan agreement.
Although there is no minimum credit score required, once you are approved and accept the offer, they will do a hard credit check, which can impact your credit rating. They do not offer a soft pull option.
High Debt to Income Ratio Allowed
This lending company looks at your debt to income ratio during the application process, but there is no limit to what rate will be approved or not. They consider many factors during the application, so even if you have a high debt to income ratio, you can get approved.
Line of Credit
You can take out a personal loan with the amount of $1,500 - $20,000, and you can use it for any expenses you may have. When getting approved, the lending company will ask you the purpose of the loan.
Most people use the loan for debt consolidation, which can help you to improve your credit score and debt to income ratio. It can also be used for auto, home, or medical expenses. There are also other cases where people use their loans for weddings, funerals, or other expensive life events. You can’t apply for a OneMain Financial, personal loan for education, or student loan, though.
The annual percentage rates or APR is a range of 18% to 35.99%, which is on the higher side when referring to interest rates. However, OneMain Financial loans to those without the best financial history and are high-risk clients, so the rates are there to ensure the borrowed money is paid back.
This lending company should only be considered if no other company will loan you money, and you need it because you don’t want to find yourself with even more debt or a lower credit score at the end of the loan repayment period.
On top of the APR that needs to be paid back along with the money borrowed, there is an origination fee, but the amount varies depending on which state you reside in.
Credit Health Tools
If you are using your personal loan for debt consolidation, then it can improve your overall credit health. When you consolidate your debt, you lower your credit utilization, which is responsible for 30% of your overall credit score. Credit utilization is a ratio that is based on the amount of money you have spent and own against your total amount of available credit.
Even if you do not use your loan for debt consolidation, if you are responsible and pay your monthly rate every month and on time, then this can raise your credit score. 35% of your overall credit score is based on if you are consistent with your payments.
If you can improve both of these factors, your credit score will rise drastically.
Unfortunately, there is no hardship program for OneMain FInancial. They already give loans to people who are considered high risk, so they cannot allow those people to not pay without any penalty.
There are late fees if you do not pay on time or the correct amount. The fee amount is determined from which state you are living in, so it is a good idea to ask a representative from your state about what the fees are.
No Prepayment Penalty
There is no penalty for paying off your loan early or paying more each month towards clearing it.
OneMain Financial provides loans that are not secured against your valuable possessions. Instead, they use your credit score and other factors of your financial history to determine if you will be approved for your loan, the interest rate, and the amount given.