Have you been thinking about requesting a OneMain Financial personal loan?
OneMain Financial is a well-known lender of personal and auto loans for eligible individuals. It is one of the largest providers of such loans, serving over 10 million Americans.
OneMain Financial is not an online lender like other lenders we’ve reviewed. It has over 1,700 branches in 44 states.
In this post, we’ll discuss whether or not requesting a OneMain Financial personal loan is worth it in the long run! Read on for insight.
OneMain Financial Personal Loans: The Basics
OneMain Financial’s motto is “Lending Done Human,” implying that all lending decisions are made by real, compassionate humans.
Indeed, it is worth noting that OneMain Financial is not an online lender. This provider has physical branch locations in nearly every U.S. state.
OneMain Financial offers personal and auto installment loans to eligible individuals between $1,500 and $30,000. The actual loan amount you may be approved for will depend on state restrictions for maximum and minimum loan withdrawals.
According to the lender’s website, these personal loans are subject to variable APRs between 16.05% and 35.99%, and terms are for 24, 36, 48, or 60 months.
This lender provides only one example payment breakdown for a OneMain Financial personal loan. If an individual requests a personal loan of $6,000 subject to a 24.99% APR over 60 months, her monthly payment will be $176.07.
OneMain Financial’s website has a lot of fine print that clearly stipulates these loan terms will depend on applicants’ ability to meet the lender’s “standard credit criteria.” This criterion includes income, bankruptcy history, debts, credit history, and the ability to provide collateral if requesting a secured loan.
The lender does mention the many possible uses you can use a OneMain Financial personal loan for, including debt consolidation, life events (such as weddings or funerals), recreation, and home improvement.
To request a personal loan, individuals must fill out an application online. If they are approved for this first step, they will then have to go to a OneMain Financial branch and sign the official documents in person.
OneMain Financial states that it is possible to receive your funds the same day you request them.
The Pros of OneMain Financial Personal Loans
There are several potential benefits to requesting a OneMain Financial personal loan. Let’s take a look at these now as we decide whether or not a personal loan through this lender is worth it.
1. In-Person Lending
OneMain Financial is not an online-only lender. The lender’s multiple branch locations make it easy to clarify the terms of your loan and address any questions quickly, without having to send emails or wait on hold.
This can be valuable for people who like to engage with real humans in-person when dealing with their finances.
While online lenders are just as secure as branch-based lenders, some individuals may have greater peace of mind knowing there’s a physical location for their lender services.
2. Clear Terms
OneMain Financial is very clear about the terms of its loans, and how these may vary according to individual eligibility. If you request a personal loan from this lender, you can feel confident that there is no scammy fine print.
The lender even has a Frequently Asked Questions (FAQ) page addressing common customer concerns.
3. Loan Flexibility
OneMain Financial personal loans do not restrict borrowers in what they choose to spend their borrowed funds on. The lender even offers helpful ideas about how personal loans can be used to build credit.
Individuals who need more than a small sum of money to get by will also appreciate OneMain Financial personal loans. It’s possible to request up to $30,000 from this lender if you meet eligibility requirements.
The Cons of OneMain Financial Personal Loans
Yet are these benefits worth it? Let’s consider the downside of OneMain Financial personal loans to get closer to an answer to this question.
1. Steep Interest Rates
There’s no question that OneMain Financial personal loans come attached to relatively steep APRs. Depending on your credit criteria, you could request a personal loan from OneMain Financial with a regular APR of over 30%.
This may mean that individuals pay at least a third of the requested amount in interest over the length of the loan term. Such a steep cost for a conventional loan may not be worth it.
2. Strict Criteria
OneMain Financial does stipulate that personal loans are available to people who meet their criteria.
This may mean that individuals with bad credit, a history of bankruptcy, and a high debt-to-income ratio may not be able to take out a personal loan–or get good rates.
3. Payment Inflexibility
OneMain Financial is rather vague when it comes to borrowers’ ability to lower monthly payments or negotiate missed payments.
While there is no fee for paying off your personal loan early, you may have less flexibility when it comes to payments themselves.
The Verdict: Is It Worth It?
OneMain Financial offers individuals a lot of loan flexibility, including an easy application process and the comfort of in-person dialogue. Borrowers who meet this lender’s steep criteria may benefit from generous loan amounts and great customer service.
Every personal loan is different, including the need for the loan itself. For this reason, OneMain Financial loans may be ideal for some individuals and less ideal for others.
For example, if you are facing a bad credit history, a OneMain Financial personal loan may end up costing you more in interest than you realize. You may simply be ineligible for one.
Others with high debt-to-income ratio and limited income may find it difficult to keep up with steep monthly payments.
For this reason, we recommend proceeding cautiously with OneMain Financial to ensure it’s worth it for your needs.
OneMain Financial Personal Loans
OneMain Financial is just one of many providers of personal loans. If you are seeking a personal loan provider, be sure to compare rates and offers from multiple lenders before settling on your choice.
This is because every lender is distinct. Some may have stricter criteria than others, and still more may offer more compelling terms that suit your financial needs.
At Bonsai Finance, we are committed to helping you make the financial decisions that guarantee a bright future. Visit our post about the best personal loans here!