One Main Financial is an American personal loan provider that offers easier collateral options and low credit score requirements. Founded in 1912, the company has served over 15 million customers with 2000+ branches in 44 states.
The company was acquired by Springleaf Holdings, Inc. in 2015, for $4.25 billion. One Main Financial currently has over 10,000 employees and generated a revenue of $4.23 billion, in 2018.
One Main Financial currently ranks at 603 on the Fortune 1000.
One Main Financial Review
One Main Financial primarily offers personal loans, with amounts ranging from $1,500 to $20,000. The interest rates range from 18.00% to 35.99%, depending on the loan amount, the total term, and your payment plan, among other factors.
The typical term lengths are 24, 36, 48, or 60 months, and there is no minimum credit score required to apply for the loan.
Types of Loans
The company provides personal loans that can be both secured and unsecured. They can be procured for reasons such as home repairs, travel costs, unexpected bills, debt consolidation, and more. However, the loan term, payment system, and interest rates are fixed. This means that there’s no way to make any changes to any of the terms, under any condition.
When you file your application, the company reviews and decides whether to approve or deny, based on several factors. This will include things like your current financial situation, your ability to pay back the loan, and your credit score. The company requires no minimum credit score, but the actual credit score is a consideration that the company makes.
The state you currently reside in, and how much collateral you can offer as security, are deciding factors, as well. However, the former is mostly related to state laws, such as the minimum loan amount in that state.
Eligibility Requirements and Process
One Main’s primary selling point is that anyone can take out a loan, as long as they can prove that they’re not financially inept. Even with a bad credit score, One Main Financial lets you take out a loan as long as you have paid bills, made payments, eventually have a good income, and own assets, among other factors.
When you fill out the loan application, you will notice that the company analyzes your income, budget, and various other financial responsibilities to build your case and a profile on you. During this process, you can be pre-qualified for reasons like having a good credit score, having secured a loan with the company before, and/or a good history of paying back loans.
Being pre-qualified means you get loan rates before you apply. You can mention the reason you’re taking out the loan, and other financial and employment-related things, to make your case.
After you’re done with the application and it’s approved, you will meet with a loan specialist. They’ll verify your financial and personal information, and explain the funding options available to you, especially if you already have debt, such as subsidized and unsubsidized loans.
You will also need to provide details which include your proof of income and employment, and driver’s license.
If you can’t get a loan through traditional methods, you can always use collateral. This can include almost any that vehicle has the same approximate value as the loan you’re taking out.
Fees and Payment
There is a loan origination fee for all the loans, be it a personal or auto loan. The origination fee ranges from $25 to $40.
You will receive your loan either through direct deposit or via check from one of the branches. You can make your monthly payments by mail, in a branch, online, through the One Main mobile app, or at a Walmart service desk.
Keep in mind that if you pay at a Walmart service desk, you’ll have to pay an additional $1.00 to $1.50. Also, if you use a debit or credit card for payment, you will have to pay $2.95 more. In case you make any late payments, you will be charged an extra $15.00 on your next payment.
One Main Financial Loan Review
Most people with good finances but a bad credit history (due to bad luck or impulse decisions) are often refused by most lenders. One Main Financial targets this specific group of people, and successfully so. This makes the company an ideal lender for those that find themselves in this category.
The following is a summary of the pros and cons of One Main Financial loans.
One Main Financial Loan Pros
Here is why One Main Financial is a good option as a lender:
- The company provides secured loans that you can procure by keeping an asset as collateral. This may even land you a bigger loan than you normally would have received.
- One Main Financial doesn’t have a minimum credit history requirement, therefore, even applicants with poor credit history can apply and be approved.
- The company has an extremely streamlined process, so if your application is approved before the second half of the day, you may even receive your funds on the same day. The application can be approved in a matter of minutes.
- There are over 2,000 branches across the US.
- You have seven days to get out of a loan without any repercussions. If, for whatever reason, you no longer need the money, you can just return all the loan proceeds and sign an official cancellation agreement. However, it can only be done within 7 calendar days, starting on the day you got the loan.
- The company’s loan specialists help you set your loan up, understand your funding options, and develop a proper repayment strategy.
One Main Financial also has a lot of website resources and calculators, along with detailed information on things like how to pay off student loans.
One Main Financial Loan Cons
The following summarizes why One Main Financial may not be the best option as a lender:
- The same loan rules may not apply to all the states, as each state has its laws regarding loans. Furthermore, the company has no branches in Rhode Island, Vermont, Alaska, Connecticut, Arkansas, Massachusetts, and Washington D.C.
- You need to visit the branch at least once to confirm your loan, despite the application process being online.
- The interest rate is relatively higher compared to other lenders, and there are stiff penalties for late payment.
- There are restrictions on reasons for drawing a loan. For example, you can’t take out a loan for your business expenses, or education above high school.
- If you want to take out a secured loan against collateral, you need to have full coverage insurance on the vehicle.
If you have concerns like how to pay for college, then you certainly need to look for other loan options.
One Main Financial Competitors
You can compare One Main Financial with the following competitor companies to get a better idea of their loans:
- Prosper: The company is a peer-to-peer lender with average fees and rates. It has a soft credit check, but still requires a minimum credit score of 640. You get fast funding, sometimes on the same day, and there is no prepayment penalty. The estimated APR is between 6.95% and 35.99%, and the loan amount can be between $2,000 and $40,000. However, there are origination and heavy late fees, as well as, no flexible payment options.
- LendingClub: The peer-to-peer lending pioneer specializes in consolidating debt. LendingClub has a relaxed credit score requirement, with a minimum of 600. They may directly pay off some creditors and provide you with a co-sign option. There is also a hardship plan for people in need. The estimated APR is between 6.95% and 35.89%, and the typical loan amount ranges from $1,000 to $40,000. However, the company charges higher origination and late fees, and there is no rate discount for autopayments.
- SoFi: According to several SoFi personal loan reviews, it provides low-rate and no-fee loans for good-credit consumers. The company has a relatively high minimum credit score requirement, at 680. The fixed & variable rates are on the lower end, and the company offers extensive member perks, along with several flexible payment options. The estimated APR is between 5.99% and 17.67%, and you can draw a loan amount of $5,000 to $100,000. However, the only downside is that it can take up to 7 days for the funds to be transferred.
Compared to its competitors, One Main Financial has relatively higher interest rates and lower loan amounts, but it’s the only company with no minimum credit score. This opens it up to a new market of potential clients.
One Main Financial: Is it Worth it?
One Main Financial is known in the personal and auto loan industry for its unique approach of negating the requirement for a minimum credit score. This is great for people with a financial history, who just experienced bad luck at some point in time.
The company provides fast funds, unique payment options, and lots of access when it comes to loans. One Main Financial has an online presence, an app, and can be visited in over 2,000 locations across the US. All this makes the company an excellent choice for a personal or auto loan. However, before deciding, make sure you compare the company with others and work out which one works best with your goals and requirements.