One Main Financial has been serving Americans with financial products for over 100 years. The company was founded in Maryland under the business name Commercial Credit in 1912. The name recently changed to One Main Financial in 2015. Today, the company offers personal loans to borrowers with below-average credit. There are 1,700 One Main Financial locations in 44 of the 50 states. It does not service Alaska, Connecticut, Massachusetts, Rhode Island, or Vermont.
The average loan amount serviced through One Main Financial seems to be lower than what other lenders may approve. Applicants may start the loan process online; however, they will need to go to a local branch to close the deal with a representative. This One Main Financial Personal Loan review will explain everything you need to know regarding its personal loans.
|Rates (APR)||12.99% – 35.99%|
|Loan Terms||3 – 5 years|
|Loan Amounts||$1,500 – $20,000|
|Fees||Origination fee: Varies by state|
Prepayment fee: None
About One Main Financial Personal Loans
One Main Financial currently offers secured and unsecured loans from $1,500 to $20,000 with an average fixed interest rate of 12.99 to 35.99 percent to eligible applicants. Your credit rating, loan amount, and repayment terms are factors that will determine your interest rate. The repayment term for a personal loan can be as short as 36 months (3 years) or as long as 60 months (5 years). This lender does not set a minimum credit score and will consider all factors, including income, credit history, and available collateral. The average borrowed amount through One Main Financial is $6,500 with an average interest rate of 27 percent, and less than half of all loans are secured by collateral.
Eligible Reasons for Obtaining a Personal Loan
One Main Financial provides personal loans to borrowers for a variety of reasons. People take out personal loans to refinance debt, pay for medical costs, pay for home or auto repairs, and even for vacations. One Main Financial does not specify the reasons that would not be eligible for a loan. As long as the individual requesting a loan is approved for a loan based on credit, financial status, and other One Main Financial criteria, most reasons for the funds will be accepted.
Benefits of Considering a Secured Personal Loan
If you do not qualify for an unsecured loan, you may offer your vehicle as collateral to obtain a secured One Main Financial personal loan. If you offer collateral in your loan application, be aware that you will lose your collateral if you do not make the required payments on the loan. If you qualify for an unsecured loan but the amount you are eligible for is not what you were expecting, a secured loan may be a solution for obtaining a larger loan. A secured loan may also help you get a better interest rate than an unsecured loan. Just remember that this is possible due to the value of the collateral which would be up for grabs if repayment goes south.
One Main Financial’s Benefits
The ability to obtain a loan even if you have below-average credit is just one benefit of borrowing with One Main Financial. Another benefit is receiving money quickly. Most applicants will receive their funds the same day they meet with a representative. The repayment terms are longer than with a payday loan, which can help applicants repay the loan without the need to keep reborrowing. The company also has a rewards program that gives borrowers an opportunity to earn points for simple activities that encourage engagement with One Main Financial online and on social media. Rewards points may be redeemed for gift cards and discounts on utilities, vacations, and some everyday items as well.
One Main Financial’s Associated Fees
The fees associated with One Main Financial’s personal loans include variable origination fees, late fees, returned payment fees, and payment processing fees. The origination fee varies by state and helps determine the overall cost of the loan. Late and returned payment fees also vary by state. Payment processing fees vary by the method used to make a payment. Phone payments with a debit card incur a fee of $2.95, while payments made at a Walmart service desk incur a fee that ranges from $1 to $1.50 per payment. To make payments without a processing fee, borrowers can enroll in Direct Pay and have their loan payment automatically withdrawn from their checking or savings account each month. There are no penalty fees for paying the loan off early.
While One Main Financial may not have the best personal loans for everyone, they do offer beneficial solutions to people with a lower income or lower credit score who may not be eligible for loans through other lenders. One Main also offers longer repayment terms than payday loans, which might help people stay out of a debt spiral.
Author: Jeff Gitlen
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