Would you rather pay back a loan in fixed installments at a lower interest rate or multiple credit card balances with high interest rates on a revolving basis? When phrased as such, the answer to this question seems like a no-brainer for most Americans. Making monthly payments on one loan tends to be less of a hassle and more cost effective than managing various credit card balances through different lenders. This is the very idea behind debt consolidation loans as a debt relief strategy.
Part of the debt consolidation process is figuring out which lenders best align with your needs based upon your current financial situation. Doing your research ahead of time will help you apply to only the most fitting of loan products, saving you time, effort, and points off your credit score for additional hard inquiries made during the application process.
OneMain Financial is one such example of a lender offering consolidation loans. A borrower comparing this option to others on the market will inevitably wonder: What makes OneMain different from competitors? What requirements does this lender set for personal loan approvals? Here’s more on what to expect before working with this company.
Personal Loans from OneMain Financial: By the Numbers
Personal and consolidation loans can vary in terms of their amount, how long the repayment period lasts, how much borrowers owe in fees and more.
According to a recent WalletHub review, here are the terms borrowers can expect from OneMain Financial personal loans:
- Amount: $1,500 to $20,000
- Annual Percentage Rate (APR): 18 to 36 percent
- Loan Lengths: 2, 3, 4 or 5 years
- Early Repayment Fee: None
- Receipt of Funds: 2 to 5 business days
Although the APR rates seen on these loans are lower than some lenders offer on bad-credit loans, they are still relatively high for the world of debt consolidation. This means these loans are likely a better fit for borrowers with average to good credit ratings; borrowers with excellent scores can probably qualify for a more competitive loan elsewhere.
What Makes OneMain Financial Loans Unique?
Other OneMain financial reviews point out a few features relatively unique to this company. For instance, Bills.com points out this lender offers both unsecured and secured loans. This means borrowers who own their vehicles may have the option to secure it as collateral against their personal loan, potentially increasing the amount they are eligible to borrow and lowering the APR for which they qualify. Some lenders only offer unsecured loans, which require no collateral but carry higher interest rates because they are riskier propositions for the lending institutions.
ValuePenguin highlights another unique attribute of OneMain Financial: While it’s possible for borrowers to apply online, they will be required to visit a physical branch to complete the process. Thus, the experience is not fully online — potentially limiting those applicants with transportation challenges or who live far away from a brick-and-mortar location. If you’re looking for an experience that’s exclusively online from start to finish, this lender is not a viable option.
What sets OneMain Financial debt consolidation loans apart from the pack? Mainly the fact this lender facilitates both unsecured and secured loans, making it a promising option for borrowers with fair, or even poor, credit. Additionally, borrowers should be aware they cannot complete the entire application process remotely online. Visiting a OneMain branch location in person is a required part of the application process, so it’s important to make sure you’ll be able to do so.
At the end of the day, doing your research on the personal loan lenders out there will help you narrow down your application choices for debt consolidation loans.