OneMain Financial Review for 2023
Are you considering a debt consolidation loan with OneMain Financial? Reviews online can help you better understand the company’s products and reputation. In addition, you can gain valuable insights just from seeing past clients’ online testimonials.
Our team at NoMoreCreditCards.com evaluated OneMain Financial debt consolidation loans in detail. We checked with the most reputable sources for ratings, information about the cost of their loans, and details about the company’s accreditations and licensing.
We will share our findings in the following OneMain Financial debt consolidation review.
About OneMain Financial:
OneMain Financial has been around for over one hundred years, making them one of the oldest lenders. They provide valuable services for borrowers looking to consolidate their debts because, compared to the alternative option of using a bank, OneMain offers more loans with flexible terms, making it faster and easier to get approved and funded quickly. For example, they will provide loans to applicants with a lower credit score than a bank offers. However, borrowers with low credit scores should be aware of the potential downsides, such as high-interest rates and collateral requirements. OneMain Financial offers personal unsecured loans, secured loans and auto loans from $1,500 – $20,000.
There are always pros and cons when evaluating debt relief, settlement, and consolidation loans. So weigh your options carefully. This review on OneMain Financial will help you do just that. We also recommend for you to check out the 20 Best Debt Relief Companies for 2023. And if you have credit card debt, also compare debt consolidation programs vs. using a loan.
About OneMain Financial’s management team: Doug Shulman is the Chairman and CEO of OneMain Financial. Before running OneMain Financial, Mr. Shulman was the Commissioner of the Internal Revenue Service (IRS). He’s known for helping the IRS solve global tax evasion problems.
You can tell a lot about a company by looking at the reputation of the people who run it, and Mr. Shulman’s reputation is top-notch.
OneMain Financial Pros
- One of the oldest lenders, in business since 1974
- Also, one of the largest lenders; 1400 local offices in 44 state
- Lots of loan options with flexible terms
- Easy to get approved and quickly get funded
OneMain Financial Cons
- For borrowers with a low credit score, beware of high interest rates and expensive loan options with collateral requirements
- Out of 940 BBB customer reviews, OneMain Financial’s rating is 3.1 out of the best possible rating of 5
- BBB Complaints: 945 complaints in the last three years
Overall Rating by Trusted Company Reviews:
OneMain Financial is a reputable lender. They offer both online and in-person loans at local offices.
How many locations does OneMain Financial have? OneMain Financial has over 1400 local offices in 44 states.
OneMain Financial Personal Loan Customer Reviews
When evaluating customer reviews about OneMain Financial personal loans and excluding reviews from its website, from over 15,000 online reviews from reputable sources, including Consumer Affairs, Better Business Bureau, and CreditKarma – its average customer satisfaction rating is 4 out of 5 stars, which is an excellent rating.
Let’s take a closer look at what these OneMain Financial customer reviews talk about, by comparing Benefits to Downsides.
OneMain Financial Debt Consolidation Loan Benefits:
- Consolidate multiple debts and monthly payments into one, simplifying the bill-paying process.
- Qualified applicants can get approved for a loan within a few days and have the money in their account shortly after that.
- Get a fixed payment and rate with your loan that won’t change even as interest rates continue to rise in 2023.
- These loans are installment loans, so you’ll know exactly how many payments are required until it’s paid off, unlike credit cards which are revolving credit.
- No collateral is required with a OneMain debt consolidation loan, unlike if you were to get a home equity loan which requires your home as collateral.
- Build positive credit as you pay off your OneMain Financial loan.
- OneMain Financial allows borrowers to consolidate a variety of debts, including credit card debt, medical bills, and personal loans.
- Personalized service: OneMain Financial has a network of branches across the United States, and borrowers can work with loan officers in person to discuss their needs and receive personalized assistance.
OneMain Financial Consolidation Loan Downsides
- OneMain Financial loans can include high-interest rates.
- They may require your car or property as collateral if it’s a secured loan.
- Applicants with a low credit score may not qualify.
- Getting a debt consolidation loan to pay off other debts won’t fix your underlying issue that resulted in the debt in the first place.
OneMain Financial Debt Consolidation Loan – is it a good idea?
It comes down to your credit score and why you need the loan. For example, if your credit score is above 750 and you need the loan to consolidate secured debt (i.e., a car or house) with unsecured debt (i.e., credit cards), OneMain could be a viable solution. Why? First off, OneMain Financial, Lending Club, Avant, and Best Egg loans can all consolidate secured and unsecured debt, which debt relief programs can’t do.
Secondly, with a high credit score, for example a credit score above 730, you could obtain a low-interest OneMain loan, helping you become debt-free faster and save money.
Conversely, the lower your credit score, the more expensive a loan will be. Bad Credit can result in high-interest rates, loan origination fees and even collateral required to secure the loan. So, only apply for a OneMain Financial debt consolidation loan if the loan cost is less than the average cost of the existing debts you’re considering consolidating.
Use a spreadsheet or calculator to figure out the math. There are even interest rate debt calculators online that can help. But don’t cheat yourself by being lazy and not doing the math. This is your financial situation and the rest of your life at stake.
Also, if you can barely afford the loan’s proposed monthly payments, it’s not worth the risk of eventually defaulting on the loan if your income falls even slightly. So, ensure you can comfortably afford the loan and have solid employment and savings, or find another solution. A quick fix can sometimes be appealing, but when it comes to your financial situation, think long-term. The future will be here before you know it, and your future financial situation is a product of what you do with your finances today.
Bad Credit OneMain debt consolidation loans are very costly. You can save a lot more money by using a debt relief program, especially if your credit score is under 700-710.
Call (877) 332-8007 to Get a Free Consultation From an IAPDA Certified Expert. Find out your best option now!
OneMain Debt Consolidation Loan Rates and Fees
According to OneMain’s website, OneMain’s debt consolidation loans include an up-front origination fee of up to 5%. If you borrow $20,000, that equates to an up-front fee of $1,000. Interest rates can be as high as 35% plus additional fees, making OneMain’s loans amongst the most expensive in the nation.
Another option to consider is a Home Equity Line of Credit (HELOC) loan. HELOC loans do include fees, including up to a 5% origination fee, but the interest rate on this type of loan can be less than 6%, much lower than the average rate on a personal loan. A downside with a HELOC is that you’re trading off an unsecured debt for a secured debt. That means if financial hardship causes you to fall behind on your loan payments, say goodbye to whatever you put up as collateral.
Debt Settlement VS. OneMain Debt Consolidation (examples)
DEBT SETTLEMENT TO PAY OFF $15,000:
- Debt settlement could lower and settle $15,000 of unsecured debt for around $6,300 (with NO interest)
- your monthly payment: $350
- be debt-free in only 30 months
ONEMAIN FINANCIAL SERVICES TO PAY OFF $15,000:
- OneMain Financial debt consolidation would increase the cost of your debt from $15,000, up to $16,920 (including interest)
- your monthly payment: $470
- be debt-free in 36 months
This example does not include the loan origination fee and any other fees besides interest, so make sure to carefully review any other fees associated with the loan. And also keep in mind, interest rates vary depending on the applicant’s credit score and overall financial situation. Debt settlement services include downsides, that you can learn about by visiting this page next.
Compare all debt relief & consolidation loan options:
You can always try to negotiate with each company, using the quote that one company gave you to negotiate a lower payment with another company. Make sure to also check with a local credit union because credit unions are known to provide the lowest interest rate when it comes to debt consolidation loans.
OneMain Refinancing for Secured & Unsecured Debt
Do you owe secured and unsecured debt? And is your goal to combine everything into one? In this case, a OneMain debt consolidation loan could help you more than a debt relief program because debt relief programs are only for unsecured debt. The other benefit is that you won’t need to fall behind on payments when using OneMain debt consolidation, helping your credit score improve.
OneMain debt consolidation loans could help a person refinance their home and car payment into one lower interest rate payment if your credit score is above the 700-710 range. But before applying for a OneMain loan, first, check with your local credit union. Typically, credit unions will offer the lowest interest rate on a debt consolidation loan, compared to financial companies like OneMain.
OneMain Financial Complaints and BBB Rating
At the BBB, OneMain Financial has more than 945 complaints. 399 of these complaints against OneMain Financial have been resolved in the last three years. This may sound like a lot, but they are also one of the largest lenders in the nation. On a positive note, they are rated A+ by the BBB and Accredited. To maintain an A+ BBB rating you need to maintain legally required licensing and resolve BBB complaints in a timely manner, so an A+ rating is a positive trait to have.