OneMain Financial was founded in 1912 and it is based in Evansville, Indiana. The financial institution started out as a firm that provided capital to contractors in the manufacturing and building industry.
Today, they operate as a direct lender who provides personal loans to people in 44 states in the United States. The OneMain Financial does not operate in six states including Connecticut, Alaska, Massachusetts, Vermont, Rhodes Islands, and Arkansas. They have 1700 branches across the United States. This firm has a fixed rate that ranges from 16% to 36%.
Who Qualifies for OneMain Financial Offers?
OneMain Financial offer loans to people with credit scores that range from poor to fair. Most people who apply for their loans are often approved for the loans. In most cases, people who have not been approved by other lenders tend to get approval when they apply for this loan.
They offer both secured and unsecured loans. The process for getting an unsecured loan is more involving compared to that of secured loans.
When you apply for this loan, you will need to provide the following:
Proof of income
Having proof of income is important because the lender needs to confirm if you can actually pay for the loan. Since you will make the payments with your income, the lender needs to confirm that you are earning the exact amount you mentioned.
They also need to confirm that the source of income is stable. If the borrower provides an income source where there is no guarantee that the individual will maintain that job for a long time, the lender may need to reconsider the loan. To qualify for the loan, you need a minimum annual income of $7,200.
Collateral if you are applying for a secured loan
There is should be proof of the property you intend to use to secure your loan. If it is your car, you should provide your car documents. With secured loans, you risk losing your property if you are unable to pay the loan. It is important that you pay your loan off your loan when you apply for a secured loan. That does not mean that you should not pay your loan on time when you get an unsecured loan.
The rates for unsecured loans are higher than the rate for secured loans because they are riskier. Although you do not risk losing your property, the rates accumulate quickly and since they are high, you end up with a huge debt that you cannot pay. Lenders can take extreme measures to get the funds back.
You must also be 18 years old or older.
You should also be a citizen of the United States or you should be a permanent resident of the United States.
You will also be required to provide recent pay stubs.
Fees and Penalties
Their origination fee ranges from 0% to 5% of the loan amount. The fees vary depending on the State in which you live. The origination fee will not be paid separately. It will be added to the principal loan amount.
This firm charges late fees when you do not make payments on time. The late fee also varies from state to state. You can avoid late fees when you always make payments on time. Fortunately, they do not charge prepayment fees. This means that you can pay your loan earlier than the agreed date and you will not be penalized for it.
How to Apply for OneMain Financial Loan
The application process is pretty simple. You will need to visit their website and complete their application form. You will be required to provide your personal details along with your financial information.
You will be required to also input your loan amount, the purpose of the loan, income information, and your bank account information.
When you submit an application, you will receive a prompt response. The email will contain more information about the loan.
You will next need to schedule an appointment with the loan officers to close the loan you choose. You will need to submit the supporting documents to the loan specialist.
You should note that the lender will conduct a credit check on you before offering you the funds. OneMain Financial processes its loans within 3 days.
Some borrowers receive their funds on the same day, however, others can take up to three days. When the lender is certain about your application, you will receive the funds in your account.
The loan amount ranges from $1,500 to $25,000. The amount will depend on certain factors including your credit history, the loan amount you request for, your credit score, and the loan term you request for. The loan term ranges from 24 to 60 months.
Who Can Apply for This Loan?
Although this loan is available to a wide section of the US popular; people who live in the States in which OneMain Financial operates. It is also available to people with an average credit score of 622. Generally, they accept credit scores that range from 540 upwards.
It is important that you read all the terms and conditions of the loan before accepting the loan. You should also take note of your payment date. Make sure that you pay the loan on the date. If you miss payments, you do not only pay late fees. They may also report to credit reporting firms who will then put it on your credit report.