OneMain Financial is a lender with intentions of helping those with poor credit. Banks and credit unions might not be too willing to approve a debt consolidation loan to a troubled borrower. OneMain Financial steps in to fill the void.
Poor credit has a tendency to cause a lot of problems for someone who is trying to restore a financial house to pristine condition. Significant amounts of credit card debt are, usually, the main reason behind fiscal disaster the indebted is suffering from. Credit card debt can be handled a lot of ways. Consolidating the debt is among the most reliable means of creating a basis for an eventual payoff. Poor credit remains the annoying stumbling block preventing the acquisition a desirable consolidation loan. OneMain Financial could end up being the best hope for those whose credit score makes them poor borrowers in the eyes of many lenders.
OneMain Financial and the Poor Credit Borrower
A person with a credit score of 630 or lower has poor credit. That is the delineation. There’s no way around it. OneMain Financial’s borrowers have an average credit score somewhere in between 630 and 650. The income level of the average borrower is modest and below the U.S. national median average. Specifically, the average borrower earns about $46,000 per year. While $46,000 can be a good income, paying off thousands upon thousands of high-interest credit card debt is quite difficult at such earning levels. Consolidating debt makes is much easier to properly management the repayment.
The interest rates on loans to persons with poor credit are not the most appealing. Scores between 630 and 689 are a hair under and unenviable 20%. Those below 630 may be looking at interest rates of more than 28.6%. Even with hefty interest, paying one loan is easier than paying several credit card minimums each month. This is why OneMain Financial fields many applications for such loans.
OneMain Financial commences its annual percentage rates at 12.99%. The highest level of annual interest offered is a staggering 35.99%. Generally, someone with bad credit would be looking at an interest rate of 28%.
The possibility of lowering an interest rate with collateral is possible. Borrowers have used their auto titles as collateral, a risky endeavor. Paying the loan off is critical as a default could mean the seizure of a vehicle.
In-Person or Online
Certain lenders require in-person visits in order to apply for a loan. Other lenders are set up to operate solely as an online business. With OneMain Financial, borrowers have the option of visiting at an in-person location or applying online. The in-person application can be processed and two participating venues. OneMain Financial and Springleaf Financial Services are the brick-and-mortar offices in which the loans can be processed. Incidentally, Springleaf Financial Services is the company that purchased OneMain Financial not too long ago.
The vast majority of loans processed through this company need to be applied for at a physical location. The online lending wing of the company, iLoan, does process loan applications through the internet.
Not everyone really minds applying for a loan at a physical location. The reason they usually look for the online lenders is these lenders are more willing to work with someone with poor credit. A traditional bank will look at someone with a credit score of 629 and dismiss that person immediately. Such will obviously not be the case with OneMain Financial. The company’s business model focuses helping those who are distressed borrowers.
A visit to a local OneMain Financial or Springleaf Financial Services branch won’t lead to immediate feelings of anguish and dejection. The company hopes to meet the needs of those who want to consolidate their debt and get a second chance at fiscal order.
Interesting Features with OneMain Financial
OneMain Financial does try to set itself apart from competitors in the industry. To help their borrowers out, the company does its best to make funds available the same day an application is approved.
A hard credit check is performed on all applications, which is marked against a credit score. As a consolation to those who are not all that thrilled about the impact on their credit score, OneMain Financial reveals the results of the credit check. An applicant can take the report and add it to his or her financial records.
The lender also makes payment insurance available to borrowers. For a fee, the insurance covers the missed payments on the loan as a result of unemployment, disability, or even death. The insurance might be worth considering for those who worry about “worst case scenarios” when taking out a new loan.
OneMain Financial has been in existence for over 100 years. The company’s ability to change with the times and make dynamic loan options available virtually ensures its continued operation for many more years.