OneMain Financial: Auto Loans for Less-Than-Ideal Credit

OneMain Financial Overview 

Established in 1912, OneMain Financial has positioned themselves as a key player in the US credit providers industry. The company operates approximately 1,300 branches across 44 states, making their services accessible to millions of Americans. Their stated primary mission is to improve the financial well-being of hardworking individuals by offering secured and unsecured personal loans.

The company provides a variety of loan products, including auto loan financing and refinancing. It’s important to note that OneMain Financial’s services are geared toward individuals with less-than-perfect credit. That said, borrowers should be aware that the interest rates may be significantly higher than those offered by other lenders, potentially even exceeding credit card interest rates. 

The company is transparent about ensuring compliance with state regulations and licensing requirements, including licenses from the California Department of Financial Protection, the Pennsylvania Department of Banking and Securities, and the Virginia State Corporation Commission. Regarding security, the company uses 256-bit SSL encryption to protect personal information and ensure that customer data is secure.

With a strong reputation in the industry, they are accredited by the Better Business Bureau (BBB) and maintain an A+ rating, a testament to their customer service and ethical business practices. Additionally, 90% of their customers report high satisfaction with their loan services, and less than 10% of borrowers default. OneMain Financial has been recognized as a leader in providing responsible credit access to nonprime borrowers, further cementing its position as a reliable option for those in need of financial assistance.

OneMain Financial’s Features & Services 

They provide a variety of auto loan and refinancing services, as well as additional financial tools designed to meet the diverse needs of their customers. Here is a breakdown of their main offerings:

• Online application process: The entire loan application can be initiated and completed online or through the mobile app. The pre-qualification process only takes five minutes, and you can easily track the status of your application from the comfort of your home
• Auto loan refinancing: They specialize in helping customers refinance their auto loans. Whether you want to reduce your monthly payments or lower your interest rates, they connect you with a network of lenders to offer personalized refinancing solutions. Once approved, the loan amount is sent directly to the dealership, streamlining the process
• Pre-qualification with soft credit pull: Customers can pre-qualify for auto loans or refinancing without affecting their credit score. This feature allows you to explore potential rates and loan amounts before committing to a full application, helping you make informed financial decisions
• Auto purchase loans: If you're purchasing from a dealership that participates in their auto loan program, you can apply for an auto loan directly through the dealer. If buying from a private seller, they offer personal loans that can be used to finance the purchase. The loan can cover various vehicle types, including motorcycles, ATVs, and utility trailers
• Loan specialist support: Each customer is assigned a dedicated loan specialist to guide them through the loan or refinancing process. These specialists offer personalized advice, assist in creating a monthly budget, and help you select the best loan options to ensure repayment success
• Credit reporting to major bureaus: They report to major credit bureaus, helping customers build or improve their credit with responsible loan management. This feature is particularly useful for customers looking to establish or enhance their credit profiles
• Car refinance calculator: The online car refinance calculator helps you estimate your potential savings by refinancing your current auto loan, making it easier to decide whether this option is right for you

Additional perks and services

They also offer services that do not fall within the scope of auto loans, including:

• Credit cards: For eligible customers, the company offers the BrightWay℠ credit card, which provides access to rewards like potential credit limit increases or APR reductions after just six months of responsible use. The card is designed to help users build credit while managing their finances effectively
• Debt consolidation loans: They offer loans to help consolidate multiple debts into a single monthly payment, reducing the stress of managing multiple accounts and high-interest rates. This service is designed to provide financial relief and ease debt management
• Insurance options: Through partnerships with American Health and Life and Triton, they offer insurance products to further safeguard customers against unforeseen circumstances
• Mortgage payment solutions: They provide assistance to homeowners struggling with mortgage payments through partnerships with organizations like the Homeownership Preservation Foundation (HOPE), which provides counseling and support to help customers avoid foreclosure

OneMain Financial’s Fees & Costs Considerations

They charge various fees and costs associated with their financing options, which can vary depending on the state and loan type. One of the primary costs is the loan origination fee, which may either be a flat amount or a percentage of the loan. Flat fees typically range from $25 to $500, while percentage-based fees can range from 1% to 10% of the loan amount, subject to state-imposed limits. 

In addition to origination fees, they also charge late payment fees if payments are made after any grace period allowed by state law. These fees can either be a fixed amount, typically between $5 and $30 per late payment, or a percentage of the overdue payment, ranging from 1.5% to 15%, depending on state regulations. If a payment made by check or electronic debit is returned due to insufficient funds, they may also charge a non-sufficient funds (NSF) fee, with amounts generally ranging between $10 and $50, depending on state law.

Furthermore, the company directly passes on governmental fees associated with perfecting their lien on a motor vehicle's certificate of title. These fees are charged without markup and are determined by state or county regulations. The loan amounts offered by them typically range from $1,500 to $20,000, depending on factors such as credit profile, income, and whether the loan is secured or unsecured. Secured loans, which require a lien on a vehicle, tend to have lower interest rates, while unsecured loans come with higher APRs. Based on research, their APRs generally fall between 18.00% and 35.99%, with repayment terms ranging from 24 to 60 months.

They do not, however, charge any prepayment penalties, allowing borrowers to pay off their loans early without incurring extra costs. Loan approval and actual terms vary by state and are based on the borrower's ability to meet credit standards, including having a responsible credit history and sufficient income. Once approved, funds can be disbursed within 1 to 2 business days via direct deposit, or in some cases, borrowers can access funds within an hour using a bank-issued debit card. However, certain state laws may impose limits on the loan amounts offered. For example, minimum loan amounts in states like Alabama, California, and Georgia range from $2,100 to $3,100, while maximum loan limits in states like North Carolina, Maine, and West Virginia vary between $7,000 and $13,500.

Advantages of OneMain Financial

• Quick funding options: One of the significant advantages of using the company’s services is the speed at which funds are made available. Borrowers can receive loan approval and access funds as quickly as the same day, sometimes within an hour of finalizing the loan. This can be especially beneficial for those who need immediate financial assistance, such as emergency medical expenses or unexpected repairs
• Flexible credit requirements: They accommodate a wide range of credit scores, making loans accessible to borrowers with low credit or those who may not qualify with traditional lenders. While there is no minimum credit score required, applicants must have some credit history. This flexibility benefits individuals working to improve their credit or those with past financial difficulties, giving them an opportunity to secure a loan when other institutions may decline them
• No prepayment penalties: They do not charge prepayment penalties, meaning borrowers can pay off their loans early without incurring extra costs. This flexibility is beneficial for customers who may want to save on interest by repaying their loan ahead of schedule
• Secured loan options: For borrowers who have a vehicle with no outstanding loan on it, they offer the option to secure their loan with the car as collateral. This can result in lower interest rates compared to unsecured loans, making borrowing more affordable. Secured loans also offer higher loan amounts, which can be particularly useful for those looking to make larger purchases or consolidate multiple debts
• Personalized assistance: Unlike some lenders who operate purely online, they provide access to real people both in branches and over the phone. This human touch ensures that customers can get help tailored to their unique needs, whether they prefer face-to-face interaction or digital communication. Personalized service makes it easier to navigate the borrowing process and can lead to better customer experiences, especially for those who are not familiar with financial products
• Diverse payment methods: They offer various repayment methods such as online, in-person, by mail, phone, mobile app, or through participating retailers, giving customers multiple ways to manage their loans conveniently
• Refund options: Customers have the flexibility to cancel optional products at any time. They can receive a full refund for any unused products within the first 60 days, with partial refunds available afterward. This flexibility allows customers to reassess their needs without feeling locked into unwanted products. Additionally, borrowers can return their loan within seven calendar days for any reason, providing peace of mind for those who may have second thoughts

Why You Might Not Choose OneMain Financial

• Higher interest rates: One of the key drawbacks of this provider is that they tend to offer higher starting APR rates, with a minimum of 18% for personal and auto loans. This can be significantly higher than rates offered by other lenders, especially for borrowers with fair or good credit. As a result, customers may end up paying more in interest over the life of the loan, which can increase the overall cost of borrowing
• Smaller maximum loan amounts: The maximum loan amount available is $20,000, which is lower than many competitors that offer up to $35,000 or more. For individuals seeking larger loans for significant financial needs like home renovations or debt consolidation, this limit may be insufficient, prompting them to seek higher amounts elsewhere
• Origination and additional fees: They charge an origination fee ranging from 1% to 10% of the loan amount. Along with potential charges like late payment fees, non-sufficient funds fees, and secured loan fees, this can increase the overall cost of borrowing compared to other lenders. For borrowers on tight budgets, these additional fees may create financial strain
• Collateral may be required: For larger loan amounts or borrowers with lower credit scores, collateral, such as a vehicle, may be required to secure the loan. While this can lower the interest rate, it also poses the risk of losing the collateral if payments are not made, which can be a significant drawback for those preferring unsecured loans
• Loans not available in every state: They do not offer loans in every state, restricting accessibility for potential borrowers based on their location. This could inconvenience customers who may need to seek alternative lenders that serve their state, resulting in fewer options for financial assistance

OneMain Financial’s Customer Experience & Reviews 

The company receives high ratings on several trusted review platforms. On Trustpilot, they hold a 4.7 out of 5-star rating, reflecting widespread customer satisfaction. Similarly, their BBB rating is 4.1 out of 5 stars, showcasing a generally favorable reception despite some complaints. On Credit Karma, they have a score of 4.2 out of 5 stars. 

Positive feedback

Many of the company’s customers commend their professional and personable service. A recurring theme in positive reviews is how staff members are described as approachable, patient, and quick to respond. Customers expressed appreciation for clear communication and the step-by-step guidance they receive. Several reviews highlight the ease of the loan process, with one user praising how efficiently their loan was approved and how funds were accessed in a timely manner. Other satisfied customers spoke of the company’s ability to tailor loan options to individual needs, ensuring fair rates and personalized care. Reviewers also mentioned returning to them for additional services due to positive past experiences, reinforcing the company’s reliability and customer trust.

Critical feedback

Despite these positive reviews, the company has faced criticism from some customers. Common complaints included dissatisfaction with high interest rates, unexpected fees, and challenges in achieving favorable loan terms. Including some noting an unexpected increase in their loan payoff after making a payment, leading to frustration. Another issue mentioned was the perceived lack of transparency, with customers claiming that certain fees or terms were not clearly communicated upfront. Some customers also criticized the customer service experience, citing delayed or insufficient communication, which led to complications in the loan process. 

OneMain Financial’s Customer Support & Services 

They offer a range of customer support options to assist clients with their financial needs. Customers can reach out via phone, email, or online resources to resolve any issues or answer questions related to their loans.

For immediate assistance, you can contact them through the following phone numbers:

• General support: (800) 961-5577
• Existing loans: (833) 390-2034 (Monday to Friday, 3 PM – 3 AM)
• Loan applications: (800) 525-0451 (Monday to Friday, 3 PM – 3 AM)

You can also email them at [email protected] for service. If you're an investor and have any inquiries, you can contact the company at [email protected]. Their corporate office is located at: 

601 N.W. Second Street,
Evansville, IN 47708-1013

Conclusion 

OneMain Financial has established themselves as a key player in the personal loan industry by offering a wide range of financial products, including auto loans, refinancing options, debt consolidation loans, and personalized customer support. Their services cater particularly to nonprime borrowers, providing accessible financial solutions to individuals who might struggle to secure loans from traditional lenders. Notably, their pre-qualification process, soft credit pulls, and tailored loan specialist support are key features that enhance customer experience and make the loan process more efficient and straightforward.

One of the standout advantages of the company is their flexibility in loan terms and credit requirements, which makes them an attractive option for borrowers with less-than-perfect credit. Additionally, their fast-funding options and no prepayment penalties provide a sense of convenience and control for customers. However, it’s important to recognize the drawbacks, such as the relatively high interest rates, origination fees, and the need for collateral in some cases. For example, their interest rates starting at 18% are significantly higher than many competitors, which could be a deterrent for borrowers seeking more affordable loan options. Similarly, their smaller maximum loan amounts of up to $20,000 might limit customers with larger financial needs.

Ultimately, the suitability of their services depends on individual preferences and goals. Borrowers who value fast funding and flexible credit requirements may find them to be a strong option, while those seeking lower interest rates or higher loan amounts may want to explore other providers.

For those interested in diving deeper into the details or comparing them with other auto loan providers, we highly recommend exploring our comprehensive review page, where you’ll find in-depth analyses of key features, pricing, and service quality. Additionally, our comparison tool allows you to easily contrast auto loan offers across the board, helping you make a well-informed decision. Don't forget to check out our regularly updated blog articles, which provide expert insights, user experiences, and customer reviews to give you a well-rounded perspective on performance, costs, and overall customer satisfaction.