If you need a loan there is a really good chance that the lender you visit to ask for a loan won’t give you that loan. If you don’t need a loan then you are probably qualified to get a loan. Just like so many things these days, things are backwards from how they should be in the real world.
Companies like OneMain Financial are in the business of trying to find people with really good credit to issue their loans. It is highly possible that a good number of potential customers who come to OneMain Financial will not be in a position for getting a loan.
Now, that’s not to say that companies such as OneMain will not issue any loans, and in fact they are more likely to issue a loan than a traditional bank like Chase or Bank of America. The old school banks have become almost non-lenders at this point when it comes to unsecure or signature loans. If the loan isn’t for some hard collateral purchase, such as a car or a home, then the bank basically goes into a shutdown mode. With all of the losses the banks have suffered since the housing collapse that started in 2007 – they just are not willing to take the risk on a loan where the only method of collecting on the loan is to start calling the person, asking them to start making their payments again. In the case of a car note or a mortgage, the bank can reclaim the car or they can foreclose on the home.
People who are searching for a loan were being turned away by the traditional banks and at the same time the loan terms offered by payday loan companies were just too outrageous for those with good credit scores.
Really, that’s the key when it comes to OneMain. If you are going to get a loan with them you (and your spouse if you’re married) need to have a good credit report and credit score. What is a good credit score these days? Probably at least 660 or maybe 680. The thing is OneMain Financial won’t say you need a particular score but anything below the 660 level is going to probably be tossed out. And it’s not just the credit score by itself.
The company will be looking at your outstanding loans, if there are any. They definitely will not want you to be paying on an established personal loan, that is for sure. At the same time they will not care very much if you have revolving credit card debt and in fact they expect you to have that. It’s funny how $7,000 in existing credit card debt will be looked at as okay while an oustanding personal loan for $3,000 will be frowned upon. But that’s just how it works in this age of confused and restricted credit availability.
The purpose of the loan matters to OneMain Financial. If you are going to use it to pay down existing debt, then they want to know that. If you are on the edge of getting a loan decision going down in flames, then designating the (potential) new loan from OneMain going towards a refinancing effort will be meaningful to them and might help you get the loan.
Nowhere on their website, OneMain Financial publishes their loan terms. This is because they are different for each client situation and the loan rates change the business climate. But no matter what rate you pay, whether it’s 9% APR or all the way up to 30% APR, the rate you get with this company will absolutely be better than any of the short-term lenders you’ll find on strip malls or prominently displayed when you search for a loan online. Those lenders are in the range of 150% – 450% APR’s, and sometimes substantially higher than that. There are few laws governing the rates that lenders can charge so be careful with these companies.
With any luck, companies such as OneMain Financial will continue to grow and their terms will become less onerous for many people to qualify. Society is going to need these types of companies in future since it appears that banks have given up on the business of lending money.