Review: How to Choose Between OneMain Financial vs. a Personal Loan Through Avant

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Almost three years ago, my husband asked for a divorce and I made the difficult decision to move across the country to my old hometown. Ready money isn’t exactly plentiful when you’re in the middle of a divorce, so I got online and did a little research on the best personal loans.

I compared OneMain Financial versus Avant — and ultimately chose the latter for my needs.

Even though I used Avant for my personal loan, that doesn’t mean it’s the right lender for you. Depending on the situation, OneMain Financial might work better for you. Here’s what you need to know.

OneMain Financial vs. Avant Review: How they’re the same

I’m not the only one who’s used personal loans. In fact, according to TransUnion, outstanding personal loan balances in the U.S. reached a new high of almost $117 billion at the end of 2017.

OneMain Financial and Avant work similarly to each other. Both offer unsecured loans that you can get without collateral. Each allows you to check your offers online and verify your identity for the application process. Further, you can expect to receive your loan funds within a couple days no matter which lender you opt for.

To review your loan options, you might need to provide the following information:

  • Name
  • Address
  • Birthdate
  • Social Security number
  • Income
  • Other debt and obligations (including rent payments)

You might also be required to upload documentation and provide other information, depending on the situation.

However, there are some differences between OneMain Financial and Avant when it comes to personal lending. Here’s a quick comparison. For the most up-to-date rates and terms, visit Avant and OneMain Financial.

Avant OneMain Financial
Loan amount $2,000 to $35,000 $1,500 to $20,000
APR range 9.95% – 35.99% Fixed 18.00% – 35.99%
Loan term length 24 to 60 months 24 to 60 months
Credit score Most customers have scores between 600 and 700 In 2017, 47% of total loan dollars were lent to those with a score of 619 or lower
Prepayment penalty No No
Fully online experience Yes No
Secured loans available No Yes

How to apply for a OneMain Financial personal loan

Applying for a OneMain Financial loan is fairly straightforward. You just head to the website and input how much you want to borrow.

Once you submit your application, a representative from a local OneMain Financial branch will call to set up an appointment for you to come in and finalize the loan. When I applied for a loan through OneMain Financial, my representative reviewed my application with me over the phone and told me why I was approved for less than I asked for.

In order to get a bigger loan, I was told to bring in my car’s title. Collateral could’ve provided a way for me to increase my loan amount. If you have poor credit, you might be directed to find a cosigner if you can’t provide collateral.

One thing to be aware of, however, is that OneMain Financial doesn’t always offer much transparency. And despite its A-plus rating with the Better Business Bureau, some customers have complained about its service and murky terms.

Who OneMain Financial personal loans are good for

According to OneMain Financial’s 2017 annual report filing, nearly one-half of loan dollars it lent out went to poor credit personal loans. If you’re struggling with your credit and other lenders are reluctant to let you borrow, OneMain Financial can be one way to get the cash you need.

However, you might pay a steep price for it. The lowest APR offered by OneMain Financial is 18.00%. That’s one of the reasons why I decided against getting a personal loan with the lender. However, if your only other option is a payday loan with an interest rate of more than 400.00% APR, even the highest OneMain Financial APR of 35.99% can seem attractive.

On top of that, the ability to add collateral could help you get a higher loan amount or qualify with poor credit.

Finally, if you like a more personal touch, and the idea of going into a branch and closing the loan in person appeals to you, OneMain Financial can fit the bill. Even though you start your application online, you close the loan at a local branch. You can choose to receive a check from your loan officer or have the money deposited directly into your account.

If you have good to excellent credit, on the other hand, OneMain Financial probably isn’t the best choice for you. The interest rate is higher than you can get with another personal lender. Plus, if you prefer a completely online process, you’ll be deterred by the requirement to close the loan in person.

How to apply for a personal loan through Avant

The application process with OneMain Financial versus Avant starts out the same. With Avant, you head to the website and begin by checking your loan options.

You’ll fill out a one-page form, providing information such as how much you want to borrow and why you’re getting the loan. You’ll also provide your Social Security number and other personally identifiable information. Avant will use this information to give you loan quotes.

Once you agree to check your loan options, you can choose from term lengths. Avant is transparent, showing you how different terms affect your monthly payment. I chose a three-year term. My APR is at least 10.00%. However, current rates might be higher. What rate you end up with is influenced by multiple factors, including your credit score, income, and term length.

After choosing my loan, I answered a few questions about my identity that only I would know. This process is known as knowledge-based authentication. Once that was done, all that was left was to provide my bank account information. Avant had the money in my account the next day and allowed me to set up an automatic payment plan so I didn’t have to worry about late payments.

Who personal loans through Avant are good for

A personal loan through Avant works best for those who have good or fair credit and are looking to avoid the high rates that come with a credit card or similar funding option.

Avant offers personal loans for those with fair credit, but the interest rate is often higher.

The fact that you can complete everything online is a nice touch. You get your money fast, and you can apply in your pajamas.

Plus, OneMain Financial only offers loans up to $20,000. You could borrow up to $35,000 with Avant, making it a reasonable choice if you want to consolidate high-interest debt to a lower rate.

However, even though Avant offers APRs as low as 9.95% Fixed, the reality is that if you have excellent credit, you might be able to do even better with a personal loan from SoFi or Earnest. Those personal lenders offer even lower minimum APRs, resulting in overall savings.

For example, say you need a $10,000 loan with a three-year repayment term. You can compare interest costs between Avant, Earnest, and SoFi. Using our personal loan calculator, your cost to borrow would be:

You can save nearly $800 by qualifying for a personal loan with a lower interest rate.

OneMain Financial vs. Avant: What’s right for you?

Whenever you’re looking for a personal loan, it makes sense to shop around.

If you’re looking for your lowest interest rate and an online experience, Avant might be a good choice. Be sure to compare rates, though. You might qualify for an even lower interest rate with other personal lenders.

On the other hand, if you’re trying to rebuild your credit, or if you need collateral to get qualified for a loan, OneMain Financial can make sense, especially if your credit score is below 620.

Consider your situation and figure out where you’re likely to get the best possible deal.

Note: Student Loan Hero has independently collected the above information related to OneMain Financial personal loans. OneMain Financial has neither provided nor reviewed the information shared in this article.

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Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

RATES (APR)loan amount
5.99% – 20.01%1 $5,000 to $100,000
6.14% – 35.99% $1,000 to $50,000
6.98% – 35.89%* $1,000 to $50,000
99.00% – 199.00%2 $500 to $4,000
5.99% – 24.99%3 $5,000 to $35,000
5.99% – 29.99%4 $7,500 to $40,000
compare rates on Lendingtree now
NMLS #1136: Terms & Conditions Apply
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.99% APR to 20.01% APR (with AutoPay). Variable rates from 6.49% APR to 14.70% APR (with AutoPay). SoFi rate ranges are current as of November 15, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.49% APR assumes current 1-month LIBOR rate of 1.81% plus 4.93% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
  2. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
    See Consumer Licenses.
  3. Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
  4. If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.
  5. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
2 Includes AutoPay discount. Important Disclosures for Opploans.

Opploans Disclosures

Direct Deposit required for payroll.

Opploans currently operates in these states: . *Approval may take longer if additional verification documents are requested. Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications processed and approved before 7:30 p.m. ET Monday-Friday are typically funded the next business day.

  1. To qualify, a borrower must (i) be a U.S. citizen or permanent resident; (ii) reside in a state where OppLoans operates; (iii) have direct deposit; (iv) meet income requirements; (v) be 18 years of age (19 in Alabama); and, (vi) meet verification standards.
  2. NV Residents: The use of high-interest loans services should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

  3. OppLoans performs no credit checks through the three major credit bureaus Experian, Equifax, or TransUnion. Applicants’ credit scores are provided by Clarity Services, Inc., a credit reporting agency.

  4. Based on customer service ratings on Google and Facebook. Testimonials reflect the individual’s opinion and may not be illustrative of all individual experiences with OppLoans. Check loan reviews.

  5.  

    Rates and terms vary by state.

3 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.
4 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 5.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 5.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available.
* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

* Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by WebBank, Member FDIC.

** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.

Published in Credit & Debt, Loans, Personal Finance

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