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.
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:
- Social Security number
- 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, using data obtained on April 24, 2018. For the most up-to-date rates and terms, visit Avant and OneMain Financial.
|Loan amount||$2,000 to $35,000||$1,500 to $30,000|
|APR range||9.95% – 35.99%||9.99% – 35.99%|
|Loan term length||2 to 5 years||2 to 5 years|
|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|
|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 interest rate offered by OneMain Financial is 9.99%. 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 rate 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 $30,000. 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 rates as low as 9.95%, 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 the 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.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** 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.
|7.73% – 29.99%||$1,000 - $50,000||Visit Upstart|
|6.26% – 14.87%1||$5,000 - $100,000||Visit SoFi|
|6.99% – 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% – 25.00%2||$5,000 - $35,000||Visit Payoff|
|4.99% – 29.99%3||$10,000 - $35,000||Visit FreedomPlus|
|5.99% – 18.99%4||$5,000 - $50,000||Visit Citizens|
|15.49% – 34.49%5||$2,000 - $25,000||Visit LendingPoint|
|6.16% – 35.89%6||$1,000 - $40,000||Visit LendingClub|
|6.99% – 18.24%7||$5,000 - $75,000||Visit Earnest|
|9.95% – 35.99%8||$2,000 - $35,000||Visit Avant|