topic One Main Financial data points in Rebuilding Your Credit

One Main Financial data points

TattnallTrio — Sun, 02 May 2021 03:10:34 GMT

Hi All,

A close friend of mine recently borrowed some money from One Main Financial and I'd like to share some data points. Their pre-qualification does a soft pull (not sure which bureau) then if you proceed they hard pull both Transunion and Experian. Their scoring model is Vantage 3.0.

They offer both unsecured and secured loans. They try to secure the loan with your vehicle.

In my friend's case, the interest rate for Unsecured is 35.99%, plus they charge an Advance Fee of 5% on the front side of the loan. The principal on his $8,000 loan is $8,400 from the beginning.

One Main Financial has several signs in their office stating that credit products are optional and aren't required to complete the loan. They push really hard for 4 additional and expensive products:

Credit Life Insurance - if you pass away

Disability Insurance - Makes minumum payments after you've been disabled at least 30 days, but doesn't pay the balance off.

Job Protection Insurance - Makes minimum payments if you've been laid off of your job, 30 days after your last paycheck.

Home & Auto Protection for 5 years for $600! Tows your car to the nearest repair facility, lockout, battery jump and gas delivery if you run out, assists with a rental car, and provides discounts (probably not any more than the discounts that that say Capital One offers)

I can't remember the upfront costs of the first three, but I believe the life insurance was payment $400, the other two were about $500 each!

Of course, you pay interest on the fees for these products!!

My friend told them no, they are good salesmen and I stepped in and also overcome their reasons on why these products are a waste!

His Vantage Scores are in the 620's, 1 year post bankruptcy discharge!

Re: One Main Financial data points

FireMedic1 — Sun, 02 May 2021 12:54:49 GMT

Dang. Your friend should look into a local credit union for a loan. Thats a crazy APR. Get your friend to look at his FICO scores. credit check total for $1 and then cancel. Or Discover Scorecard for his Experian FICO score monthly for anyone. Dont have to be a card holder. Being a year out of BK. Why the loan? In the beginning you posted your friend took the loan and it ended with they didnt take the loan. Hope it was a see ya later deal.

Re: One Main Financial data points

TattnallTrio — Sun, 02 May 2021 18:04:56 GMT

I agree the rate is high but that's his business. In the end I said he told them no to the optional products but did take the loan. He has 7 days to repay it back in full without a fee, penalty or any interest.
As a friend, I hate thinking about the amount of interest he's going to pay but I'm not willing to use my balance transfers or co-sign a loan for him. I've been burned with that years ago.

Re: One Main Financial data points

Anonymous — Mon, 03 May 2021 01:26:13 GMT

@TattnallTrio you should never, EVER co-sign or take on a "friend's" debt. Married partner/children only and even then it's a risk. I know you said you learned already but I feel like others may read and learn ahead of time.

Your friend should take that loan back tomorrow. $8,400 principal and let's say he pays it off in 12 months. At 35.99% that's a monthly payment of $843.84 and he'll pay $1,726.07 in straight interest if paid off in 12 months. That $8000 loan costs $10,126.07.

Re: One Main Financial data points

mich800 — Mon, 03 May 2021 18:21:14 GMT

@TattnallTrio wrote:

His Vantage Scores are in the 620's, 1 year post bankruptcy discharge!

Personally I think it is crazy jumping back in the pot after a fresh start. I know it can be tempting but going down this road rarely works out the way it was intended.