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!
