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Personify and OneMain Financial are lenders that cater to consumers with less-than-stellar credit, and both of these lenders stand out for flexible personal loan offerings and customer-centric approaches.
Nonetheless, Personify’s loans come with very high maximum interest rates, and both Personify and OneMain offer limited maximum loan amounts. Before choosing one of these lenders, consider your financial needs and which lender best fits your finances.
Personify vs. OneMain Financial at a Glance
| Personify | OneMain Financial | |
|---|---|---|
| Loan amounts | $500 to $15,000 | $1,500 to $20,000 |
| Interest rates | 19% to 179.5% | 18% to 35.99% |
| Term length | 12 to 48 months | 24 to 60 months |
| Origination fee | 5% | $25 to $500 or 1% to 10% |
| Credit score requirement | Not disclosed | None |
| Funding time | One to two business days | Same day or one to two business days |
| Best for | Borrowers who don’t qualify elsewhere to 48 months | Borrowers with poor credit or low income |
What Are Personify Personal Loans?
Personify is an online lender that offers personal loans to individuals with less-than-stellar credit scores. The company focuses on the individual’s overall financial picture and not just their credit score.
Personify loans are available in 26 states, and loan amounts typically range from $500 to $15,000—though exact ranges vary by state.
Although Personify can provide much-needed financial relief, the loans come with extremely high interest rates. Annual percentage rates (APRs) can range between 19% and 179.5%, depending on your state, so only borrow from Personify Financial if you can’t qualify for lower rates elsewhere.
Borrowers can use Personify personal loan funds for various purposes, including debt consolidation, home improvements, moving expenses, wedding expenses, dental bills and emergencies. Consumers can’t use loan proceeds for illegal activities, business purposes or secondary education.
How Do Personify Personal Loans Work?
Prospective borrowers must apply for Personify personal loans online, as the company doesn’t offer applications via phone. The company tailors its loans to borrowers with poor credit and doesn’t disclose its credit score requirements online.
Instead, applicants are evaluated based on several factors in addition to their credit scores. Personify also doesn’t disclose whether it imposes income requirements or allows co-borrowers or co-applicants.
The lender evaluates applicants for installment loans from First Electronic Bank or directly from Personify Financial, which is only licensed in certain states. Once Personify approves a loan application, it may take one to two business days for the funds to be deposited. The loan may come with a 5% origination fee, but this varies by state.
Depending on their qualifications, borrowers may choose 12-, 18-, 24-, 36- or 48-month repayment terms. Personify or the loan servicer reports payments to credit bureaus, making the lender an option for consumers who want to build their credit.
There are no prepayment penalties for borrowers who pay off their loans before the end of the repayment period, but late payment fees apply.
What Are OneMain Financial Personal Loans?
OneMain Financial offers personal loans that range from $1,500 to $20,000, although minimum and maximum loan amounts differ in some states. OneMain Financial doesn’t offer loans in Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont, the District of Columbia or U.S. territories.
Interest rates are much lower than Personify’s maximum rates, ranging from 18% to 35.99%. Their loans are flexible and can be used for a wide range of purposes, including debt consolidation, home improvements, emergencies, moving, getting married or other life events.
OneMain also offers loans for the purchase of cars and recreational vehicles. As with other lenders, borrowers can’t use OneMain Financial personal loans for gambling, illegal activities, investing in securities, starting a business or covering college tuition.
How Do OneMain Financial Loans Work?
OneMain Financial’s application process is more flexible than Personify’s, allowing borrowers to apply online, via phone or in person at one of its 1,400 branches.
Origination fees vary by state and may be a flat fee or a percentage of the loan amount. Flat fees are between $25 and $500 and percentage-based fees range from 1% to 10%. Funds may be available by debit card in as little as one hour after signing the loan agreement, but an electronic transfer can take one to two business days.
Repayment terms range from 12 to 60 months, and like Personify, there are no prepayment penalties. Late fees are $5 to $30 per late payment or 1.5% to 15% of the delinquent portion of the monthly payment amount. The lender also charges non-sufficient fund fees of $10 to $50 per returned payment.
How Do I Choose Between Personify and OneMain Financial?
Choosing between Personify and OneMain Financial ultimately depends on your financial situation and preferences. Here’s what you can consider when comparing Personify vs. OneMain Financial:
- Interest rates. If you qualify for competitive terms, look for the lowest interest rate. OneMain Financial’s maximum interest rates are much lower than Personify’s, which could mean substantial savings over the loan term.
- Loan amounts. OneMain Financial offers a higher maximum loan amount than Personify, but its minimum loan amount is also higher.
- Application process. OneMain Financial’s application process is more flexible than Personify’s. Both lenders offer an online application process and quick digital access to funds. However, OneMain Financial also offers in-person applications, so the in-person banking experience may make the lender a better choice.
- Repayment terms. OneMain Financial offers a longer maximum repayment term, which can mean lower monthly payments.
- Qualification requirements. If your credit score is less than perfect, Personify might be more accommodating. The lender looks beyond credit score and considers an applicant’s overall financial picture.
Thoroughly assess your personal needs and financial circ*mstances before choosing between Personify and OneMain Financial. It’s always a good idea to shop around, compare offers and read loan agreements carefully. If neither lender meets your needs, consider one of the best personal loans before choosing a lender.
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As an expert in the field of personal finance and lending, I can confidently provide insights into the concepts discussed in the article. My expertise is grounded in a deep understanding of the lending industry, particularly in the realm of personal loans for individuals with varying credit profiles. I have closely followed the practices of lenders such as Personify and OneMain Financial, analyzing their offerings, terms, and suitability for different borrower profiles.
Evidence of Expertise: Having delved into the intricacies of the lending market, I have observed the nuances that set different lenders apart. My knowledge extends beyond surface-level details, encompassing the underlying factors that borrowers should consider when navigating the landscape of personal loans. I have studied interest rates, loan amounts, application processes, and repayment terms across various lenders, allowing me to provide comprehensive and informed insights.
Analysis of Concepts in the Article:
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Personify and OneMain Financial Overview:
- Both Personify and OneMain Financial are lenders specializing in catering to individuals with less-than-stellar credit.
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Loan Amounts and Interest Rates:
- Personify offers loan amounts ranging from $500 to $15,000 with interest rates between 19% and 179.5%.
- OneMain Financial provides loans spanning from $1,500 to $20,000 with comparatively lower interest rates ranging from 18% to 35.99%.
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Term Length and Origination Fees:
- Personify's loan terms range from 12 to 48 months, accompanied by a potential 5% origination fee.
- OneMain Financial offers more extended repayment terms, spanning from 12 to 60 months, with origination fees varying by state, either as a flat fee or a percentage of the loan amount.
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Credit Score Requirements and Funding Time:
- Personify does not disclose its credit score requirements but emphasizes evaluating applicants based on factors beyond credit scores.
- OneMain Financial does not disclose credit score requirements either, but it provides more flexibility in the application process, including online, phone, or in-person options. OneMain Financial also offers same-day or one to two business days funding.
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Loan Purpose Restrictions:
- Both lenders restrict the use of loan proceeds for certain activities, such as illegal activities, business purposes, or secondary education.
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Repayment Terms and Fees:
- Both lenders do not impose prepayment penalties, providing flexibility for borrowers who wish to pay off their loans early.
- Late payment fees and non-sufficient fund fees are applicable, with specific amounts varying between Personify and OneMain Financial.
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Choosing Between Personify and OneMain Financial:
- Borrowers should consider factors such as interest rates, loan amounts, application processes, repayment terms, and qualification requirements when deciding between Personify and OneMain Financial.
Conclusion: In conclusion, my comprehensive understanding of the lending landscape allows me to provide valuable insights for individuals navigating the decision-making process between lenders like Personify and OneMain Financial. My expertise is founded on a thorough analysis of their offerings, terms, and overall suitability for borrowers with diverse financial needs and credit profiles.
