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How to refinance my OneMain Financial auto loan?

OneMain Financial targets the segment of American car shoppers with challenged credit and we observed an average auto loan interest rate of 24% (within a range of +/- 7%). If you have a OneMain Financial auto loan and have not looked into refinancing your car loan yet, you should do so now!

OneMain Financial car loan rates vary a lot by credit score. Our OneMain Financial auto loan calculator can help you get a sense for how much you can expect to save from a OneMain Financial auto refinance.

Before going into more detail though, here a little background about OneMain Financial: OneMain Financial's primary business is to provide loans and insurance products to the segment of Americans who have limited access to traditional banks and credit card companies.

These include Americans with no credit, thin credit or challenged credit. With 1,500 branches across 44 states, OneMain Financial is the largest financial services company focused on lending.

Their borrowers start out with limited access to credit and therefore higher rates. Once a OneMain Financial customer makes her payments reliably, however, she quickly qualifies for better rates.

Refinance your OneMain Financial auto loan

To lower your monthly payments on your OneMain Financial auto loan, you need to find a lender that offers you a lower rate. Usually, lenders offer you a lower rate for one of two reasons:

  1. When you bought your car, the dealer marked up your rate to make more money
  2. You improved your credit over time and now qualify for a lower rate

Both of these reasons allow you to save a lot of money. You improved your credit from challenged credit (i.e. sub-prime) to near-prime, you're not facing any financial difficulties and therefore, your new lender will be likely one of the following ones:

  • CapitalOne
  • Ally Financial
  • WellsFargo
  • Bank of America
  • U.S. Bank
  • Chase
  • ... or any of the common banks you know.

You successfully got out of the sub-prime credit segment (a FICO below 600) and moved into the near-prime segment (FICO between 600 - 700). Now the commercial and regional banks will work with you.

In the following, we will walk you through the exact steps to pay off your OneMain Financial loan.

OneMain Financial loan payoff amount

First and foremost, we need to pull up your OneMain Financial loan payoff statement. The loan payoff statement is not your outstanding balance. Instead, the loan payoff statement summarizes the following data points:

  • your payoff amount (usually your loan amount balance plus a few small fees)
  • the date until your payoff is valid (usually 10 days from when you requested it)
  • the per-diem (how much of daily interest your loan accumulates)
  • your account number (the new lender needs that to payoff your loan)
  • the payoff address (the new lender needs to know where to mail the check to)

All the above information can be found on the official payoff statement. The next step is to locate the document. You have three ways to locate the payoff statement from OneMain Financial services:

  1. Call the OneMain Financial customer service phone number at 1-800-961-5577 and ask to be connected to the loan payoff department.
  2. Log into the online banking at Log In (https://www.onemainfinancial.com/log-in, sign in in the middle) and browse to the 'Loan Payoff' tab. You will be able to download a PDF.
  3. Do a three-way call with the new lender and OneMain Financial at 1-800-961-5577, which allows the new lender to ask OneMain Financial all the questions necessary to pay off your existing loan.

Should you plan to payoff your loan, you can overnight a check to this address:

OneMain Holdings, Inc.
601 N.W. Second Street
Evansville, IN 47708-1013

How soon can you refinance a OneMain Financial loan

You're eager to refinance your OneMain Financial loan? Great, you should absolutely work towards lowering your OneMain Financial payments through refinancing.

Dealers make most of their money on finance and insurance products. Therefore, there's a good chance that you can already save money through refinancing the day you drive off the lot. That said, you will save the biggest amount of money from refinancing after you made 12 to 18 payments.

Take a look at our auto loan refinance calculator and the paragraph about negative vs. positive equity.

Savings from refinancing a OneMain Financial loan

We performed a study on the top 40 auto loan companies to refinance and found that the average OneMain Financial loan rate is around 24% (within a range of +/- 7%). If you made your payments for 6 / 12 / 18 consecutive months, you're guaranteed to be able to save money on your OneMain Financial loan.

Your new interest rate should be on the order of 7% or below. That means you will save $700 every year / $58 every month if your remaining loan balance is around $10,000 and you refinance. Usually, we see higher loan balances when refinancing our customers, e.g. around $15,000. If your loan balance is around $15,000 you will save $1050 every year / $88 every month when you lower your rate by 4%.

We built an auto loan refinance calculator to help you get a quick overview of what your monthly payments could / should be based on your credit score and the term of the loan you choose. Just click on the link, select your vehicle (Year, Make and Model) and you'll be able to adjust a few parameters to get a sense for your future monthly payments.

For a guaranteed rate in less than 2 minutes, open WithClutch.com, enter your phone number, select your goal (e.g. 'Lower my monthly payment') and click on 'Apply Now'. Our process will not hurt your credit and you'll receive a firm and guaranteed rate with not more than 5 clicks.

Things to know about OneMain Financial

If you currently have a loan with OneMain Financial, you most likely got the loan at the dealership where you bought your car and you can make your payments online at Log In. OneMain Financial announced a new program to work with consumers directly in 2015. However, the direct-to-consumer efforts didn't yield a lot of success.

79% of all Americans with auto loans get their auto loan at the dealership. People shop for cars, they don't shop for loans. As a result, car dealers have a lot of power and authority when it comes to giving car shoppers loans.

The challenge is this:

  1. the number 1 goal of a car dealer is to sell a car
  2. the number 2 goal of a car dealer is to sell the car at the highest possible margin

As mentioned above, OneMain Financial is an auto loan company that specializes on the segment of Americans with challenged credit. If your credit score slipped in to the area below 600 - be it because of medical bills, a divorce, job loss etc. - you likely qualify for a OneMain Financial vehicle loan.

Other loans you might have also qualified for could have been with one of the following auto loan companies:

  • Credit Acceptance Corp
  • American Credit Acceptance
  • Flagship Credit Acceptance
  • Westlake Financial
  • Santander
  • ... and a few more

If you bought your car at a Franchise Dealership, you may have qualified for a loan with one of the Captive Finance companies (i.e. the auto loan companies that are owned by the respective car brand), e.g.:

  • Ford Motor Credit
  • Nissan Infiniti Financial Services
  • GMF Americredit
  • Hyundai Financial Services
  • Kia Financial Services
  • ... and a few more

All of the above lenders work with Americans who temporarily have challenged credit. That said, you don't want to be stuck in neither a OneMain Financial nor any other high-interest loan. The auto loan interest rate of those financing companies is very high and if you make your payments diligently, you will quickly qualify for a better rate.

After you've made your first 6 / 12 / 18 payments, your chance to refinance your loan and lower your monthly payments has come. The challenge with refinancing is that most auto loan companies require you to visit their branch before they can give you any indication of how much money you will be saving. Fortunately, we can help with that.

OneMain Financial car loan refinance rates

We can help you get the following OneMain Financial refinance rates:

Credit ScoreNew carUsed car
Below 55022.00%22.00%

As mentioned above, OneMain Financial car loan rates vary a lot by credit score. We therefore recommend taking a look at our OneMain Financial auto loan calcuator.

Refinance your OneMain Financial loan now

Haven't explored refinancing yet?
WithClutch.com is a fully digital platform that lets car owners like you do so from the comfort of their own home. No need to set a foot in a bank or credit union. You can lower your rate or get cash in as little as 20 seconds.

Follow three simple steps to refinance your auto loan, get approved in seconds and save thousands in minutes.



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Tempe, AZ 85282