When you need access to personal loan funds, Lendmark Financial and OneMain Financial both provide potential options. But how do these top lenders compare when it comes to rates, terms, eligibility, and overall lending experience? This comprehensive guide examines the key differences between Lendmark Financial and OneMain Financial to help inform your personal loan search.
A Brief Comparison Table
| Category | Lendmark Financial | OneMain Financial |
| Company Overview | Founded 1999, 90+ branches, 21 states | Founded 1912, 1,500+ branches, 44 states |
| Loan Amounts | $500-$15,000 | $1,500-$30,000 |
| Loan Terms | 12-60 months | 24-60 months |
| Interest Rates | 20-29% APR | 18-35% APR typical |
| Eligibility Requirements | Minimum 500 credit score, $800 income | Minimum 600 credit score, $2,000 income |
| Application Timeline | 1 week typical | 24 hours – 1 day typical |
| Transparency | Mixed reviews, complicated terms | Clear communication and disclosure |
| Resources | Minimal financial literacy programs | Robust Financial Academy program |
| Reviews | 2.5 stars average, many complaints | 4 stars average, fewer issues |
Company Overviews
First, let’s look at some background on each lender.
Lendmark Financial has been providing personal installment loans since 1999. They have over 17,000 customers across 21 states. Some quick facts on Lendmark:
- Headquartered in Georgia
- Operates over 90 branch locations
- Focuses lending on non-prime borrowers
- Offers unsecured loans from $500-$15,000
- Also provides select mortgage and refinancing loans
OneMain Financial has over 120 years of lending history dating back to 1912. They are the largest non-prime installment lender in the U.S. Background on OneMain Financial:
- Headquartered in Indiana
- Operates over 1,500 branch locations in 44 states
- Has served over 10 million customers
- Offers unsecured personal loans from $1,500-$30,000
- Additionally offers lines of credit and secured loan products
Both lenders have significant branch networks, but OneMain’s footprint and customer base is exponentially larger than Lendmark’s. OneMain also extends higher maximum loan amounts.
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Key Differences Between Lendmark Financial And OneMain Financial
- Loan Amounts Offered
Eligible loan amounts is a key differentiator between lenders.
Lendmark Financial offers personal installment loans from $500 to $15,000. Their average loan size ranges from $1,500-$5,000. Amounts are subject to state limits and approval.
OneMain Financial provides loan amounts ranging from $1,500 to $30,000. Average loan sizes tend to fall between $3,000-$10,000 for qualified borrowers. They offer higher maximum limits than Lendmark.
OneMain clearly outpaces Lendmark when it comes to maximum personal loan amounts. OneMain also advertises no prepayment penalties if you can repay your loan early.
- Loan Terms and Interest Rates
Evaluating loan repayment terms and APRs is also important.
Lendmark personal loans feature terms of 12-60 months with fixed rates from around 20-29% APR (varies by state). No prepayment penalties apply if you pay off the loan faster than the scheduled term.
OneMain loan terms span from 24-60 months. Interest rates start as low as 18% but average around 35%. Faster payoff is allowed without penalty. OneMain touts competitive rates for applicants with less-than-perfect credit.
In general, OneMain offers lower starting rates for approved borrowers, though APRs for both lenders depend on individual factors. Lendmark’s shorter term options provide more flexibility.
- Eligibility Requirements
Loan eligibility standards also impact access to financing.
Lendmark has more flexible eligibility requirements that accommodate borrowers with bad credit or scores as low as 500. Income requirements start around $800 per month after obligations. Approvals are based more on stable income than credit scores.
OneMain sets a minimum credit score threshold around 600. Reported monthly income must exceed $2,000 in most states after budgeting other debt. Strong income often offsets weaker credit profiles.
For applicants with poor credit or lower incomes, Lendmark’s qualifications are more attainable in many cases. OneMain requires slightly better profiles.
- Application Process and Timeline
The ease and speed of the application process also deserves scrutiny.
Lendmark allows online pre-qualification to view estimated rates before applying. Applications require ID, income, and contact info documentation. While timelines vary, funding typically occurs within 1 week of approval if requirements are met. The process is fairly straightforward.
OneMain enables an online pre-qualification tool as well. Fully completed applications including proof of income usually yield loan decisions within 1 business day. Minimal paperwork and quick processing allows funded loans in as little as 24 hours after approval.
OneMain touts faster turnaround in terms of application response and access to funding if approved. Their predominantly online process proves simpler for many borrowers.
- Transparency and Fees
Loan cost transparency and clarity around fees are important factors too.
Lendmark receives mixed reviews for transparency. Loan paperwork fully discloses rates and repayment details. But some customers report surprise fees or unexpectedly high interest costs after approval. Pricing is complex.
OneMain garners positive feedback for upfront transparency around loan costs and clear communication of all fees throughout the process. Their online tools help ensure customers know costs before committing. Still, rates are high compared to prime lenders.
OneMain rates as the more transparent lender based on customer feedback. Lendmark’s complex terms sometimes produce confusion down the line.
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- Availability of Resources
Lender resources like financial education programs should also be weighed.
Lendmark provides limited additional services for borrowers beyond financing. They do not highlight financial literacy programs or counseling. Educational resources are sparse.
Conversely, OneMain actively promotes OneMain Financial Academy. This program offers free credit education, budgeting guidance, debt management tools, and financial wellness instruction. They invest heavily in financial literacy.
OneMain stands out offering robust guidance and resources to promote financial capability long after loan repayment. Lendmark lacks comparable programs.
- Reviews and Customer Satisfaction
Third party reviews also shed light on borrower experiences and satisfaction.
Reviews for Lendmark are mixed, averaging around 2.5 stars. Positive feedback cites quick lending decisions and funding. But many complain of poor communication, hidden fees, and predatory rates. Numerous negative reports exist.
OneMain earns higher marks with an average 4 star rating. Happy customers praise fast approvals, simple processes, and helpful resources. Complaints cite high APRs but service fares better than competitors.
Based on verified reviews, OneMain garners superior satisfaction ratings and proportionally fewer borrower complaints overall. Lendmark produces more customer frustration.
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Frequently Asked Questions (FAQs)
No, Lendmark Financial and OneMain Financial are two separate lending companies. They compete in similar non-prime lending markets but operate independently. OneMain is significantly larger with over 10 million customers served versus Lendmark’s 17,000.
Lendmark advertises that loan decisions are typically provided in minutes after submitting a full application. If approved, funding can be provided in as little as 1-3 days once documentation is verified. The entire process from application to funded loan may only take about one week.
Yes, it is possible to take out more than one personal loan with OneMain Financial simultaneously. However, the total combined loan amount you qualify for will be limited based on factors like income, existing debt obligations, and credit history. Approval is not guaranteed.
Lendmark offers personal installment loans ranging from $500 to $15,000 for qualified borrowers based on state limits. Their maximum loan amount available is $15,000. Average loan sizes tend to fall between $1,500 to $5,000.
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Final Take: Which Lender is Better?
In summary, while both Lendmark and OneMain fill a need providing personal loans to non-prime borrowers, OneMain outshines Lendmark across critical categories: higher maximum loan amounts, faster funding, superior transparency, more educational resources, better reviews and customer experience.
OneMain also offers lower starting rates for qualified applicants. The only advantage for Lendmark is potentially easier qualification terms. Overall, OneMain Financial emerges as the preferable personal loan lender between these two options.
But closely evaluate costs, eligibility, and offerings when choosing where to apply.