If you need an unsecured personal loan and have been shut out by big banks, you may have considered getting a finance company loan. Springleaf Financial (formerly American General Finance) is one of the leading consumer finance companies in America. If you are considering applying for credit, you may want to consider what interest rate Springleaf Financial charges on its personal loans.
Most personal loans through Springleaf Financial will fall between 22% and 28% APR, although some loans may have higher interest rates. Some states allow higher interest rates on finance company loans, so it is possible that your rate could be higher. Other states have a lower cap, which might provide you with a lower rate but also a lower chance of approval.
There are a couple of factors that could help you gain approval for a loan with a lower interest rate. First, an improved credit rating could help you earn a lower rate. Second, if you have property to pledge as collateral for the loan, you could also see a lower rate. Finally, a boost to your income or lower debt-to-income ratio could help you get a lower rate.
Higher rates will result when you have a history of defaults on debt. An inconsistent employment record may cause you to pay a higher rate. High monthly payments on other debt could cause you to pay more interest also.
While interest rates on loans tend to fluctuate with market conditions, finance company loans tend to remain unchanged. You can generally expect to pay average market rates that may in some cases reach as high as state law allows.
Personal finance company loans can be an option when you cannot gain approval for a loan at a big bank or credit union. The fees can be high, so it is wise to limit your reliance on these types of loans. Opening too many finance company loans can also weigh negatively on your credit score.
When you need credit, Springleaf Financial can be a valid option to help you get to a better place financially. Like any loan, you must make sure that you will be able to make all of your monthly payments on-time. Even if problems arise, the staff at your local branch can often work with you to bring your account back to current status again.
While Springleaf Financial’s average rates of 22-28% APR are higher than most banks and credit unions charge, they are comparable to other consumer finance companies, including OneMain Financial and other key competitors.
Long is a graduate of the University of North Carolina at Chapel Hill with a B.A. in Industrial Relations. He subsequently received his Certificate in Nonprofit Management from Duke University. His Certificate in Financial Planning was issued by Florida State University.
Long has achieved the Accredited Credit Counselor and Accredited Financial Counselor certifications through the Association for Financial Counseling, Planning and Education. Long originally achieved the Certified Credit Counselor designation through the National Institute for Financial Education.
In addition to years of nonprofit leadership, Long has been an innovator in the field of volunteer tax return preparation programs. He assists volunteer associations and nonprofit organizations who seek to integrate credit counseling and asset-building programs with free personal income tax preparation. His approach to using free credit reports as both an incentive and a screening tool for placement into asset-building programs has been shared with members of the National Community Tax Coalition, the EITC-Carolinas Initiative of MDC, Inc. and nonprofit groups across the Carolinas.
Long assists members of our armed forces in the Carolinas, Iowa, Rhode Island, Georgia and Germany with financial readiness. Please support our Soldiers, Marines, Airmen and Sailors!
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."