Should I sign off on a secured loan?
I’m trying to decide whether taking a secured personal loan is a smart move or a financial trap in my current situation.
I’m currently underemployed after tax season ended. I’m still technically attached to my tax office job on an on-call/as-needed basis, but income is very inconsistent right now. My credit scores are around 575–620 depending on bureau. I own a 2018 Nissan Versa outright and OneMain Financial preapproved me for a secured loan using my vehicle as collateral.
The issue is that I urgently need money to begin the probate process for a deceased family member. The probate retainer/down payment is about $3,250. I also need to cover utilities and some overdue vehicle maintenance (oil change, brakes, etc.) so I can continue job hunting and working.
The loan amount they’re realistically offering is closer to $4,300 with payments estimated around $150–160/month. I have a verification/screening call tomorrow. I know OneMain has high APRs and fees, so I’m trying to determine if this sounds manageable as a temporary stabilization move or if I’m walking into a bad long-term situation.
Main concerns:
- High APR/origination fees
- Using my car as collateral
- Inconsistent income at the moment
- Wanting to avoid making my situation worse long term
At the same time, I do need immediate funds for probate and basic stability, and I haven’t had luck with traditional lenders due to my credit profile. Looking for honest opinions from people who’ve dealt with OneMain or similar situations.