2023 OneMain Financial Personal Loan Review
OneMain Financial is a lender that offers personal loans ranging from 18.00% to 35.99% at fixed rates. Unlike some online lenders, OneMain Financial has branches located across 44 states and may be a good fit for consumers who want a face-to-face experience during the loan process.
- Offers secured and unsecured loans: If you’re a low-credit borrower and you’re unsure of whether you would qualify for an unsecured loan, you may want to consider applying for a secured loan — meaning you’ll have to provide collateral — in order to receive lower interest rates.
- High interest rates: OneMain Financial charges much higher interest rates than some other competitors, so borrowers with good credit may find better rates elsewhere.
- Small loan amounts: This lender may be a good fit if you’re looking for a small personal loan, as the maximum amount OneMain Financial offers is $20,000.
- Quick funding timeline: The time from submitting an application to receiving your loan funds may take as little as one business day. This is a quick timeline compared to some competitors.
- May change your due date: If you ever need to move things around in your budget, OneMain Financial allows you to select a new payment due date.
- Best for low-credit borrowers: While those with good credit scores can find better interest rates with competitors, consumers with low credit scores may find it easier to qualify with OneMain Financial.
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OneMain Financial pros and cons
OneMain Financial offers a lot of perks to consumers looking for a personal loan, but like any lender, it’s not perfect. Here’s what you need to know about the benefits and downsides of a personal loan with OneMain Financial.
Quick funding timeline
Offers secured loans
No prepayment fees
Can change due date
Charges an origination fee (1.00% - 10.00%)
High interest rates (Up to 35.99%)
Small loan amounts ($1,500 - $20,000)
Larger loan amounts require collateral
One of the great things about this lender is the short amount of time it takes to receive your loan funds. According to OneMain Financial’s website, the process takes as little as one day from start to finish. This lender doesn’t charge a prepayment fee, and consumers who don’t meet OneMain Financial’s credit requirements can instead apply for a secured loan.
Unfortunately, if you take out a loan with OneMain Financial, you’ll have to budget for an origination fee, which will be taken out of your total loan balance. OneMain Financial also has much higher interest rates than some competitors and may not be a good fit if you’re looking for a large loan.
OneMain Financial requirements
OneMain Financial isn’t very transparent about its personal loan eligibility requirements. Before closing on a loan, you’ll be required to provide:
- Government-issued identification (such as a driver’s license or passport)
- Proof of residence (such as a rental agreement or utility bill)
- Proof of income (such as pay stubs or tax returns)
While OneMain Financial doesn’t specify its other qualification criteria, most personal loan lenders consider an applicant’s credit score, payment history, income and debt-to-income ratio. If your credit score needs a little work, take steps to improve your score before applying for new credit.
If you meet the basic requirements listed above, you’ll need to disclose how you plan to use your personal loan funds. OneMain Financial allows borrowers to use its funding for a variety of purposes, but there are certain expenses you cannot put the money toward.
|OneMain Financial loans CAN be used for:||OneMain Financial loans CANNOT be used for:|
Major life events
Home improvement projects
If OneMain Financial’s loan options won’t work for your borrowing needs, be sure to shop around for a lender that can best suit your financial goals and offer you the best rates, terms and amounts.
Best personal loan options for:
How to get a loan with OneMain Financial
OneMain Financial offers an easy, straightforward application process. Here’s what you’ll need to do:
- First, you’ll need to input how much money you’d like to borrow, as well as your basic information, including your full name, address and contact information (your email address and phone number).
- Next, you’ll need to provide OneMain Financial with your monthly income information, your employment status, your vehicle status (whether you own, lease or have an auto loan), your date of birth and your Social Security number. After submitting this information, you’ll find out whether you’re preapproved for a loan.
- Next, you’ll need to provide government-issued identification, income verification and residential information so that the lender can verify your information.
- After OneMain Financial verifies your information, you may have to submit to a hard credit inquiry. Once this lender officially approves you, the last step is to sign your loan contract. Borrowers typically receive their loan funds within one business day.
If you’re denied for a personal loan with OneMain Financial because of your credit score, consider these strategies to boost your odds of approval.
How OneMain Financial compares to other personal loan companies
Even if you believe OneMain Financial aligns with what you’re looking for in a personal loan, it never hurts to shop around and compare lenders. Here’s how a OneMain Financial loan stacks up against similar lenders.
|Minimum credit score||Not specified||580||620|
|APRs||18.00% - 35.99%||9.95% - 35.99%||7.99% - 35.99%|
|Loan amount||$1,500 - $20,000||$2,000 - $35,000||$2,000 - $36,500|
|Repayment term||24 to 60 months||12 to 60 months||24 to 72 months|
|Origination fee||1.00% - 10.00%||Up to 4.75%||0.00% - 8.00%|
|Funding timeline||Receive funds as soon as one business day||Receive funds as soon as one business day||Receive funds as soon as one business day|
|Bottom line||OneMain Financial may be right for borrowers with low credit scores who need funds quickly and may not get better rates elsewhere.||Avant may be a good fit for consumers who need loan funds quickly and have a less-than-perfect credit score.||LendingPoint may also be a good option if you have a low credit score. This lender offers higher loan amounts than both OneMain Financial and Avant.|
How we rated OneMain Financial
To come up with our star rating for personal loan companies, LendingTree considered 22 data points across three categories:
- Accessibility: We paid attention to whether lenders offered loans to nontraditional borrowers, as well as those without excellent credit scores. We also checked if lenders offered soft credit pulls and whether they were transparent about eligibility criteria other than credit scores.
- Rates and terms: We wanted to know if lender rates, terms, amounts and fees were not only transparent, but competitive.
- Repayment experience: We based this category on lenders’ reputations, customer support availability and unique benefits.
The data points reflect every step of the process to shop and apply for, borrow and repay personal loans. A five-star lender, for instance, has flexible eligibility requirements, offers you the chance to prequalify without commitment and supports you in zeroing your balance.
The 22 data points, culled from the lenders themselves, determine the overall rating. We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around.
LendingTree isn’t paid for conducting these reviews, and lenders don’t have control over their content. With our reviews and ratings, we aim to give our users the objective and exhaustive information they need to make the best possible decisions.
Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Loan approval and actual loan terms depend on your state of residence and your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loan-fees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600.
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.
Frequently asked questions
OneMain Financial isn’t transparent about its eligibility requirements. During the application process, however, you will need to provide the following:
- Government-issued identification, such as a driver’s license or passport
- Proof of residence, such as a rental/mortgage loan agreement or utility bill
- Proof of income, such as pay stubs or W-2s
According to OneMain Financial’s website, it takes about an average of one business day from the time a consumer submits an application to the time they receive their loan funds.
OneMain Financial offers loan amounts ranging from $1,500 – $20,000. However, in order to qualify for the higher loan amounts, you may be required to provide collateral. This is known as a secured loan.
OneMain Financial offers both unsecured and secured loans. Unsecured loans are loans that do not require collateral, meaning you won’t have to offer up anything valuable to your lender in case you’re unable to keep up with loan payments. Secured loans, on the other hand, require collateral and can be a good option for consumers who have low credit scores since the collateral lowers that borrower’s risk in the eyes of lenders.
OneMain Financial allows borrowers to offer several types of collateral for a secured loan:
- Recreational vehicles (RVs)