OneMain Financial offers unsecured and secured personal loans as well as auto loans to millions of borrowers. The lender has more than 1,500 branches across 44 states and has lent more than $152 billion since 2005. OneMain Financial personal loans can be used for a number of expenses, though the rate, terms, and fees may not be right for everyone. A OneMain Financial personal loan is likely best for anyone who needs a personal loan as soon as possible. The loan can be useful for debt consolidation, life events like weddings or moving, vacations, and home improvement projects. Note that you may not use your loan to cover college expenses, business expenses, nor to purchase stocks and bonds.
OneMain considers “non-prime” borrowers its main customers. Non-prime borrowers are consumers with FICO credit scores below 660 and who may have difficulty borrowing from other lenders.
- Pros and Cons
Receive funds as soon as the same day
Low minimum loan amount
High interest rates
Not an entirely online process
Origination and other fees
- Origination fee: Flat rate ($25 to $400) or percentage (1% to 10%) of your loan amount
- Late payment fee: $5 to $30 or 1.5% to 15% of your monthly payment amount.
- Non-sufficient funds fee: $10 to $50 per payment
Pros of OneMain Financial Loans
- Loan prequalification: Before you apply for a loan, you can prequalify and check for potential interest rates and terms with a soft credit inquiry, which won’t have any impact on your credit score.
- Same-day funding: You may be able to get your loan funds the same day you apply, if you’re approved by 12 noon.
- Low minimum loan amount: If you only need to borrow a small amount of money, OneMain Financial can lend you as little as $1,500. (Laws in some U.S. states may require higher minimums.) This is less than some lenders who may have loan minimums that start at $4,000 or $5,000.
Cons of OneMain Financial Loans
- High interest rates: OneMain Financial offers higher rates than other lenders, so you may end up paying more for your loan in the long run.
- Not an entirely online process: While you can prequalify online, you’ll have to visit a branch in person to complete the loan application process.
- Origination and other fees: OneMain Financial charges origination fees, late payment fees, and non-sufficient funds fees. Fees vary depending on loan amount, terms, and individual U.S. state regulations. OneMain will notify you of your fees once you have been approved.
OneMain Financial Personal Loan Rates & Terms
Compared to other loans out there, interest rates for OneMain Financial personal loans are on the high side. Fixed rates range from 18.00% to 35.99% APR and will be based on a variety of factors like your credit history, income, debts, and expenses.
OneMain Financial offers four loan terms: 24 months, 36 months, 48 months, or 60 months. This gives you the option of taking out a shorter or longer-term loan.
How Much Can You Borrow With OneMain Financial?
You can borrow between $1,500 and $20,000 with a OneMain Financial personal loan. Your ability to repay the loan will dictate how much you’ll be offered. If you do not receive the full amount you requested, you can reapply with a co-applicant or collateral.
OneMain Financial Personal Loan Fees
OneMain Financial does charge an origination fee, which will be a flat rate ($25 to $400) or percentage (1% to 10%) of your loan amount and depend on where you live. There are also late payment fees which may be anywhere from $5 to $30 or 1.5% to 15% of your monthly payment amount. If your check or bank transfer bounces, the lender also charges non-sufficient funds fees that range from $10 to $50 per payment.
How to Get a Personal Loan From OneMain Financial
To prequalify for a OneMain Financial personal loan, visit the bank’s website and share some basic information about yourself like your monthly net income and employment status as well as identity information required by the government. Once you do, you’ll receive an offer with potential rates and terms. If you decide to pursue your offer, you’ll need to visit a local branch to confirm your information and complete the application process in person.
If you aren’t able to qualify for a lower rate elsewhere, OneMain Financial may approve you for a loan the same day you apply. It’s a great option if you like the idea of prequalifying online and then visiting a local branch for a more personalized experience. If your credit score is under 660, or you have been denied a loan elsewhere, you may have a better chance with OneMain. It may also be a great option for borrowers who only need to borrow a small personal loan.
Since rates range from 18.00% to 35.99% APR, you may want to avoid a OneMain Financial personal loan if you have good or excellent credit. You’ll likely be able to qualify for a lower rate with a different lender.
You may also want to steer clear of a OneMain Financial personal loan if you prefer to complete the entire loan application process online from the comfort of your own home. If that’s the case, it’s worth exploring other personal loan lenders.
OneMain Financial. "Personal Loans," Footnote 2. Accessed July 16, 2020.
OneMain Financial. "Experience the OneMain Difference." Accessed July 16, 2020.
OneMain Financial. "Personal Loans." Accessed July 16, 2020.
OneMain Financial. "Loan Fees." Accessed July 16, 2020.
Boston Alliance for Economic Inclusion. "Five Things You Should Know About … Customer Identification Programs." Accessed July 16, 2020.