Loans from OneMain may appeal to borrowers with less-than-stellar credit. Fees and rates are high, but funds are available same-day (up to $20,000) and for a range of expenses, such as weddings, vacations, moving, and home improvement projects. The application process can be started, but not completed, online. If you have good or excellent credit, you’ll probably find better rates elsewhere.
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.
- Product Specifications
- Pros and Cons
- Company Overview
- APR Range 18.00% to 35.99%
- Loan Amounts $1,500 to $20,000
- Loan Terms 24 to 60 months
- Recommended Minimum Credit Score 580
Low minimum loan amount
Joint applications accepted
High interest rates
Not an entirely online process
Origination and other fees
Low maximum loan amount
- 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
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.
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.
- Joint applications accepted: Unlike many other personal loan lenders, OneMain Financial accepts joint applications. This means you can apply for a personal loan with another borrower—OneMain will consider their financial information as well in the application decision.
- Rewards program: As a OneMain Financial borrower, you can register for its free rewards program, OneMain Rewards. The program offers discounts on a range of merchandise and services, and rewards points that can be redeemed for gift cards, merchandise, and more.
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 the loan amount, terms, and individual U.S. state regulations. OneMain will notify you of your fees once you have been approved.
- Low maximum loan amount: You can only borrow up to $20,000 with a OneMain Financial personal loan.
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 an 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.
Note that you may not use your loan to cover college expenses, business expenses, nor to purchase stocks and bonds.
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 an 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 your credit score is under 660, or you have been denied a loan elsewhere, you may have a better chance with OneMain. You may even be approved for a loan the same day you apply. It’s a good option for credit-challenged borrowers who like the idea of prequalifying online, and then visiting a local branch for a personalized experience. It’s ideal for those same customers who only need to borrow a small personal loan amount (as little as $1,500), or to cover an emergency expense quickly.
Since rates range from 18.00% to 35.99% APR, a OneMain Financial personal loan is most likely a poor choice for borrowers with good or excellent credit. But even borrowers who can’t find a loan elsewhere should duly consider the impact a high APR and high fees can have on their ability to repay the loan.
If you prefer to complete the entire loan application process online or don’t live near a OneMain Financial branch, explore other personal loan lenders which offer a 100% online application process first.
We look at 40 data points from dozens of financial institutions to evaluate lenders for our personal loan reviews. Because a loan’s APR can dramatically impact the total cost you pay, we weight that feature the heaviest. But since a great APR usually requires at least a good credit score, we also give points to lenders who may have a higher potential APR but offer loans to people with less-than-perfect credit scores.
Along those lines, we favor lenders who allow you to see if you prequalify before applying for a loan, so you won’t harm your credit score just by applying. Origination, prepayment, and late fees all get counted in our assessment. And lastly, we deduct points from the ratings of lenders with restricted access—for instance, those who require you to first have another type of account with them or to join a nonprofit organization.
Boston Alliance for Economic Inclusion. "Five Things You Should Know About … Customer Identification Programs." Accessed March 13, 2021.