OneMain Financial Personal Loans: 2022 Review

OneMain features

Here's a breakdown of some of the benefits and drawbacks of OneMain personal loans.

OneMain Financial provides personal loans to borrowers with fair to poor credit. While the average loan size tends to be small, borrowers who might not qualify at other online lenders or brick-and-mortar banks may find it easier to be approved for a loan through OneMain.

OneMain Financial offers both unsecured and secured loans, which is great for borrowers whose finances are in rough shape; though secured loans require you to use collateral for your loan, they’re often easier to qualify for.

OneMain Financial snapshot

Pros and cons of OneMain Financial personal loans

Here’s a breakdown of some of the benefits and drawbacks of OneMain Financial personal loans.

Pros

• Short approval process: OneMain says that the average time from applying to receiving funds is just one day, so you can get the money you need quickly.
• Options for people with poor credit: If you have poor credit and need a personal loan, you may still be able to get approved for a OneMain Financial secured loan using your vehicle or even RV as collateral.

Cons

• Multiple fees: OneMain charges a late fee, a nonsufficient funds fee and an origination fee. In some cases, the origination fee can be as much as $500 or 10 percent of your loan amount.

Lending terms

OneMain Financial specializes in installment loans, ranging from $1,500 to $20,000, though higher minimums and lower maximums apply in some states. Its personal loans carry a fixed annual percentage rate, or APR, of 18.00 percent to 35.99 percent, depending on creditworthiness.

The rate quote you receive is based on multiple factors, including your credit history, income, debt and amount of collateral. The amount you’re asking for and your repayment term (24, 36, 48 or 60 months) also play a role.

OneMain Financial does not disclose a minimum credit score for eligibility, but it does allow you to provide collateral in the event of a secured loan.

Fees and penalties

OneMain Financial charges an origination fee that’s taken out of your loan amount. This fee can be either $25 to $500 or 1 percent to 10 percent of your loan amount, depending on your state.

OneMain Financial’s late fees and returned payment fees also vary by state. For late payments, you’ll be charged either $5 to $30 per late payment or 1.5 percent to 15 percent of your monthly payment or delinquent amount. Nonsufficient funds fees are anywhere from $10 to $50 per returned payment. However, you won’t be penalized for paying off your loan early.

How to apply for a loan with OneMain Financial

To apply for a personal loan with OneMain, you can get started either online or at a branch. To apply online, follow these steps:

1. Go to OneMain Financial’s online application and enter basic personal information.
2. Include the desired loan amount, the purpose of the loan, your net monthly income and employment information, whether or not you own property and if you have a bank account.
3. Receive an almost-instant response, along with an email containing more detailed information.
4. Present proof of identity, employment, income, expenses and collateral if you’re using your car or another motorized vehicle.
5. Like all lenders, the bank will do a “hard” credit check, which can adversely impact your credit score.

The whole process takes on average only one day, although the process may be longer under some circumstances.

How Bankrate rates OneMain Financial

Methodology

To evaluate lenders, Bankrate considered categories of availability, affordability and customer experience. Availability included factors like time to get a loan, required income and credit score and loan amounts. Affordability included factors such as fees and APR. Customer experience included factors such as online access, customer support and app availability.

OneMain Financial received the scores it did because of factors like its high APR, limited state availability, fast time to send funds and accessibility in who it offers loans to.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.