OneMain Financial Personal Loans Review

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OneMain Financial is a loan company that specializes in helping borrowers who have fair to poor credit.

If you fall into one of these categories, it can oftentimes be difficult to qualify. In the event of an emergency, it can be nearly impossible to get the money you need to dig yourself out.

OneMain offers both secured and unsecured loans, so you’ll have a range of options to choose from. In general, you’ll want to apply for an unsecured loan first.

But if you don’t qualify, it can be worthwhile to apply for a secured loan instead.

OneMain Financial Personal Loans
OneMain Financial Personal Loans Review
  • Loan Amount
    $1,500 - $20,000
  • Est. APR
    18% - 35.99%
  • Learn More
  • Loan Details

OneMain Financial Personal Loans Pros and Cons

Pros:

  • Secured and unsecured loan options are available
  • Joint applications and co-signers accepted
  • Choose your own payment date
  • Can pre-qualify with a soft credit check
  • Can get approval even with bad credit

Cons:

  • High-interest rates
  • Must go to physical OneMain Financial location to open loan
  • Loans cannot be used for business purposes

What Is OneMain Financial?

OneMain Financial provides personal loans to people whose credit scores aren’t high enough to qualify for most other lenders. The reason they’re able to do that is that they consider more than just your credit score.

Instead, OneMain’s algorithm looks primarily at your ability to repay your loan. They’ll consider your income, as well as credit stability and other factors. Whether or not you have collateral is also an important factor in the approval process.

These loans have a relatively high APR compared to most other personal loans. On the other hand, most personal loans aren’t available to people with lower credit scores.

How Do OneMain Financial Personal Loans Work?

OneMain Financial loans are flexible both in terms of the amount you borrow and the repayment term. They offer loans between $1,500 to $20,000, which is enough for most people’s emergency expenses.

They also allow you to pay your loan off in between 24 and 60 months. These are the company’s general terms.

In practice, there are exceptions in some states based on local state regulations. For example, the maximum size for an unsecured loan in Florida is $8,000.

OneMain’s APR ranges from 18$ to 35.99%, depending on an array of factors. You’ll find out what you qualify for after you apply. In most cases, you’ll get a lower APR if you get a secured loan than you will with an unsecured loan.

OneMain Financial Personal Loans Features and Benefits

Fast Funding Time

OneMain Financial provides some of the fastest personal loan funding available on the market. Many companies require you to wait for weeks to get paid.

With this service, you get paid the day after your application is approved. As a matter of fact, you’ll receive funding the same day, as long as your application is approved by noon.

Choose Payment Date

If you’re struggling to make ends meet, the last thing you need to worry about is another inconvenient bill.

OneMain Financial makes things as convenient as possible by allowing you to set your own payment date.

You’ll have 45 days to pay your first bill, after which your payment will be due every 30 days. Later on, you can change the payment date two more times during the period of the loan.

Joint Loan Options

There are a couple of ways to get a better rate on a OneMain loan. The first is to put up collateral. You can use a car or other expensive object to secure your loan, at which point the company will quote you a lower rate.

With a joint loan, you take out a loan along with another person. In its most basic form, this is a shared loan between two spouses or partners.

However, you can also ask someone to co-sign for you. In this case, they will be responsible for the loan if you were to default. If your co-signer has good credit, you can normally get a better interest rate.

Accepts Applicants with Low Credit Scores

Perhaps OneMain Financial’s most important benefit is that they don’t require you to have a high credit score.

As a matter of fact, even people with poor credit can sometimes qualify for their loans. This is possible because OneMain uses its own algorithm to decide who qualifies.

They take into account a bigger picture of your financial situation, including your ability to repay.

What Can a OneMain Financial Personal Loan be Used For?

OneMain Financial loans are personal loans, which means they’re not tied to any particular purpose. This gives you the freedom to use them for pretty much anything you need.

You can borrow money for emergency car repairs or to renovate your home. You can pay off medical debt or high-interest credit card debt. You can even spend the money for fun if you want to.

That said, there are a handful of restrictions on what you can use your loan money for. Among other things, you can’t use it for business or to pay for college or gambling.

Amusingly, OneMain also makes sure to let potential borrowers know that they’re not allowed to borrow money for “illegal activities.”

How to Qualify for a OneMain Financial Personal Loan

OneMain Financial does not list any official minimum credit score or minimum length of credit history.

The only way to determine if you qualify is to go to their website and apply for pre-approval. Thankfully, the process is simple.

First, you enter some basic personal information, including how much you earn. Then, you tell them how much you want to borrow and what you want to use the money for.

They’ll run a soft credit check, and you’ll find out in seconds whether you’ve been pre-approved or not.

How to Apply for a OneMain Financial Loan

One major downside of OneMain Financial is that you can’t complete the application process remotely.

To actually get your loan, you need to schedule an appointment with a loan specialist at your local OneMain Financial location.

In general, they have plenty of offices throughout the country, so most people shouldn’t have a hard time getting to one. That said, if you live in a very rural area, you might run into trouble.

At your appointment, you’ll need to provide identification, proof of employment, and your recent pay stubs.

If you’re applying for a secured loan, you’ll need to bring your car title or other proof that you own your collateral. During the approval, the company will run a hard credit check, affecting your credit score.

Most people who are approved receive their payment within 24 hours. However, in some cases, it can take two to three business days to receive your money.

How Does OneMain Financial Compare to Other Lenders?

#1. OneMain Financial vs. Avant Personal Loans

Avant is a bit more demanding than OneMain. They require a credit score of 600 to qualify, so people with bad credit won’t be able to borrow from them.

That said, people with fair to good credit will find a lot of value here. You can borrow as much as $35,000, which is almost twice as much as OneMain Financial’s $20,000 limit.

Finally, the minimum APR is only 9.95%, compared to OneMain’s relatively high rate of 18%.

In addition to the financial differences, Avant is also easier to apply for. Instead of going into a brick-and-mortar office, everything is handled online.

This is more convenient for most people, particularly those in rural areas.

>> More: Avant Personal Loans Review

#2. Upstart vs. OneMain Financial Personal Loans

Upstart is similar to Avant in that it requires a 600-credit score at a minimum, which might be troublesome for some people.

You get access to a higher dollar amount in exchange for this higher limit, with loans as high as $50,000. You may also qualify for a very low APR, with Upstart’s minimum rate of 6.46%.

Upstart pays out quickly, in about one business day. This is about the same as OneMain. However, Upstart pays out faster in more circumstances, whereas OneMain has more frequent delays.

>> More: Upstart Personal Loans Review

#3. Payoff vs. OneMain Financial

Payoff is a targeted lending service that does what its name implies – it helps people pay off credit card debt.

Credit card debt typically carries a high rate of interest, which can rack up significantly over time. If you can pay it off with the proceeds of a lower-interest loan, you’ll be saving money over the long term.

In addition to their loans, Payoff also provides their customers with a service called Happy Money. This is an all-around money management program that’s designed to help with all your finances.

>> More: Payoff Personal Loans Review

#4. OneMain Financial vs. Upgrade Personal Loans

Upgrade offers personal loans to people with a 560-credit score and up, which is sufficient even if your credit rating is on the low end of fair. The interest rate ranges from 5.95% to 35.47%.

So, the minimum is much lower than OneMain’s, but the maximum is basically the same. Upgrade also allows you to borrow up to $50,000, with a loan term from three to five years. This gives you a bit more flexibility than OneMain.

>> More: Upgrade Personal Loans Review

Frequently Asked Questions

What Is the Most You Can Borrow from OneMain Financial?

The most you can borrow from OneMain Financial is $20,000. The minimum amount is $1,500.

What Kind of Loans Does OneMain Financial Offer?

OneMain Financial offers personal loans directly to individuals. These loans can be delivered either on a secured or an unsecured basis.

Is It Hard to Qualify for a OneMain Financial Personal Loan?

No. The qualifications are relatively lax compared to most personal loan services. That said, if your credit is poor, you’ll probably need a co-signer or collateral.

Does OneMain Financial Have a Pre-Qualification?

Yes. You can pre-qualify online in just a few minutes. The pre-qualification only requires a soft credit check, which won’t negatively impact your score.

Bottom Line: OneMain Financial Personal Loans Review

As you can see, OneMain Financial is a bit of a mixed bag. On the one hand, it doesn’t come with a lot of extra perks, and the maximum loan amount isn’t as high as some other services.

On the other hand, it’s a reliable option for people with poor credit who may not be able to utilize those services.

One major downside is the need to go into a physical office to complete the application. If you live in a rural area, this can be difficult to accomplish.

That said if you’ve got low credit and you need a loan, there aren’t a whole lot of options. Of the few that exist, this is one of the fairer companies to deal with.

Kim Pinnelli
Kim Pinnelli

Kim Pinnelli is a Senior Writer , Editor, & Product Analyst with a Bachelor’s degree in Finance from the University of Illinois at Chicago. She has been a professional writer for over 15 years, and has appeared in a myriad of industry leading financial media outlets. Kim is committed to helping people take charge of their personal finance. Her areas of expertise spans mortgages, credit cards, credit, and loans.