OneMain Financial personal loans review
An online and in-store lender with reasonable turnaround time, but watch out for high rates.
finder.com’s rating: 3.6 / 5.0
Bottom line: OneMain works with bad-credit borrowers and has the option to secure your loan to potentially get a better APR. But its interest rates start high for a personal loan provider.
|Min. Loan Amount||$1,500|
|Max. Loan Amount||$20,000|
|APR||18% to 35.99%|
|Interest Rate Type||Fixed|
|Min. Credit Score||Varies|
|Origination Fee||$25 to $400 or 1% to 10%|
|Late Fee||$5 to $30 or 1.5% to 15%|
|Loan Term||24, 36, 48 or 60 months|
|Turnaround Time||As soon as the same day|
- Same-day turnaround available
- Secured and unsecured options
- Poor-credit applicants considered
- Seven-day satisfaction commitment guarantee
- Nearly 1,500 branches in 44 states
- High APRs and late fees upwards of 15% of the amount due
- NSF fee as high as $50 per returned payment
- Origination fee between 1% and 10% or $25 and $400
- Full coverage property insurance required for collateral
OneMain Financial rates, fees and terms
OneMain Financial is expensive compared to other lenders, with a high starting APR of 18% and a high maximum of 35.99%. Also included in the APR is an origination fee of 1% to 10% or $25 to $400, depending on your state — it’s possible to find lenders that don’t charge this at all.
And if you’re late on a payment, expect to pay a late fee of $5 to $30 or 1.5% to 15% of the amount due. You could also be charged up to a $50 fee for any returned payments, so keep an eye on your account to avoid these extra costs. In both cases, the amount that you’re charged depends on which state you live in.
To see how much you might pay, enter your preferred loan amount, term and potential APR into the calculator below.
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How OneMain compares to other personal loan providers
Here’s how OneMain stacks up to other providers that don’t require good or even fair credit.
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How to qualify
Richard Tambor, the chief risk officer at OneMain Financial, tells Finder that its customers are typically middle-aged Americans with stable employment and established bank accounts who may have experienced issues with their credit in the past.
In general, you’ll need to meet the following requirements to qualify:
OneMain Financial reviews and complaints
- Proof of income
- Proof of monthly expenses
- Established credit history
- Resident of an eligible state
- US citizen or permanent resident
- Meet your state’s minimum age requirement
- Proof of collateral when opting for a secured loan
Whether you’ve filed for bankruptcy and the reason you’re taking out the loan may also affect your eligibility, along with other requirements applied by OneMain.
What states is OneMain Financial available in?
OneMain offers loans to residents of 44 states. However, it doesn’t service Washington, DC and these six states:
- Rhode Island
OneMain Financial reviews and complaints
|BBB customer reviews||1.78 out of 5 stars, based on 337 customer reviews|
|BBB customer complaints||715|
|J.D. Power ranking||Ranked No. 7 in J.D. Power 2021 customer satisfaction survey|
|Trustpilot score||4.8 out of 5 stars, based on 32,154 customer reviews|
|Customer reviews verified as of||15 July 2021|
OneMain Financial scores well, but the most recent reviews left on its Better Business Bureau (BBB) page are almost all negative. However, positive notes include mentions of excellent customer service and fast turnaround. Negative reviews include problems with OneMain Financial not releasing vehicle titles in a timely fashion after the loan has been paid, and issues with incorrect marks on credit reports.
How the application works
You can apply by visiting a OneMain Financial branch or by filling out an application on its website. After you fill out the form, OneMain will electronically review your application. If you’re prequalified, you may need to visit a branch to have your income, identity and collateral verified. But OneMain does allow for online verification in some cases.
If you’re approved, OneMain Financial will either transfer your funds directly into your bank account or give you a check for your loan.
Changes to the application process during COVID-19
Since the COVID-19 outbreak, OneMain has adjusted its application process for both repeat and new customers. Many branches now have the option of reviewing your finances over video chat.
Tambor tells Finder, “We’re still going to go through a household budget with you, make sure you have the ability to pay and that you understand all of the terms and conditions of the product you’re going to have. You may just not have to walk into a branch.”
What sets it apart
OneMain Financial is one of the few providers that offers the convenience of an online lender with the guidance you might find with a bank.
Having a conversation with a loan officer can be especially important if you have bad or are new to credit. It gives you the chance to ask questions, explain negative marks on your report and make sure a loan is the right solution. But it’s likely a lot faster to apply and manage a loan online than one from your local bank.
Is OneMain Financial legit?
* OneMain Disclosures:
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.
Not all applicants will qualify for larger loan amounts or most favorable loan terms. 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). 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. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. 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 $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; 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. Ohio: $2,000. Virginia: $2,600.
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
Frequently asked questions
Answers to commonly asked questions about OneMain Financial personal loans.
What kind of collateral can I use to secure my loan?
You can use cars, trucks, motorcycles, boats, campers, RVs and more to secure your loan. Check with your OneMain Financial loan specialist for even more collateral options.
What happens if my collateral is damaged?
It depends on the extent of the damage and the type of collateral. If that happens, call your OneMain Financial loan specialist right away. Next steps will depend on the terms and conditions of your loan.
Should I take out Involuntary Unemployment Insurance on my loan?
It depends on your personal situation. Involuntary Unemployment Insurance adds an extra cost to an already expensive loan. However, it may not be a bad decision if you think your job may be at risk. “A quarter of our customers have Involuntary Unemployment Insurance that they purchased through us,” Tambor tells Finder, “which right now seems like a pretty good thing for customers to have given the environment that we’re in.”
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Kellye Guinan is a seasoned financial writer with over 500 articles under her belt spanning all things loans from auto to personal to business and everything in between. With four years in the field and five years of research experience, she's able to make complex personal finance decisions easier for anyone to tackle. When she's not up to her knees learning about the latest trends in lending, she spends her time improving her own financial literacy and expertise — and maintaining a Duolingo streak of over 1,300 days.
Don’t have the best credit? OneMain Financial may be for you. It doesn’t have any hard-and-fast credit requirements, and you can secure your loan with collateral to increase your chances of approval. It also could be a good option if you’re in a rush — it’s possible to get your funds the same day you’re approved. But if your funds are deposited by ACH, it can take an additional one to two business days.
Previously, you needed to visit your local branch to complete the application process, but OneMain has recently started offering online closing options. And you’ll find better rates elsewhere if you have good to excellent credit. You’ll also want to stay away from OneMain if you’re trying to avoid fees — its loans come with hefty origination, late and non-sufficient funds (NSF) fees.
Not sure OneMain is the one for you? Compare your other options.