OneMain Financial Personal Loans Review [2024]

OneMain personal loan basics

Loan types	Secured and unsecured
Loan amounts	$1,500 to $20,000
APR	18.00%-35.99% (as of 07/01/24)
Loan terms	24 to 60 months
Origination fees	Subject to state limits. Flat fee: $25 to $500 Percentage: 1% to 10% of your loan amount
Availability	All states except for Alaska, Arkansas, Connecticut, District of Columbia, Massachusetts, Rhode Island, and Vermont

Is OneMain Financial the right fit for you?

A OneMain Financial loan is best if you need money fast but don’t have good credit. The company specializes in offering loans to people with nonprime credit, which is typically a score below 660.

It could also be a fit for people who have collateral, such as a car, to put down on a loan so they can borrow more or bring the rate down a little bit. This secured loan option could potentially help you get a lower interest rate.

What to consider before getting a loan with OneMain Financial

While OneMain Financial loans can come in handy if you’re in a financial bind, there are some things to be aware of.

• Interest rates available with OneMain can range from 18.00%-35.99% (as of 07/01/24), the higher end of which is higher than the average credit card interest rate (23% as of October 7, 2024). I wouldn’t recommend going with OneMain if your rate is that high, because it’ll end up being a very expensive way to borrow.
• OneMain’s offerings only go up to $20,000. Depending on why you need a loan, it might not be enough.
• Putting down a vehicle as collateral could potentially put your mode of transportation at risk if you run into financial difficulties and default on your loan. Using a car as collateral means OneMain could take your car to fulfill your loan. If you go with a secured loan, make sure you’re comfortable with your monthly payments.
• Prequalifying online will show you your loan amount, but not your rate. You’ll have to go all the way through the formal application process to see what interest rate you might have, which I don’t love. However, if you decide the rate is too high at that point, you don’t have to accept the loan.

I say use caution when deciding whether a personal loan option like the OneMain offers is right for you — just like you should when looking at any kind of credit offering. To be clear, OneMain is a legitimate company and it has an excellent A- rating from the Better Business Bureau.

Personal loan options it offers

You have two personal loan options at OneMain Financial: secured or unsecured. When you build your personal loan through OneMain Financial, you can choose a term of 24, 36, 48, or 60 months, for a loan ranging from $1,500 to $20,000 (depending on credit profile). Annual interest rates range from 18.00%-35.99% (as of 07/01/24), based on the borrower and loan details.

Borrowers in some states will be restricted to certain loan minimums and maximums. For instance, California borrowers cannot take out loans for less than $3,000, Texas and Florida borrowers can take out no more than $8,000 in an unsecured loan, and West Virginia borrowers are limited to $14,000.

Secured loans

With a secured loan, you are providing collateral to the lender in the form of a vehicle or other valuable property. This property is essentially offered up to “back” the loan in case of default. That means the lender can come take possession of your collateral item if you stop paying on your loan.

Because the debt is secured, the lender is typically willing to offer a lower interest rate on your loan. That could help you save on interest and help decrease your overall loan costs. On the other hand, it puts your car at risk, which you should always consider carefully.

Unsecured

Unsecured debt is not backed by collateral. This usually means the lender will charge a higher interest rate on the loan, and your borrowing limits may be lower. That can be tough if you need money.

Collateral requirements

As per OneMain Financial’s website, larger loans will require collateral in the form of a lien on a motor vehicle. This vehicle must:

• Be less than 10 years old
• Meet certain value requirements
• Be titled in the borrower’s (or co-signer’s) name
• Have valid insurance

Active-duty military members and their spouses who are covered by the Military Lending Act may not pledge a vehicle as collateral for a OneMain loan.

Fees

OneMain Financial loan fees include:

• Origination fees ranging from $25-$500 or 1-10% of the loan amount, depending on your state
• Late payment fees of $5-$30 or 1.5%-15% of the late amount
• Non-sufficient funds fees of $10-$50 per returned payment

Using a OneMain personal loan

OneMain Financial only offers personal loans. You can use a OneMain personal loan for a variety of uses, including:

• Buying a vehicle, like a car, boat, RV, or motorcycle
• Refinancing a car loan
• Repairing your car
• Consolidating debt
• Emergency expenses
• Medical costs
• Moving
• Home repairs and improvements
• Paying for a big trip
• Special life events, such as a wedding or a funeral

However, keep in mind there are some things you can’t use your OneMain personal loan funds for:

• Gambling
• Buying investments, such as stocks
• Paying for educational costs, like college tuition
• Business expenses
• Illegal activities

If you’d like to use a vehicle as collateral for your OneMain loan, it’ll need to meet some requirements: All collateral must be appraised to determine its value before approval. Additionally, you’ll need to carry physical damage insurance coverage on the collateral for the life of your loan.

What do you need to qualify?

You don’t need perfect credit for a OneMain personal loan.

When you apply for a loan, OneMain will consider:

• Financial history
• Income
• Expenses
• Prior bankruptcies
• State of residence

If you’re concerned about being approved for a large loan amount, consider applying with a co-signer.

How to apply for a OneMain personal loan

When you’re ready to borrow, follow these steps.

1. Get pre-approved

First, get pre-approved online by answering some quick questions about yourself. You won’t be asked about the purpose of your loan at this time. This process took me about two minutes to complete, and it has no impact on your credit.

Unlike many online loan preapprovals, however, all you can see is the total loan amount – no interest rates, monthly payments, or other loan terms until you officially apply. This can make it difficult to gauge whether a OneMain Financial personal loan is the right product for you without formally applying, which will impact your credit report.

You can check out OneMain Financial’s online loan calculator to get an idea of what your monthly payments would be based on your loan amount, desired terms, and interest rates for which you might qualify.

Submit your application

If you’re ready to formally apply to get a loan, you can do so online. This will result in a hard credit inquiry, and your information will be sent to OneMain Financial.

Discuss options with a rep

You’ll receive a call from a OneMain Financial representative shortly to discuss your loan needs. During this call, you’ll discuss loan terms, the amount you need, interest rates, and monthly payment options.

Visit a branch for verification

You can visit a local OneMain Financial branch to verify your identity, discuss your loan collateral, and verify your income. Upon approval, you’ll also sign documents and close on your loan. And, if you choose to receive your loan funding by check, you can pick up the payment right then and there: same-day funding is available for many borrowers.

What OneMain Financial customers are saying

OneMain Financial has excellent customer reviews across a number of consumer platforms.

On TrustPilot, OneMain Financial has a 4.7 out of 5 (Excellent) rating with around 67,000 reviews. The company has an A- rating from the Better Business Bureau and has been accredited by the BBB since 2015.

Common complaints, especially those found on sites like Consumer Affairs, include concerns about credit inquiries as well as personal loan fees and interest rates — both of which can be higher with OneMain Financial than you may find with other lenders.

Of course, both fees and rates are also determined prior to loan disbursement, are dependent on each borrower, and will be notated in the final loan documents at closing, so there are no surprises or shady tactics. To avoid being caught off-guard by fees or charges on any financial product, it’s imperative to read agreements carefully and thoroughly, asking any questions you may have before signing.

FAQs

Bottom line

If you’re considering a personal loan — and especially if you need money fast — OneMain Financial is worth a look. While I don’t like that their online pre-approval won’t provide you with interest rates or monthly payment amounts, it is fast, and the process will show you how large a loan you might receive. Formal applications are also approved quickly, and funding can be completed on the same day in many cases.

OneMain Financial isn’t likely the best choice for borrowers with excellent credit. Instead, you may be able to find lower rates through your local credit union, by utilizing a 0% APR credit card offer, or through a company like SoFi or LendingClub. OneMain Financial is, however, a good option for those with less-than-ideal credit scores or borrowers who need money quickly.