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OneMain Financial Personal Loans Review 2024

OneMain Financial Personal Loans Review
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Updated February 17, 2024

The personal loan space has become crowded in recent years. Of course, banks and credit unions offer personal loans, though the amounts are small and designed for borrowers with good or excellent credit.

This is where online personal loan lenders can help. One example is OneMain Financial. It doesn’t offer the lowest personal loan rates, but you’ll have an excellent chance of approval even if you have poor credit.

OneMain Financial is one of the better-established personal loan companies. It’s a publicly traded company (NYSE: OMF) based in Evansville, Ind., and has been in business for over 100 years.

It has a Better Business Bureau rating of B (on a scale of A+ to F) and a Trustpilot rating of 4.8 out of five stars from more than 56,000 reviews. And OneMain Financial scores well with high ratings from mobile app users on both Google Play and the App Store.

OneMain Financial

OneMain Financial

OneMain Financial

APR
18% to 35.99%
Loan amount
$1,500 to $20,000
Term
34 to 60 months
Min. credit score
Undisclosed

Who is OneMain best for?

OneMain Financial’s maximum loan amount is lower than its competitors, so it’s a good option for those who need smaller loan amounts. You can use a OneMain Financial loan for any purpose, including [debt consolidation](https://time.com/personal-finance/article/debt-consolidation-loan-with-bad-credit/), medical expenses, vacations, vehicle purchases, etc.

OneMain Financial also offers a network of branch locations, which is unusual for a personal loan provider. With offices in 44 states nationwide, it’s the perfect choice if you would rather apply for a loan in person than online.

OneMain Financial can also be a good choice if you have poor credit. The company permits co-borrowers if you need help to qualify. Alternatively, it will accept collateral, such as a motor vehicle, as security for the loan.

OneMain at a glance

Costs

OneMain Financial does charge a loan origination fee. Depending on the lender and the loan, it can be between $25 and $500 or between 1% and 10% of the loan amount. The origination fee is deducted from the personal loan amount, reducing the net proceeds you will receive.

There are also late payment fees to consider. These can be either a flat amount between $5 and $30 or between 1.5% and 15% of the amount of the payment missed. Exactly which fee structure you will be subject to is based on your state of residence.

Finally, OneMain Financial charges an insufficient funds fee. It varies between $10 and $50 per returned payment, based on your state of residence.

One advantage on the cost side is that there is no prepayment penalty for paying off your loan early with OneMain Financial.

Perks

OneMain Financial offers the following perks to borrowers:

  • Change your due date – You’ll have the ability to change your payment due date. You can request one change in a 12-month period and no more than two changes over the life of the loan. The maximum payment extension is 15 days, but it will not be granted if your account is 10 or more days past due.
  • Enroll in Direct Pay – If you prefer to automate your monthly payment, you can sign up for this service free of charge.
  • Protection under the Servicemembers Civil Relief Act (SCRA) – The act provides active duty members of the U.S. military with interest rate caps and protection from repossession, foreclosure, judgments, and evictions.

Loan amounts

Loans are available in amounts ranging from $1,000 to $20,000, though certain states impose minimum and maximum limits on personal loan amounts. For example, the minimum loan in California is $3,000. The maximum loan in North Carolina is $9,000.

Loan terms

OneMain Financial offers loan terms of 24, 36, 48, and 60 months.

OneMain personal loans: Pros and cons

Pros:

  • No minimum credit score
  • Brick-and-mortar branches
  • Shop multiple loan offers
  • Fast funding

Cons:

  • Low maximum loan amount
  • High origination fee
  • Borrower qualifications are vague
  • Not available in all states

Benefits of OneMain personal loans

No minimum credit score

OneMain Financial does not publish a minimum credit score requirement. The company accepts all types of credit, with options to add a co-borrower or a collateral arrangement to provide additional security for the loan.

Brick-and-mortar branches

OneMain Financial has physical branches located in all states where it operates. The company claims 89% of Americans live within 25 miles of one of its branches. This can be a big advantage for borrowers who prefer to deal in person when applying for a loan rather than doing it online by themselves.

Shop multiple loan offers

When you apply with OneMain Financial, you may receive offers from multiple lenders. This will give you an opportunity to choose the loan that will work best for you.

Fast funding

Once your loan application has been approved and you have signed the required loan documents, you will receive your funds within a day or two. If you choose to receive the funds via SpeedFunds, they will be deposited into your bank account on the loan closing date.

You can also choose to receive a check immediately at the OneMain Financial branch where the loan is closed. If funding occurs via ACH, your money will be available in one or two business days.

Drawbacks of OneMain personal loans

Low maximum loan amount

While most personal loan lenders provide maximum loans of $35,000 or $50,000, OneMain Financial offers a maximum of $20,000, which may not be sufficient for all borrowers.

High origination fees

Origination fees among personal loan lenders are common, but OneMain Financial’s maximum origination fee of 10% is at the upper end of the industry range.

Borrower qualifications are vague

Not only does OneMain Financial not indicate a minimum credit score requirement, but it also doesn’t provide a specific minimum income amount.

Instead, the company indicates that applicants must demonstrate sufficient income to cover current living expenses and debt payments in addition to the new loan payment.

Not available in all states

OneMain Financial offers its loan products in 44 states. It doesn’t operate in Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, or Vermont. Washington, D.C., is also not listed as a location where the company does business.

How does OneMain stack up with the competition?

The table below shows how OneMain Financial compares with major competitors based on loan details and minimum credit requirements.

OneMain
Upstart
Upgrade
Avant
APR
18% to 35.99%
5.2% to 35.99%
8.49% to 35.99%
9.95% to 35.99%
Loan amount
$1,500 to $20,000
$1,000 to $50,000
$1,000 to $50,000
$2,000 to $35,000
Min. credit score
Undisclosed
300
580
580
Term
34 to 60 months
36, 60 or 84 months
24 to 84 months
12 to 60 months

How to qualify for OneMain

OneMain Financial does not provide specific guidelines on loan qualifications, such as a minimum credit score or income level. However, if you cannot qualify for a loan based on your own income and credit profile, you can add a qualified co-borrower.

You can also be considered for loan approval if you can provide collateral. This can be done by pledging a car, truck, motorcycle, camper, or recreational vehicle as security for the loan.

Any collateral you offer will be subject to an appraisal to determine its value. If OneMain Financial accepts the collateral, you must provide proof of satisfactory insurance coverage to protect against damage or loss to the property.

How to apply with OneMain

You can apply for a personal loan with OneMain Financial online or in person at one of more than 1,400 physical branches. In addition to filling out an application, you must provide a copy of a valid government-issued ID, such as a driver’s license or passport.

OneMain Financial will also ask you to provide proof of residence, which can be satisfied with a driver’s license, signed lease, or copy of a utility bill.

Finally, you should expect to show proof of income in the form of pay stubs, W-2s, or income tax returns. OneMain Financial may request additional documents depending on your personal income or credit situation.

TIME Stamp: OneMain Financial is best for people with fair or poor credit

If you’re looking for the best personal loan rates, OneMain Financialmay not be the right choice. However, it can be an excellent choice if you have fair or poor credit as there is no minimum credit score requirement, and it will find workarounds for applicants with poor credit.

OneMain Financial is also a good choice if you prefer dealing in person. It has over a thousand locations in 44 states, with staff waiting to provide a face-to-face application experience. If you’re uncomfortable applying online, OneMain Financial may be your solution.

OneMain Financial

OneMain Financial

OneMain Financial

APR
18% to 35.99%
Loan amount
$1,500 to $20,000
Term
34 to 60 months
Min. credit score
Undisclosed

Frequently asked questions (FAQs)

Is OneMain Financial legit?

Yes, it is. As mentioned in the introduction to this review, OneMain Financial enjoys favorable ratings from the Better Business Bureau, Trustpilot, and thousands of mobile app users on Google Play and the App Store. In addition, it’s a publicly traded company that has been in business for over 100 years.

How long does it take OneMain Financial to review documents?

Once you submit your application, you can receive approval in as little as 10 minutes. However, the final decision will be subject to a review of the required documentation. The timing of this will vary from one borrower to another, so the exact number of days cannot be determined.

For example, if you’re self-employed, you must provide income tax returns, which take longer to review than the company pay stubs that a W-2 worker provides.

What is the minimum income required for OneMain Financial?

OneMain does not provide a minimum income requirement. Instead, each borrower’s income is evaluated to determine if it is sufficient to cover the borrower’s current living expenses, debt obligations, and the new personal loan payment.

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