Best for: borrowers with poor credit scores who need funds quickly
Can approve borrowers with bad credit
Offers co-borrower and secured loans
May fund loan same day
High interest rates
Requires in-person visit to branch
Origination, late, and returned payment fees
In-depth Review of OneMain Financial Loans
While it has gone through a number of changes over the years, OneMain Financial has been in the lending business for over 100 years — which, in this case, can be both a good thing and a bad thing. It offers loans for borrowers with bad or damaged credit, including options to apply with a co-borrower or by pledging collateral (your car title — meaning OneMain can place a lien on your car to prevent you from selling it or can even repossess your vehicle).
OneMain’s application process and initial decision are online — but then, if approved, requires an in-person visit to one of OneMain’s branches, where they will verify information like your identity, employment, and income. Compared to other online-only lenders serving customers with less than perfect credit, this is certainly inconvenient.
The option to apply with a co-borrower or pledge your car title increases the likelihood borrowers with bad credit can get access to a loan, but also present serious risks – that your co-borrower will be on the hook for the loan if you are unable to make payments, or that your car will be repossessed. While OneMain’s rates are high, ranging from 18%-35.99%, they are lower than high cost installment lenders or payday lenders. Potential borrowers should seriously consider the costs and risks of borrowing from OneMain and evaluate if other options are more appropriate for their circumstances.
OneMain Personal Loan Details
|Loan amount range||$1,500 - $20,000 (minimum and maximum loan amounts vary by state)|
|Loan lengths||24 - 48 months|
|Interest rate type||Fixed interest rate|
|APR range||18% - 35.99%|
|Fees||Origination fee: flat fee of $25 to $400, or 1-10% (varies by state)
Late fee: $5-$30 or 1.5%-15% of late payment (varies by state)
Returned payment fee: $10-$50 (varies by state)
Collection / lien fees: as permitted by state law
Prepayment fee: None
|Can check rate with no impact to score?||Yes|
|Loan uses||Pretty much any reason: refinance credit cards; consolidate debt; major purchase; home improvement; vacation; moving/relocation; medical expenses; etc.|
|Time to fund||While it is possible to receive your loan funds the same day, OneMain Financial’s application process does require a visit to a physical branch location. You begin the application process online and, if approved, visit a OneMain branch to confirm identity, income, employment, and collateral (if applicable). Upon completing verification, you can receive your loan funds via check the same day or in 1-2 business days via bank transfer.|
|Joint application (co-borrower) option||Yes|
|Minimum qualifications||Minimum credit score: None, but average is around 600
Minimum income: None, but you likely need to prove you have enough income to afford the monthly loan payment
|Can send loan proceeds directly to creditors (for debt consolidation loans)||No|
|Other||Credit insurance: OneMain offers optional credit insurance, which adds to the cost of your loan and may or may not be appropriate for your circumstances. Be sure to understand the pros, cons, and cost the additional insurance, and that is not required in order to borrow from OneMain.
Free credit score: like some other lenders, OneMain offers borrowers access to information about their credit score -- in this case, your VantageScore. Note that this information is available through many sites at no cost.
Representative Loan Example
Borrow $10,000 for 24 months
27.2% fixed APR
Pay back $545 per month for 24 months
Total repaid $13,080
What People Are Saying
CFPB complaint data: 1,379 complaints in last 24 months
Trustpilot rating: Excellent (4.8/5) from 22,753 reviews
Better Business Bureau: Accredited, A+ Rating
A note on reviews
When looking at reviews or complaints, we urge you to think about them in context and take them with a grain of salt. For instance, companies that have more customers are likely to generate more complaints to the CFPB — so the raw number of complaints on its own doesn’t paint the full picture.
Similarly, it’s possible for companies to attempt to game ratings on services like TrustPilot, by timing when they ask borrowers for a review to encourage positive comments and by challenging negative reviews on the platform.
Most of all, borrowers should be cautious in how they interpret a firm being Better Business Bureau (BBB) “Accredited” or having an A+ rating. BBB “Accreditation” means merely that a business makes a commitment to make a good faith effort to resolve customer complaints and follow the BBB’s Code of Business Practices. It’s not clear how closely adherence to these practices is followed or how non-compliance is enforced.
Also note customer reviews are not included in the BBB rating, and it’s possible to have an “A+” rating despite having a poor customer rating.