OneMain Financial personal loans review: Anyone can apply for personal loans, regardless of your credit score

OneMain Financial personal loans review: Anyone can apply for personal loans, regardless of your credit score

OneMain Financial has relatively high interest rates compared to other personal loan companies.

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OneMain Financial Personal loan are open to all credit types, including people with bad credit.
The lender is only available to those in certain states, so you may be out of its coverage area. 
Interest rates range from OneMain Financial personal loans APR. You may get a better rate elsewhere.
See Insider’s list of the best personal loans of 2022 »

The bottom line: OneMain Financial personal loans’s personal loans are a solid option for borrowers who have a low credit score. You may want to consider another company if you have a good credit score, because you can get lower rates elsewhere.

Loan amounts and interest rates

One Main’s loan amounts range from $1,500 to $20,000. Some states have higher minimum loan amounts, though. Interest rates at OneMain range from OneMain Financial personal loans APR. Borrowers with credit scores of 650 or above could get approved through another lender for lower interest rates. 

Pros and cons

Pros

No minimum credit score for approval. Most personal loan lenders require credit scores above 660 to apply, but OneMain Financial doesn’t have a minimum.

Potential for a small loan. You can get a loan for as little as $1,500, which is lower than what many lenders offer. 

Get your loan quickly. You may be able to get your loan on the same day that you apply with OneMain Financial.

Cons

High origination fees. OneMain charges an origination fee on loans, which can either be a flat fee or percentage-based, depending on what state you live in. Flat fees range from $25 to $400, while percentage-based fees range from 1% to 10% of the loan’s value.

High starting interest rates. Interest rates for OneMain’s personal loans range from OneMain Financial personal loans APR. In contrast, Avant’s personal loans start at 9.95% APR, and LendingClub starts at 7.04%. 

How OneMain Financial works

OneMain Financial personal loans offers both secured and unsecured personal loans, but we’re focusing on the company’s unsecured personal loan options. Unsecured loans are more common with OneMain Financial and with competing lenders.

An unsecured personal loan doesn’t require any collateral, such as a house or car. These personal loans can be used for a variety of purposes and often have fair interest rates. You can use an OneMain personal loan for many purposes, like debt consolidation and home improvements, but check with the lender to see if your expense qualifies for a loan.

OneMain allows several options for repayment, with term lengths of 24, 36, 48, or 60 months. There are no prepayment penalties. You may not want to choose OneMain if you have good or better credit.

OneMain Financial personal loans could be a good option if you need cash quickly. If your application is approved before noon on a business day, you could receive your money the same day. But if you choose to get money via direct deposit, it could take one or two business days.

If you value the ability to go to a branch and talk to an employee about your loan, OneMain may be a great choice. Other brick-and-mortar banks offering personal loans, like Wells Fargo, Santander, and PNC, have higher credit score requirements. 

To contact OneMain by email, simply fill out the form located here. Or call Monday through Friday, 7:00 a.m. to 7:00 p.m. CT.

What credit score do you need?

Unlike many lenders, OneMain Financial personal loans doesn’t require a minimum credit score. But remember that the lower your credit score, the higher your interest rate will be. Anyone with a good or better credit score could likely get a better interest rate on a personal loan elsewhere. 

You can find your credit report for free on annualcreditreport.com from any of the three major credit bureaus weekly through April 20, 2022. While this report won’t give you your credit score, it will show you information about your credit and payment history, which lenders use to decide whether to give you a loan. Reviewing your credit report can help you know what you need to improve. 

You can find your score at no cost on your credit card statement or online account. You can also pay for it from a credit reporting agency. 

Unless you need money fast, you may have the chance to boost your credit score before applying for a personal loan. Paying your bills in a timely fashion and maintaining low credit card balances may result in a better interest rate. That said, if your credit score goes up, you’ll still get a better rate at a lender other than OneMain.

Is OneMain Financial trustworthy?

OneMain Financial personal loans is a Better Business Bureau-accredited company, and the BBB, a non-profit organization focused on consumer protection and trust, gives the company an A+ rating. The BBB measures  companies by evaluating business’ replies to consumer complaints, honesty in advertising, and clarity about business practices. 

OneMain does not have any recent controversies. Due to its clean history and top-notch BBB rating, you might want to use OneMain as your personal loan provider. However, BBB scores don’t ensure you will have a beneficial relationship with the company and are simply a starting point on your search for a personal loan provider. 

How OneMain Financial compares

Min. credit score

None

Min. credit score

Unspecified

Min. credit score

600

APR

OneMain Financial personal loans

APR

Personal Loans

APR

Avant Personal Loans

Origination fee?

No

Origination fee?

Yes

Origination fee?

No*

OneMain Financial personal loans

Personal Loans

Avant Personal Loans

*While Avant does not charge an origination fee, it does charge an administration fee of up to 4.75%.

OneMain Financial and Avant Personal Loans have similar loan terms and loan amounts, but borrowers looking for same-day funds might find that OneMain has an advantage. Additionally, a minimum credit score requirement of 580 might exclude some borrowers. 

Personal Loans’s minimum 600 credit score requirement might leave some borrowers out. With interest rates starting higher, borrowers who qualify with LendingClub could get lower rates from Avant or OneMain. 

Avant could be a stronger option than OneMain due to OneMain’s higher interest rates. Avant fees could be lower, as this lender caps its origination and administrative fees at 4.75%, while OneMain’s fees could go up to 10%, or $400 depending on your state.

LendingClub doesn’t offer a secured loan option, which could give OneMain an advantage for anyone who wants to lower their interest rate with collateral. Funding through LendingClub will take at least four business days, according to the lender’s site, giving OneMain’s same-day funding another advantage.

 

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