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OneMain FinancialA personal loan in is a solid option for borrowers with low credit scores. If you have a high credit score, you may want to explore alternatives, as you may be able to get a lower interest rate elsewhere. The best personal loan for you will depend on your credit score. Your credit score will determine what you qualify for and can help you get a lower interest rate.
Who is OneMain Financial Best For?
OneMain is a great lender for borrowers with bad credit who can’t get financing elsewhere. If you need cash fast, this company is a good option. If your application is approved by noon on a business day, you can get your money the same day.
OneMain Financial offers secured and unsecured personal loans, but we’ll focus on the company’s unsecured personal loan option here. Unsecured loans are more common at OneMain Financial and competing lenders. With an unsecured personal loan, you don’t need collateral, like a home or a car, but with a secured loan, you can provide collateral and usually borrow at a lower interest rate.
However, minimum interest rates are high, so borrowers with good credit may be able to find a better rate with another lender.
OneMain Financial Personal Loan Features
Standard APR: 18.00% – 35.99%
Loan amount: $1,500 to $20,000
Fees: Late fees vary by state, but can range up to $30 or 15% of your monthly payment.
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OneMain Financial Personal Loan Pros and Cons
OneMain Financial Pro
- There is no minimum credit score for approval. Most personal loan lenders require a credit score of 660 or higher to apply, but OneMain Financial has no minimum score.
- Small loans are possible. You can get a loan for as little as $1,500, which is less than what many lenders offer.
- Get your loan immediately. You may even receive your loan the same day you apply with OneMain Financial.
Cons of OneMain Financial
- Expensive feesOneMain charges an origination fee on your loan, which can be either a flat fee or a percentage-based fee, depending on the state you live in. Flat fees range from $25 to $500, while percentage-based fees range from 1% to 10% of the loan amount.
- High starting interest rates. OneMain’s personal loan interest rates range from 18.00% to 35.99% APR. In comparison, Avant’s personal loan rates start at 9.95% APR.
How to Apply for a OneMain Financial Personal Loan
1. Enter your personal information on the OneMain website. You choose the purpose of the loan, whether it’s a personal or joint loan, secured or unsecured. You also need to apply for the loan amount. You also enter your name, social security number, and income history. You’ll be shown the estimated monthly payment amount and APR range.
2. Formally submit your application and wait for approvalWhen you submit your official application, you will need to send in proof of income such as W-2s, tax returns, and other financial documents.
3. Sign the loan agreement and receive your moneyWith OneMain, you may be able to receive your loan funds quickly: If your application is approved by noon on a business day, you may receive your funds the same day.
Four. Make a loan repayment planMake sure you keep your monthly payments within your budget and have enough funds to cover all your financial responsibilities.
OneMain Financial Personal Loan Alternatives
Comparing OneMain Financial and Avant Personal Loans
OneMain Financial and Avant have similar loan terms and amounts, but borrowers looking for same-day financing may have an advantage with OneMain, and the minimum credit score requirement of 580 means some borrowers may not be able to qualify.
Avant may be a stronger option than OneMain because OneMain’s interest rates are higher, and Avant’s fees may be lower because this lender caps origination and management fees at 4.75%, while OneMain’s fees can go up to 10% or $500 in some states.
OneMain Financial vs. LendingClub
LendingClub’s minimum credit score requirement of 600 may exclude some borrowers, and because interest rates are set higher, borrowers who meet LendingClub’s requirements can receive lower rates from OneMain.
LendingClub doesn’t offer a secured loan option, which could make OneMain an advantage for those looking to lower interest rates with collateral.Funding through LendingClub takes at least four business days, according to the lender’s site, so OneMain’s same-day funding offers another advantage.
Why you should trust us: How we rate OneMain Financial
In our reviews and guides, we rate all personal loan products on a scale of 1 to 5. The overall rating is a weighted average that takes into account seven different categories, with some categories weighing more heavily than others. The ratings are as follows:
- Interest rate (20% of rating)
- Fee (20% of the assessed value)
- Length of term and loan amount (15% of rating)
- Speed of fundraising (15% of evaluation)
- Borrower accessibility (15% of the rating)
- Customer Support (7.5% of the rating)
- Ethics (7.5% of the assessment)
The weighting of each category is based on its importance to your borrowing experience. Interest rates and fees have the most direct impact on the overall cost of your loan, so they receive the most weight. Customer support and ethics are still very important aspects of the borrowing experience, but they have less impact on the overall rating because they are not directly tied to the terms of a personal loan.
To learn more about how we evaluate personal loans, click here >>
OneMain Financial FAQs
yes, OneMain Financial is a legitimate personal loan lender. It is a company accredited by the Better Business Bureau. A+ Ratingand there have been no recent controversies.
OneMain Financial doesn’t have a minimum credit score for approval, and most personal loan lenders require a credit score of 660 or higher to qualify.
With OneMain Financial, you can get your money as soon as the same day, but it can take up to two business days, which is quicker than getting your money from many other lenders.
OneMain is a good lender for borrowers with bad credit who need a loan and can’t get one elsewhere, but there are origination fees and the interest rate you pay with bad credit is much higher than if you have good credit.