OneMain Financial Car Loans
OneMain Financial is a direct lender providing personal loans and auto loans ranging from $1,500 to $20,000. This lender offers a 100% online loan application process with prequalification that requires only a soft credit pull. A OneMain team member will reach out to you by phone for vehicle information if you’re seeking an auto loan or secured personal loan. While OneMain Financial doesn’t disclose their minimum credit score requirements, they advertise loans for people with bad credit. High APRs and fees make them a less-than-desirable lender for those with good credit, but if you are credit challenged, OneMain may be able to help you get access to the funds you need.
OneMain Financial Loan Types and Terms
|Loan types||Personal, auto, secured, unsecured|
|Loan amount||$1,500 to $20,000|
|Repayment terms||24–60 Months|
|Minimum credit score||Not disclosed; bad credit may be OK|
|Lender type||Direct lender|
|Good for||Those with credit challenges who can’t get better terms or access a fee-free auto loan|
OneMain Financial Pros
- Fast approval times when compared to competitors
- Loans available to those with bad credit
- Secured or unsecured loans available
- 1,400 branches across the U.S. for in-person service
OneMain Financial Cons
- High APRs
- Maximum loan amount of $20,000
- OneMain doesn’t provide loans in six states and D.C
- Origination fees
Go to the OneMain Financial site and navigate to the “check for offers” button to get started with an application. The initial request for offers requires only a soft pull of your credit, asks for basic information about your desired loan amount, contact information, identity, and income. You’ll get an instant answer about prequalification. If you like the terms, you can proceed to a formal application online or by allowing a OneMain Financial representative to contact you to help you submit a formal application.
Getting approved for a loan could take up to 48 hours. After you sign the required loan documents, it could take just a few hours or up to two business days to get your funds.
While there’s no official minimum credit score required to get approved for a OneMain Financial auto loan, the company’s website says that the loan officers look at more than an applicant’s traditional credit score.
You can visit one of OneMain Financial’s branches to meet with a loan officer in person if you prefer. There are about 1,400 locations across the United States.
Terms & Requirements
OneMain Financial charges higher interest rates than prime lenders, but they specialize in helping nonprime customers find loans they can afford. . Their minimum interest rate is high at 18%, so this isn’t an ideal lender for people with decent credit. Borrowers with credit scores below 500 pay an average of 20.58% for a used car loan, so OneMain may be a good option for credit-challenged borrowers.
Car Loan Requirements
- Minimum age 18
- Social security card or proof of residence
- Proof of income (tax returns or pay stubs)
- Government-issued ID (passport or driver’s license)
Car Loan Terms
OneMain Financial offers both unsecured personal loans and secured auto loans. A secured loan may be easier to get since the car serves as collateral on loan.
Origination fees: Depending on your state’s rules, your origination fees may be fixed ($25 to $500) or a percentage of the total loan amount (1% to 10%).
Late payment fees: Your late payment fees also depend your state’s laws. You may pay a percentage of the delinquent portion of your loan of 1.5% to 15%, or you may pay a flat late fee of $5 to $30 for each late payment.
Non-sufficient funds fees: If your state allows NSF fees when an electronic ACH debit or check is returned due to non sufficient funds, OneMain Financial charges a fee of $10 to $50 per returned payment.
Minimum loan amounts: While a OneMain Financial personal or auto loan has a maximum of $20,000, loan minimums vary from the $1,500 set amount depending on your state of residence. Unsecured loans originating in North Carolina have a $7,500 maximum.
Minimum loan amounts by state:
- Alabama: $2,100
- California: $3,000
- Georgia: $3,100 (exceptions made for current OneMain Financial customers)
- North Dakota: $2,000
- Ohio: $2,000
- Virginia: $2,600
All personal and auto loans through OneMain Financial have a minimum repayment term of 24 months and a maximum repayment term of 60 months. Other lenders offer loans with longer terms, but many financial experts warn against financing a car for more than five years.
There are no pre-payment penalties with a OneMain Financial car loan. If you are credit challenged but improve your credit scores, you can refinance the loan when you can qualify for a better interest rate without paying the penalty.
Privacy & Security
OneMain Financial has over 38,000 reviews on Trustpilot with an average score of 4.8 stars out of five stars. 88% of the customers rating OneMain Financial gave the company an “excellent” rating.
The Better Business Bureau (BBB) website shows that OneMain Financial started as a business in 1920. They were accredited by the BBB in 2015 and had an A+ rating. There are 520 OneMain Financial customer reviews on the BBB site with an average score of 2.49 out of five stars. The company has closed 761 complaints within the last three years; 304 were within the past 12 months. 143 of the 737 complaints were about advertising and sales practices, 257 were about billing and collections, and 343 indicated a problem with a product or service.
OneMain Financial’s customer service team is available via email at email@example.com.
You can also call 1(800) 290-7002 to get help with a loan application. Customer reviews indicate that the customer service team and loan officers are friendly and generally quick to help with any issues.
OneMain Financial may be a good option for credit-challenged individuals who need a car loan or personal loan. The company advertises that they consider more than a traditional credit score when making lending decisions, which could provide an advantage for potential borrowers with a steady income who are otherwise financially sound.
The loan minimums may be restrictive if you live in certain states, and the $20,000 loan maximum means that buying a new car through OneMain Financial could be difficult, since the average price of a new car in 2021 is $41,000.
While the interest rates are high with OneMain Financial, the lender doesn’t impose pre-payment penalties, so borrowers can refinance at a lower interest rate if their credit situation improves.
601 N.W. Second Street
Evansville, IN 47708
“OneMain Financial Disclaimer: Loan cost example: If you borrowed $6,000 with a 24.99% APR and 60-month term, your payments would be $176.07 per month. Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Loan approval and actual loan terms depend on your state of residence and your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. An unsecured loan is a loan that does not require you to provide collateral (such as a motor vehicle) to the lender.