OneMain Financial Personal Loans Review
OneMain Financial is a lender with more than 1,500 branches across 44 states. They offer unsecured and secured personal loans to subprime borrowers. As a direct lender, they offer a quick prequalification process and the ability to receive funds quickly upon approval if you live near a branch location.
OneMain Financial Loan Types and Terms
| Loan types |
|
| Loan amount | $1,500 – $20,000*
* Borrowers in these states are subject to these minimum loan sizes:
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes:
An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender. |
| Repayment terms | 24, 36, 48, 60 Months |
| APR | 18% to 35.99% APR |
| Minimum credit score | None |
| Lender type | Direct lender |
| Good for: | Subprime, fast receipt of loan funds |
OneMain Financial is good for borrowers who need access to cash, but have less than perfect credit, OneMain Financial may offer approval when other lenders won’t.
OneMain Financial Pros
- Trusted lender for over 100 years
- Online prequalification with a soft credit pull (hard credit pull is required if you submit loan application after prequalification)
- In most cases, funds are available in your bank account within an hour after loan closing using your bank issued debit card or 1-2 business days via ACH.
- No pre-payment fees.
OneMain Financial Cons
- Borrower pays origination fees in most cases
- Maximum loan amount is only $20,000
- Some states set a maximum unsecured loan amount
- Minimum 18% APR
- Maximum loan term of 60 months
Application Process
OneMain Financial allows applicants to prequalify and view loan offers before it requires a hard credit pull. OneMain pre-qualifies applicants using a soft pull of their credit.
Furthermore, OneMain Financial grants personal loans based on number of criteria, including credit history and monthly net income. If you want to refinance your current auto loan, the value of the car is also part of OneMain’s criteria.
The prequalification application asks for the following information:
- Desired loan amount
- Full legal name
- Home address
- Phone number
- Date of birth
- Last four digits of Social Security number
- Whether you own or lease a vehicle
- Monthly net income after taxes and deductions
- Source of income
If you are pre-qualified for a personal loan, OneMain Financial will contact you with details about loan terms and and instructions about how to proceed. You’ll visit your local OneMain branch to provide proof of identity. You’ll also need recent pay stubs to prove your income and documentation of your expenses.
The loan officer at the branch will then provide you with loan documents. If you receive final approval and agree to the terms, you’ll sign the paperwork and receive your funds.
Terms & Requirements
Paragraph describing the general terms and requirements and how they compare to other lenders or markets.
Loan Requirements
In addition to pre-qualification, you’ll need the following:
- Valid government issued-issued picture ID
- Proof of income
- Proof of collateral (if necessary) may include a clear title in the borrower’s name for a vehicle fewer than 10 years old and proof of insurance
- Other items may be requested depending on your unique situation
Credit score requirements
While there isn’t an official minimum credit score to get approval for a OneMain Financial personal loan, the company mostly serves the subprime market. Their minimum 18% APR on personal loans is much higher than companies that cater to customers with excellent credit.
Loan decisions are made based on a variety of factors including credit history, income, expenses, and availability and value of collateral (if applicable). Each customer’s loan terms are offered based on these factors and the customer’s ability to repay so that each customer can make a decision based on their unique situation and needs.
A secured loan (if you have collateral available) could help you get the funds you need, even if you can’t qualify for an unsecured loan based on your credit profile and income. OneMain Financial issues loans with cars fewer than ten years old as collateral. The vehicle must have a VIN number and you must have a clear title to qualify.
Debt-to-income ratio
The debt-to-income ratio isn’t disclosed on OneMain Financial’s website.
Loan Terms
OneMain Financial charges higher interest rates than many other lenders who specialize in lending money to people with poor to fair credit. Their APR includes an origination fee that is a flat fee of $25 to $400 or a percentage of the loan, ranging from 1% to 10%. Fees limits are imposed by individual state’s laws.
- Minimum 18% APR
- Maximum 35.99% APR
- Loan amount range $1,500 to 20,000 (unless limited by state law)
Borrowers are also subject to the following fees:
- Late payment fees: If you may a loan payment that is later than the grace period allowed by the state where you live, you’ll be charge between $5 and $30 per late payment or between 1.5% and 15% of your monthly payment amount.
- Non-sufficient funds fees: If a check or electronic payment is returned because there isn’t enough money in the account, you’ll pay between $10 and $50 for each payment that’s returned, depending on state laws.
Loan Types
While you can use personal loan funds for almost any purpose, OneMain Financial specifically states that borrowers may not use a personal loan for any of these reasons:
- Post secondary educational expenses
- Gambling
- Business or commercial purposes
- Purchasing securities
Repayment Terms
Borrowers can choose to repay their personal loan in 24, 36, 48 or 60 months. Longer repayment terms may change your interest rate. Stretching a loan out over a longer period of time also increases the total amount of interest you’ll pay over the life of the loan.
Reviews
OneMain Financial has more than 22,000 reviews on TrustPilot with an average rating of five-out-of-five stars. Only 5% of reviewers gave the lender fewer than four-out-of-five stars.
Final Thoughts
For borrowers with credit challenges who can’t get approved for a personal loan with a lower APR, OneMain Financial may be the answer. It’s important to know that this lender’s maximum loan amount is $20,000. So, if you need access to more money, look elsewhere. For those with poor credit, offering collateral could help the chances of getting approved.
The company has a reputation for taking good care of their customers, and talking to someone face-to-face at a branch can help make the process of getting a loan a bit easier.
Address
OneMain Financial Group LLC
601 N.W. Second Street
Evansville, IN 47708-1013
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07 to a total of $10,565.2. Not all applicants will qualify for larger loan amounts or most favorable loan terms. 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). 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. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. 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 $300. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; 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. 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. New York: $20,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender. Not all applicants will qualify for larger loan amounts or most favorable loan terms. 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). 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. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. 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 $300. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; 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. 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. New York: $20,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
