When you apply online for a personal loan, it’s important to compare as many lenders as possible, especially if you’re rebuilding your credit, because interest rates can vary wildly.
OneMain Financial is one option for taking out a personal loan, and it can be a good fit for some borrowers with less-than-stellar credit.
That said, the lender doesn’t offer the best interest rates on the market, even for borrowers with fair credit. In this OneMain Financial review, you’ll learn more about the lender’s personal loans and whether they’re right for you.
OneMain Financial review: The basics
OneMain Financial offers secured and unsecured loans to borrowers whose credit might not be good enough to get approved with some of the top personal loan companies.
If you don’t qualify for an unsecured loan, you can get a secured loan by providing collateral, such as a car, to get approved. But if you default on the loan, the lender can take your collateral to satisfy the debt you owe.
Here are some basic loan terms OneMain Financial offers to borrowers as of June 13, 2018:
|Loan amounts||$1,500 – $30,000|
|Interest rates||16.05% – 35.99% APR|
|Repayment terms||24, 36, 48, or 60 months|
|Origination fees||Vary by state|
Once your application is approved, you’ll receive your funds via direct deposit or by check in person if you close at one of the lender’s branches.
There are no minimum credit or income requirements for OneMain personal loans. But that doesn’t mean just anyone can apply. The lender will review several factors, including:
- Credit history
- Income and expenses
- Available collateral (secured loans only)
What we like about OneMain Financial personal loans
OneMain Financial might not be the best fit for every borrower, but we’d like to point out some of its positive traits.
In my first OneMain Financial review, my biggest complaint was that the lender didn’t offer any pertinent information about its terms on its website. Since then, it’s made improvements to give prospective borrowers more information upfront.
Low minimum loan limit
Some personal loan companies won’t lend to you unless you need more than $5,000. If you don’t need that much, though, you could end up overborrowing. OneMain’s $1,500 minimum is much more accessible to borrowers who don’t need a large loan.
Better rates than payday loans
If your credit isn’t great, it might be tempting to think of payday loans as your only option. But if you qualify for a OneMain Financial personal loan, you’ll get much better terms. What’s more, you’ll have at least two years to repay your loan, whereas payday loans only give you a couple of weeks.
What to keep in mind about OneMain Financial personal loans
No lender is perfect. While reviewing OneMain, I found a few things to consider if you’re thinking about applying.
You could get better terms elsewhere if you have good credit
The lender’s website lists an example of a borrower with good credit getting approved for a loan with a 24.99% APR. That’s high compared with other lenders that target borrowers with good credit.
The lender isn’t forthcoming on its origination fees
We couldn’t find any specifics about OneMain’s origination fees on the website. When I called, a representative told me only that it varies by state. Some other lenders charge origination fees, but they’re clearer upfront about what you might have to pay.
Should you apply for a OneMain Financial personal loan?
If you have fair credit, OneMain Financial might be able to offer you competitive interest rates and terms. But it’s important to check out other options before applying.
Compare several personal loan companies to make sure you’re getting the best offer. Also, come up with a plan for repayment before finalizing your loan. Our personal loan calculator can help you estimate monthly payments and understand the long-term costs of borrowing.
Note: Student Loan Hero has independently collected the above information related to OneMain Financial personal loans. OneMain Financial has neither provided nor reviewed the information shared in this article.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|7.73% – 29.99%||$1,000 - $50,000||Visit Upstart|
|6.26% – 14.87%1||$5,000 - $100,000||Visit SoFi|
|6.99% – 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% – 25.00%2||$5,000 - $35,000||Visit Payoff|
|4.99% – 29.99%3||$10,000 - $35,000||Visit FreedomPlus|
|5.99% – 18.99%4||$5,000 - $50,000||Visit Citizens|
|15.49% – 34.49%5||$2,000 - $25,000||Visit LendingPoint|
|6.16% – 35.89%6||$1,000 - $40,000||Visit LendingClub|
|6.99% – 18.24%7||$5,000 - $75,000||Visit Earnest|
|9.95% – 35.99%8||$2,000 - $35,000||Visit Avant|