OneMain Financial-Pеrѕоnаl Lоаnѕ Rеviеw

OneMain Financial is a prominent lender specializing in personal loans. It caters to individuals with less-than-perfect credit histories. With a legacy spanning over a century, the company has established itself as a reliable source for borrowers seeking secured and unsecured loans. The organization operates in more than 1,500 locations across 44 different countries.

This review analyzes OneMain Financial’s loan offerings, including loan terms, interest rates, eligibility criteria, application procedures, and customer experiences.

Overview of OneMain Financial

OneMain Financial, founded in 1912 as a Commercial Credit Company in Baltimore, Maryland, has grown into a substantial institution within the personal lending market. With a broad network of about 1,400 branches across 44 states, OneMain Financial aims to make loans accessible through both online services and face-to-face interactions.

OneMain Financial focuses on lending to individuals who may find it challenging to secure loans from traditional banks, often due to credit issues or limited financial history. Their services are designed for people needing personal loans with more flexible requirements, enabling access to funds without the rigid standards typical of mainstream banks. Loan amounts generally range from $1,500 to $20,000, accommodating various financial needs such as debt consolidation, home repairs, medical expenses, and other personal purposes.

Unlike many online-only lenders, OneMain Financial provides a hybrid service model, allowing customers to apply online and, if needed, visit a branch for further guidance. This model supports a more tailored experience, as customers can receive advice and support from loan specialists who understand individual financial circumstances. Furthermore, OneMain Financial offers additional services beyond personal loans, such as optional credit insurance, helping borrowers protect their loans in cases of unexpected events.

Over the years, OneMain Financial has become recognized for its specialization in working with non-prime borrowers. By focusing on individuals with varying credit backgrounds, the company plays a distinct role in the lending market, filling a gap for those who might otherwise struggle to find financial assistance. Through this focus, OneMain Financial has built a reputation for providing accessible loan options while maintaining responsible lending practices that support its customer base’s diverse financial needs.

Pros and Cons of OneMain Financial Personal Loans

Best Qualities

• It’s possible to choose between secured and unsecured transactions.
• Additions to the original signee are accepted.
• Prequalification is available to borrowers after a light credit check.
• Loans with lower credit ratings are approved at OneMain.

Below is a quick overview of the Best Features and Drawbacks of the company at a glance:

Downsides

• The money from the loan can’t be used to start a business.
• The closing process must be completed at a physical location.
• The interest rates are greater than those of competing lenders.
• The need for collateral increases with loan size.

Best Features	Drawbacks
Works with borrowers who have less-than-perfect credit.	APRs as high as 35.99%, which is more than some competitors.
Offers secured loans, which may have better terms.	Origination fees increase the total cost of the loan.
Possible same-day funding once approved.	Not available in every state; availability should be checked locally.
Wide network of branches for in-person consultations	Loan funds cannot be used to start a business.
	Requires closing the loan process at a physical location.

Different Personal Loan Types and Amounts with OneMain Financial

OneMain Financial offers both secured and unsecured personal loans. Here’s a more detailed breakdown of each type:

Unsecured Personal Loans

These loans don’t require any form of collateral and are often favored by borrowers with fair to good credit ratings. OneMain provides unsecured loans ranging from $1,500 to $20,000. The amount you can borrow depends on various factors, including your credit history, income level, and applicable state laws. 

The interest rates for these loans are relatively high, ranging from 18% to 35.99% APR. They can be used for various personal expenses, such as debt consolidation, medical bills, or emergency costs.

Secured Personal Loans

For those who may not qualify for unsecured loans due to lower credit scores or who require larger loan amounts, OneMain offers secured loans. These loans require collateral, typically a vehicle, which may result in more favorable terms, such as lower interest rates and the possibility of borrowing more money.

Just like unsecured loans, the amount available can vary greatly and is influenced by the borrower’s creditworthiness and state regulations. Loan amounts for secured loans can also go up to $20,000, but they tend to have lower APRs due to the collateral offered.

Is There a Limit to How Much You Can Borrow from OneMain?

OneMain Financial offers personal loans for several different purposes. Standard loan applications cover a wide range of uses, such as:

• Consolidation of Debt,
• Getting a car, fixing one up, or switching over your loan
• Funeral and wedding costs
• Unpaid medical bills
• Vacations
• RVs or recreational vehicles,
• Makeovers to the house

Cash from a personal loan can’t be put toward things like:

• Tuition at an institution of higher learning
• Reasons related to business or commerce
• Doing something illegal
• Investing
• Gambling

Where You Can (and Where You Can’t) Use OneMain Financial Personal Loan?

OneMain Financial personal loans can be used for various purposes, including debt consolidation, which combines various debts into one loan with potentially lower monthly payments, covering vehicle costs such as buying, repairing, or refinancing a vehicle loan, handling moving costs, and addressing emergency expenses. These loans can also help pay for significant life events like weddings and funerals, cover unpaid or unexpected medical bills, fund recreational vehicle purchases, finance vacations, and support home improvement projects like repairs or upgrades.

However, there are restrictions on the use of these loans. They cannot be used for postsecondary educational expenses such as college, university, or vocational school costs. Furthermore, purchasing crypto assets, securities, derivatives, or other speculative investments is prohibited. The loans also cannot be used for business, illegal activities, or investing and gambling purposes.

What Are the Credit and Financial Requirements to Qualify for a Loan with OneMain Financial?

OneMain Financial does not have a minimum credit score requirement for its personal loans, which means individuals with less-than-perfect credit histories can apply. While many lenders set a minimum FICO score of 660, OneMain Financial is open to considering applicants with lower scores or limited credit experience.

A credit score is only one part of the approval process. OneMain Financial also looks at:

• Credit history: Your previous borrowing and repayment activities.
• Income: Your earnings and their sufficiency for loan repayment.
• Expenses: Your ongoing financial commitments.
• Debt-to-income ratio: The percentage of your income that is directed towards debt repayment.
• Available collateral: Assets that you can use as security for the loan, which may be necessary for larger amounts.

Application Process of OneMain Financial-Pеrѕоnаl Lоаnѕ

Applying for a personal loan with OneMain Financial includes the following steps:

1. Prequalification:

Prospective borrowers start by filling out an online form that does not impact their credit score. This initial form collects essential personal and financial details such as employment status, income, and existing debts.

OneMain Financial then provides a preliminary loan offer, showing possible loan amounts, interest rates, and repayment terms. This involves a soft credit check, which does not alter the applicant’s credit score. Prequalification helps applicants determine if they wish to proceed based on the initial terms offered.

2. Application Submission:

After prequalification, applicants enter the full application phase, submitting more comprehensive information and required documents, including:

• Proof of Income: Pay stubs, tax returns, or bank statements.
• Proof of Identity: A driver’s license, passport, or Social Security card.
• Collateral Information (if applicable): Details about the collateral are required for secured loans, like vehicle data for auto-secured loans. OneMain Financial evaluates these documents to confirm the submitted details and to check if the applicant meets the loan eligibility criteria.

3. In-Person Consultation:

For the in-person consultation step of the application process, OneMain Financial generally mandates that applicants come to a local branch to complete their loan agreements. At this meeting, a loan specialist meticulously reviews the submitted application, discusses various loan options, and verifies the documentation provided by the applicant.

This includes checking government-issued identification like a driver’s license or passport, a Social Security card, proof of residence through documents such as utility bills, a signed lease, or an additional ID with an address, and confirmation of income through recent pay stubs or tax returns.

4. Approval and Funding:

If approved, borrowers may receive funds as soon as the same day, depending on when the loan is finalized. Loans funded after noon may be disbursed on the next business day. Funds deposited via ACH may take up to two business days to become available.

Alternatively, using a U.S. bank-issued debit card can activate OneMain’s SpeedFunds service, allowing immediate access to funds once the loan is closed.

Repayment Options for OneMain Financial Personal Loans

OneMain Financial offers personal loans with repayment terms ranging from 24 to 60 months (two to five years), providing the option to balance monthly payment amounts with the total interest paid over the life of the loan. The loans come with fixed interest rates, ensuring consistent monthly payments throughout the loan term. Additionally, OneMain Financial does not impose early repayment fees, so borrowers can settle their debts early without incurring extra charges.

Additionally, Borrowers can request a change to their payment due date, subject to certain conditions, such as not being more than 10 days past due and having made at least one contractual loan payment.

OneMain Financial offers a variety of repayment methods for personal loans to suit different preferences and financial situations. Borrowers can make payments online, including one-time payments, or by enrolling in AutoPay for automatic deductions from their accounts. Alternatively, payments can be made through the OneMain Financial mobile app, in person at any branch, over the phone, by mail, or using the PayNearMe service at locations like CVS and Walmart. Additional options include more frequent payments, changing payment due dates, and early payoff without penalties, all aimed at providing flexibility to the customer.

What Are the Charges to Consider When Applying for OneMain Personal Loan?

When you apply for a personal loan with OneMain Financial, you should consider several fees that may apply. The lender charges origination fees, which cover processing a new loan. These fees differ by state and can be a flat amount ranging from $25 to $500 or a percentage of the loan amount, typically between 1% and 10%, with specific limits set by state regulations.

Additionally, if a payment is late beyond any state-permitted grace period, OneMain Financial charges late payment fees. These also vary by state and may be a flat fee between $5 and $30 or a monthly payment percentage ranging from 1.5% to 15%. Furthermore, there are non-sufficient funds (NSF) fees if a payment is returned due to lack of funds in your account. Depending on the state, NSF fees can range from $10 to $50 per returned payment.

Is OneMain Financial a Reliable Lender, and What Should Borrowers Consider Before Applying?

The company primarily provides personal and auto loans and is known for its longstanding presence in the lending industry, indicating stability and substantial experience. OneMain Financial is rated A- by the BBB and has maintained accreditation since 2015. Customer feedback is generally positive, reflected in an average rating of 4.13 stars out of 5 from over 2,400 reviews on the BBB’s website and a 4.7 out of 5 stars on Trustpilot from more than 64,000 reviews.

In May 2023, the Consumer Financial Protection Bureau (CFPB) imposed a $20 million fine on OneMain Financial for allegedly engaging in deceptive sales practices and failing to refund customers who canceled optional add-on products. The company has since agreed to pay the fine and to revise its policies accordingly.

Customer opinions on OneMain Financial vary. Some borrowers appreciate the swift loan approval process and effective customer service, while others criticize the high interest rates and fees. The APRs for OneMain Financial’s personal loans range from 18% to 35.99%, which is relatively high compared to many of its competitors.

While OneMain Financial has proven to be a legitimate lender with strong ratings and a significant track record, potential borrowers should be mindful of its history with regulatory issues. Exploring various lenders to secure loan terms that best fit individual financial needs is recommended, especially considering the potential high costs associated with OneMain’s products.

When Considering a Loan, What Should You Know About OneMain Financial’s Rates, Fees, and Repayment Options?

A personal loan from OneMain Financial can range from $1,500 to $20,000. Repayment durations might be anything from 24 to 60 months. You might get an unsecured or secured loan, but it all depends on your credit score. To get approved for a secured loan, you’ll need to put up some collateral, such as a car. The federal government sets the minimum and maximum loan amounts, while individual states set their own. A minimum loan amount of $3,000 is mandated in California, whereas the maximum unsecured loan amount in Florida is $8,000. In its disclosure of borrowing fees, OneMain explains these factors.

OneMain Financial loans include interest rates between 18.00% and 35.99% per year.

After your loan is authorized, the money will be sent to you the next business day. Lenders often assess an origination fee of 1% to 5% of the loan amount. Depending on the state, prices are set from $25 to $400. Loan origination costs might amount to between one and ten percent of the principal borrowed.

OneMain Financial’s loan late fees are subject to state regulation and may differ significantly from state to state. There are loans with fixed interest rates and loans with variable interest rates. Fees can be paid at a flat rate between $5 and $30 or as a percentage of the past-due balance, between 1.5% and 15%. The cost for a bounced check ranges from $10 to $50.

How Long Does it Take for Money to be Deposited into OneMain?

The money from your loan will be deposited into your bank account by cheque, ACH, or a debit card issued by SpeedFunds. One to two business days following the loan closing date, ACH funds are made accessible. When the loan closes, SpeedFunds are disbursed.

What Is the Minimum Credit Score for a OneMain Loan?

Unlike many other lenders, OneMain offers personal loans to those with poor credit or a lower FICO score than the typical requirement of 660. OneMain Financial approves and assigns personal loans and terms based on more than just a borrower’s credit score. Lenders also examine borrowers’ debt-to-income ratio, collateral, and credit history.

Should You Trust OneMain Financial?

The Better Business Bureau has given OneMain Financial an A+ rating. According to the Consumer Financial Protection Bureau’s complaint database, all but one of the 177 complaints filed against OneMain Financial in 2020 were resolved promptly. Unexpected costs, difficulty making loan payments, and trouble qualifying for the loan were the top three reasons cited in customer complaints.

What Other Benefits Does a OneMain Loan Offer?

You may want to consider applying for a secured loan to obtain a lower interest rate and a higher loan amount from OneMain. Vehicle titles are one kind of acceptable collateral. If you aren’t happy with your loan from OneMain Financial, you can cancel it within seven days with no fees.

Those with less-than-perfect credit might consider a personal loan from OneMain, as well as individuals who must have a guarantor and prospective borrowers who can physically visit a branch.

Conclusion

OneMain Financial stands out as a well-established lender. It offers personal loans accessible to a broad range of borrowers, including those with less-than-perfect credit. The company’s mix of secured and unsecured loan options, flexible repayment terms, and network of branch locations provides potential borrowers with options that can be tailored to their individual needs.

However, the relatively high APRs, origination fees, and past regulatory issues highlight the importance of thoroughly reviewing loan terms and comparing them to other offers in the market. For those who meet its criteria and understand the associated costs, OneMain Financial can be a practical option. Still, all prospective borrowers should carefully assess their financial needs and research other lenders to ensure they secure the best loan terms available.

Frequently Asked Questions