OneMain Financial Personal Loan

Highlights

  • OneMain Financial offers unsecured and secured personal loans.
  • The average borrower has a FICO score below 660.
  • Compare loan offers from different lenders before applying for a personal loan.
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Is a OneMain Financial Personal Loan Right for You?

OneMain Financial is one of the non-bank lenders that opened up the personal loan market to borrowers with bad credit.

Did you know that More Americans applied for personal loans in 2018 than in any year before? Personal loan balances also increased to a record high of over $138 billion, more than $21 billion higher than the year before. Online lenders have driven a big part of the growth of the personal loan market, FinTech firms that are bringing about changes throughout the financial services industry.

With many personal loan providers to choose from, it is important to shop around and find the lender that fits your situation. Learn more about OneMain Financial and the type of personal loan they offer.

OneMain Financial Rates, Fees, and Terms

You can tell by the interest rates that OneMain offers that they are not aiming for the prime credit borrower. As of May 2019, OneMain offers personal loans with:

  • Loan amounts from $,1500-$30,000 with some states enforcing different minimums and maximums.
  • Interest rates between 16.05% and 35.99% APR.
  • Repayment terms of 2, 3, 4, or 5 years
  • Origination fees that vary by state
  • A requirement to physically visit a branch location to finalize your loan
  • Quick funding after loan approval.
  • You are a resident of any state in the USA other than Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, and Vermont, or of Washington D.C.

Fair Credit and Below

OneMain Financial targets consumers with fair credit scores and below. These scores are too low to qualify for loans from banks, credit unions, and other online lenders that require strong credit and offer better rates. As a rough guideline, their customers have credit scores below 660.

It can be hard to know if a personal loan lender will classify your credit score as very good, good, or fair. Credit scores, in general, can be confusing. For example, your credit score for a personal loan is not the same as your score for an auto loan or mortgage loan, even if you speak with a bank about all three products on the same day.

Don't get bogged down in over-thinking your credit score. The bottom line in finding the best loan is not what one lender tells you your credit score is versus another. It is comparing the loan offers from different lenders. Comparison shopping is, by far, the best way to find the most attractive loan.

Restrict your initial shopping to lenders, like OneMain Financial, that check your credit score without affecting your score. To be careful, before any lender pulls your credit, ask if they do a hard or soft pull. Only allow lenders that do a soft pull to access your credit to provide you a quote. Then choose the one with the best quote to make a formal application, which will result in a hard credit pull.

Unsecured and Secured Personal Loans 

OneMain Financial offers unsecured personal loans that require no collateral. They also provide secured loans that require security vehicle title. The lower your score, the likelier that you will be required to provide additional guarantees.

OneMain gives some borrowers a choice of an unsecured personal loan and a secured personal loan, with a lower rate available to borrowers who offer collateral.

Choose carefully, if offered both options. The lower interest rate is more appealing; however, a missed payment can lead to losing your car. The loss of a vehicle can make daily life next to impossible depending on where you live and what alternatives exist for getting to work, shopping, and transporting your family.

Get A Personal Loan Quote Now

In about one minute, you can see some preliminary personal loan rates from lenders, based on your Zip Code, loan purpose, loan amount, and estimated credit score.

OneMain Financial - A Unique Combination of an Online and In-Person Loan Process

OneMain Financial offers a simple loan online loan application which provides you with a rate quote and preliminary loan decision. However, they have a more complicated loan process due to their requirement that you come into one of their physical branch locations to finalize your loan. The good news is that OneMain has over 1,600 locations throughout the US. According to a 2016 report, 87% of Americans live within 25 miles of one of OneMain’s branches.

Can a High Rate Loan Be a Good Decision?

OneMain Financial offers personal loans with high rates. That doesn't make it a bad choice. It is wise to be extra careful when borrowing at a high rate. Sometimes, the decision is a simple mathematical decision. For example, does a debt consolidation loan save you money and give you an affordable payment? Other loan decisions are far more personal and subjective, is having the wedding you have your heart set on worth taking on $20,000 at 21% interest and a monthly payment of $650 for 48 months? 

Two borrowers can reach opposite decisions when weighing identical loan offers. To make a smart decision, before you take a loan be realistic about the purpose of the loan and its benefit, and your ability to afford the monthly payment. After you take the loan, be responsible about repaying the loan and be mindful about running up new debt. This is especially true if you take a debt consolidation loan. A OneMain debt consolidation loan, even with a high rate, could be a good choice, if you pay off even higher interest rate credit cards, and it is the best deal you can find. That benefit will be wiped out if you run up new debt on your credit cards.

Pros and Cons of a OneMain Financial Personal Loan

A OneMain personal loan is not right for everyone. For sure, borrowers with strong credit scores should look elsewhere. But, a personal loan from OneMain can provide cash to qualified borrowers with fair credit or worse. 

Some of the Pros of a OneMain Personal Loan:

  • Wide coverage, they offer loans in 44 states.
  • Ability to offer secured and unsecured loans
  • Accepts co-applicants, making it easier for some borrowers to qualify
  • Quick funding, after approval

Some of the Cons of a OneMain Personal Loan:

  • They charge an origination fee.
  • You are required to visit a branch location before funding.
  • The secured loan option puts your vehicle or whatever you use to secure the loan at risk.
  • Higher interest rates
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