OneMain Financial September 2023 Review

OneMain Financial has a solid track record as a lender. The company offers both unsecured and secured personal loans. The former are installment loans requiring no collateral, while the latter require collateral in the form of an eligible motor vehicle.

OneMain Financial permits co-signers on its personal loans. That’s a great benefit for those with no or low credit scores.

OneMain Financial Personal Loan Top Features

Lower credit scores may qualify: OneMain Financial doesn't have a minimum credit score to qualify for a personal loan. 

Loan limits: OneMain offers loans from $1,500 to $20,000 repayable between 2 and 5 years.

High rates: Interest rates range from 18% to 35.99%. The high rates reflect OneMain accepting borrowers with bad credit.

Expensive fees: The most significant fee is your origination fee, which is deducted from the loan upfront. OneMain says, “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." OneMain also charges late fees and a fee for having a payment not go through due to insufficient funds.

Secured and Unsecured: If you own a car outright and use it as collateral., you will be able to borrow more and get a better rate than an unsecured loan.

Fast Funding: Previously, OneMain Financial required borrowers to come to a branch to receive the funds. However, they now offer funding through an online transfer or a check. Online applications approved by noon can be funded the same day.

44 States: You can get a OneMain Financial loan in every state and Washington DC except for Arizona, Arkansas, Connecticut, Massachusetts, Rhode Island, and Vermont. They accept applications online.

Limited uses: OneMain Financial imposes certain restrictions on how you can use your personal loan. You cannot use these funds for any business or commercial purposes. Neither can you pay for postsecondary educational expenses or use the loan for investment. You cannot use a personal loan for illegal activities or gambling, either.  

No prepayment fees: Pay your loan off early without concern for prepayment fees. 

1,400 locations: Prefer to do business in person? OneMain Financial has over 1,400 locations nationwide. 

Where OneMain Financial Can Improve

No lender is perfect for everyone. There are areas in which OneMain Financial can improve. For example, OneMain Financial’s rates are higher than many other lenders. 

Larger loans require collateral. The collateral is generally a motor vehicle less than 10 years old. Default on the loan and you lose your car.

Origination fees are high. In some states, the loan origination fee is as much as 10% of the loan amount. That means a $10,000 loan costs the borrower $1,000 in origination fees.

Qualifying for a OneMain Financial loan

Qualifying for a OneMain Financial loan is easier than for some competitors. The process is straightforward, and you’ll know if you prequalify within minutes. 

If seeking a larger loan, you must provide a first lien on a motor vehicle no more than 10 years old, titled in your name, with current insurance. Active duty military personnel, their spouses, and dependents covered by the Military Leave Act cannot pledge a vehicle as collateral.

The vehicle must meet OneMain Financial value requirements. Also, APRs are higher on loans unsecured by a vehicle. 

OneMain Financial personal loans are available in 44 states. If you live in the following states, note these minimum loan amounts:

• Alabama: $2,100
• California: $3,000
• Georgia: $3,100, unless you are already a customer
• North Dakota: $2,000
• Ohio: $2,000
• Virginia: $2,600

In North Carolina, the maximum unsecured loan amount is $7,500.

OneMain Financial’s prequalification option lets you apply only to see if you prequalify. This is a soft credit pull, so it does not affect your credit score. Since this is not an official application, keep in mind that your loan terms could change once you complete a formal application.  

How to apply for a OneMain Financial loan

With OneMain Financial, you have three options when applying for a personal loan. You can apply online, by phone, or in person. OneMain Financial has approximately 1,400 locations nationwide. After-hours appointments are available.

You will need to provide the following information on your loan application for income and identity verification:

• Copy of a valid, government-issued ID, such as a driver’s license
• Proof of residence, such as a signed lease, utility bill, or driver’s license with current address
• Proof of income, such as pay stubs or tax returns

On average, completing the application and receiving an initial response takes just 10 minutes. 

Loan approval and loan funding from OneMain Financial

OneMain Financial charges origination fees based on the state in which you live. These fees are either a percentage of your loan or a flat fee. Depending on the state, flat fees range from $25 to $500. Percentage-based fees also vary by state, ranging from 1% to 10% of the loan amount. Some states impose limits on origination fee amounts. 

The origination fee is found on the first page of the loan agreement. Look at the bottom of the page under “Prepaid Finance Charges.” Make sure you understand all loan terms and fees before signing the loan documents. 

Loan terms depend on:

• Credit history
• Income
• Expenses
• Debts
• Available collateral

After approval, review your loan and sign the loan documents. You should receive your loan within two business days.

You can receive funds either via direct deposit into your checking or savings account, or you can pick up the check at your local OneMain Financial branch. 

What if you decide you don’t need the loan after all? After receiving your loan, you have seven calendar days to cancel the loan and return the money. 

OneMain Financial offers several options for making loan payments. These include:

• The company’s Make a Payment page
• Pay automatically with Recurring Payments
• Pay by phone
• Pay by mail
• Pay in person at any OneMain Financial branch

OneMain Financial: Customer service and customer satisfaction

OneMain Financial rates highly for customer satisfaction. Customer reviews note the company’s good customer service and convenience.

OneMain Financial has an A+ rating from the Better Business Bureau.

When a OneMain Financial personal loan might be the best choice

If your credit score is low, you can still obtain a personal loan from OneMain Financial. It’s also a good choice for those applying with a co-signer. 

For those wanting to borrow relatively small amounts of money, under $20,000, a OneMain Financial personal loan is a sound choice. Fund an emergency car or home repair or other unexpected expense relatively easily with a OneMain Financial personal loan.