OneMain Financial Review

OneMain Financial Review Summary

OneMain Financial loans are best for people with bad credit, as both unsecured and secured personal loans are available. OneMain Financial also has flexible lending terms, allowing borrowers to pay back their loans in 24, 36, 48 or 60 months.

However, OneMain Financial personal loans are not ideal for people with excellent credit. The lowest possible APR is 18%, which is far higher than the minimum charged by many competing lenders. There’s also an element of uncertainty when it comes to fees on OneMain Financial loans. You will owe an origination fee, but it varies by the state in which you live and can be as high as 10%.

Below, you can find more information about the major pros and cons of OneMain Financial personal loans, as well as how they rate in three key categories: Terms, Requirements & Application, and Reviews & Transparency. You can also see how OneMain Financial loans compare to offers from other lenders.

OneMain Financial Interest Rates, Fees & Other Terms

Category Rating: 58% (2.9 out of 5)

• Overall APR range: OneMain Financial offers personal loans with an APR range of 18% - 35.99%. That’s quite high, considering many other lenders have maximum interest rates of 18% to 25%.
• How rates are determined: The exact rate you will get depends on your credit score, income, other debts, state of residence, and more. Additionally, your rate will be influenced by whether your loan is secured or unsecured, as OneMain Financial offers both types of personal loans.
• Origination fee: OneMain Financial personal loans come with an origination fee ranging from 1% - 10% (based on state). The amount of the fee will depend on the state in which you live.
• Loan amount & timeline: OneMain Financial offers personal loan amounts of $1,500 - $20,000, and their payoff periods range from 24, 36, 48 or 60 months.

OneMain Financial Personal Loan Requirements & Application Info

Category Rating: 90% (4.5 out of 5)

• Minimum credit score: Not disclosed, but representatives say the company considers all credit scores. Third-party sources tend to indicate your odds are decent with a score in the 600-650 range.
• Citizenship: You must be a U.S. citizen, permanent resident, or visa holder.
• Identification: You will need a Social Security number or passport to apply.
• Pre-qualification: You can check to see if you are pre-qualified for a OneMain Financial personal loan online. Unlike actually applying, this will have no impact on your credit score.
• Ways to apply: If you decide to apply for a OneMain Financial personal loan, you can do so online, over the phone, or at a branch.
• Joint Loans: OneMain Financial accepts joint loan applications, which means they allow two co-applicants to be considered together for approval and share responsibility for the loan.
• Collateral: If you decide to get a secured personal loan from OneMain Financial, you will have to put down some kind of collateral. Most commonly, this will be a vehicle such as a car, truck, RV, or boat.

OneMain Financial Personal Loan Reviews & Transparency

Category Rating: 76% (3.8 out of 5)

• Better Business Bureau: OneMain Financial gets an A- rating. They have been accredited with the BBB since 1985.

• Consumer Financial Protection Bureau: The CFPB has catalogued over 770 complaints about OneMain Financial’s personal installment loans, which is a lot compared to other lenders. Some complaints are about issues with how the loan is reported to the credit bureaus (e.g. reporting as delinquent when it is not or reporting a higher balance than is actually owed). Others detail trouble making payments. OneMain Financial has provided a “timely” response to all existing complaints.

• WalletHub: OneMain Financial has a user rating of 3.6/5 on WalletHub, so people who have taken out loans in the past have been generally satisfied.

• Transparency: OneMain Financial is transparent about most of their terms. However, they don’t have standard fees, as they depend on the state in which you live. The reason they vary between states is because different states have different laws on how much lenders can charge in fees. OneMain also doesn’t disclose minimum credit or income requirements.

OneMain Financial gets points for their high BBB rating and user score. However, their rating suffers from their large number of CFPB complaints and lack of transparency about overall ranges for certain terms and requirements.

Summary: OneMain Financial Scores by Review Category

Other Key Things to Know

• Age: You must be at least 18 years old.
• Late Fee: OneMain Financial charges a late-payment fee of $5 - $30 (based on state).
• Minimum income: OneMain Financial does not disclose minimum income requirements.
• Prepayment Fee: OneMain Financial does not have any prepayment fee.
• Residence: You must live in one of the 44 states where OneMain Financial operates. OneMain Financial is not currently available in Alaska, Arkansas, Connecticut, Disctrict of Columbia, Massachusetts, Rhode Island, Vermont and the U.S. territories.

OneMain Financial Personal Loans vs. Popular Competitors

Methodology

In order to provide the most accurate review for OneMain Financial, WalletHub used 17 key metrics grouped into three overall sections: Terms, Requirements & Application, and Reviews & Transparency. We rated each section on a scale of 0 to 5, with 5 being the best, and then averaged the scores of the three sections to produce an overall rating for the loan.

1. The “Terms” section includes information about how expensive the loan is, including rates and fees. It also takes into consideration how much consumers can borrow and how quickly they must pay it back. For companies where APR and fee ranges differ greatly by state, we used data from the most populous state serviced by the company. For OneMain Financial, we did not rely on a particular state.
2. The “Requirements & Application” section examines how easy it is to apply for a loan and how long it takes to receive the money. It also looks at exactly who is eligible to apply.
3. The “Reviews & Transparency” section measures the loan provider’s reputation as well as how clearly the lender discloses its terms and requirements. This takes into account user reviews and information from watchdog organizations.

The average of these three scores reflects how close a loan offer is to WalletHub’s definition of a 5-star loan. For more information, please read WalletHub’s full methodology.

OneMain Financial Disclosures:
You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved. Loan approval and actual loan terms depend on applicant’s state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral.
Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms. For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant’s name with valid insurance. APRs are generally higher on loans not secured by a vehicle. 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.

OneMain charges origination fees allowed by law. Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount. For information about these fees and minimum and maximum loan sizes available in certain states, visit omf.com/loanfees.

Current OneMain Customers: Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options.

Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral. If you are covered by the MLA, you are not eligible for secured loans.

Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.

Time to Fund Loans: Funding within one hour after loan closing through SpeedFunds® must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after closing.