OneMain Financial Personal Loan Review
NMLS#1136
Read more about how we rated OneMain Financial.
OneMain Financial is a lender that offers personal loans ranging from 18.00% to 35.99% at fixed rates. Unlike some online loan lenders, OneMain Financial has branches located across 44 states and may be a good fit for consumers who want a face-to-face experience during the loan process.
- Offers secured and unsecured loans: If youâre a low-credit borrower and youâre unsure of whether you would qualify for an unsecured loan, you may want to consider applying for a secured loan â meaning youâll have to provide collateral â in order to receive lower interest rates.
- High interest rates: OneMain Financial charges much higher interest rates than some other competitors, so borrowers with good credit may find better rates elsewhere.
- Small loan amounts: This lender may be a good fit if youâre looking for a small personal loan, as the maximum amount OneMain Financial offers is $20,000.
- Quick funding timeline: The time from submitting an application to receiving your loan funds may take as little as one business day. This is a quick timeline compared to some competitors.
- May change your due date: If you ever need to move things around in your budget, OneMain Financial allows you to select a new payment due date.
- Best for low-credit borrowers: While those with good credit scores can find better interest rates with competitors, consumers with low credit scores may find it easier to qualify with OneMain Financial.
OneMain Financial pros and cons
OneMain Financial offers a lot of perks to consumers looking for a personal loan, but like any lender, itâs not perfect. Hereâs what you need to know about the benefits and downsides of a personal loan with OneMain Financial.
One of the great things about this lender is the short amount of time it takes to receive your loan funds. According to OneMain Financialâs website, the process takes as little as one day from start to finish. This lender doesnât charge a prepayment fee, and consumers who donât meet OneMain Financialâs credit requirements can instead apply for a secured loan.
Unfortunately, if you take out a loan with OneMain Financial, youâll have to budget for an origination fee, which will be taken out of your total loan balance. OneMain Financial also has much higher interest rates than some competitors and may not be a good fit if youâre looking for a large loan.
OneMain Financial regulatory action
In May 2023, the Consumer Financial Protection Bureau (CFPB) fined OneMain Financial $20 million for deceptive sales tactics and illegally withholding funds from customers who canceled their loans during the âfull-refund period.â The CFPB also alleged that OneMain employees charged for optional features on loans without informing customers or deceived customers by telling them they were mandatory in order to meet sales goals.
Along with the $20 million penalty â with $10 million to go toward refunds to its customers and the other $10 million going toward the CFPBâs victims relief fund â OneMain will have to change its policies to make cancellations easier. While the lender stated in a press release that it did not agree with the CFPBâs decision, it also stated it would refund customers and lengthen its refund period moving forward.
OneMain Financial requirements
OneMain Financial isnât very transparent about its personal loan eligibility requirements. Before closing on a loan, youâll be required to provide:
- Government-issued identification (such as a driverâs license or passport)
- Proof of residence (such as a rental agreement or utility bill)
- Proof of income (such as pay stubs or tax returns)
While OneMain Financial doesnât specify its other qualification criteria, most personal loan lenders consider an applicantâs credit score, payment history, income and debt-to-income ratio. If your credit score needs a little work, take steps to improve your score before applying for new credit.
If you meet the basic requirements listed above, youâll need to disclose how you plan to use your personal loan funds. OneMain Financial allows borrowers to use its funding for a variety of purposes, but there are certain expenses you cannot put the money toward.
If OneMain Financialâs loan options wonât work for your borrowing needs, be sure to shop around for a lender that can best suit your financial goals and offer you the best rates, terms and amounts.
How to get a loan with OneMain Financial
OneMain Financial offers an easy, straightforward application process. Hereâs what youâll need to do:
- First, youâll need to input how much money youâd like to borrow, as well as your basic information, including your full name, address and contact information (your email address and phone number).
- Next, youâll need to provide OneMain Financial with your monthly income information, your employment status, your vehicle status (whether you own, lease or have an auto loan), your date of birth and your Social Security number. After submitting this information, youâll find out whether youâre preapproved for a loan.
- Next, youâll need to provide government-issued identification, income verification and residential information so that the lender can verify your information.
- After OneMain Financial verifies your information, you may have to submit to a hard credit inquiry. Once this lender officially approves you, the last step is to sign your loan contract. Borrowers typically receive their loan funds within one business day.
If youâre denied for a personal loan with OneMain Financial because of your credit score, consider these strategies to boost your odds of approval.
How OneMain Financial compares to other personal loan companies
Even if you believe OneMain Financial aligns with what youâre looking for in a personal loan, it never hurts to shop around and compare lenders. Hereâs how a OneMain Financial loan stacks up against similar lenders.
How we rated OneMain Financial
To come up with our star rating for personal loan companies, LendingTree considered 22 data points across three categories:
- Accessibility: We paid attention to whether lenders offered loans to nontraditional borrowers, as well as those without excellent credit scores. We also checked if lenders offered soft credit pulls and whether they were transparent about eligibility criteria other than credit scores.
- Rates and terms: We wanted to know if lender rates, terms, amounts and fees were not only transparent, but competitive.
- Repayment experience: We based this category on lendersâ reputations, customer support availability and unique benefits.
The data points reflect every step of the process to shop and apply for, borrow and repay personal loans. A five-star lender, for instance, has flexible eligibility requirements, offers you the chance to prequalify without commitment and supports you in zeroing your balance.
The 22 data points, culled from the lenders themselves, determine the overall rating. We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around.
LendingTree isnât paid for conducting these reviews, and lenders donât have control over their content. With our reviews and ratings, we aim to give our users the objective and exhaustive information they need to make the best possible decisions.
Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral) and your state of residence. If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. 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. Visit omf.com/loanfees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPBâs 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.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: $3,100. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600.
Borrowers in these states are subject to these maximum loan sizes: North Carolina: $11,000 for unsecured loans to all customers, $11,000 for secured loans to present customers. Maine: $7,000. Mississippi: $12,000. West Virginia: $13,500. Loans to purchase a motor vehicle or powersports equipment from select Maine, Mississippi, and North Carolina dealerships are not subject to these maximum loan sizes.
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.
Time to Fund Loans: Funding within one hour after 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 loan closing.