OneMain Financial is a personal loan lender that lends to people who typically have less than excellent credit. The company is potentially able to offer personal loans to people with lower credit scores, and they do not disclose an income requirement.
It's important to note that personal loans aren't for everyone. You should be borrowing a personal loan with a specific goal in mind, such as consolidating debt at a lower interest rate to save money. Given that you can potentially qualify for a loan with poor credit, the interest rate may be higher than other loan types.
For example, you want to ask yourself if you would be better served by a balance transfer credit card or personal loan if going after credit card debt.
While OneMain Financial is a solid choice for borrowers, we also recommend shopping around for personal loans. Credible has a super-easy to use tool to shop around for personal loans in 2 minutes or less. Try Credible here and see if it makes sense to use them or OneMain.
- Secured and unsecured personal loans
- Over 1,500 branches in 44 states
- Funds can be deposited as soon as an hour after loan closing using an eligible bank-issued debit card
OneMain Financial Loan Options
OneMain Financial offers several loan options, including both secured and unsecured loans.
Unsecured loans are the typical personal loans, and they are based on the borrowers credit. OneMain Financial differentiates itself by offering loan options to borrowers with less than perfect credit histories. It's important to note, though, that these borrowers will face higher interest rates than more qualified borrowers. However, depending on what the loan is used for, it could still make sense.
OneMain Financial also offers secured loans. These are loans that are backed by some type of collateral. Your loan is secured by your vehicle. The benefit of a secured loan is that you may qualify for one if you don’t qualify for an unsecured loan or the interest on the loan may be lower than an unsecured option. The drawback, however, is that if you don't make your payments, you could have your car repossessed.
Once you're approved, you'll receive your payment by check, ACH transfer, or funds can be deposited as soon as an hour after loan closing using an eligible bank-issued debit card.
Rates And Terms
OneMain Financial offers a variety of rates and terms to its borrowers. These programs are always subject to change, so check with your lender before proceeding.
At OneMain, you can borrow between $1,500 and $20,000, with minimum and maximum limits varying by state*. Compare that with Credible, where you can borrow between $1,000 and $50,000.
These limits are also better than you could typically get with a tax refund anticipation loan, which is based on the value of your tax refund.
They offer repayment terms of 24, 36, 48 or 60 months*, with no prepayment penalty if you pay the loan off early.
You can't know what your interest rate is until you pre-qualify. You can sign up and pre-qualify here.
When OneMain Financial Makes Sense
One of the biggest uses for a personal loan is debt consolidation. If you have a lot of credit cards or other loans at a high interest rate, you could potentially save money by getting a personal loan and consolidating all the other cards into this one loan. But check the APR and fees associated with the loan to ensure you would actually save money.
Depending on the other interest rates, this could save you a lot of money each month.
Some other common uses for a personal loan include:
- Emergency expenses (such as auto or home repair)
- Unexpected medical or dental bills
Why we like OneMain Financial is that they do not use a credit score (OneMain uses proprietary scoring that factors in items from you credit report and other information) and reasonable income requirements to qualify borrowers.
However, the amount you can borrow, the interest, and more are determined by the following factors like (this is not a complete list):
- Financial History
- Credit History
- Income and Expenses
- Loan Purpose
- Whether you have filed for bankruptcy
- State of Residence
- Other factors that may change from time to time
How To Apply
OneMain Financial makes it really easy to apply. You can simply go to their website here to find out if you are prequalified.
The pre-qualification application is easy and just asks a few questions, such as:
- Your name, address, and phone number
- Date of Birth
- Last 4 Digits Of Your Social Security Number
- Income and Employment Information
- How Much The Loan Is For
- Loan Purpose
If approved, you'll also need to provide some copies of key information, like a government-issued ID, proof of residence, and proof of income.
You can upload this information online, or visit a OneMain branch location.
OneMain Financial Alternatives
OneMain Financial isn't the only company that makes getting a personal loan easy. However, they are one of the best when it comes those with less than perfect credit.
Here are some of the best alternatives to OneMain Financial if you're shopping around to compare your options:
Credible - Credible allows you to compare your personal loan options with multiple different lenders in just 2 minutes with no hard credit check. We always recommend shopping and comparing your options, especially when it's quick and easy.
Upstart - Upstart offers personal loans from $1,000 to $50,000, but they have some higher standards that OneMain Financial. However, if you have good credit, you might find a better interest rate on a loan from Upstart.
Lending Club - Lending Club is a peer to peer borrowing platform with other investors online will lend you money for your loan. As such, you might be able to get a good interest rate and terms if you are a high quality borrower. However, for low or no credit borrowers, Lending Club won't be a great option.
Check out some of the best other personal loan lenders here.
If getting a personal loan is the right financial decision for you, it's important that you shop around and compare your options to get the best rates and terms you can qualify for.
If you're a borrower with less than perfect credit, OneMain Financial may be a great place to apply for a loan that meets your needs.
Always remember, responsible borrowing is the key to financial success. Make sure you borrow with a plan and always make your payments on time to have a strong credit history.
Example Loan: If you borrowed $6,000 with a 24.99% APR and 60 month term, your payments would be $176.07 per month. This example is based on an average customer with good credit.
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. 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). APR’s are generally higher on loans not secured by a vehicle. Active duty military, their spouse or dependents covered by the Military Lending Act may not pledge any vehicle as collateral.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
OneMain Financial Personal Loans
- Rates And Fees
- Application Process
- Customer Service
- Products And Services
OneMain Financial is a personal loan lender that lends to be people who typically have less than excellent credit. The company doesn’t disclose minimum income requirements.
- Offers personal loans via a network of brick and mortar locations
- Allows customers to apply online and close remotely in some instances
- Offers loans for individuals with less than excellent credit
- Their rates and fees may be higher than other lenders
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.