OneMain Financial vs. Avant: Which Personal Loan is a Better Fit for You?

OneMain Financial vs. Avant: Which Personal Loan is a Better Fit for You?

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While Avant and OneMain Financial have very similar loan products, there are some situations in which one lender will be a better fit than the other. Generally speaking, we recommend Avant for borrowers with credit scores between 620 and 700 and OneMain Financial for borrowers whose credit scores fall below this range. If you happen to have a credit score above 700, we recommend that you consider other lenders that have lower rates.

OneMain Financial vs. Avant

Avant and OneMain Financial offer very similar personal loans. The annual percentage rates, terms, and loan amounts offered by each company are comparable, as are their fees and speed of funding. One of the main differences between these two companies is that OneMain Financial may require you to make a branch visit to complete the loan application. Avant, on the other hand, provides a completely online application process.

OneMain Financial

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Avant

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Amounts$1,500 - $20,000$2,000 - $35,000
Rates18.00% - 35.99%9.95% - 35.99%
Terms2 to 5 years2 to 5 years
Fees
  • Origination fees, late payment fees and NSF/returned payment fees vary by state
  • No check processing fees
  • No prepayment penalties
  • Origination fee: 0.95% - 4.75%
  • Late payment fee: $25
  • NSF/returned payment fee: $15
  • No check processing fee
  • No prepayment penalty
Funding Time1+ days1+ days
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How to Qualify

While neither company divulges strict cutoffs for its loan products beyond age and residency requirements, there are still some differences when it comes to qualifying at each company. On its website, Avant states that most of its borrowers have FICO credit scores between 600 and 700. Because of this, it’s likely that borrowers with credit scores under 600 will have a harder time getting approved for a loan at Avant.

In contrast, almost half of OneMain Financial’s 2016 lending volume went to borrowers with credit scores under 620, according to the company’s public filings. However, in many cases, these borrowers were required to put up collateral (typically their personal vehicle) to receive a loan. Generally speaking, we think Avant is better suited to borrowers with credit scores between 620 and 700, whereas OneMain Financial is better suited to for borrowers with credit scores below this range.

OneMain Financial
Avant
Eligibility Criteria
  • U.S. resident with Social Security Number
  • At least 18 years old
  • U.S. resident with Social Security Number
  • At least 18 years old
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How to Choose Between the Two

While Avant and OneMain Financial offer very similar loan products, there are some scenarios in which one lender is a better choice than the other. We take a look at these scenarios below:

OneMain Financial
Avant
Better For
  • Borrowers with credit scores under 620.
  • Those who want an entirely online experience.
  • Borrowing more than $25,000.
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If you want an end-to-end online application process, consider Avant. OneMain Financial requires applicants to make a branch visit to complete their loan application. While the company states on its website that roughly 83% of Americans live within 25 miles of a OneMain Financial branch, this may still be an inconvenience for applicants. Avant is an online lender and, as such, requires no in-person visits or phone calls to complete a loan application.

If you have a credit score under 620, consider OneMain Financial. As mentioned previously, almost half of the company’s lending volume went to borrowers with credit scores under 620. Even though many of their loans are secured, OneMain Financial is one of the few lenders that will work with "subprime" borrowers while still offering fair interest rates. For comparison, many payday lenders, who also lend to borrowers with poor or limited credit history, charge interest rates as high as 400% and require borrowers to pay back the loan over a short period, usually two or three weeks.

If you want to borrow more than $25,000, consider Avant. OneMain Financial only makes personal loans up to $25,000 while Avant lets applicants borrow up to $35,000. However, just because you can borrow more than $25,000 through Avant doesn’t mean you will qualify for that much. In order to borrow this much, you will first need to demonstrate enough income to comfortably support repayment on the loan. Provided you have enough personal income, you will also need to show the company that taking on a loan won’t increase your debt burden too much. Lenders assess how reasonable an applicant’s debt burden is by looking at his or her debt-to-income ratio, which measures the debt an individual is carrying as a percentage of their income.

If you have a credit score of 680 or higher, consider other lenders. Neither Avant nor OneMain Financial offers an annual percentage rate below 9%, making both lenders less than ideal for creditworthy applicants. If you have good to excellent personal credit, as reflected by a credit score between 680 and 850, we recommend considering a lender like SoFi, Earnest or LendingClub, as all of these companies have minimum APRs of well below 9%.

If none of these conditions applies to you, check your rate at both lenders (and maybe other lenders too). Both OneMain Financial and Avant let you check your rate online without any affect on your credit score. If you think either lender may be a good fit for you, we recommend getting a rate quote on the lender’s website. We also recommend applicants check their rate at other lenders, as it’s in your best interest to get the lowest possible rate on a personal loan.

Madison is a former Research Analyst at ValuePenguin who focused on student loans and personal loans. She graduated from the University of Rochester with a B.A. in Financial Economics with a double minor in Business and Psychology.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.