OneMain Financial vs Prosper: Which Personal Loan is Right for You?

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Deciding between OneMain Financial and Prosper depends on your financial support and needs as a borrower. OneMain Financial would be the better choice if you have fair to poor credit and need financing quickly, while Prosper is a good option for larger loans, potentially lower interest rates and financing for medical procedures.

OneMain Financial vs Prosper

Prosper and OneMain Financial provide personal loans for different borrower profiles and thus have dissimilar terms interest rates and eligibility requirements. Prosper is more strict with who it will lend to, allowing the company to offer lower interests rates compared to OneMain Financial. On the other hand, OneMain Financial is able to provide financing within one day and has very few requirements for potential borrowers.

OneMain Financial

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Prosper

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Amounts$1,500 - $30,000$2,000 - $40,000
Rates16.05% - 35.99%6.95% - 35.99%
Terms2 to 5 years3 or 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: 2.4% - 5%
  • Late payment fee: Greater of 5% of monthly past due or $15
  • NSF/returned payment fee: $15
  • Lesser of 5% of payment or $5
  • No prepayment penalty
Funding Time1+ days3+ days
Apply NowApply at OneMain FinancialApply at Prosper

How to Qualify

Prosper has defined requirements with credit score, debt-to-income ratio and credit history cut-offs. The typical borrower at Prosper has a credit score of around 710 and an annual income of $90,883. Keep in mind that Prosper is essentially a marketplace for loans. Once you apply and are approved, Prosper opens up your loan for funding by investors that choose loans based on personal financial history, including credit score, debt-to-income ratio, employment status and bankcard utilization.

Unlike Prosper, OneMain Financial doesn't have specific qualifications for its loan products besides age and residency, making it a good option for those with lower credit scores. In 2016, around 50% of OneMain Financial's total dollar amount lent went to borrowers with credit scores lower than 620. However, 43% of personal loans in 2016 provided by OneMain Financial were secured by collateral. So, even though OneMain Financial has few eligibility requirements, you may be required to put your vehicle or another asset up for collateral to secure the loan.

OneMain FinancialProsper
Eligibility Criteria
  • U.S. resident with Social Security Number
  • At least 18 years old
  • Credit score of 640 or higher
  • Debt-to-income ratio under 50%
  • Income greater than $0
  • No bankruptcies in last 12 months
  • Fewer than 7 credit inquiries in last 6 months
  • At least 3 open trades on credit report

How to Choose Between the Two

If you have a credit score that is 640 and above, your best bet would be to apply to Prosper. However, if you don't qualify for the lower interest rates and you need funding quickly, OneMain Financial may be the better option. Although, it’s important to note: Most applications require a visit to a OneMain Financial branch location, which can be inconvenient for borrowers wanting to complete the loan process online. Considering that OneMain Financial and Prosper are fairly different, it will be relatively simple to choose between the two based on your borrower profile.

OneMain FinancialProsper
Better For
  • Borrowers with credit scores under 640.
  • Loans over $25,000.
  • Medical procedure financing.

If you need a loan of more than $25,000, consider Proper. OneMain Financial only provides personal loans up to $25,000, whereas Prosper offers borrowers up to $40,000. But bear in mind that in order to qualify for over $25,000, you must prove that you have the financial support for it, including a high personal income and good credit history. If you need more funding, we recommend taking a look at SoFi or Lightstream, which both provide loans for up to $100,000.

If you have a credit score under 640, consider OneMain Financial. Prosper requires borrowers to have a credit score of at least 640 to be eligible for a loan while OneMain Financial mostly provides loans to borrowers with credit scores below 620. Many lenders choose not to provide loans to borrowers with low credit, making OneMain Financial one of the few. However, you may be required to secure the loan with collateral, which can be off-putting for borrowers but allows the lender to offer more competitive interest rates for those with poor credit.

If you want to finance a medical procedure, consider Prosper. Prosper has partnered with medical and dental providers to offer personal loan financing for cosmetic surgery, fertility treatments, bariatric surgery and dentistry procedures. Depending on the procedure, your provider and your credit history, you may qualify for 0% interest and you may be able to apply directly in participating doctor's offices.

If you need fast funding, consider OneMain Financial. OneMain Financial is able to disburse funds to borrowers within a day or more. In contrast, Prosper is a peer to peer lender that matches borrowers to investors, with a process that usually takes at least three days. So, if you need funding quickly, have all of your necessary documents and would rather not wait for investors, OneMain Financial might be the better option.

If none of this applies to you, check your rate at both lenders (and maybe other lenders too). Checking your rate at both lenders won't affect your credit score, so we recommend comparing both companies to see what rates and terms you qualify for. If you're still looking for personal loan options, you can also check out our top personal loan picks, which displays the best lenders for all borrower types.

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