If you have poor to fair credit, OneMain Financial can be a good choice for a personal loan. While the rates offered by the company are higher than at other online lenders, they are much lower than what you would see with a payday loan or no credit check loan. Rates at OneMain Financial are between 16% and 36% (9.99% minimum for secured loans), and you can borrow up to $30,000 for two to five years. OneMain also rewards borrowers who pay on time or complete personal finance education by offering points redeemable for gift cards.
- Review: Should You Apply?
- Eligibility Criteria
- Personal Loan Terms and Requirements
- Application Process
- How Does Springleaf/OneMain Financial Compare to Other Lenders?
OneMain Financial Personal Loan Review: Should You Apply?
For borrowers with poor credit, OneMain can be a reasonable option to get a personal loan. The lender may require you to secure your loan with a vehicle (though this will likely lower your rate). You can borrow up to $30,000 through OneMain, with rates from 16% to 36% and terms of two to five years.
|Good for...||Bad for...|
OneMain Financial can be a good option for borrowers with poor to fair credit scores. In 2016, roughly half of the company’s total dollar amount lent went to borrowers with credit scores under 620. However, depending on your credit score, you may receive an annual percentage rate up to 36%. In this case, it’s also advisable to look at local credit unions, as many cap their interest rates at 18%.
If you apply for a loan through OneMain Financial and have a poor credit score, the lender may require you to secure the loan with your car. In fact, 43% of personal loans made by OneMain Financial in 2016 were secured by collateral. Keep in mind that if you decide to get a secured loan, you could lose whatever you put up as collateral if you don’t pay.
Most loan applications at OneMain Financial will require a visit to a branch location, making the lender less than ideal for consumers looking for a completely online experience. If you want an online experience, OneMain Financial offers online personal loans through its iLoan brand. The application process, loan terms and interest rates will be different from those offered by OneMain.
OneMain incentivizes its borrowers to pay on time and learn more about budgeting their money by offering a rewards program. The rewards program allows you to redeem points for gift cards at national stores and restaurants. According to the lender, you can earn points by consistently paying your bills on time, watching personal financial education videos, completing budgeting tutorials, monitoring your credit score and interacting with the company on social media. Rewards members also have access to a discount and savings portal to save money on everyday purchases. The program is not available at some branches and in some states.
To qualify for a OneMain personal loan, we recommend that borrowers meet the following criteria:
- U.S. resident with Social Security Number
- At least 18 years old
OneMain will evaluate your credit history, your application information, planned use of funds and your ability to repay when approving you for a loan offer.
OneMain Financial Personal Loan Terms and Requirements
OneMain Financial offers secured and unsecured personal loans up to $30,000 with terms from two to five years.
|Loan Amount Range||$1,500 - $30,000|
|APR Range||16.05% - 35.99%|
|Loan Terms||2 to 5 years|
|Direct Payment to Creditors||No|
You’ll need to complete an online application and provide OneMain with your personal, employment and financial information. This includes your income, what bank accounts you have and whether you own property. After completing this application, you’ll receive a loan decision with additional information about the rates and terms offered.
|Application Process||Online plus in-branch visit|
|Time to Get Funds||1+ days|
|Credit Check||Hard credit check when you apply|
At this point, you’ll need to schedule an appointment at your local OneMain branch to finalize the application. This includes agreeing to the loan terms offered and providing documents to verify your identity, income, employment and collateral, if applicable. Next you’ll need to sign the final application, and you’ll then receive funds within one day or so.
How Does OneMain Financial Compare to Other Lenders?
If you’re thinking about taking out a loan through OneMain Financial, you may want to take a look at how it stacks up to its competitors before you apply.
OneMain Financial vs. LendingClub
If you need to borrow more than $25,000, LendingClub is a good option. You can borrow up to $40,000 through LendingClub, and the rates are similar to those offered by OneMain (6% to 36%). LendingClub also allows you to directly pay your creditors, making it a good choice for debt consolidation. In general, you will need a credit score of 600 or more to qualify at LendingClub, so if your credit is an issue, OneMain may be a better option.
OneMain Financial vs. Credit Unions
Many credit unions are willing to work with borrowers who have poor to fair credit, and they may be able to offer you an unsecured loan and/or a lower interest rate than OneMain. For federal credit unions, the interest rate is capped to a maximum of 18% on personal loans. Moreover, many credit unions will offer small dollar loans as low as $500. One downside to using a credit union is that you will typically need to have an account with them to qualify.
OneMain Financial vs. Avant
Avant is a better option if you don’t want a secured loan. Avant offers similar rates to those offered by OneMain, but does not require collateral for any of its loans. You should have a credit score of at least 580 if you want to apply, but most Avant borrowers have scores between 600 and 700. You can also borrow more with Avant, up to $35,000 with loan terms from two to five years.