Personal Finance Loans Personal Loans
Written by Rebecca Potters; edited by Sarah Silbert; reviewed by Elias Shaya
- Loan Overview
- Key Features and Benefits
- Terms and Rates
- How to Apply
- Fees and Costs
- OneMain Personal Loan Alternatives
- Pros and Cons
- FAQs
- Why You Should Trust Us
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Business Insider's personal finance team compared OneMain Personal Loans to the best personal loans and found it to be in need of improvement, due to high interest rates, poor communication, the impact that applying can have on your credit score.
OneMain Financial Personal Loan Overview
What Are OneMain Personal Loans?
OneMain personal loans are a worthwhile option for borrowers with low credit scores. However, you will want to consider an alternative if you have a good credit score because you can get lower rates elsewhere. The best personal loan for you will depend on your credit score, which determines what you qualify for and can lower your rate.
Key Features and Benefits
OneMain offers both secured and unsecured personal loans, but we're focusing on the company's unsecured personal loan options. Unsecured loans are more common with OneMain and with competing lenders. An unsecured personal loan doesn't require any collateral, such as a house or car, while a secured loan allows you to put up collateral in exchange for a rate that is often lower.
The company could be a good option if you need cash quickly. If your application is approved before noon on a business day, you could receive your money the same day.
However, it has a high minimum interest rate, so borrowers with good credit will likely find a better rate with a different lender.
OneMain Financial Personal Loan Terms and Rates
Interest Rates and APR
Fixed-rate personal loans with OneMain have APRs ranging between 18.00%-35.99%. This is higher than interest rates you can get with many other lenders, so consider other options before applying to OneMain.
Loan Amounts and Terms
OneMain offers personal loans between $1,500 and $20,000 with terms from 24 to 60 months (two to five years). It also offers the option to change your payment due date two times within the life of the loan.
OneMain Financial Loan Eligibility and Application Process
Eligibility Requirements
OneMain doesn't have explicit eligibility requirements for personal loans, but factors that impact eligibility include:
- Credit history: There's no minimum credit score requirement, but applicants should have a credit history.
- Income: Borrowers must have enough to cover their expenses and monthly loan payments.
- Expenses: Your regular expenses will be considered when your application is reviewed.
- Collateral: If you apply for a secured loan, the collateral you put up against the loan must meet certain requirements.
Other factors that impact your eligibility include the loan's purpose, your state of residence, and whether or not you've filed for bankruptcy.
Step-by-Step Guide to Applying for a OneMain Personal Loan
1.Fill out personal information on OneMain's website.Choose if you're applying for an individual or joint loan, a secured or unsecured loan, and your loan's purpose. You'll also need to request a loan amount. You'll also enter your name, Social Security number, and income history. You'll get an estimated monthly payment and APR range.
2. Formally submit an application and await approval. When submitting a formal application, you'll need to send in proof of income, like a W-2, tax returns, or other financial documents.
3.Sign loan agreement and get your money. You'll potentially be able to receive your personal loan funds fast with OneMain. If your application is approved before noon on a business day, you could receive your money the same day.
4.Make a plan to repay your loan. Fit your monthly payments into your budget, and make sure you have enough money to cover all of your financial responsibilities.
OneMain Financial Personal Loan Fees and Costs
Are There Any Fees?
With OneMain, borrowers can expect origination fees, the amount of which is contingent on the borrower's state of residency. For instance, flat origination fee amounts vary by state, ranging between $25 and $500. Percentage-based fees vary by state and range from 1% to 10% of the total loan amount, subject to state limits. OneMain also charges late payment fees, and insufficient funds fees. It does not charge any prepayment penalties, which means you can pay off your loan early without paying extra charges.
Late payment fees vary based on the state where your loan originated. Late payment fees are either a flat fee ranging from $5-$30 per late payment, or they're a percentage of your monthly payment amount, ranging from 1.5% to 15%. Insufficient funds fees are charged when a check payment or electronic ACH debit is returned because of insufficient funds. This fee amount varies depending on state law, and typically ranges from $10 to $50 per returned payment.
Understanding Origination Fees, Late Fees, and Prepayment Penalties
Origination fees are typically small fees that lenders charge for processing and disbursing a loan. This amount will typically be withdrawn from your overall loan amount, but be sure to check with your lender to get a full grasp of your loan's fee structure. Late fees are, as one could guess, fees imposed on borrowers for making late payments. Usually, This is a percentage of your unpaid balance, but it varies by lender. Prepayment penalties arise when borrowers make early payments or pay off their loan amount early.
How OneMain Compares to Other Lenders in Terms of Fees
OneMain is similar to many other lenders that charge late payment and insufficient funds fees. However, many lenders don't charge origination fees, and their fee structures are much more straightforward than OneMain's.
OneMain Financial Personal Loan Repayment and Flexibility
Repayment Options
There are several ways to repay your personal loan from OneMain. The lender offers online payments, in-branch payments, by-phone payments, by-mail payments, and payments via the OneMain app. It also allows payments at participating retailers using the free PayNearMe service at participating CVS®, 7-Eleven, Walmart, Casey's General Store®, or Family Dollar locations.
Flexibility in Repayment Terms
You can request a payment due date change by calling, mailing, or emailing your local OneMain branch, which will review your request and ultimately make a decision. Those hoping to change their loan due dates must meet certain conditions, including:
- Request only one due date change in a 12-month period.
- No more than two due date changes may be processed over the life of a loan.
- Due date may not be advanced more than 15 days.
- Due date may not be changed if the account is 10 or more days past due.
- Due date may not be changed until the first contractual loan payment has been made.
Early Repayment and Its Benefits
Payments for OneMain Personal Loans are due monthly, but you can make as many early payments as you'd like. This is a huge plus for many borrowers who are looking to pay off their loans early, as OneMain does not charge prepayment penalties.
OneMain Financial Personal Loan Customer Experience
User Reviews and Ratings
OneMain has 4.7/5 starts on TrustPilot, with the most consistent negative feedback highlighting inconsistencies in communication, loan terms, and conversations with loan officers. OneMain also earned 4.08/5 stars on BBB, with an A- rating from the BBB itself.
Common Praises and Complaints
Borrowers with OneMain have cited an easy application process, communicative agents, and fairly swift loan processing. However, several borrowers have reported monthly payments being withdrawn twice from their bank accounts, and other inconsistencies in how the loan overall was managed by OneMain.
OneMain Personal Loan Use Cases
Ideal Scenarios for Using a OneMain Personal Loan
OneMain recommends using its personal loans for the following purposes:
- Debt consolidation
- Home improvement
- Auto purchases
- Medical procedures
- Emergency funding
- Auto refinancing
- Moving
- Wedding expenses
- Auto repairs
- Financing vacations
You cannot use a OneMain personal loan as a student loan, for business or commercial purposes, to purchase securities, or to gamble or engage in illegal activities.
OneMain Personal Loan Alternatives
OneMain Financial vs. Avant Personal Loan
OneMain and Avanthave similar loan terms and loan amounts, but borrowers looking for same-day funds might find that OneMain has an advantage. Additionally, a minimum credit score requirement of 580 might exclude some borrowers.
Avantcould be a stronger option than OneMain due to OneMain's higher interest rates. Avant fees could be lower, as this lender caps its origination and administrative fees at 4.75%, while OneMain's fees could go up to 10%, or $500 depending on your state.
Read our Avant personal loan review.
OneMain Financial vs. LendingClub
LendingClub's personal loanminimum credit score requirement of 600 might leave some borrowers out. With interest rates starting higher, borrowers who qualify with LendingClub could get lower rates from OneMain.
LendingClubdoesn't offer a secured loan option, which could give OneMain an advantage for anyone who wants to lower their interest rate with collateral. Funding through LendingClub will take at least four business days, according to the lender's site, giving OneMain's same-day funding another advantage.
Read our LendingClub personal loan review.
OneMain Personal Loan Pros and Cons
Advantages
- No minimum credit score for approval. Most personal loan lenders require credit scores above 660 to apply, but OneMain doesn't have a minimum.
- Potential for a small loan.You can get a loan for as little as $1,500, which is lower than what many lenders offer.
- Get your loan quickly. You may be able to get your loan on the same day that you apply with OneMain.
Disadvantages
- High origination fees. OneMain charges an origination fee on loans, which can either be a flat fee or percentage-based, depending on what state you live in. Flat fees range from $25 to $500, while percentage-based fees range from 1% to 10% of the loan's value.
- High starting interest rates.Interest rates for OneMain's personal loans range from 18.00% to 35.99% APR. In contrast, Avant's personal loans start at 9.95% APR.
OneMain Personal Loan FAQs
What are the main benefits of a OneMain Personal Loan?
The main benefits of a OneMain Personal Loan include flexible loan amounts, quick approval and funding, personalized loan terms, and the ability to use the loan for various purposes, such as debt consolidation, home improvement, and major purchases.
How do OneMain Personal Loans compare to other personal loans?
OneMain Personal Loans have flexible loan amounts and terms, and it's known for accommodating borrowers with less-than-perfect credit. Compared to other lenders, OneMain provides personalized service through its branch network.
Are there any fees associated with OneMain Personal Loans?
OneMain charges an origination fee, late fees, and insufficient funds fees if and when applicable. Review the loan agreement for specific fee details.
Does applying for a OneMain Personal Loan affect my credit score?
Applying for a OneMain Personal Loan will affect your credit score, because OneMain performs a hard credit check when you apply. However, it consider factors beyond just the credit score, making them a viable option for those with diverse credit profiles.
Who is eligible for a OneMain Personal Loan?
You're eligible for a OneMain Personal Loan if you're a US citizen or permanent resident, are at least 18 years old, and meet minimum credit and income criteria. Specific requirements vary, so check OneMain's official website for detailed information.
How can I maximize the benefits of a OneMain Personal Loan?
To maximize the benefits of your OneMain Personal Loan, use the loan for reasons that provide the most value, such as consolidating high-interest debt or making home improvements that increase your property's value.
Why You Should Trust Us: How We Rated OneMain Financial
We rate all personal loan products on a scale of one to five. The overall rating is a weighted average considering seven different categories, judging some more heavily than others. We look at the following criteria, specifically:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
See more on how we rate personal loans >>
Rebecca Potters is a writer and editor with a background in personal finance, careerguidance, e-commerce, and sexual wellness. Her work has been published in The Balance, Spy, Women, Scholastic, Slashfilm, and more.ExperienceRebecca began working in personal finance as an editor at The Balance in 2018, covering accessible budgeting, small businesses, and career guidance.Rebecca joined Business Insider as a freelance editor in 2023, returning to personal finance after leaving The Balance in 2020 to pursue other ventures. Her passion lies in creating accessible, digestible resources for marginalized communities facing barriers in their financial, mental, and sexual health.She works to maintain and update Business Insider’s personal finance reviews, roundups, and evergreen articles to ensure readers are provided with reliable, trustworthy information and advice.ExpertiseRebecca’s areas of personal finance expertise include:
- Personal loans
- Student loans
- Banking
- Savings
- Credit
- Budgeting
EducationRebecca is a graduate of McGill University, where she pursued a degree in English, focusing on how societal actions and pop culture inform one another through a lens of critical theory.
Compliance Associate
Elias Shaya is a Compliance Associate on the Personal Finance Insider team based in New York City, whichensures content accuracy and editorial independence so readers are always getting up-to-date and objective financial advice.The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up-to-date and accurate.He joined Insider in February 2022 as a fellow on the compliance team.
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OneMain Financial Personal Loan disclosure: 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 CFPB's 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: $9,000 for unsecured loans to all customers, $9,000 for secured loans to present customers. Maine: $7,000. Mississippi: $15,000. West Virginia: $14,000. 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.
You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved. Loan approval and actual loan terms depend on applicant's state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral. Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms. For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant's name with valid insurance. APRs are generally higher on loans not secured by a vehicle. 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. OneMain charges origination fees allowed by law. Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount. For information about these fees and minimum and maximum loan sizes available in certain states, visit omf.com/loanfees. Current OneMain Customers: Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options. Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral. If you are covered by the MLA, you are not eligible for secured loans. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB's 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. Time to Fund Loans: Funding within one hour after loan 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 closing.
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