OneMain Financial Personal Loans: 2023 Review

Q: Is OneMain Financial a legitimate company?

Yes, OneMain Financial is a legitimate lender in the United States that markets its personal loan products in 44 states. OneMain has about 1,400 branch locations in its nationwide network.

Q: What credit score do you need for a OneMain Financial loan?

OneMain offers personal loans primarily to nonprime customers with weak credit scores at or below 660. Applicants with poor credit, steady income, and collateral may qualify for a OneMain Financial personal loan.

Q: How fast do you get money from OneMain Financial?

Personal loan applications can be approved within minutes, and borrowers may receive the funds within one business day via ACH or another method.

Q: How does OneMain Financial verify income?

OneMain may require applicants to provide proof of identity and proof of income for verification purposes. Pay stubs or tax returns may serve as proof of income, while a driver’s license may serve as proof of identity.

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Sulaiman Abdur-RahmanUpdated January 23, 2023

Overview of OneMain Financial

OneMain Financial personal loan products are primarily geared toward borrowers with fair or bad credit. The annual percentage rate of interest on these loans is relatively high, generally ranging from 18% to 35.99%. Borrowers may receive funds within one business day of loan approval and can have repayment terms of up to 60 months.The Takeaway: OneMain Financial primarily serves nonprime customers with weak credit scores at or below 660. Getting a personal loan from OneMain Financial may not be right for you if you have good or excellent credit.

Pros and cons

Pros

Offers secured and unsecured personal loans from $1,500 to $20,000
Caters toward nonprime borrowers with weak credit
May disburse funds within one business day of loan approval
Has a nationwide branch network of approximately 1,400 locations in 44 states
Easy online application process

Cons

Offers high APRs generally ranging from 18% to 35.99%
Maximum loan term is 60 months
Borrowers with secured loans may lose their collateral in the event of default
Loans secured by a vehicle may require your car to meet specific value and age requirements
May charge origination fees ranging from 1% to 10% of your loan amount

Pros and Cons of OneMain Financial

Pros of OneMain Financial

OneMain offers subprime personal loans primarily for borrowers with credit scores at or below 660. Loan amounts can range from $1,500 to $20,000, and approved applicants may receive the funds within one business day. The online application process is simple, and OneMain has a customer service branch network across much of the United States.

Cons of OneMain Financial

OneMain personal loans can carry APRs ranging from 18% to 35.99%. The maximum loan term is 60 months, whereas other lenders may offer personal loan terms of up to 84 months. Borrowers may have to pledge a motor vehicle as collateral to qualify for a $20K OneMain personal loan, and origination fees can range from 1% to 10% of the principal loan amount. Borrowers who default on a secured personal loan can lose their collateral.

OneMain Personal Loan Terms, Rates, and Fees

Loan amounts: $1,500 to $20,000APR range: 18% to 35.99%Loan terms: 24, 36, 48, or 60 monthsPrepayment penalty: NoApplication fee: Origination fees may range from 1% to 10% of your loan amountCo-borrowers allowed: Yes Approval speed: Loan approval within minutes, disbursement within one business day on averageInformation accurate as of Jan. 22, 2023.

Who May a OneMain Financial Personal Loan Be Right For?

OneMain personal loans may be right for the following demographics:

Borrowers with bad credit who need a $4k loan
Consumers willing to pledge collateral for a secured personal loan of up to $20K
Borrowers who need quick personal loans from a legitimate lender rather than a loan shark

Who OneMain Financial May Not Be Right For

OneMain personal loans may not be right for the following demographics:

Consumers who need to borrow large personal loans of up to $100K
Borrowers who don’t want to pay origination fees and daily simple interest on a personal loan
Consumers who prefer open-end credit vs. closed-end credit

What to Watch Out for With OneMain Financial Personal Loans

Here are aspects to watch out for with OneMain Financial personal loans:

Failing to pay and defaulting on a personal loan can have a major impact on your credit score
These quick personal loans may charge APRs as high as 35.99%
An unsecured personal loan may include higher finance charges than secured personal loans

OneMain Financial Personal Loan Eligibility Requirements

Minimum Credit Score: Consumers with poor FICO® Scores under 619 may qualify
Income Requirements: May require proof of income, such as pay stubs or tax returns
Debt-to-Income Ratio: OneMain considers an applicant’s income and debt expenses
Co-Applicants: Applying with a co-applicant may qualify you for higher loan amounts
Collateral: Secured personal loans require applicants to pledge collateral of value
Identity Verification: Applicants may need proof of identity, such as a driver’s license
Address Verification: Applicants may need proof of residence, such as a signed lease

Recommended: 5 Typical Personal Loan Requirements

Repayment Options for OneMain Financial Personal Loans

Here are some loan repayment options that may be available to OneMain customers:

Manual online payments via Automated Clearing House (ACH) transfer or debit card
Automated online recurring payments via ACH transfer
In-person payments at a OneMain branch
Payments via telephone
Payments via OneMain’s mobile app
Cash payments made using the PayNearMe platform at participating retailers

How to Apply for a OneMain Financial Personal Loan

Apply online. Applicants may apply online and check for prequalified loan offers. Checking to see whether you prequalify for a OneMain loan may trigger a soft credit check that does not impact your credit score. Selecting a prequalified loan offer may trigger a hard inquiry, which can cause your credit score to drop by a few points.
Verify information. Approved applicants may connect with a OneMain loan specialist to discuss the terms and conditions of a loan offer. The loan specialist at this stage may request information or documentation that can verify the applicant’s income, identity, and residential address. Collateral requirements may also be discussed at this stage.
Accept the loan. Approved applicants with proof of identity and proof of income may sign and accept the loan offer at this stage. The customer may receive the personal loan within one business day via ACH or another method. The customer may have up to seven days to cancel the loan agreement and return the funds.

Alternatives to OneMain Financial Personal Loans to Consider

As highlighted above, personal loans from OneMain Financial have some pros and cons. When you need to borrow money, it can be wise to compare private lenders before submitting any loan applications. Here are some alternatives to OneMain personal loans that you may consider:

Upstart: Upstart is a cloud-based lending platform offering personal loans ranging from $1,000 to $50,000. Borrowers can choose between three-year or five-year terms, and some creditworthy applicants may qualify for interest rates under 7%. One drawback with Upstart personal loans is you may be charged an origination fee that’s deducted from your loan proceeds.
LendingClub: LendingClub offers personal loans ranging from $1,000 to $40,000. Borrowers can choose loan terms ranging from three to five years, and APRs can range from 8.05% to 36%. One drawback with LendingClub personal loans is that borrowers are restricted from using the funds on anything related to education after high school.
Marcus by Goldman Sachs®: Marcus by Goldman Sachs offers personal loans ranging from $3,500 to $40,000. Borrowers can choose loan terms ranging from 36 to 72 months, and the APR can range from 6.99% to 24.99%. Marcus personal loans feature no late fees and no origination fees, but nonprime or subprime borrowers may have difficulty qualifying.
Lantern: Lantern by SoFi can help you quickly find online personal loans ranging from $1,000 to $50,000. Just fill out one simple form to compare possible lending options and select a lender of your choice.

Frequently Asked Questions

Is OneMain Financial a legitimate company?

What credit score do you need for a OneMain Financial loan?

How fast do you get money from OneMain Financial?

How does OneMain Financial verify income?

About the Author

Sulaiman Abdur-RahmanSulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and currently serves as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.

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