OneMain Financial Personal Loans Review

OneMain Financial is one of the largest providers of personal loans in the country, specialized in dealing with borrowers with bad credit and limited credit history. You can apply online, though OneMain distinguishes itself from others in the industry by operating more than 1,300 branches across 44 states, where you can consult with a representative or make an application. Loans from OneMain can be comparatively quite expensive, with rates running as high as 35.99%, so they should only be considered if you're struggling to qualify at better priced lenders.

Loan Options

• OneMain offers unsecured and secured (vehicle as collateral) personal loans between $1,500 and $30,000, with some state-specific exceptions.

• Loan lengths range from 24 to 60 months.

• OneMain allows cosigners on loans, which could improve your chances of approval, as the legal responsibility to repay the loan will be shared by multiple people.

• Loan proceeds cannot be used for postsecondary education, any business or commercial purpose, to buy cryptocurrency or other speculative investments, or for gambling.

Interest & Fees

• APR: 11.99% - 35.99%. The best rates will be reserved for borrowers with excellent credit history and/or loans secured with a vehicle. OneMain note that larger loan amounts require a first lien on a motor vehicle no more than ten years old that meets their value requirements.

• Origination Fees: Depending on your state of residence, OneMain charges either a flat origination fee of $25-$500 or a percentage-based fee on the loan amount of 1%-10%.

• Prepayment Penalty: Borrowers do not incur any fees if they wish to pay off their loan early.

• Late Payment: Depending on your state of residence, OneMain charges either a flat fee ($5-$30) or a percentage-based fee on the entire monthly payment amount or a percentage of the delinquent portion of your monthly payment amount (1.5%-15%).

• Unsuccessful payment: Subject to local state law, OneMain will charge $10-$50 if bank transfers (ACH) or checks are returned or fail. This fee may be on top of those that are imposed by your bank.

More information on OneMain loan fees can be found here.

How long to receive funds?

OneMain state that funds can be in your hands within 1 hour of loan closing through SpeedFunds, which requires disbursement to a bank-issued debit card. Paid by check or ACH instead, the money takes approximately 1-2 business days after closing, subject to your bank's deposit policy. They also note that it may take longer depending on how long verification takes. An hour is unusually quick: most lenders offer same-day funding at best, and next business day is more typical.

Geographical Availability

OneMain do not currently accept applications from residents of Washington DC and the following states: Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island and Vermont.

Loan Eligibility

OneMain has no minimum credit score requirement and will actively consider alternative non-credit data points (e.g. employment history) in the qualification process.

Income Requirements

No information on minimum income thresholds has been publicly disclosed.

Are they legit?

Yes. OneMain Financial is one of the largest personal loan providers in the United States and has operated for more than a century through its predecessor companies. The company is publicly traded on the New York Stock Exchange under the ticker symbol "OMF" and maintains a large nationwide branch network alongside its online lending platform.

Reviews & News

At the time of writing, OneMain had approximately 88% 5-star reviews on Trustpilot from a total of just over 80,000, with an average rating of 4.6/5.

On their A+ accredited BBB profile, they have an average customer rating of 4.29/5 from 2,574 reviews, with 365 complaints closed in the last 12 months and 1,239 filed over the last three years.

However, the company has also faced regulatory scrutiny. In May 2023, OneMain Financial was fined $20 million for deceptive sales practices, including failing to refund customers who cancelled purchases within a purported "full refund period".

Do They Report to the Credit Bureaus?

Yes. OneMain report monthly snapshots of loan and payment status to the three major credit reporting agencies: Equifax, Experian and Transunion. Regular on-time payments in your credit file will likely increase your credit score and improve your chances of qualifying for credit in the future. However, failure to satisfy your repayment obligations could damage your credit score, making it more difficult to borrow again.

Get in touch

OneMain has several phone numbers, serving specific customer issues (see this page). All phone numbers are available Monday-Friday, 5am-5pm EST. You also email them at customerservice@omf.com or submit a note on their website.

What we like?

Brick and mortar branches: In contrast to the impersonal experience offered by most online lenders, some borrowers will prefer to physically communicate with a OneMain advisor at one of their 1,300 branches across 44 states. This might hold particular appeal for people with bad credit who find the online application process complicated and overwhelming.

Alternative data powered qualification: OneMain have no minimum credit score requirement and their unique decisioning algorithm incorporates non-credit information like income and employment history, likely benefitting candidates with poor credit or limited credit history who are denied elsewhere.

Fast funding: OneMain offers one of the fastest funding processes in the industry, measured in hours where most competitors work in days. Through its SpeedFunds program, approved borrowers may receive funds in as little as one hour after loan closing when sent to an eligible debit card. Borrowers who complete the process in-branch may also be able to leave with a check the same day, while standard bank transfers typically take 1-2 business days.

Check your rate: Borrowers can check their rate on the OneMain website, without any impact to their credit score. If you choose to process with their offer, a hard credit check will then be performed, which will be recorded on your credit file.

Loan flexibility: Unlike many of its competitors, OneMain allow you to add a cosigner or secure the loan with your vehicle. Either step should improve your approval chances and even lower the cost of the loan.

Well-rated app: The free OneMain app makes it easy to manage your account—you can make payments, receive updates on your loan and even track your credit score. The app is available for both Apple and Android.

What we don't like?

High interest rates: While their maximum rate (35.99%) is in line with its peers, the best rate offered by OneMain is 11.99%, which compares unfavourably to the rest of industry, where rates below 10% are not uncommon.

Origination fees: OneMain will charge an origination fee of up to 10% on the approved loan amount, which is automatically paid at the time of funding. For example, if you are approved for a $10,000 loan with a 4% origination fee, you'll only receive $9,600 at funding. Many lenders don't charge origination fees, so you may wish to look elsewhere to avoid them.

No rate discounts: Some lenders give a small interest rate reduction—typically 0.25%-0.5%—if you set up autopay or let the lender pay your creditors directly in the case of debt consolidation loans. OneMain does not offer this benefit.

Summary

OneMain is one of the more accessible personal loan providers for borrowers with damaged or limited credit history, particularly thanks to their unique decisioning algorithm and nationwide branch network. However, the combination of high APRs and potential origination fees means borrowers should carefully compare cheaper alternatives before proceeding.