OneMain Financial

OneMain Financial Overview

OneMain Financial is a direct lender that gives out personal loans ranging from $1,500 to $20,000 with terms of 24 to 60 months to pay them back.

You may be able to get either an unsecured loan or a secured loan, depending on your credit score and the amount you need.

For a large amount, you need to put up something as collateral, like a car, to get the money. Applications can be filled and submitted either online or in-store.

OneMain Financial Personal Loans Highlights

• Loan amounts： $1,500 - $20,000
• Loan types： Unsecured and secured personal loans
• Interest rate: 18% - 35.99%
• Fees: 1% - 10% origination fee and a late fee that varies by state.
• Repayment terms: 24 to 60 months
• Credit check： When you actually apply, there will be a hard credit check in addition to the soft inquiry that is done during prequalification.
• Min. credit score: This is not disclosed but is estimated in the 600-650 range
• Time to fund: Same-day deposit available
• BBB Rating: A+

Where OneMain Financial Personal Loans Stand Out

Fast funding.

OneMain Financial has indicated that a loan application may receive immediate approval. According to the lending company, it takes around one to two working days for the cash to be made accessible to the majority of the borrowers.

Even while some creditors advertise funding on the same day, the majority of personal loans are typically funded within one or two business days.

Trustworthy direct lender since 1912.

OneMain Financial is a licensed financial company with the loan license: NMLS# 1339418.

OneMain Financial has been given an A+ rating, which is the best possible grade offered by the Better Business Bureau.

Customers in various states have the option of submitting their loan applications to the organization either online or in person at one of the approximately 1,500 branch locations the company maintains.

The company claims that there is a OneMain Financial branch within 25 miles of the homes of 89 percent of all people living in the United States.

Small loan amounts don’t require collateral.

This is excellent news if you are in need of a little amount of cash to pay a less significant expenditure, such as a modest auto repair or medical operation.

OneMain Financial will not demand collateral either with your car or any of your belongings if you are applying for a small loan amount. This doesn’t apply to high amounts from $5000 upwards.

You can change the due date twice during the life of the loan.

Borrowers with OneMain Financial have the ability to choose the date that their payments are due when they sign a loan agreement and can adjust the date of their payments two times over the life of the loan.

This function is beneficial if, for example, your income and spending vary as a result of starting a new job or having a different payday than usual.

Where OneMain Financial Personal Loans Fall Short

High Credit Score Requirement

The minimum credit score is not disclosed but is estimated in the 600-650 range, meaning people who have bad credit don't stand a chance of getting their loans approved.

High-interest rates.

Due to the fact that its minimum APR is 18%, OneMain Financial's annual percentage rates are greater than those of its competitors.

Even while customers with poor or weak credit (credit scores below 690) would not qualify for these loans, many other lenders provide personal loans at annual percentage rates (APRs) in the single digits.

Because the rates offered by OneMain are so high, it is possible for borrowers with excellent credit to end up with a personal loan that has a high annual percentage rate.

It charges an origination fee.

Origination costs are something that are often charged by some loan lenders, and OneMain loans are no exception.

In certain areas, the cost that is charged by OneMain is a flat rate ranging from $25 to $500, while in other states, the price is a percentage ranging from 1% to 10% of the total loan amount. When compared to the origination costs charged by other lenders, these fees are somewhat more.

A lien on your automobile will be required for larger loan amounts

When you take out a loan from OneMain for a bigger sum, they expect you to put up your automobile as collateral. Your automobile cannot be older than ten years, and you must be in possession of both the title to the vehicle and a current insurance policy.

Because these secured loans are comparable to high-interest title loans, you should exercise caution before pledging your vehicle as collateral for the loan.

If you fail to make the required minimum monthly payments by the due date, you will be considered in default on the loan and will lose your vehicle.

Compare OneMain Financial with Other Lenders

Shopping around for a personal loan and comparing other lenders is something you should always do, even if you think that OneMain Financial meets all of your requirements for a personal loan.

Compare the terms and conditions of a loan offered by OneMain Financial with those offered by other lenders like Personal Loans and BadCreditLoans.

The first comparison is the estimated interest rate. OneMain Financial has 18% to 35.99%. However, Personal Loans offer the best and lowest APR of 6% to 35. 99%.

Also, OneMain Financial does not offer the highest loan amount, and they only offer between $1500 to $20,000.

Lastly, OneMain Financial is the only lender that demands collateral from the borrower, while other lenders do not ask even for your credit score.

Borrowers with poor credit and no collateral may have more success with one of the other available choices.

OneMain Financial loans may be applied for in-store or online; however, if you have poor credit or need a big amount of money, you will be required to put up collateral, and the interest rate on OneMain Financial loans is greater than the interest rate offered by other lenders.

4.2 OneMain Financial Loan GET RATE	4.5 Personal Loans™ GET RATE	4.5 BadCreditLoans GET RATE
18%–35.99%	EST. APR 5.34%–35.99%	5.99%-35.99%
$1,500–$20,000	Loan Amounts $1,000–$35,000	$500-$10,000
Not Disclosed	Min. credit score No minimum credit score is required	No minimum credit score is required
Large amounts are required	Collateral Not required	Not required

OneMain Financial Loan vs. Personal Loans™

Personal Loan, in contrast to OneMain, does not need a borrower to have a certain minimum credit score in order to qualify for a loan. OneMain does not release any information on this minimum credit score.

Personal Loan does not provide joint or secured loans as OneMain offers; nonetheless, the lender claims that it may process an application immediately and finance a loan within a day, which may be faster than OneMain's service.

Unlike OneMain Financial, Personal loan does not demand collateral. A personal loan might be the superior option for sudden or somewhat sized expenditures.

OneMain Financial Loan vs. BadCreditLoans

No minimum credit score is required for customers to qualify for a quick personal loan from BadCreditLoan.com.

This lender does not provide joint or secured loans as OneMain offers, but it does give consumers the opportunity to see their personal loan rate prior to completing a formal application. The pre-qualification process offered by OneMain does not contain this feature.

In contrast to OneMain Financial, BadCreditloan does not require collateral to be provided.

BadCreditLoan provides unsecured loans with a one-day approval and one-day financing, which is comparable to OneMain's terms but maybe a little bit faster.

As a result of the lender's much-reduced origination charge in comparison to that of OneMain, the ultimate cost of the loan may be cheaper.

Requirements for OneMain Financial Personal Loans

When it comes to the qualifications for a personal loan, OneMain Financial isn't very forthcoming. You'll need to provide the following at the loan closing:

• Proof of identity from an official source (such as a passport or driver's license)

• Identification and verification of location (such as utility bill)

• Revenue verification

As you can see up top, OneMain Financial does not demand excessive requirements that can even cause you to be disqualified; rather, all that is required are documents to confirm that you are who you claim you are in order to qualify for their services.

On the other hand, in addition to the documents mentioned above, they may request that you give other personal documents for verification purposes. In addition, this is true regardless of whether you submit your application in person or online.

When determining whether or not to grant a borrower a personal loan, most financial institutions like OneMain Financial look at factors such as the applicant's credit history, payment history, income, and debt-to-income ratio.

When applying for new credit, if your credit score might use some work, you should take action to improve it.

Apply for a OneMain Financial Personal Loan Online with 4 Steps

Based on the information provided by the lender and our own personal experiences completing the pre-qualification procedure, the following are the actions that need to be taken in order to apply for a loan via OneMain Financial.

1. Pre-qualifStart the pre-qualification process on the OneMain Financial website. y

On the OneMain website, click the box labeled "Check for offers," then input the amount of the loan that you are requesting.

The next step requires you to input your name, address, email address, and income. You will be asked questions regarding your place of employment and whether or not you own a car that is completely paid for.

At the very end, you will be asked to provide your date of birth as well as your SSN or ITIN. At this early stage, there will not be any hard credit pulls performed.

2. Review and choose your loan option for your financial situation.

OneMain will inform you of the many forms of loans for which you are eligible. You will not be able to view the repayment conditions or your possible APR at this time.

Instead, prospective borrowers can be presented with an offer for a secured loan, an offer for an unsecured loan, or both.

Your credit score may momentarily suffer as a result of the lender's need that you submit an official application before they would show you their whole loan offer.

3. Make a submission for the application.

OneMain Financial claims that it can immediately inform the majority of applicants once they apply whether or not they have been conditionally authorized.

Final clearance requires additional verification. After receiving full clearance, the lender states that it can fund the majority of loans within one to two business days.

4. Create a strategy for paying back the debt.

Because OneMain Financial provides payment information to the three major credit agencies, making payments on time will help increase your credit score, while missing payments will damage it.

Managing your loan payments may be accomplished in a few different ways, two of which are by setting up automated payments and keeping an eye on your budget.

Borrowing from OneMain Financial is not a good idea in 4 cases

• If you don't have a strong credit history, your chances of being approved are limited, and the interest rate you pay will be very high.

• If you don't have any collateral, it's possible that your application for a loan of a significant amount may be turned down.

• Looking for a low-interest loan. When compared to the interest rates offered by other lenders for personal loans, those offered by OneMain Financial are significantly higher than those offered by the majority of its rivals.

  If you are eligible for a personal loan from another lender that offers lower rates, having a higher annual percentage rate (APR) can raise the cost of your borrowing, which is not ideal.

• Options are fewer than a broker. This implies that OneMain Financial does not offer many options for borrowers to choose from.

How CrediYelp rates OneMain Financial

OneMain Financial FAQs

Q1: Is OneMain Financial Legit?

OneMain Financial has been in the business of providing loans for more than a century and currently serves customers in 44 states, both unsecured and secured.

OneMain Financial might be an excellent choice for you if you're looking for a sizable lending institution that also offers services in-store.

You may begin your application and find out the rates you are eligible for by visiting the website of OneMain Financial.

Q2: Does OneMain Financial Loan Hurt My Credit?

If you want to get a loan from OneMain Financial, it will temporarily affect your credit score because when you officially apply for the loan, the firm will execute a hard pull on your credit history.

This will cause your score to decrease by around 5 to 10 points. Your entire debt burden will increase as a result of the new loan, which will have a negative impact on your credit score.

If you pre-qualify for the loan, though, you won't have to worry about your credit score being negatively affected for no reason.

When pre-qualifying potential borrowers, OneMain Financial merely does a "soft pull" on their credit reports, which does not have an impact on the applicant's credit score. If you become pre-qualified, your chances of being approved are significantly increased.

Q3: What Can I Use as Collateral for a Secured Loan from OneMain Financial?

When applying for a secured loan from OneMain Financial, borrowers have the option of providing any one of the following forms of collateral:

• Vehicles

• Motorcycles

• Recreational vehicles, include boats and campers (RVs)

Q4: Can OneMain Financial Take My Car？

Yes, your car can be taken if it is used as collateral to obtain a loan from OneMain Financial.

Q5: Does OneMain Financial have an Early Payoff Penalty?

No, OneMain Financial does not offer an early payoff penalty for borrowers if they don’t pay before or on the due date.