OneMain Financial Personal Loans Review
Personal loans can provide fast access to funds for various needs. But if your credit score is less than perfect, many mainstream banks won’t approve you for the best rates. That’s where lenders like OneMain Financial comes in.
With branches spread across the United States, OneMain Financial specializes in personal installment loans for borrowers with fair to poor credit.
But how exactly does OneMain Financial work, and are their personal loans a good option? Let’s take a look at what OneMain offers to help you make an informed decision.
What is OneMain Financial?
Founded in 1912 and based in Evansville, Indiana, OneMain Financial is one of the largest personal loan providers in the nation focusing on below-prime borrowers.
OneMain offers personal installment loans to applicants with credit scores as low as 600. Loans can be used for many purposes including:
- Debt consolidation
- Credit card refinancing
- Home repairs or remodeling
- Medical bills
- Major purchases
- Consolidating payday loans
- And more
With over 100 years of experience serving US customers through branches nationwide, OneMain brings accessibility and expertise to the non-prime lending market.
Applying for a OneMain Personal Loan
OneMain aims to make the loan application process fast and convenient through multiple channels:
Apply Online – Complete the online application form from any device in minutes to get a quick decision.
You can Apply by Phone – Call 844-633-5468 to speak with a OneMain representative and apply over the phone.
Apply at a Branch – Walk into one of over 1,600 OneMain branch locations across 44 states to apply in person with an associate.
No matter how you choose to apply, OneMain will provide a prequalification decision without running a hard credit check that dings your score. This soft credit pull lets you explore your options commitment-free.
If prequalified, you will need to provide documents to verify income, identity, and other financial details to complete the official application. Funds can be available the same day if you qualify and complete in-person approval.
Loan Requirements: What Credit Score is Needed?
While OneMain considers applicants with scores around 600, the higher your credit score, the better your chances of loan approval. Additional requirements include:
- Minimum income – Varies based on loan amount and other factors, but most programs require at least $2,000 in steady monthly income.
- Employment – Having at least 2 years with your current employer is preferred. Retirement income and disability may also qualify.
- US residency – You need to be a US citizen or permanent legal resident.
- Age – Must be at least 18 years old in most states; 19 in Alabama and 21 in Puerto Rico.
- Credit history – No bankruptcy filings in the past 24 months.
- Bank account – An active checking account to transfer loan funds electronically.
Meeting minimum requirements does not guarantee approval. Strong applicants have 580+ scores, steady jobs, and moderate monthly debt payments.
What Are the Terms and Rates on OneMain Personal Loans?
OneMain offers fixed interest rates based on creditworthiness that range between 18% and 35% APR. Here are additional loan terms:
- Loan amounts – $1,500 to $20,000
- Repayment terms – 1 to 5 years
- Origination fees – From 5.99% to 29.99% of your loan amount
- Prepayment penalty – None if you pay the loan off early
For a $10,000 5-year loan, expect roughly $216 in monthly payments at the average 24% APR. Always compare total costs before choosing loan offers.
Pros of Getting a Personal Loan with OneMain
OneMain’s personal loans provide several advantages compared to payday loans or credit cards:
Quick access to funds – Receive a fast decision and get funding in as little as one business day when applying at a branch.
Multiple ways to apply – Start online, by phone, or in-person at 1,600+ locations across 44 states.
Fixed payments – Predictable monthly loan payments over 1 to 5 years to fit your budget.
No prepayment penalties – You can pay off the balance early with no extra fees.
For quick funds and branch availability nationwide, OneMain offers a reasonable loan option for many borrowers with fair credit.
How to Apply for Spotloan and Get Approved
Potential Downsides to Consider
On the other hand, borrowers should also be aware of the following considerations:
High interest rates – Annual percentage rates from 18% to 35% are higher than good credit loans. This substantially increases interest costs over the loan term.
Origination fees – Upfront fees of 5.99% to 29.99% of the total loan amount add to costs.
$20,000 maximum loan amount – OneMain caps lending at $20,000, so it’s not a good fit for larger loans.
If you need a higher loan amount or have access to better credit rates elsewhere, OneMain may not be the most affordable option due to interest and fees.
Alternatives to Compare for Bad Credit Borrowers
Besides OneMain, other options to consider for fair credit borrowers include:
- Credit unions – Some offer personal loans with lower rates for members only.
- Peer-to-peer lending – Online platforms like Upstart, LendingClub & Prosper match borrowers with individual investors.
- Marketplace lending – Sites like Avant, Best Egg, Upgrade feature multiple lenders competing for your loan.
- Payday alternative loans – Products from companies like OppLoans may provide shorter term loans if amounts under $1,000 are needed.
- Debt management agency – A certified credit counselor can help negotiate reduced rates on existing debts.
Shopping competitors can potentially help discover the best loan rates and terms for your situation.
Helpful Tips for OneMain Borrowers
If you do move forward with a OneMain personal loan, keep these tips in mind:
- Compare loan offers thoroughly before committing.
- Ask about promotions, periodic promotions may waive origination fees, boost loan amounts, or cut rates.
- Set up autopay. Automatic payments from a bank account may qualify you for discounts around 0.5% of APR.
- Pay more than minimums each month to pay down the principal faster and save on interest.
- Avoid extensions. Renewing loans or getting subsequent loans creates a dangerous debt cycle with accumulating fees.
Following good payment practices helps keep OneMain personal loans affordable and builds your credit history.
Conclusion
For quick access to personal loan funds through an established national lender, OneMain Financial is a reasonable option for borrowers with fair credit in need of $20,000 or less. Just be sure to compare all loan costs closely and manage payments diligently to avoid expensive rolled over loans.
Their branch availability provides helpful accessibility versus strictly online lenders. But the higher interest rates and origination fees make comparison shopping wise to potentially discover even more affordable options for your situation.
