Good for: Bad credit, secured loan
OneMain Financial provides personal loans to people with bad credit who may have trouble qualifying for a traditional bank loan. OneMain may be a good fit if:
- You have bad or below-average credit. OneMain has no minimum credit score requirement, but its borrowers’ average scores are between 600 and 650.
- You prefer a traditional bank experience. OneMain usually requires a visit to one of its more than 1,600 branches.
- You need money quickly. Loans typically fund the same day.
OneMain Financial loan rates and terms
OneMain Financial personal loan review
To review OneMain Financial, NerdWallet collected more than 30 data points from the lender, interviewed company executives, completed the online loan application process with sample data, and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.
OneMain’s personal loans are commonly used for debt consolidation, wedding and medical expenses, home improvement projects and auto financing. The lender considers traditional factors such as credit history and debt-to-income ratio when evaluating borrowers.
High rates: OneMain’s starting annual percentage rate of 16.05% is higher than what is charged by some online lenders that cater to people with poor credit, such as Peerform and Avant. OneMain’s rates top out at 35.99%.
Loan example: For a borrower with bad credit, a $10,000 unsecured personal loan with a repayment term of two years at 27.2% APR would carry monthly payments of $545, according to NerdWallet’s personal loan calculator.
Fast cash: You can complete a OneMain application and receive a decision in less than 10 minutes. Once you’ve been approved, you can receive funds as soon as the same day by check, or one to two business days via bank payment.
Funding time also varies based on what time you submit the application, the number of documents required and how long it takes you to submit the documents to get your application approved, according to OneMain.
Free credit score: Approved OneMain borrowers have free access to their credit scores, a feature that few other online lenders offer.
Secured loan option: You can also apply for a loan that is secured with a car title or other collateral, which may help you qualify for a lower APR, larger loan amount or longer loan term compared with an unsecured loan. OneMain says 44% of its loans are secured loans.
As with any secured loan, if you can’t make your loan payments, you could end up losing your vehicle or other collateral.
OneMain and other lenders typically offer optional credit insurance with secured loans. This insurance adds to your costs and may not be needed, so learn about the pros and cons before you buy it.
How OneMain compares
How to apply for a OneMain Financial loan
You can apply by submitting your personal, employment and financial information at OneMain’s website. You’ll get an email with a decision on your application, and a representative will contact you to schedule an appointment at a branch office to discuss your options and verify your information. If there is no branch nearby, you may be able do this step remotely.
NerdWallet recommends comparing loans to find the best rate for you. Click the button below to see estimated rates from multiple lenders on NerdWallet.
Before you shop for a personal loan:
- Learn how personal loans work
- 4 steps to pre-qualify for a personal loan
- Read more personal loan reviews
NerdWallet’s ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.