If you’re thinking about taking out a personal loan, there are plenty of options on the market today to choose from. Shopping around to find the right loan for you is important, though. This ensures you get the funding you need from a trusted lender while saving money and frustration along the way.
To that end, we bring you our OneMain Financial personal loan review. OneMain Financial is an innovative personal loan provider that aims to change the way consumers borrow money. We’ll discuss what makes this lender stand out and why they might be on your short list if a quick loan is ever necessary for you to reach your financial goals.
Is OneMain Financial a good lender?
Founded in 1912, OneMain Financial is the largest branch-based consumer lender in the United States. Formerly known as Springleaf Financial, this lender has serviced more than 10 million customers over the last century for more than $120 billion in personal loans.
OneMain Financial strives for “lending done human,” a unique approach in a consumer industry that seems to be trending more toward automation and branchless borrowing than ever before. Currently, OneMain Financial has nearly 1,600 physical locations spread across 44 states, offering borrowers the opportunity to meet one-on-one to discuss their loan options.
Which loan products does OneMain Financial offer?
Technically, OneMain Financial only offers personal loans to consumers. There are endless ways to use this funding, though — whether you’re trying to pay off credit card debt, upgrade your home, or pay for a family vacation, for example — making it a very versatile financial product.
Here are a few common reasons for considering a personal loan:
- Paying off high-interest credit card debt — Revolving credit card debt not only has the potential to wreck your credit score, but it often comes at a high price. Rather than juggling multiple accounts with astronomical interest rates, you may be able to reduce your APR and save money in the long run by paying off those balances with a personal loan.
- Paying your taxes — Owing on your federal taxes can be incredibly stressful, and the IRS repayment plan can’t always meet your budget needs. A personal loan could be the best solution to cover a hefty tax bill before any penalty deadlines.
- Home improvement — Whether you want to finally remodel the kitchen or suddenly need to replace a pricey air conditioning unit, home-improvement expenses add up quickly. You can use a personal loan to get funding fast, spread the repayment out over time, and avoid dipping into your home’s equity (as you would with a HELOC).
- Refinancing a car — After financing a vehicle purchase, many drivers may find themselves overwhelmed with high monthly payments, dealing with predatory interest rates, or upside down on the loan with negative equity (maybe even all three). Personal loans are one solution. They allow you to adjust monthly payments, potentially snag a lower interest rate, and maybe even pay off the debt sooner.
- Paying for a funeral — Losing a loved one is difficult enough. However, if they did not have life insurance coverage or adequate savings to cover their end-of-life expenses, someone else will need to foot the bill, sometimes unexpectedly. Utilizing a OneMain Financial personal loan can be a quick way to get funding so you can go back to focusing on more important things.
Personal Loans at OneMain Financial
You have two personal loan options at OneMain Financial: secured or unsecured. With a secured loan, you are providing collateral to the lender in the form of a vehicle or other valuable property. This property is essentially offered up to “back” the loan in case of default. That means the lender can come take possession of your collateral item if you stop paying on your loan.
Because the debt is secured, the lender is typically willing to offer a lower interest rate on your loan. Unsecured debt, however, is not backed by collateral. This usually means the lender will charge a higher interest rate on the loan and your borrowing limits may be lower.
Additionally, borrowers in some states will be restricted to certain loan minimums and maximums. For instance, California borrowers cannot take out loans for less than $3,000, Texas and Florida borrowers can take out no more than $8,000 in an unsecured loan, and West Virginia borrowers are limited to $14,000.
As per OneMain Financial’s website, larger loans will require collateral in the form of a lien on a motor vehicle. This vehicle must:
- Be less than 10 years old
- Meet certain value requirements
- Not be owned by an active duty military member, their spouse, or their dependents covered by the Military Lending Act
- Be titled in the borrower’s (or co-signer’s) name
- Have valid insurance
All that said, when you build your personal loan through OneMain Financial, you’ll be able to choose the product that best suits you, your needs, and your monthly budget. You can choose a term of 24, 36, 48, or 60 months, for a loan ranging from $1,500 to $20,000 (depending on creditworthiness). As of Nov. 16, 2019, annual interest rates ranged from 18.00% to 35.99%, based on the borrower and loan details.
|Loan types||Secured and unsecured|
|Loan amount||$1,500 to $20,000|
|APR||18.00%-35.99% (as of Nov. 14, 2019)|
|Loan terms||24, 36, 48, or 60 months|
OneMain Financial’s loan application process
OneMain Financial takes a unique approach to lending, offering a blend of technology and a personal touch that fewer banks offer today.
Step 1: Through the OneMain Financial website, you can first get pre-approved for your loan by answering some quick questions about yourself. You won’t be asked about the purpose of your loan at this time. This process took me about two minutes to complete, and it has no impact on your credit.
Unlike many online loan preapprovals, however, the results aren’t very comprehensive. While you’ll be able to see the secured and unsecured loan amounts for which you qualify, you won’t see any interest rate(s), monthly payments, or other loan terms until you officially apply. This can make it difficult to gauge whether a OneMain Financial personal loan is the right product for you without formally applying and taking a hit on your credit report.
What you can see, though, are the fees associated with your new loan if you choose to move forward. These include:
- Origination fees ranging from $30-150 or 1-5% of the loan amount, depending on your state
- Late payment fees of $10-25 or 1.5-15% of the late amount
- Non-sufficient funds fees of $10-50 per returned payment
You can also check out OneMain Financial’s online loan calculator to get an idea of what your monthly payments would be based on your loan amount, desired terms, and interest rates for which you might qualify.
Step 2: If you’re ready to formally apply, you can do so online. This will result in a hard credit inquiry and your information will be sent to OneMain Financial.
Step 3: You’ll receive a call from a OneMain Financial representative shortly, to discuss your loan needs. During this call, you’ll discuss loan terms, the amount you need, interest rates, and monthly payment options.
Step 4: You’ll visit a local OneMain Financial branch to verify your identity, discuss your loan collateral, and verify your income. Upon approval, you’ll also sign documents and close on your loan while there. And, if you choose to receive your loan funding by check, you can pick up the payment at this time. Same-day funding is also available for many borrowers!
It’s important to note this in-person visit is not just an added benefit for those borrowers who like a one-on-one borrowing experience; it’s a requirement. If you’re a busy borrower who prefers an online approach or simply cannot make it into a local branch, this might make OneMain Financial a less enticing option for your personal loan.
What OneMain Financial customers are saying
Currently, OneMain Financial has excellent customer reviews across a number of consumer platforms.
On TrustPilot, OneMain Financial enjoys a 4.8 out of 5 (Excellent) rating with around 17,500 reviews. They have an A+ rating from the Better Business Bureau, and reviews elsewhere on the web tend to be mostly positive, as well.
Common complaints, especially those found on sites like Consumer Affairs, include concerns regarding personal loan fees and interest rates — both of which are higher with OneMain Financial than you may find with other lenders.
Of course, both fees and rates are also determined prior to loan disbursement, are dependent on each borrower, and will be notated in the final loan documents at closing, so there are no surprises or shady tactics. To avoid being caught off-guard by fees or charges on any financial product, it’s imperative to read agreements carefully and thoroughly, asking any questions you may have before signing.
FAQs about OneMain Financial
Does OneMain Financial affect your credit score?
Your online pre-approval will not impact your credit in any way, and it will show you the loan limits for which you qualify. If you move forward with the loan, then your formal application will involve a hard inquiry and that will show up on your credit report.
What credit score do you need for a loan with OneMain Financial?
There is no official minimum credit score required in order to qualify for a personal loan through OneMain Financial. Your eligibility will be determined by a combination of factors such as your income, credit history, and available collateral.
Can you pay off a OneMain Financial loan early?
There are no prepayment penalties for paying off your OneMain Financial personal loan early.
Can you have multiple loans with OneMain Financial?
Additional funding is available on a case-by-case basis. If you currently have a loan through OneMain Financial and need more money, contact the lender directly and they will evaluate your request.
What can be used as collateral for OneMain Financial?
Here are a few different types of accepted collateral through OneMain Financial:
All collateral must be appraised to determine its value before approval. Additionally, you’ll need to carry physical damage insurance coverage on the collateral for the life of your loan.
The final word on OneMain Financial
If you’re considering a personal loan — and especially if you need money fast — OneMain Financial might be worth a look. While their online pre-approval won’t provide you with interest rates or monthly payment amounts, it is fast and the process will show you how large of a loan you’d be able to receive. Formal applications are also approved quickly, and funding can be completed the same day in many cases.
OneMain Financial isn’t likely the best choice for borrowers with excellent credit. Instead, you may be able to find lower rates through your local credit union, by utilizing a 0% APR credit card offer, or through a company like SoFi or LendingClub. OneMain Financial is, however, a good option for those with less-than-ideal credit scores or borrowers who need money fast (even same-day).
Disclaimer: All rates and fees are accurate as of Nov. 14, 2019.