NerdWallet rating: 4.0 / 5.0
Good for: Bad credit, secured loan
OneMain Financial lends to people with poor credit who may have trouble qualifying for a traditional bank loan. The company has no minimum credit score or minimum income requirement, but its borrowers’ average scores are between 600 and 650.
OneMain may be a good fit if:
- You have below-average credit (generally below 630)
- You earn less than the U.S. median of $55,775 a year
- You prefer a traditional bank experience. OneMain usually requires a visit to one of its more than 1,700 branches.
- You need money quickly. Loans typically fund the same day.
OneMain Financial at a glance
|Typical APR||12.99% – 35.99%|
|Loan amounts||$1,500 - $25,000|
|Time to funding||Same day|
|Origination fee||Varies by state|
|Soft credit check?||Yes|
Clicking “Check rates” will take you to a OneMain site with an online application.
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 product. Loan terms and fees may vary by state.
OneMain considers traditional factors such as credit history and debt-to-income ratio when evaluating borrowers. The company does an initial soft credit inquiry that does not ding your credit score to find loan offers for which you are prequalified. It does a hard credit inquiry before funding a loan.
OneMain’s starting annual percentage rate of 12.99% is higher than what is charged by most online lenders that cater to people with poor credit, such as Peerform and Avant. OneMain’s rates top out at 35.99%. Borrowers with bad credit are likely to see offers of rates averaging around 28% APR from online lenders, according to NerdWallet data.
A credit union is a better option for a personal loan for borrowers with poor credit who can’t get a bank loan. Rates at federal credit unions don’t exceed 18%, and credit unions often work with members to make the loan affordable. But for those who can’t qualify anywhere else, OneMain and other poor-credit lenders are better options than taking a payday loan or a payday installment loan; interest rates on those types of products can top 300% and trap people in a cycle of debt.
Approved OneMain borrowers have free access to their credit scores, a feature that few other online lenders offer.
OneMain’s 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 interest rate, larger loan amount or longer loan term compared with an unsecured loan. The company says 43% of its loans are secured loans.
After it checks a borrower’s credit, people with troubled credit histories are offered a secured loan, while those with better credit are offered the option of a secured or unsecured loans, OneMain says. If you take the secured loan but can’t make your loan payments, you could end up losing your vehicle. 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 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.
If you want to compare an offer from OneMain with those from other lenders, you can check rates on NerdWallet using the button below. NerdWallet’s lender marketplace checks multiple lenders and displays all the loans for which you pre-qualify based on the information provided in your application. You can compare rates in one place, and filling out an application won’t affect your credit score.
More about OneMain Financial
- Minimum credit score: none
- Minimum gross income: none; OneMain borrowers’ average income is $47,700
- Minimum credit history: not provided
- Maximum debt-to-income ratio: not provided
- APR range: 12.99% to 35.99%; 9.99% minimum for auto-secured loan
- Loan amount: $1,500 to $25,000
- Loan duration: three to five years
Fees and penalties
- Origination fee: varies by state
- Prepayment fee: $0
- Late fee: varies by state
- Unsuccessful payment fee: varies by state
Before you take a personal loan
Consider other debt consolidation options.
Check your free credit report.
Learn how personal loans work.
Calculate payment scenarios.
Have a plan for getting out of debt.
Updated March 30, 2017.
Personal Loans Ratings Methodology
NerdWallet’s ratings for personal loans awards points to lenders that offer consumer-friendly features, including soft credit checks, no origination fees, payment options, short time to funding, interest rate caps of 36%, and absence of prepayment penalties. Features are considered for their positive impact on consumers’ credit history and financial health. To ensure accuracy and consistency, our ratings are reviewed by multiple people on the NerdWallet Personal Loans team.
— Among the very best for consumer-friendly features
— Excellent; offers most consumer-friendly features
— Very good; offers many consumer-friendly features
— Good; may not offer something important to you
— Fair; missing important consumer-friendly features
— Poor; proceed with great caution