OneMain Financial Personal Loans: 2021 Review

OneMain personal loans are an option for borrowers with low credit scores, offering some flexibility in payments and multiple ways to qualify.

Annie MillerberndNovember 24, 2020
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Our Take

4.0

NerdWallet rating 

The bottom line: OneMain prioritizes a borrower’s ability to repay on a loan application. Rates are high, but this lender accepts low credit scores.

OneMain

on OneMain Financial's website

on OneMain Financial's website

Min. Credit Score

None

Est. APR

18.00 - 35.99%

Loan Amount

$1,500 - $20,000

Pros & Cons

Pros

  • Option to choose a payment date.

  • Offers joint and secured loans.

  • Able to fund a loan the same or next business day.

  • Offers online educational resources.

Cons

  • Rates are high compared with other online lenders.

  • Charges origination fee.

  • Doesn't offer direct payment to creditors on debt consolidation loans.

Compare to Other Lenders

OneMain
Avant
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NerdWallet rating 
NerdWallet rating 
NerdWallet rating 
Est. APR

18.00 - 35.99%

Est. APR

9.95 - 35.99%

Est. APR

5.94 - 35.97%

Loan Term

2 to 5 years

Loan Term

2 to 5 years

Loan Term

3 to 5 years

Loan Amount

$1,500 - $20,000

Loan Amount

$2,000 - $35,000

Loan Amount

$1,000 - $50,000

Min. Credit Score

None

Min. Credit Score

550

Min. Credit Score

580

Compare estimated rates from multiple lenders

Compare Rates

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Full Review

To review OneMain Financial’s personal loans, NerdWallet collected more than 40 data points from the lender, interviewed company executives 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 doesn't have a minimum credit score requirement to qualify for its personal loans. Instead, the lender uses an in-house algorithm to evaluate borrowers. Three of the most important factors on a loan application are ability to repay, credit stability and whether the loan is secured with collateral, according to a spokeswoman.

The loans are expensive compared with other online loans; however, they have some consumer-friendly features that make them an option for borrowers who may struggle to qualify elsewhere. These loans can have a repayment term between two and five years.

OneMain is best for borrowers who:

  • Have fair or bad credit (689 or lower FICO score).

  • Can add collateral or a co-borrower to the application, which can help lower your rate.

  • Need the funds fast.

OneMain at a glance

Credit building

  • Soft credit check to pre-qualify.

  • Reports payments to three credit bureaus.

Affordability

  • APRs are high among lenders targeting similar borrowers.

  • Charges origination fee.

  • No prepayment fee.

  • No rate discount for autopayments.

Loan flexibility

  • Offers multiple loan types.

  • Funds loans the same or next day.

  • Not available in: Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island or Vermont.

Transparency

  • Clearly discloses rates and terms on website.

  • Fees not disclosed on product page.

Customer experience

  • Offers mobile app to manage loan.

  • Offers financial education.

  • Fully online application process.

Where OneMain stands out

Secured and joint loan options: OneMain lets borrowers use a vehicle as collateral for a secured loan or add a co-applicant to an application. Either option can help improve a borrower's chances of qualifying and getting a lower rate than they would on their own. With a secured loan, the lender will appraise the vehicle and it must be insured to be eligible.

Mobile app to manage a loan: OneMain has a mobile app that borrowers can use to see their account and manage payments. Mobile apps are somewhat rare from lenders, even online lenders.

Choose and change your payment date: A borrower can pick their payment date when they sign a loan agreement, as long as it’s within 45 days of the day they accept the offer. After that, they can change the payment date twice during the life of the loan.

Fast funding: The lender says it can fund a loan the same or next business day after an application is approved if a borrower provides all the necessary documentation. For same-day funding, an application has to be approved by noon.

Where OneMain falls short

No autopay discount: Unlike many other lenders, OneMain doesn’t offer a rate discount for setting up automatic payments. The discount, usually 0.5% or lower, encourages borrowers to use autopay to ensure on-time payment.

Origination fee: OneMain loans come with origination fees, which isn’t uncommon for online lenders. In some states, it’s a flat fee of $25 to $400, and in others, it’s 1% to 10% of the funds. It can be high compared with other lenders’ origination fees.

No direct payments to creditors: Unlike some lenders that focus on debt consolidation, OneMain doesn't send payments directly to creditors when a borrower consolidates debts with a loan. Instead, borrowers have to keep track of their own repayments.

Credit insurance: OneMain may offer optional credit insurance with secured or unsecured loans. This insurance adds to the loan costs and may not be needed if borrowers already have life insurance, so learn about the pros and cons of credit insurance before buying it.

How to qualify for a OneMain loan

OneMain doesn’t disclose many of its hard requirements, but says it looks for borrowers who are able to meet their monthly financial obligations — including mortgage or rent payments and other debt payments — and still afford the loan.

The lender doesn’t have a minimum credit score requirement because it doesn’t rely on a credit score to help determine whether someone qualifies. Instead, it uses its own underwriting system which accounts for over 1,000 data points about an applicant.

Here are some OneMain borrower averages:

  • Average income: $45,000.

  • Average loan size: $8,000 to $10,000.

  • Average APR: 27%.

Loan example: A two-year, $10,000 loan with an APR of 28.7% would have a monthly payment of $552. You would pay $3,248 in total interest on that loan.

How to get a OneMain loan

Pre-qualify on NerdWallet

NerdWallet recommends comparing loans to find the best rate for you. Pre-qualifying may get you personalized rates from multiple lenders that partner with us, including OneMain. Pre-qualifying will not impact your credit.

Apply on OneMain

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.

on OneMain Financial's website

Personal Loans Rating Methodology

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.