OneMain Financial Personal Loans Review (June 2024) (2024)

MarketWatch Rating: 3.5 out of 5 stars

When it comes to getting a personal loan, OneMain Financial ranks at the bottom of our list for a few reasons.

First, its lowest advertised rate is much higher than the lowest rates offered by lenders such as LightStream, SoFi, Discover and PenFed. Its highest advertised rate is also higher than these lenders. So on both ends of the spectrum, you could pay more interest for a OneMain loan than you would with another lender. The company also has a substantial origination fee, which further adds to the cost.

That said, OneMain offers lightning-fast funding times and accepts lower credit scores than most personal loan providers. So, if you’re having difficulty getting approved for the best personal loans, it might be worth considering. You can get prequalified to see what rate and loan amount you might be eligible for, and prequalification won’t impact your credit score.

>> Related: Learn more about the best personal loan rates

OneMain Financial personal loans come with a variety of advantages and disadvantages that can have long-term impacts on your financial health if you’re not careful.

OneMain is best for individuals who have fair credit, need a loan size of $1,500 to $20,000 quickly and can comfortably pay it back within a two- to five-year term length. It might also be best for those who have been turned down by other lenders, as OneMain has a history of working with borrowers who may not be able to qualify for loans elsewhere.

Also, OneMain’s physical branch locations may be beneficial if you prefer to speak with someone in person. However, this lender may not be the best option if you have excellent credit and can qualify for loans with lower interest rates and fees.

>> Related: Learn more about the best personal loans for fair credit

OneMain has a quick application and approval process that you can usually complete in just one day. Here’s how to get a loan.

Application Process

It takes about 10 minutes to complete an online application and get an initial decision. If OneMain needs additional information, it can delay the process.

You can increase your chances of getting a same-day decision by having the following documents when you apply:

• Government-issued photo ID, such as a driver’s license or passport
• Proof of residence, such as a driver’s license, utility bill or lease
• Proof of income, such as pay stubs or tax returns

Approval and Funding

Once you’ve filled out the application, it takes another 10 minutes or so to get an approval decision, as long as OneMain doesn’t need any additional information from you. After that, the next step is to sign your loan agreement and get your funds. The sooner you sign the documents, the sooner OneMain can disburse the loan.

There are three ways to receive your loan funds:

1. Have them deposited directly into your checking or savings account via an Automated Clearing House (ACH) transfer (this can take one to two business days)
2. Have them added to your debit card via SpeedFunds (this happens the same day as closing)
3. Receive a check by visiting a local branch

Getting the money added to your debit card is quickest. If everything goes smoothly, you can apply and have your loan funds in as little as one day — or even one hour in some cases.

If you don’t like the loan amount you were approved for, you may qualify for more if you reapply with a co-applicant or provide some form of collateral, such as a car, motorcycle, boat, camper or RV.

You have seven days to cancel your loan in the event you change your mind.

>> Related: Learn more about personal loan requirements

When you look at third-party sites such as Best Company and Better Business Bureau (BBB), you’ll see that OneMain Financial is generally praised for its speedy loan approvals and its willingness to work with borrowers who have poor credit or limited credit history. Several borrowers also enjoyed the option of applying for a loan in person with a loan specialist.

The biggest complaints stem from people who were preapproved for a certain loan amount and interest rate before ultimately being given a higher annual percentage rate (APR) or smaller loan amount once their loan was fully underwritten. Although not ideal, this can happen when a lender conducts a more thorough review of your credit profile and financial situation. Preapproval never guarantees that you’ll get those exact loan terms.

Overall, here’s what a few real-life customers had to say about OneMain Financial:

“I had been searching for a loan with no luck until I contacted OneMain Financial. The representative was very helpful, and we were able to get me the loan I needed. I would definitely recommend them for your financial needs.“

— Hilda D., Sept. 1, 2023, BBB

“Associates were apologetic, but the experience was terrible. … Everything from start to finish was very stressful and disorganized. The amount I was approved for changed four times. Incorrect information, constant back and forth, additional info requested after they said I was all set for closing. I can’t wait to pay this off and be done with one main.“

— Aaron V., Jan. 9, 2024, BBB

“I got a small personal loan from OneMain Financial. Was very pleased with the representative I had. Very friendly and helpful. They made the process and funding very quick and easy. I would definitely recommend them.“

— Sheila B., April 13, 2023, Best Company

OneMain did not respond to a request for comment on its reviews or its overall score.

>> Related: Learn more about good interest rates on a personal loan

OneMain Financial generally has looser eligibility requirements than other personal loan lenders, but whether you get approved will ultimately depend on your financial profile.

Eligibility requirements — including the minimum and maximum loan amounts you may qualify for — vary by state.

Credit Score and Financial History

OneMain Financial doesn’t list any minimum credit score requirements on its site. This is most likely because it uses your full financial and credit history to determine whether you qualify for a loan. This includes factors such as your income, employment history and debt-to-income (DTI) ratio.

If you have a stable employment history and a low DTI ratio, you may be more likely to be approved for a loan. If you have a history of missed payments or high levels of debt, on the other hand, you may face more challenges in getting a loan.

Income and Employment

You’ll need a steady source of income, whether though employment income, retirement or Social Security benefits in order to qualify for a OneMain loan. The specific income requirements may vary depending on the loan amount, your state of residency and your financial situation. You might also need proof of employment, such as pay stubs or tax returns, to verify your income.

If you don’t meet these income requirements, consider applying with a co-borrower who has a steady source of income. Likewise, you can consider using collateral, such as a car or boat, to secure the loan. This may help offset any concerns OneMain has about your income or employment history.

>> Related: Learn more about the personal loan documents

You can use your OneMain personal loan for just about anything except the following:

• Postsecondary education, including expenses related to college, university and vocational schools and refinancing student loans
• Business and commercial purposes
• Investing or purchasing securities
• Gambling or illegal activities

Pretty much anything else is fair game. So if you want to use your loan funds for debt consolidation, moving expenses, emergencies, kitchen remodeling, family planning or anything else, you can.

Some of the disadvantages to going with OneMain Financial are the fees and penalties that might apply, depending on your loan amount and which state you live in.

Loan Origination Fees

OneMain’s origination fees may be a flat fee or a percentage rate depending on your state. In general, flat-rate origination fees vary from $25 to $500, while percentage-rate fees vary from 1% to 10%.

Factoring in these fees is critical, as it will dictate how much of your loan proceeds you actually receive. For example, if you’re borrowing $10,000 and the origination fee is 5%, $500 will be deducted from your loan amount before it hits your bank account. You’ll have to pay back the full $10,000, even though you only received $9,500.

Early Repayment Penalties

OneMain doesn’t charge any prepayment penalties, so if you want to pay off your loan early, you can. You won’t be penalized with a fee as you would with some lenders. Your loan payment is due once a month, but you can pay extra to settle your debt more quickly.

You can request a payoff amount by visiting a branch, calling customer service or logging in to your OneMain account and clicking “Request a Payoff.”

Late Payment Fees

If you miss the grace period for your monthly payment, OneMain will charge a late fee. This late fee can be a flat amount ranging from $5 to $30 or a percentage of your monthly payment ranging from 1.5% to 15%. Either way, it can really add up. The best way to avoid late payments is to set up autopay, so monthly dues are automatically deducted from your checking account.

Non-Sufficient Funds Fees

Depending on the state you live in, OneMain Financial may charge a non-sufficient fund (NSF) fee if one of your monthly payments bounces. This fee can be anywhere from $10 to $50 per returned payment.

OneMain Financial may be worth considering if you need a personal loan with bad credit. But before you make a decision, it can be helpful to see how it compares to these top lenders.

OneMain Financial vs. LightStream

If you have good credit and need a larger loan amount, LightStream may be the better option. If you have less-than-ideal credit and need a smaller loan amount, OneMain Financial may be worth considering.

OneMain Financial offers loans between $1,500 and $20,000, while LightStream offers loans between $5,000 and $100,000. OneMain Financial has looser eligibility requirements and accepts lower credit scores, but it has higher interest rates and fees. LightStream requires good to excellent credit but has lower rates and no fees. It also has a Rate Beat Program that promises to give you a rate lower than any competing offers, and a discount for automatic payments.

>> Related: Learn more about LightStream personal loans

OneMain Financial vs. SoFi

SoFi offers some of the lowest APRs for its personal loans and has loan amounts much higher than OneMain — $5,000 to $100,000 — so it may be a good option if you need a higher loan amount. Also, SoFi might be a better loan option if you don’t want to apply in person. It’s an online lender with no physical branches, but it’s known for having excellent customer service, including career coaching services if you lose your job.

>> Related: Learn more about SoFi personal loans

OneMain Financial vs. PenFed

Both OneMain Financial and PenFed are good options if you need smaller loan amounts. OneMain lets you borrow amounts starting at $1,500, while PenFed’s borrowing amounts start at $600. OneMain is known for having high fees and interest rates, while PenFed is known for having no fees and lower interest rates. Neither lender discloses its credit score requirements. PenFed is a credit union, so you’ll need to join before you can receive your loan funds.

Our team put together a comprehensive 100-point rating system to evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the U.S. and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.

• Affordability (35%): How expensive each company’s loans are to pay back.
• Loan features (35%): The breadth of loan terms and features available to prospective customers.
• Customer experience (20%): Ease of application, prequalification and customer service interactions.
• Company reputation (10%): An exploration of lenders’ BBB files, customer reviews and outstanding regulatory actions.

Our top-rated lenders may not be the best fit for all borrowers. To learn more, read our full personal loans methodology.