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Cassidy Horton is a monetary with over five years of experience. She holds an MBA and a bachelor’s degree in public relations from Georgia Southern University and has worked with leading money brands such as Forbes Advisor, NerdWallet, and Consumer Affairs.
David Gregory is an insightful content editor with over a decade of experience in the financial services industry. Prior to that, he worked as a child and family therapist until his love of adventure led him to quit his job, give up everything he owned, and move to Asia. David spent years running and traveling to many countries before returning home to his wife and two children. His love of reading led him to practice at UC San Diego to become an editor, and he has worked as an editor ever since. When he’s not running, he’s reading a book, riding his bike, or playing a board game with his kids (and wife).
OneMain Financial personal loans may be a good option if you have less-than-perfect credit and need to borrow between $1,500 and $20,000. But this lender’s fees and interest rates can be steep when compared to its competitors.
Below, the team at MarketWatch Guides has compiled a comprehensive review of OneMain Financial to help you if your application is worth applying.
MarketWatch Rating: 3. 5 out of five stars
When it comes to getting a loan, OneMain Financial ranks at the bottom of our list for several 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 financing terms and accepts lower credit scores than most private loan providers. So, if you’re having trouble getting approved for the most productive private loans, it might be worth considering. Be pre-qualified to see what rate and loan amount you might qualify for, and pre-qualifying may not affect your credit score.
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 ideal for other people who have fair credit, want a quick loan of $1,500 to $20,000, and can comfortably pay it off within two to five years. It might also be better for those who have been turned down through other lenders, as OneMain has a history of working with borrowers who would not possibly qualify for loans elsewhere.
Additionally, OneMain’s physical branches can be helpful if you prefer to talk in person. However, this lender may not be the most productive option if you have the right credit and can take advantage of loans with lower interest rates and fees.
OneMain has a quick application and approval procedure that you can complete in a single day. Here’s how to get a loan.
It takes about 10 minutes to complete an online application and get an initial decision. If OneMain wants to learn more, it can delay the process.
You can increase your chances of getting a same-day decision by having the following documents when you apply:
Once the request is complete, it still takes about 10 minutes to get an approval decision, as long as OneMain doesn’t want any more data from you. After that, the next step is to indicate your loan agreement and get your funds. The faster the more you signal the paperwork, the faster OneMain will be able to disburse the loan.
There are 3 tactics to get your loan funds back:
Adding cash to your debit card is the quickest. If all goes well, you can request and get your loan quote in as little as a day, or even an hour in some cases.
If you don’t like the approved loan amount, you may be eligible for a higher amount if you reapply with a co-applicant or provide some type of collateral, such as a car, motorcycle, boat, RV, or RV.
You have seven days to cancel your loan in the event you change your mind.
When you take a look at third-party sites like Best Company and the Better Business Bureau (BBB), you’ll see that OneMain Financial is sometimes praised for its quick loan approvals and willingness to work with borrowers who have poor credit limits or credit history. Many borrowers also had the option to apply for a loan on a user basis with a credit 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. , September 1, 2023, BBB
“The affiliates apologized, but the experience was terrible. . . Everything, from the beginning to the end, very stressful and disorganized. The amount I approved was replaced 4 times. Incorrect data, consistent back and forth, I was asked for more information after I said it was in a condition to close. I can’t wait to pay that off and get rid of a single principal.
– Aaron V. , January 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. , Apr 13, 2023, Best Company
OneMain responded to a request for feedback on its reviews or overall rating.
OneMain Financial has more flexible eligibility requirements than other private loan lenders, but the approval of your application will ultimately depend on your financial profile.
Eligibility requirements, adding up the minimum and maximum loan amounts you would possibly qualify for, vary by state.
OneMain Financial does not list any minimum credit score requirements on its site. This is likely due to the fact that you use your entire monetary and credit history to determine if you qualify for a loan. This includes points such as your income, employment history, and debt-to-income ratio (DTI).
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.
You’ll need a solid source of income, whether it’s a source of income, retirement, or Social Security benefits, to qualify for a OneMain loan. Specific income source needs will likely vary depending on the loan amount. your state of residence and your monetary situation. You may also need evidence of employment, such as pay stubs or tax returns, to determine your source of income.
If you don’t meet the source of income requirements, apply to a co-borrower with a strong source of income. You could also use collateral, such as a car or boat, to secure the loan. This can help ease OneMain’s concerns about your source of income or work history.
You can use your OneMain private loan for almost all of the following:
Almost everything else is fair play. So, if you need to use your loan budget for debt consolidation, moving expenses, emergencies, kitchen renovation, family planning, or anything else, you can.
Some of the disadvantages of opting for OneMain Financial are the fees and consequences that may apply, depending on the amount of your loan and the state you live in.
OneMain’s origination fees may be flat rate or expressed as a percentage, depending on your state. Typically, fixed-rate origination fees range from $25 to $500, while percentage fees range from 1% to 10%.
Keeping those payments in mind is essential, as it will determine how much of your loan proceeds you will receive. For example, if you borrow $10,000 and the down payment is 5%, $500 will be deducted from your loan amount before it reaches your bank. account. You’ll have to pay the full $10,000, even if you only won $9,500.
OneMain doesn’t apply prepayment penalties, so if you need to pay off your loan sooner, you can. You may not be penalized with fees like you would with some lenders. Your loan payment is due once a month, but you can pay extra to pay off your debt faster.
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.”
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.
Depending on the state you live in, OneMain Financial could qualify as an inadequate budget payment (NSF) if any of your monthly bills are recovered. This payment can range from $10 to $50 per returned payment.
OneMain Financial could be valuable if you need a private loan with bad credit, but before you make a decision, it can be helpful to see how you compare to major lenders.
If you have smart credit and want a larger loan amount, LightStream is arguably the most productive option. If your credits are ideal and you want 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.
SoFi offers some of the lowest APRs for its private loans and has much higher loan amounts than OneMain (between $5,000 and $100,000), so this may be a smart option if you want a higher loan amount . Additionally, SoFi might be a better loan option if you don’t want to apply in person. It is an online lender with no physical branch, but is known for its excellent customer service, which adds professional training if you lose your job.
OneMain Financial and PenFed are smart features if you want to borrow for small amounts. OneMain allows you to borrow amounts starting at $1,500, while PenFed loan amounts start from $600. OneMain is known for having maximum fees and interest rates, while PenFed is known for no fees and lower interest rates. None of the lenders disclose their creditworthiness requirements. PenFed is a credit union, so you want to sign up before you can get your loan funds.
While OneMain Financial offers lightning-fast financing terms and accepts lower credit scores than most private loan providers, its origination fees and higher interest rates can make it less attractive to borrowers with credit. Compare several private loan offers before making a decision. tailored to your unique situation.
Our team has established a comprehensive 100-point scoring formula to compare loan companies. We amassed knowledge from 28 of the largest lenders in the U. S. We survey U. S. disclosures, licensing documents, model loan agreements, marketing materials, and websites. Our scoring formula takes into account 4 main categories.
Affordability
18/35
Loan Features
21/35
Customer Experience
16/20
Company reputation
8/10
Total
63/100
Our top-rated lenders may not be right for all borrowers. To learn more, read our full private lending methodology.
OneMain doesn’t have a minimum credit score and is known for lending to individuals who have been denied by other lenders. That said, you generally need a good credit score to qualify for the best rates and terms. If your credit score is too low, OneMain Financial may require you to give them a lien on your vehicle as collateral for the loan.
It would possibly be easier to get a loan from OneMain Financial than other private loan providers. That said, it is known to have above-average interest rates. If you apply for a private loan from OneMain Financial and your application is denied, you get a physical email or letter explaining how to investigate the express reasons why you were denied.
OneMain Financial does not list the necessary sources of income on its website, other than having “a sufficient source of income after monthly expenses. “It’s up to the lender to review your money profile and what “enough” means.
Yes, OneMain Financial performs a credit check when you apply for a private loan. This credit check will load a thorough investigation on your credit report, which can lead to a transient drop in your credit score.
Editor’s Note: Before making major money decisions, review your roles with someone you trust, such as a financial advisor, credit counselor or financial professional, since everyone’s situation and desires are different.
Cassidy Horton is a monetary with over five years of experience. She holds an MBA and a bachelor’s degree in public relations from Georgia Southern University and has worked with leading money brands such as Forbes Advisor, NerdWallet, and Consumer Affairs.
David Grepassry is an insightful content editor with over a decade of experience in the financial services industry. Prior to that, he worked as a child and family therapist until his love of adventure led him to quit his job and give it his all. David spent years running and traveling to many countries before returning home to his wife and two children. His love of reading led him to practice at UC San Diepass to become an editor, and he has been running for editor ever since. When he’s not running, he’s reading a book, riding his bike, or playing a board game with his kids (and wife).
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