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Formerly SpringLeaf, OneMain Financial offers customized loan solutions operating out of over 1,600 branches in 44 states. It specializes in providing personal loans of up to $20,000 to people with bad credit. To date, OneMain has originated more than $10 billion in loans to over 3.5 million borrowers. Want to learn more? Keep reading for the good, the bad and my breakdown of personal loans with OneMain Financial.
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About OneMain Financial Personal Loans
Borrower Averages
OneMain Financial considers both your credit history and your financial ability to repay the loan. It analyzes your income, budget and other financial responsibilities to determine whether or not to approve your application.
| Credit Score | 622 |
| Annual Income | $49,000 |
- No collateral required. Don’t own a house? It’s not going to be an issue here. However, you are welcome to provide personal property as collateral.
- Joint applications. OneMain welcomes cosigners so you have a better chance of getting approved and qualifying for better rates.
- Soft credit check. The initial credit check won’t affect your credit score, but if your loan is approved, a hard inquiry will show up on your report.
- Quick funding. You can get your funds the same day you’re approved.
- Flexible fund use. A personal loan through OneMain can be used for debt consolidation, home improvements, life events, travel and more.
- Fixed rate. It won’t budge for the entire duration of your loan term.
- Seven-day commitment guarantee. If you change your mind, you have seven days to cancel with no penalty.
- No prepayment penalty. So you can pay that loan of yours back as quickly as possible.
- Flexible payment options. You can make payments online, in a branch, by phone, by mail, via app and even at a Walmart Service Desk.
- OneMain Rewards. Earn points by completing simple tasks like paying your bills on time, completing budget tutorials, monitoring your credit score and interacting with the company on social media. Points can be redeemed for gift cards and other discounts.
- Not available in all states. You can’t apply for a OneMain personal loan if you live in Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont and Washington D.C.
- Must meet in person. To complete the loan, you’ll have to visit a branch to verify your identity, income, expenses, employment and collateral (if any).
- High rates. The low end is just over 16%, while the high end is almost 36%!
- Full coverage insurance required for collateral. If you take out a secured loan, OneMain requires that you have full coverage on the vehicle you use as collateral.
Eligibility Requirements
There are no minimum credit score, gross annual income or debt-to-income ratio requirements.
One Main Financial Terms & Fees
| Loan Amounts | $1,500 – $20,000 |
| Loan Terms | 2 to 5 years |
| Repayment Options | Monthly |
| Origination Fee | Varies by state |
| APR | 18.00% – 35.99% |
| Soft Credit Check? | Yes |
| How To Qualify |
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| Prepayment Fee | None |
| Late Payment Fee | 5% |
| NSF Payment Fee | Varies by state |
| Debit Card Payment Fee | $2.95 per payment |
| Payment Fee at Walmart | $1 to $1.50 |
The Breakdown
OneMain Financial is a great choice for borrowers with less than stellar credit who can apply with a cosigner. Collateral is not required, and the company will only do a soft pull on your credit during the initial application process. Funding is super quick after approval. The rate is fixed, and there’s a seven-day grace period for you to change your mind, for whatever reason. You also have plenty of payment options to choose from. With OneMain Rewards, you can easily earn discounts and gift cards from participating restaurants and retailers.
Sample Loan
| Loan Size | $15,000 |
| Loan Term | 48 months |
| Origination Fee (4%) | $600 |
| Funds Received | $14,400 |
| APR | 26.0% |
| Total Interest | $9,276.46 |
| Monthly Payment | $505.76 |
However, the process is not all online. To complete the application, you have to drag yourself to a OneMain Financial branch with the necessary documents. The rates are also quite high compared to other lenders. If you are going to take out a secured loan, OneMain requires that you have full coverage insurance on that collateral. Lastly, OneMain personal loan is not available to those living in Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont and Washington D.C.
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