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OneMain Financial Loans Review: Why Choose It Over Other Lenders?

If you are looking for a quick source for funds but you have less-than-perfect credit, then OneMain Financial might just be the one you are looking for. In this OneMain Financial loans review, we are going to provide you with significant information before you head on to its website and apply for a loan.

OneMain Financial Loans Review

In a report by the U.S. Chamber of Commerce, it says that the current total outstanding personal loan debt in the United States is estimated at $143 billion, while there are 21.1 million outstanding personal loans in the country to date.

Furthermore, in the said report, it says that the average interest rates for personal loans range from 10% up to 28% — depending on the borrower’s credit score. Generally, the better your credit score is, the lower the interest rates would be. Unfortunately, those with not-so-good credit score may have to deal with higher interest rates.

Personal loans, particularly the unsecured ones are very popular among borrowers. It’s in fact every borrower’s go-to loan type. It’s easy to apply, and the funds are usually made available in just a matter of time.


With everything that is happening around, it wouldn’t be surprising if there’d be a surge in personal loan (or any loan for that matter) applications. People need to thrive and with the recession just around the corner because of the pandemic, lending companies will surely have a lot of work to do.

Speaking of lending companies, there are a lot of financial institutions out there where people can borrow money from. There are banks, credit unions, as well as online lenders. With a lot of options available, it’s really just about choosing the right one.

One of the choices is OneMain Financial. Today, we are going to specifically talk about this company – what it is, what it offers and what it does, and of course, we are going to find out if it’s worth dealing with.

For your reference, here are the questions that we are going to answer to help you know more about OneMain Financial, and eventually, help you make an informed decision:

  • Who is OneMain Financial?
  • What are the different types of personal loans offered by OneMain Financial?
  • What are the features of OneMain Financial personal loans?
  • What do you need to know about OneMain Financial loans?
  • Who qualifies for OneMain Financial personal loans?
  • How to apply for OneMain Financial personal loans?
  • What are the pros and cons of OneMain Financial?


One thing that struck us about OneMain Financial is the fact that it sees every customer as one of a kind. The company believes that every borrower deserves not just any financial solution, but something that would work for him or her.

OneMain Financial, also known as Onemain Holdings, Inc. is an American financial services provider. Having been in the industry since 1912, it is not surprising that OneMain Financial has become the country’s largest lending-exclusive financial company.

Over the years in service, OneMain Financial has already served more than 10 million customers — provided them with personal loan options that come with the fast and easy application process. The company provides loan options that are usually used for home improvement, debt consolidation, major purchases, and many more.

Although headquartered in Evansville, Indiana, OneMain Financial has more than 1,500 branches across 44 states.

Before we move on with our own OneMain Financial loans review, we thought you might want to check the below review as well by ProudMoney. It’s an informative one, and definitely worth watching for.


Now that you already know who OneMain Financial is, needless to say, what it does, at this point, let us talk about the different types of personal loans offered by the company.

As mentioned earlier, OneMain Financial aims to provide financial services to its customers in a unique way — meaning, depending on the needs of the person. That is why it is not surprising that the lending company provides borrowers personal loan options intended for different reasons.

Although OneMain Financial does not let borrowers apply for a loan intended for post-secondary education or business expenses, it allows borrowers to use the money borrowed for a number of purposes, which include the following (and even more):

  • Home improvement
  • Debt consolidation
  • Recreational loans
  • Life events (such as emergency loans, medical expenses, weddings, etc.)

In addition, OneMain Financial also offers auto loans for purchases, refinances, as well as repairs.


In this OneMain Financial loans review, we are also going to share with you the different features that you will find in OneMain Financial personal loans.

Some of the features of OneMain Financial’s personal loans are very much appealing to borrowers. This includes:

  • A soft initial credit inquiry
  • Free VantageScore credit score
  • Joint applications
  • Rewards

Let’s take a look at each of these features —

Soft Initial Credit Inquiry

One of the features of OneMain Financial personal loans is that it conducts a soft initial credit inquiry. With OneMain, you can check to see if you are prequalified for a personal loan, and you can do this online.

Just so you know a soft credit inquiry means it will not affect your credit score negatively. However, if you decide to move forward, and formally apply for a loan, a full hard credit inquiry will be done. This process can impact your credit score.

Free VantageScore Credit Score

For primary borrowers, you can log in to your account and get a free copy of your VantageScore credit score every quarter.

Joint Applications

There are borrowers who prefer adding a cosigner. Unlike other lending companies, OneMain Financial allows joint personal loan applications.

By having a cosigner, a borrower may qualify for a larger amount of loan. This, however, requires that a cosigner must have a good or excellent credit history.

While having a cosigner may sound appealing to a lot of people, as a borrower, it is important to know and understand that having a cosigner can be risky. The cosigner is equally liable for the loan, which means if the primary borrower fails to pay his or her financial obligations on the loan, the cosigner will have to take over.

In addition, both the primary borrower and the cosigner’s credit score may be affected, which means it could affect future loan attempts.


OneMain Financial does have a rewards system. Borrowers could earn rewards in different ways like when you do the following:

  • Sign up for direct pay
  • Make on-time payments every month
  • Connect to Facebook
  • Choose paperless statements


Apart from what we have already discussed in this OneMain Financial loans review, there are a few more important details that you need to know before making a loan application. These are as follows:

  • Loan Amounts
  • Loan Terms
  • Annual Percentage Rate
  • Fees
  • Funding

Loan Amounts

As a borrower, it is important to know up to how much money a lender allows to borrow. This is one way to help you decide whether the company is the right one for you.

With OneMain Financial, the lending company offers personal loans amounting from $1,500 up to $20,000. The minimum or maximum loan amount varies depending on the state where you reside, which is why it is important to check the nearest OneMain Financial or call them.

Anyway, as per OneMain Financial, the company made it clear that not all borrowers qualify for big loan amounts.

In addition, OneMain Financial requires collateral for borrowers who will qualify for large loan amounts. The collateral comes in the form of a lien on a motor vehicle under your name. The vehicle must also be 10 years or newer, and that it must have valid insurance coverage.

Loan Terms

Just like most lending companies, OneMain Financial provides flexible repayment terms. They come in four options, which are as follows:

  • 24 months
  • 36 months
  • 48 months
  • 60 months

If you are looking for a lender that allows you to pay for the loan for a long period of time, then, OneMain Financial may just be it.

Annual Percentage Rate

Unlike other lending companies that offer both fixed-rate and variable-rate APR, OneMain Financial only offers one — that is fixed-rate loans.

At OneMain Financial, fixed-rate loans’ annual percentage rate (APR) range from 18% up to 35.99%.

Although the company does not offer a variable rate, it does offer both secured and unsecured loan options.

Similar to any other secured loan, if you borrow money without collateral, that automatically falls under an unsecured loan, which means, you are likely to pay a higher APR. Secured loans do always have lower APR compared to unsecured ones.


Probably one of the downfalls of OneMain Financial is the fact that the lending company charges high amounts compared to other lending companies.

Take note that as a borrower, you must also look into the fees a lender charges. You have to factor that in when making an informed decision.

At OneMain Financial, borrowers may expect the following potential costs:

  • Origination Fee – OneMain Financial charges origination that could go as low as 1% and as high as 10%. It could also be a flat fee that ranges between $25 and $400. Please note that the actual fee will be based on certain factors like your state of residence.
  • Late Payment Fee – OneMain Financial do offer a grace period but that depends on the state where you reside though. However, once payments are not done after the grace period, the company will automatically charge the borrower up to 15% of the delinquent balance or a flat fee between $5 and $30. Again, the actual fee varied on the borrower’s state of residence.
  • Government Fees – OneMain Financial may charge borrowers for placing a lien on their vehicle’s title. That is of course if the borrower opt for a secured loan, and that the state where the person resides allows it. Usually, the fees are charged by the state or country to the lender, and then the lender will pass the fee along to the borrower at cost.
  • Non-Sufficient Funds Fee – If in case of an insufficient fund in your account, certain states may charge a fee of $10 up to $50 when your payment is returned.

Meanwhile, on a lighter note, OneMain Financial does not charge prepayment penalties. Thus, if you wish to pay off the loan earlier than scheduled, you may do definitely do so without having to worry about getting charged.


In terms of funding, once your personal loan application is approved, you may be able to pick up your check as soon as the same day of your application.

Meanwhile, if you choose to receive the loan via Automated Clearing House (ACH), you may have to wait for one to two business days depending on the time of your loan closing.


Other important details to note are the qualification details set by OneMain Financial.

Fortunately, OneMain Financial is accessible to most people regardless of financial background. The company has not set any minimum or maximum credit score for example, which makes it a good choice for those with not-so-perfect credit history.

Similar to most lenders, however, the rule is, if you have a better credit score, the lower your interest rate will be. Otherwise, you have to face a high APR.

Moving on, OneMain Financial requirements are as basic as it can be. Of course, you will be required to provide personal information (such as your address, your Social Security number, etc.), as well as your employment information.

You must also be of legal age to be qualified for the loan, and a resident of the various states where OneMain Financial operates.


At this point in our OneMain Financial loans review, we are going to discuss the application process.

Once you have been approved online, you then have to visit an OneMain Financial branch near you for an in-person interview with a loan specialist. This process is done to help verify your identity, as well as your financial information before signing off on the loan is finalized.

Also, if you opt for a secured loan, you will have to present the documents of the collateral.

To make the application process at OneMain Financial smooth, all you have to do is follow the following steps:

STEP 1: Apply online. Go to OneMain Financial website and do an online application. You will be asked to provide basic personal information.

STEP 2: Indicate the desired loan amount, purpose, your net monthly income, as well as your employment information. You will also have to include information if you own a property or not and if you have an existing bank account.

STEP 3: Wait for a response. OneMain Financial provides an almost-instant response. It also sends an email that contains more detailed information regarding the loan application.

STEP 4: Schedule an in-person interview. An in-person interview with a loan specialist, as mentioned earlier, is required to verify both your personal and financial information, as well as in closing the loan.

STEP 5: During the interview, present all the necessary documents to the loan officer. These documents may include your proof of identity, income, and employment details, as well as documents of the collateral.

STEP 6: Expect for a hard credit check. Like most lenders, OneMain Financial will conduct a hard credit check, which could adversely affect your credit score.

STEP 7: Sign the loan agreement. Once you have reviewed the loan terms and conditions, and you agree with everything, all you need to do is sign the loan agreement to seal the deal.

Given the above-mentioned process, expect that it could take an average of two to three business days. Although it seems long, it is possible for OneMain to make your check available the same day you apply or the next business day after approval has been served.


Our OneMain Financial loans review will not be complete without listing down the pros and cons that we found.

Similar to all the other lending companies out there, OneMain Financial has its share of good and bad, and this includes the following:


  • It does not have a minimum credit requirement. OneMain Financial does not disclose the company’s minimum credit requirements. However, most reports indicate that the lending company is open to worth with borrowers who have challenging credit history.
  • It does have a number of branches across the country. As mentioned earlier, OneMain Financial does have over 1,500 physical branches across 44 states.
  • It provides a soft initial credit inquiry. By going through soft credit inquiries that do not affect your credit score, you get to find out if you prequalify for a personal loan or not. Also, by doing so, it’s easier to rate shop and compare deals among other lenders.
  • The company accepts joint applications. Unlike other lenders, OneMain Financial allows multiple borrowers on a loan.
  • The company offers rewards. As mentioned earlier, OneMain Financial does have a few perks that customers can eventually enjoy.


  • The loan amount is only limited for up to $20,000. If you are planning to borrow more than that, then you may have to look for another lender.
  • It has a high starting APR. Compared to other subprime lenders out there, OneMain does have a higher starting APR at 18%.
  • It does charge certain fees. Although it does not charge a prepayment fee, OneMain Financial does charge origination fees, late fees, and more. It is safe to say that if you are a responsible borrower, you can definitely get rid of certain fees.


As mentioned, OneMain Financial is a good option for people with challenging credit history. Although it comes with certain fees and charges, the company does not charge prepayment terms for those who would want to pay off their loans earlier than scheduled.

Just like most lenders, OneMain Financial has its share of limitations – including loan amounts and higher APR as compared to its competitors.

However, overall, based on the information we gathered for this OneMain Financial loans review, we got to say that this lender is definitely a promising one and that it is worth dealing with.

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