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OneMain offers personal loans for a wide range of credit types, including those with low credit scores. In this OneMain personal loan review, we'll explore the size and terms of OneMain personal loans, the APRs and other drawbacks, and who should consider OneMain as a lender.
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OneMain Financial is interesting in that it minimizes the importance of credit scores. Instead, it considers the overall financial picture of each applicant. Another unusual feature of OneMain Financial is that it's one of the few online lenders that allows for secured loans.
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This personal loan is a good fit for: Applicants with troubled credit histories who have struggled to get a personal loan from other lenders with better rates.
Applicants with fair or poor credit may be accepted
The main reason to get a OneMain personal loan is that it approves loans for folks with all manner of credit histories. This includes offering loans for bad credit. There is no published minimum credit score to be approved, and reviewers have reported being approved with credit scores in the 500s.
Additionally, OneMain offers both unsecured and secured loans. If you don't qualify for an unsecured loan, you may still receive a secured loan offer.
Check for prequalification online
You can use the prequalification tool online to see if you prequalify for a loan. Checking for prequalified offers uses a soft credit pull that won't impact your credit score. This can be a good first step if you're not sure if you meet the requirements for a OneMain personal loan.
Payments can be made online or through the mobile app
Once you have a OneMain loan, making payments is fairly easy. You can make payments online by logging into your online account through your web browser. You can also make payments through OneMain's mobile app on either iOS or Android devices. The mobile app has decent ratings overall in both app stores. Reviewers say it's easy to make payments, but also report that the app's interface could use improvement.
Allow applicants with cosigners
OneMain is one of the few personal loan lenders that allows joint applicants. This can be helpful if you can't qualify for a loan on your own due to credit or income limitations. However, personal loan cosigners are legally obligated to repay the loan if the primary borrower can't make the payments. As such, you should only use a cosigner if you're certain you can repay your loan.
Loan interest rates are extremely high
The biggest thing to note about OneMain personal loans is that the APR range is extremely high. In fact, it has some of the highest interest rates we've seen. Even the low end of its APR range is higher than nearly any other personal loan lender we've reviewed.
The higher your APR, the more interest fees you're going to pay. For example, a five-year, $5,000 loan with an 18% APR will cost more than $2,600 in interest fees over the life of the loan. At the high end, the same five-year, $5,000 loan with an APR of 35.99% will cost more than $5,800 in interest fees.
Origination fees
Not only will you pay a lot of interest fees for a OneMain personal loan, you'll only be charged origination fees. The exact amount you're charged will vary based on your state, but it can be as high as 10% of the loan amount. On a $5,000 loan, that would mean an extra fee of $500.
Larger loans require collateral
Although OneMain is known to approve borrowers with even bad credit, not all borrowers will qualify for an unsecured loan. How much you can get without collateral will depend on your credit history and income.
Larger loans will require you to use a vehicle for collateral. Accepted collateral may include:
Vehicles used for collateral must be less than 10 years old and titled in your name. You'll need to keep it fully insured against damage for the life of your loan. OneMain may also require an appraisal to determine the actual value.
Not available in some states
Rates, fees, and loan terms will all vary based on your state. But that's not all. OneMain personal loans are only available in the 44 states that host brick-and-mortar OneMain branches. You can't get a OneMain personal loan if you live in: Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, or Vermont.
To get a personal loan from OneMain, you need to:
Applying for a loan through OneMain can be a straightforward process as long as you have your documents in order. To apply:
OneMain personal loans are best used as a hardship loan for people with low credit scores who cannot get loans from lenders with lower interest rates. Consider OneMain if you:
There is no minimum credit score requirement to get a OneMain Financial personal loan. OneMain will look at your entire credit history, income, expenses, and potential collateral when making a loan decision.
A $15,000 loan from OneMain with a five-year term would have an approximate monthly payment between $380 and $540, depending on the APR. In addition, OneMain charges origination fees that vary based on your state of residence.
Yes, OneMain requires proof of income for personal loans. This is usually in the form of pay stubs or tax returns.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
*Upstart Loan Disclaimer
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.
Citi Personal Loan disclaimer:
**Rates as of 05-31-2024. Your APR may be as low as 11.49% or as high as 20.49% for the term of your loan. The lowest rate quoted assumes excellent credit and a loan term of 24 or 36 months. Your APR will depend on a variety of factors including your creditworthiness, term of loan, and existing relationship with Citi. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
There is a 0.5% APR discount if you enroll in automatic payments at loan origination. Additionally, existing Citigold and Citi Priority customers will receive a 0.25% discount to the interest rate. If you are in default, your APR may increase by 2.00%. No down payment is required. Rates subject to change without notice.
You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Loan proceeds cannot be used for post-secondary educational or business purposes.
If you apply online, you must agree to receive the loan note and all other account disclosures provided at loan origination in an electronic format and provide your signature electronically.
Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
Rates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $10,000 loan at 8.49% APR with a term of 5 years would result in 60 monthly payments of $205.12. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2024 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.