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OneMain Financial Review – Online Lender for Personal Loans


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At a glance

Onemain Financial Logo

Our rating

4/5

OneMain Financial

  • Loan Types: Unsecured and secured personal loans for debt consolidation, vehicle purchases, major life event purchases (such as weddings), home improvement projects, and other personal and household uses
  • Loan Terms: 24 to 60 months*
  • Loan Sizes: $1,500 to $20,000*
  • Loan Rates: 18.00% to 35.99% APR*
  • Additional Fees: Late payment fees (variable), delinquency fees (variable), origination fees (up to $400 or 10% of loan amount)


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Do you need a personal loan to consolidate your debt, fund a home improvement project, or cover the cost of an unexpected medical bill? OneMain Financial may be able to help.

OneMain Financial (NYSE: OMF) has offered loans for more than 100 years. With almost 1,500 locations throughout 44 states and 8,700 team members as of the fall of 2020, there’s a great chance of finding a OneMain branch near where you live and work.

If you have decent credit but still can’t get a personal loan or credit card from a traditional bank or issuer, OneMain Financial isn’t your only option. The company competes with other lenders that offer unsecured personal loans and lines of credit, including Avant, NetCredit, LendingClub, and First Financial as well as peer-to-peer (P2P) lenders like Prosper.

How It Works

As a potential OneMain customer, there are several things you need to know about qualifying and applying for your loan, receiving loan funds, and making repayments.

Qualification, Application, and Approval

To get a OneMain loan, you first need to qualify, apply, and be approved. The application and approval process doesn’t cost anything.

Qualifying for a Loan

To start, fill out an online application with the requested personal and financial information. Using this information, OneMain runs your credit with one of the three major consumer credit reporting bureaus (Experian, Equifax, or TransUnion).

Getting Your Loan Terms and Applying

Once you receive initial approval, a loan representative will contact you, typically on the same day as your initial approval, and provide you with a detailed loan offer that includes your interest rate, term, monthly repayment, and other information.

The offer may be for a smaller amount than you requested or come with a higher interest rate than you think your credit score and history warrant. You can visit your local branch in person, where a representative may ask you to provide additional documentation of income and assets or to put a vehicle up as collateral.

Receiving Your Loan Funds

Once you’re approved for a OneMain loan, your funds may be disbursed by check or electronically deposited to your bank account through the ACH or debit card (SpeedFunds) networks. ACH funds are available approximately one to two business days after the loan closing date. Funds through SpeedFunds are available on the loan closing date.

You can use the funds for any personal or household expenses but not for business or education expenses.


Key Features

OneMain Financial has some noteworthy features, including a dense local branch network and dedicated customer support team.

Local Branches

Unlike many competitors, OneMain Financial has a network of local branches in the states where it makes loans. In total, the company has over a thousand physical locations.

Customer Support

You can contact OneMain Financial’s customer service system by phone at 800-742-5465.


Advantages

OneMain Financial’s advantages include its local branch network, small to medium loan amounts, and wide availability.

1. Dense Local Branch Network

OneMain Financial has a dense network of local branches in the 44 states where it makes loans. (OneMain does not make loans in Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont, and Washington, D.C.).

If you have a question about your application or loan, you can call or visit your local branch office and talk to someone who lives and works in your community. Many other institutions that accept loan applications online, including Avant and Eloan, don’t have physical branches.

2. Borrow in Small Increments

In some states, you can get loans for as little as $1,500** at OneMain Financial, making it a great option if you only need a small amount. Few traditional banks offer loans this small, and many personal lenders are reticent to do so as well.

3. Wide Geographical Reach

OneMain’s loans are available in 44 states. (OneMain does not make loans in Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont, and Washington, D.C.). Its coverage is comparable to P2P lending services such as Prosper and LendingClub and far more comprehensive than competing regional lenders.

4. Quick Funding

OneMain Financial offers same-business-day funding for loans funded through a customer’s eligible bank-issued debit card. Other electronic funding methods may take one to two business days. That’s a quicker turnaround than most competitors, which rarely offer same-day funding and may even struggle to fund loans on the business day following application.


Disadvantages

OneMain’s drawbacks include in-branch loan closings, no business or student loans, and a loan amount maximum of $20,000.

1. In-Branch Loan Closings

If approved, you may have to visit a branch in person to verify your identity, income, expenses, employment, and collateral (if applicable) and sign your loan documents. That may be inconvenient for some.

2. No Business or Student Loans

You can’t use a OneMain Financial loan for any business- or education-related expenditures. Other online and P2P lenders, such as Prosper and Eloan, offer business and student loans in addition to personal loans.

3. Maximum Loan Amount of $20,000

OneMain Financial’s advertised maximum loan amount is $20,000, lower than many competitors. That’s a drawback for borrowers with the capacity and need to take out larger loans.


Final Word

OneMain Financial is one of many companies that specialize in small- to medium-size personal loans for people who might not qualify at traditional banks or are no longer able to get new credit cards. If you’re struggling with persistent credit card or medical debt and can get a OneMain Financial loan with a lower interest rate than your current obligations, the company may offer welcome relief.

But before you apply, ensure you understand all the terms, conditions, and limitations of your loan. Don’t be afraid to walk away if your loan officer offers an unfavorable deal or seems evasive when you ask questions. Before making a final decision, it’s a good idea to shop around at other online lenders for the best rates and most favorable terms.

*OneMain Disclosure:

Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.

Loan Conditions: Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.

Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

**Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

Advertiser Disclosure: The credit card and banking offers that appear on this site are from credit card companies and banks from which MoneyCrashers.com receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages. MoneyCrashers.com does not include all banks, credit card companies or all available credit card offers, although best efforts are made to include a comprehensive list of offers regardless of compensation. Advertiser partners include American Express, Chase, U.S. Bank, and Barclaycard, among others.

FEATURED PROMOTION

The Verdict

Onemain Financial Logo

Our rating

4/5

OneMain Financial

If you’ve been turned down for traditional bank loans or credit cards, OneMain Financial‘s personal loans may be an option. The company’s personalized approach and customer service set it apart from the competition. But its loans are limited in size and scope, with no business or student loans and a dense network of physical branches that may require you to close the loan in person.

Same-day funding, a broad network of physical branches, and a generous satisfaction guarantee all make OneMain Financial attractive.

A lack of business loans, poor rate transparency, and poor customer service are key disadvantages.

Overall, OneMain Financial is a solid choice for borrowers frustrated by inflexible bank lending practices, but it’s far from the gold standard in personal lending.

Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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