OneMain

OneMain Financial Overview

OneMain Financial, formerly known as CitiFinancial, was founded in 1912. In 2015 they combined with Springleaf Financial and rebranded as OneMain Financial. Our OneMain review will break down all the details of the company’s loans.

OneMainFinancial is one of the leading providers in personal loans and has funded over $120 billion to more than 10 million consumers.

If you are pre-approved for a loan, a loan specialist contacts you and discusses your options with you by setting up an appointment at a branch. OneMain offers unsecured personal loans which allow you to have fixed rates and secured loans which require you to put up collateral.

OneMain has flexible payment options, allowing you to pay online, over the phone, or at any of their branches. You can also choose your own due date for payments.

An added benefit for OneMain borrowers is that they have free access to their credit scores.

OneMain Pros

• Multiple Loan Types: OneMain offers secured personal loans, unsecured personal loans, and auto loans.
• Receive Funds With Your Preferred Method: Personal loans may be provided by check, Automated Clearing House (ACH) deposit, or a prepaid card.
• Receive Cash Quickly: You can receive your funds the next business day.
• Nationwide Service: There are around 1,700 branches of OneMain across the nation, meaning that there is most likely a location near you.
• Multiple Application Methods: OneMain allows their customers to apply online, over the phone, or in person.
• Potential Same-Day Funding. If you need money quickly, OneMain can fund your loan as soon as that same day.
• Individuals Have Joint And Secured Loan Options. You can apply for a loan with another borrower or offer collateral to secure the loan, making approval easier.

OneMain Cons

• Low loan limits. The maximum personal loan amount caps off at $25,000, which is lower than many of their competitors. However, those who take out an auto loan may be eligible for a higher amount.
• Not available in all states. OneMain only has branches in 44 states, so customers in states that do not have local branches (AK, AR, CT, MA, RI and VT) may have trouble acquiring funds.
• High rates. Interest rates are higher than those offered by peer-to-peer (P2P) lenders and traditional banks.
• Fees. OneMain charges an origination fee, which reduces the amount of money you receive from the loan.

How does OneMain Financial work?

OneMain Financial uses a somewhat more involved process than other online lenders. Once you apply online, you’ll have to discuss your loan options and provide documents to a loan specialist during an in-person meeting or online call.

Outside of that slightly unusual requirement, OneMain Financial works much like any other personal lender. You apply for a loan, receive an offer if you’re eligible, and can decide whether to accept the loan and receive the funds.

Once you get the money from the loan, you’ll receive monthly bills to pay until you pay the loan back.

Products Offered

OneMain Financial offers two personal loan products: unsecured loans and secured loans.

The main difference between the two is that unsecured loans have no collateral requirements while secured personal loans require collateral. Collateral is an asset of some value that you use to secure the loan. For example, you might need to use a car as collateral for a secured loan.

The upside of secured loans is that they can be easier to qualify for than unsecured loans. They may also have lower interest rates.

Unsecured personal loan

• APR: 18% -35.99%
• Uses: Consolidate debt, wedding, medical bills, emergencies, vacations, buying a vehicle, home improvement
• Loan amounts: $1,500 - $20,000

Secured personal loan

• APR: 9.99% -35.99%
• Uses: Consolidate debt, wedding, medical bills, emergencies, vacations, buying a vehicle, home improvement
• Loan amounts: $1,500 - $20,000

How to Qualify for a OneMain Financial Personal Loan?

OneMain Financial tends to target borrowers with lower credit scores than other personal lenders. That’s one of the reasons its maximum loan amount is low and its interest rates and fees are high.

The company doesn’t disclose things like its minimum credit score or income requirements. However, it will consider all of the usual factors when you appl. That includes things like:

• Your credit score
• Your income
• Your debt-to-income ratio
• Any collateral you provide

One thing that you can do to improve your chances of qualifying is to apply with a co-signer or co-applicant. If you do, OneMain Financial will also consider their credit when making a lending decision.

How to Apply for a OneMain Financial Personal Loan?

To apply, you can contact one of the OneMain branches in 44 states in person, online, or by phone. If you apply online, the form is sent to a OneMain branch in your location and a loan specialist will get in touch with you to discuss your options.

1. Submit an application. Visit OneMain Financial’s website and fill out the application form. This only takes a few minutes and asks for basic information such as your financial info, how much you want to borrow, and why you’re applying for a loan.
2. Wait for a response. You’ll receive a response from OneMain Financial, usually immediately, letting you know whether you can move on to the next step of the process.
3. Connect with a loan specialist. If your initial application didn’t throw up any red flags, you’ll talk with a loan specialist at a OneMain Financial branch or over the phone or internet. They’ll take all of the documentation that shows your financial situation and help you go over your loan options, such as whether you’ll need to provide collateral.
4. Approval and funding. Once you talk with the specialist, OneMain will verify all the information you provided. If you qualify, the lender will approve and fund your loan.
5. Start making payments. Once you receive the loan funds, you’ll start getting monthly bills. Make sure to pay your bill each month to avoid damaging your credit or paying fees.

Terms & Requirements

OneMain Financial has high interest rates when compared to many other personal lenders. The lowest available rate for an unsecured loan is 18%. The fees can also be high, with large origination fees and other fees.

However, the lender is flexible when it comes to loan terms. You can choose from repayment schedules of 24, 36, 48, or 60 months, making it easy to find a monthly payment that fits in your budget.

To qualify for a loan, OneMain Financial requires:

• Proof of identity, such as a driver’s license or passport
• Proof of income, such as a recent pay stub
• Proof of address, such as recent mail or bills

OneMain Pricing

• OneMain’s APR for personal loans ranges from 18% - 35.99%. For a secured loan, there is a minimum interest rate of 9.99%.
• Although OneMain has no minimum credit score or income, borrowers' average scores are between 600 and 650.
• Personal loan amounts range from $1,500 - $20,000.
• Loan terms range from 24 to 60 months.
• The origination fee varies by state and is either a flat fee ($30 to $150) or a percentage of your loan amount (1% - 5%).
• There are no prepayment fees.
• Late fees, if there are any, vary by state.

For Whom is OneMain Financial Good?

OneMain Financial generally targets borrowers with less than stellar credit. Its lowest interest rates are high and maximum loan amount is low, so well-qualified borrowers can find a better deal elsewhere.

Given that OneMain has no minimum credit score requirement and is willing to offer secured personal loans, even borrowers with low credit scores should be able to qualify for a loan of some type. That makes it a good choice for people who may have limited credit history or a damaged credit score.

OneMain Financial Personal Loan Alternatives

OneMain Financial is just one of many personal lenders out there. When applying for any type of loan, it’s important to shop around for the best rates, so consider some other options:

Summary

OneMain Financial offers services to consumers with good or bad credit scores, and allow potential borrowers to apply over the phone, online, or in person.

Additionally, OneMain often provides funds on the same day or the next business day. However, due to their widespread service, OneMain does not provide much transparency online with their interest rates and terms.