OneMain Financial personal loan review: No minimum credit score

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. OneMain Financial’s personal loans are a good option for personal […]

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

OneMain Financial’s personal loans are a good option for personal loan borrowers who have a low credit score. 

Personal loans are known for being relatively selective, as there’s often no collateral like a car or house that could help the bank recoup their money. Generally, lenders require a good or better credit score to consider applications for personal loans. 

OneMain Financial doesn’t list an official minimum credit score, and could help you get approved for a personal loan. However, getting approved doesn’t mean it will be cheap to borrow — OneMain’s personal loans have high starting interest rates. Anyone with a good or better credit score could likely get a better interest rate on a personal loan elsewhere. 

Should you get a personal loan with OneMain Financial?

You might like a personal loan from OneMain Financial if you: 

  • Have a credit score between 600 and 650, the average credit score for this lender’s personal loan borrowers
  • You’ve had trouble getting approved elsewhere, since OneMain doesn’t have a minimum credit score requirement
  • You want a secured personal loan
  • Want an online experience, as OneMain now allows customers to apply for loans entirely online 
  • Live near a branch — OneMain Financial has branches in 44 states

A personal loan with OneMain Financial might not be right if you: 

  • Have a good or better credit score, as you could probably find better interest rates elsewhere
  • Live in Alaska, Arkansas, Connecticut, Massachussetts, Rhode Island, or Vermont, where there are no branches

The pros of a OneMain Financial personal loan

This lender doesn’t have a minimum credit score for approval

OneMain Financial could help you get approved for your personal loan if you’ve had trouble getting approved through other lenders. Most personal loan lenders require credit scores above 660 to apply. 

Potential for a small loan

OneMain’s smallest possible loan is $1,500, which could help you avoid borrowing more than you need to. Competing lender Avant Personal Loans has a minimum loan amount of $2,000.

It’s worth noting that some states have higher minimum loan amounts, however. 

  • Alabama: $2,100 minimum loan amount
  • California: $3,000 minimum loan amount
  • Georgia: $3,100 minimum loan amount, waived for current customers
  • Ohio: $2,000 minimum loan amount
  • Virginia: $2,600 minimum loan amount

Same-day loans available

If you need cash quickly, OneMain Financial states that loans can be funded the same day they’re approved. Funds are available by direct deposit or by check at closing.  

Secured and unsecured loans are available

Most personal loans are unsecured, without collateral like a house or car backing up the loan. This is one of the reasons personal loans can have such high interest rates. OneMain gives personal loan borrowers the option for a secured loan, which involves listing a car or other valuable object on the personal loan. Adding collateral to your loan will reduce your interest rate.  

Flexible loan terms

Unlike some other lenders, OneMain allows several options for repayment, with term lengths of 24, 36,48, or 60 months. 

It’s one of the few personal loan lenders of its type with physical locations

If you value the ability to go to a branch and talk to an employee about your loan, OneMain might be the best choice. Other brick-and-mortar banks offering personal loans, like Wells Fargo, Santander, and PNC, have high credit score requirements. 

The cons of a OneMain Financial personal loan

High starting interest rates

OneMain Financial shouldn’t be your first choice if you have good or better credit. Interest rates at OneMain range from 18.00% – 35.99% APR. Borrowers with credit scores of 650 or above could get approved through another lender for lower interest rates. 

High origination fees

OneMain charges an origination fee on loans, which can either be a flat fee or percentage-based, depending on what state you live in. Flat fees range from $25 to $400, while percentage-based fees range from 1% to 10% of the loan’s value. Loan origination fees are available on the loan agreement, making it hard to tell what you’ll be charged in advance. 

OneMain Financial personal loan features

Aside from the fact that this lender will consider borrowers with any credit score, there are other perks to OneMain Financial personal loans. 

Most notably, OneMain offers same-day funding. Existing OneMain customers can receive funds same-day through direct deposit, while non-customers could have to wait one or two business days. However, any customer can receive a check at the branch during the loan’s closing.

Additionally, this lender offers a secured loan option. These loans could help borrowers get a lower interest rate on their personal loans with collateral, generally a car, backing the loan. 

OneMain Financial personal loans don’t have any prepayment fees, allowing borrowers to save on interest by repaying the loan sooner than the expected payoff date. Payments can be made online, in a branch, by phone, or through OneMain’s mobile app. 

How does OneMain Financial compare?

  OneMain Financial personal loan Avant personal loan LendingClub personal loan
Minimum credit score requirement None 580 600
Interest rate range 18.00% – 35.99%APR From 9.95% – 35.99% APR 10.68% to 35.89% APR
Origination/administrative fee? Fee type depends on state. Flat fees: $25- $400; percentage-based fees: 1%- 10% of loan’s value. Up to 4.75% 2% to 6%
Loan terms available 24, 36, 48, or 60 months 24 to 60 months Terms start at 36 months
Secured loans available? Yes Yes No
Loan amounts available $1,500-$20,000 $2,000-$35,000 Up to $40,000
When are funds available? Same-day available Next business day As soon as 4 business days

OneMain Financial vs. Avant personal loans

OneMain Financial and Avant Personal Loans have similar loan terms and loan amounts, but borrowers looking for same-day funds might find that OneMain has an advantage. Additionally, a minimum credit score requirement of 580 might exclude some borrowers. 

However, Avant could be a stronger option than OneMain due to OneMain’s higher interest rates. Additionally, fees at Avant could be lower, as this lender caps its origination and administrative fees at 4.75%, while OneMain’s fees could go up to 10%, or $400 depending on your state.

OneMain Financial vs. LendingClub personal loans

LendingClub’s minimum 600 credit score requirement might leave some borrowers out. With interest rates starting higher, borrowers who qualify with LendingClub could get lower rates from Avant or OneMain. 

LendingClub doesn’t offer a secured loan option, which could give OneMain an advantage for anyone who wants to lower their interest rate with collateral. Funding through LendingClub will take at least four business days, according to the lender’s site, giving OneMain’s same-day funding another advantage.

Editor’s note: This post has been updated to reflect a change in One Main Financial’s policies. Customers no longer have to visit a branch in person to take out a loan.

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