OneMain Financial Personal Loans Review: 2019

Using the tagline “Lending done human,” OneMain Financial specializes in offering personal loans with a focus on individual attention to borrowers who may not qualify for conventional bank loans. With branch locations throughout the United States, OneMain provides a mix of online and in-person experiences for those who require financing quickly.

About the Company

Unlike traditional banks, OneMain Financial provides opportunities for individuals to receive personal loans with qualifications involving factors other than a good credit score. But unlike most online lenders, OneMain has more than 1,600 brick-and-mortar branches located in 44 states throughout the USA.

Formerly known as Springleaf Financial, OneMain has been in the industry since 1912. They are a popular and well-known lender, having worked with more than 10 million customers and more than $120 billion in loans. They cater primarily to individuals with challenging credit situations.   

In this review, you’ll learn:

What Types of Loans Does OneMain Offer?

OneMain specializes in offering personal loans to individuals with challenged credit histories. Borrowers can receive between $1,500 and $20,000. The loans can be used for a wide variety of purposes. In general, OneMain offers two types of loans: 

1. Secured Loans

When a loan is “secured,” this means that the borrower will provide a valuable item, often a car title, as collateral to the lender in the case of an inability to make payment. Individuals who wish to purchase a car with OneMain Financial personal loans would be able to apply for a secured loan. The benefit of a secured loan is that you will often qualify for a lower rate, better terms, or a larger amount of funding than with an unsecured loan.

2. Unsecured Loans

If a potential borrower does not have collateral to offer as security, they may still qualify for an unsecured loan. These types of personal loans can be used for a wide variety of reasons, including paying off medical expenses, home improvement projects, or for debt consolidation. 

OneMain’s personal loans are fast. If you are approved before noon, you may be able to receive funds on the same day. Poor credit is not a barrier, as OneMain does not have a stated minimum credit score for approval. 

Terms and Rates

Terms

OneMain offers a variety of terms for their loans, differing based on each borrower’s qualifications and personal situation. Individuals are not able to choose the length of the loan repayment term. However, possible term lengths are:

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

Each month, borrowers will pay the same agreed-upon amount for the life of the loan.

Rates

The APRs of OneMain Financial’s loans range from 18% to 35.99%. While those rates are significantly higher than the APRs of conventional personal loans, they are extremely favorable compared to those of payday loans.

Rates are fixed and clearly stated upon approval. The rate you receive is based on many factors beyond your credit score, such as credit history and debt-to-income ratio. 

Fees

OneMain does not charge prepayment fees. Many borrowers will be able to repay their loans faster than the terms demand which can reduce the overall cost of the loan. However, there are other fees that may apply:

  • Late fees will be charged if you miss a payment. Fees differ depending on where you live.
  • An origination fee is built into each monthly payment. Origination fees vary from state to state.

OneMain Loan Requirements

OneMain Financial works to make personal loans available to many individuals, so the loan requirements are less stringent than with many other lenders.

Qualifications

OneMain does not require a minimum credit score, though most borrowers will have a credit score of 600 or above. The company will look at your financial history and income as well to determine the amount you can borrow, the rate, and the terms of the loan. 

The process is straightforward:

  1. Pre-approval

The first step for borrowers is to complete an application on the company’s website. You will be asked for the last four digits of your social security number to verify your identity. OneMain also asks whether you own your own vehicle—this is to help determine if you qualify for a secured loan.  Once the application process is complete, it will not take long to receive a response. Past customers report that emails or calls regarding the decision often arrive within the hour.

As part of this online pre-approval process, potential customers must give permission for OneMain to perform a soft inquiry on their credit history. This does not impact credit scores and can only be seen by you.  

2. Approval

If you are pre-approved, you will be contacted by a OneMain loan specialist to gather more information. The specialist will help you set up an in-person meeting at one of the company’s 1,600 branches. Unlike the majority of online lenders, OneMain requires borrowers to talk face-to-face with their specialists.

For the formal approval process, you will need to give permission for a hard inquiry on your credit report, typical for the loan process. Hard inquiries stay on your credit report for two years.

3. Receipt of Funds

Because OneMain personal loans offer a quick turn-around, they are ideal for borrowers who require funding quickly. If you receive approval for your loan before noon, you can possibly receive funds that day. 

Members of the United States military are also eligible for additional benefits regarding loan terms through the Servicemembers Civil Relief Act. OneMain Financial works to ensure that all eligible members receive these benefits, which include protection from repossession. Military personnel are also eligible for caps on interest rates. More information about who qualifies is available on the company’s website.

Repayment Process

Borrowers have many options for loan repayment methods.

One-Time Payment

After logging in to your OneMain Financial account, you can make a one-time payment on your loan. To complete this, you need to have your account number, Social Security number, and a blank check ready. 

Direct Pay

Customers are encouraged to enroll in the Direct Pay system through the company’s rewards program. Once you are enrolled in Direct Pay, a regular withdrawal from a specified bank account will cover the payment each month. Debit cards are not available as a method of payment through Direct Pay.

In-Person Payment

It is possible to visit a OneMain branch to make a payment with any of the following methods:

  • Debit card
  • Personal check
  • Payroll check
  • Government check
  • Cashier’s check
  • Traveler’s check
  • Third-party personal check
  • Money order
  • Bank draft
  • Insurance draft
  • ACH transfer

Pay by Phone

Borrowers are able to pay by phone by calling customer service at (800) 742-5465 or the branch that services the loan. Your local branch is indicated on your monthly statement. By phone, you can pay by ACH, either with a checking or savings account or with your debit card.

Pay by Mail

It is also possible to send a payment to the P.O. Box listed on the monthly statement. By mail, you can send a personal check, cashier’s check, or money order.

Using the OneMain App

OneMain has produced a free app, available on both iOS and Android. A button labeled “Make a Payment” offers clear instructions.

Pay at Participating Retailers

Paying through participating retailers is another free-of-charge repayment option. You can go to participating CVS Drug Stores, 7-Elevens, Casey’s General Stores or Family Dollar locations. You’ll need to get a personalized payment code from your loan specialist for this option.

OneMain Customer Service Experience

There are many ways to connect with OneMain Financial’s customer service team. They are available Monday through Friday, from 7 a.m. to 7 p.m. CST. You can ask questions:

OneMain offers its customers a few unique benefits which reviewers appreciate. They include:

  • Free access to your credit score to monitor your financial health
  • A free money management course entitled “MoneySKILL” that teaches about credit and budgeting
  • An online financial calculator to manage household budgeting and estimate monthly loan payments
  • Membership to a rewards program that gives customers in good standing gift cards in exchange for activities like interacting on social media, paying on time, or using paperless statements. 

Customer Feedback and Reports

OneMain Financial enjoys a 9.4 out of 10 ranking based on nearly 13,000 reviews on Trustpilot. Feedback from customers is available on the reviews page on OneMain’s website. Things reviewers like include:

  • Clear explanations of terms and rates
  • Polite, professional and friendly loan specialists
  • Fast replies after the online pre-approval process—sometimes within minutes
  • Fast receipt of funds

OneMain boasts an A+ rating as an accredited business through the Better Business Bureau.

Summary

 Pros:

  • Strong customer service
  • Easy approval process for those with challenged credit
  • Fast approval and availability of funds
  • Many repayment options

 Cons:

  • Relatively high-interest rates
  • Lack of control over terms

OneMain Financial’s services are ideal for individuals in need of fast cash who are unable to qualify for conventional loans due to compromised credit histories. They provide personal loans with strong customer service and in-person support at branches located throughout the United States.

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