OneMain Personal Loans Review | the ascent

Main advantages

Applicants with fair or poor credit may be accepted

The main reason to get a OneMain personal loan is that it approves loans for people with all kinds of credit histories. This includes offering loans for bad credit. There is no minimum published credit score to approve, and reviewers have reported being approved with credit scores in the 500s.

Additionally, OneMain offers unsecured and secured loans. If you don’t qualify for an unsecured loan, you can still receive a secured loan offer.

Check online prequalification

You can use the online prequalification tool to see if you prequalify for a loan. Verification of prequalified offers uses soft credit that will not impact your credit score. This can be a good first step if you are unsure 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 pretty 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 iOS or Android devices. The mobile app has decent overall ratings in both app stores. Reviewers say it’s easy to make payments, but also point out that the app’s interface could be improved.

Authorize candidates with co-signers

OneMain is one of the few personal lenders that allows co-applicants. This can be useful if you cannot qualify for a loan on your own due to credit or income limits. However, personal loan co-signers are legally obligated to repay the loan if the primary borrower cannot make the payments. As such, you should only use a co-signer if you are sure you can repay your loan.

What could be improved

Loan interest rates are extremely high

The most important 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 every other personal lender we reviewed.

The higher your APR, the more interest you will pay. For example, a $5,000 five-year loan with an 18% APR will cost over $2,600 in interest charges over the life of the loan. At the high end, the same $5,000 loan over five years with an APR of 35.99% will cost over $5,800 in interest charges.

Assembly costs

Not only will you pay a lot of interest charges for a OneMain personal loan, but you will only pay origination fees. The exact amount you will be charged will vary depending on your state, but can be as high as 10% of the loan amount. On a $5,000 loan, that would mean an additional $500.

Larger loans require collateral

Although OneMain is known for approving borrowers even with bad credit, not all borrowers will qualify for an unsecured loan. The amount you can get without collateral will depend on your credit history and income.

Larger loans will require you to use a vehicle as collateral. Guarantees accepted may include:

  • Cars
  • Trucks
  • motorcycles
  • Boats
  • campers
  • VR

Vehicles used for warranty must be less than 10 years old and registered in your name. You will need to keep it fully insured against damage for the duration of your loan. OneMain may also require an appraisal to determine actual value.

Not available in some states

Rates, fees, and loan terms all vary depending on your state. But that’s not all. OneMain personal loans are only available in the 44 states that host physical OneMain branches. You cannot get a OneMain personal loan if you live in: Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island or Vermont.

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