OneMain Financial was established in 1912 under its original name CitiFinancial or Springleaf Financial. It was founded to provide service with the most favorable loan terms and financial protection. After the company's several acquisitions by different joint venture agreements, it was officially established in November 2010 and made public in October 2013. Nowadays, OneMain Financial provides personal loans in the United States with over 1500 branches in 44 states.

Pros and Cons

Pros

1. Option To Choose And Change Your Payment Date. One of the standout benefits of OneMain Financial loans is the flexibility to choose and adjust your payment date. This feature can help you better manage your monthly budget and ensure timely payments, reducing the risk of late fees.

2. Joint And Secured Loans. OneMain Financial offers both joint and secured loans. If you need a larger loan amount or have a lower credit score, a joint loan with a co-applicant or a secured loan using collateral can increase your approval odds and potentially result in better loan terms.

3. Fast Funding. For those in need of quick cash, OneMain Financial provides fast funding. Once approved, you can often receive your funds directly into your bank account within the same day or by the next business day, making it an ideal option for emergencies or unexpected expenses.

Cons

1. Rates Are High Compared To Other Lenders. One significant downside of OneMain Financial loans is that their interest rates tend to be higher than those of other lenders. This can result in higher overall loan costs, particularly for borrowers with bad credit.

2. Charges Origination Fee. OneMain Financial loans come with an origination fee, which is a charge for processing the loan. This fee is typically a percentage of the loan amount and is deducted from the funds you receive, which can reduce the amount of money you have available for your needs.

3. No Rate Discounts. Unlike some lenders that offer discounts for automatic payments or for having a good credit score, OneMain Financial does not provide rate discounts. This means you might miss out on potential savings available through other lenders.

How to Apply for a OneMain Financial Loan?

1. Pre-Qualify On OneMain Financial’s Website. Start by visiting OneMain Financial’s website and selecting the “Check for offers” button. Enter your requested loan amount along with your personal information, such as your name, address, email, and income. You will also need to answer questions about your employer and whether you have a vehicle that’s paid off. Lastly, provide your birth date and SSN or ITIN. This initial step involves no hard credit pull, so your credit score will not be affected.

2. Preview Loan Offers And Accept The One That Fits Your Budget. After pre-qualifying, OneMain Financial will present the types of loans you qualify for. At this stage, you will see whether you qualify for a secured loan, an unsecured loan, or both. However, you will not see the repayment terms or potential APR yet. To get a full loan offer, including detailed terms and rates, you must submit a formal application, which will result in a temporary dip in your credit score due to a hard credit pull.

3. Submit An Application. Once you decide on the type of loan that fits your needs, submit a formal application. OneMain Financial typically provides conditional approval instantly. However, final approval requires additional verification. Once fully approved, the lender can fund most loans within one or two days.

4. Make A Plan To Repay The Loan. It’s important to have a repayment plan in place. OneMain Financial reports payments to all three major credit bureaus. This means that on-time payments will help build your credit score, while missed payments can negatively impact it. To manage your loan payments effectively, consider setting up automatic payments and monitoring your budget closely.

Conditions and Requirements

Conditions

1. APR. The Annual Percentage Rate (APR) for OneMain Financial loans ranges from 18.00% to 35.99%. This rate is higher compared to some other lenders, making it important to consider the total cost of the loan over its term.

2. Origination Fee. OneMain Financial charges an origination fee ranging from $25 to $500 or 1% to 10% of the loan amount. This fee is deducted from the loan funds you receive.

3. Late Fee. If you miss a payment, you may incur a late fee of $5 to $30 or 1.5% to 15% of the payment amount, depending on the state laws and loan terms.

4. Nonsufficient Funds Fee. If a payment is returned due to insufficient funds, a fee of $10 to $50 may be charged.

5. Loan Amount. OneMain Financial offers loan amounts ranging from $1,500 to $20,000. This allows for a range of borrowing options, whether you need a smaller loan for unexpected expenses or a larger loan for significant financial needs.

6. Repayment Terms. The repayment terms for OneMain Financial loans range from 2 to 5 years. This flexibility allows borrowers to choose a repayment period that fits their financial situation, balancing monthly payment amounts with the total interest paid over the life of the loan.

Requirements

• Social Security Number Or Individual Taxpayer Identification Number. To apply for a OneMain Financial personal loan, you must have a valid Social Security number (SSN) or an individual taxpayer identification number (ITIN).

• Age Requirement. Applicants must be at least 18 or 19  years old in most states to qualify for a loan from OneMain Financial. Some states may have different age requirements, so it's important to check the specific regulations in your area.

• Minimum Credit Score. OneMain Financial does not have a minimum credit score requirement. However, the lender does expect applicants to have some credit history. This makes OneMain Financial a potential option for those with bad credit or limited credit history.

• Minimum Income. There is no specific minimum income requirement set by OneMain Financial. However, borrowers must demonstrate sufficient income to cover their personal expenses and the new loan’s monthly payments.

How to Choose a Lender

1. Confirm Licensing. Ensure that the lender is licensed to operate in your state. Verify this information with your state regulator or attorney general. This step is crucial to avoid illegal lenders and ensure the protection of your consumer rights.

2. Check Membership In Reputable Associations. Look for lenders that are members of reputable associations, such as the Community Financial Services Association of America. Membership in such organizations can indicate reliability and adherence to industry standards.

3. Review Terms And Conditions. Carefully review all the terms and conditions of the loan contract. Pay attention to the fine print to understand the lender's policies, fees, and your obligations as a borrower.

4. Examine Interest Rates And Total Loan Cost. Thoroughly examine the interest rates on the loan and ensure your contract includes a detailed breakdown of the total cost of the loan. This helps you understand the full financial impact of borrowing and compare offers from different lenders.

5. Understand Your Right Of Rescission. Take advantage of your right of rescission, which typically allows you to rescind the loan within three days after signing the agreement. Alternatively, use the "cooling-off" period to thoroughly review the contract and make an informed decision before committing to the loan.

OneMain Financial. Apply Online