At Experian, one of our priorities is consumer credit and finance education. This post may contain links and references to one or more of our partners, but we provide an objective view to help you make the best decisions. For more information, see our Editorial Policy.
In this article:
Getting a loan when you have poor credit can be difficult. OneMain Financial is one of the few lenders that make it possible. The cost of these loans can be high and they may require collateral, but if you're in a pinch and need money, a personal loan from OneMain may be a good fit.
Recommended FICO® Score*
Available loan amounts: $1,500 to $20,000
Est. monthly payment: $54 to $905
Grace period: 7 days
Application fee: $0
- A+ from BBB, 4.8 Trust Pilot (48,000 reviews)
- 100+ years responsible lending
- Affordable, simple fixed terms, no prepayment penalty
- Complete our online application in minutes
- Money as fast as 1 hour after loan closing
- Here for you online, by phone or at nearest of 1,400 branches
|Doesn't require good credit||High interest rates|
|Quick funding||May require collateral for larger loans|
|Need to visit a branch to close the loan|
|Optional credit insurance can increase costs|
|OneMain Financial Customer Service|
601 N.W. Second Street
Evansville, IN 47708-1013
OneMain Financial is one of the largest lenders in the country that focuses on borrowers who have poor credit. It offers unsecured and secured installment loans with fixed interest rates, two- to five-year terms and fast funding—sometimes the same day. However, you'll need to visit a local OneMain branch to complete the loan process and get the money.
Doesn't Require Good Credit
OneMain Financial distinguishes itself from some lenders in that it focuses on issuing loans to borrowers who don't have excellent credit.
The company doesn't have a required minimum credit score to qualify for a loan, and a little over half of the money it lent in 2019 went to people with a FICO® Score☉ of 619 or lower. About a quarter of its outstanding loans were to people with a FICO® Score of 620 to 659 (fair credit), and the rest of the borrowers had scores over 660 (the high end of fair as well as the good, very good or exceptional ranges).
Fast Funding Options
When you get a loan from OneMain Financial, you may be able to accept the loan in one of three ways:
- Electronic transfer (one to two business days): The money will be directly deposited into your bank account within one or two business days.
- Debit card (same day): You'll receive a debit card with your funds the same day you close on the loan.
- Check (same day): A check for the amount is issued when you close on the loan.
Being able to choose a check or debit card can be beneficial when you need the money right away, but you may still need to wait for the check to clear if you deposit it, or pay a fee to cash it.
Start Your Application Online and Finish at a Branch
You can start an application online or over the phone to see if you prequalify for a loan with a soft credit check, the type that doesn't impact credit scores. You'll then need to visit one of OneMain Financial's branches to complete your application.
To avoid potential delays, have all your documents ready when you visit the branch to close your loan. You'll need at least the following:
- A valid government-issued ID
- Your Social Security card
- Proof of residence, such as a driver's license or utility bill with your address on it
- Proof of income from your pay stubs or tax returns
You can ask your local branch representative what other documents you may need. For example, you may need to bring a bank statement or check so the company can set up loan payments from your account.
Or, if you're applying for a secured loan that uses your vehicle as collateral, you may need proof that you own the car and carry comprehensive insurance coverage. If you cancel the insurance coverage while you're still repaying the loan, you may need to pay for OneMain Financial to insure the vehicle.
Eligible vehicles include cars, trucks, motorcycles and boats, and may first need to be appraised. You may also need to pay a fee to OneMain to transfer the vehicle's title, although the company passes the fee on to the state or county.
Active-duty military members, along with their spouses and dependents, aren't eligible for secured loans from OneMain Financial.
Expensive Loans With Optional Add-Ons
While you can get approved for a loan from OneMain Financial with poor credit, the rates and fees make them an expensive option. The specifics of your loan can vary depending on your creditworthiness, but even the loan with the best rate will have an 18% annual percentage rate (APR)—which may be higher than what you'd pay to carry a credit card debt balance.
You also may need to offer a vehicle as collateral depending on your creditworthiness. Even if you have good credit, you may need to secure the loan to qualify for a larger loan amount.
OneMain Financial also charges origination fees on all its loans. The fee amount, and whether you're charged a flat fee or a percentage of your loan amount, can vary depending on your creditworthiness and where you live. The maximum fee you're charged will either be a flat $400 fee or 10% of your loan amount.
When you're taking out your loan, OneMain Financial may also offer you several types of credit insurance:
- Credit life insurance: Can cover the remaining loan balance if the borrower dies.
- Credit involuntary unemployment insurance: Covers a certain number of monthly loan payments if you lose your job through no fault of your own.
- Credit disability insurance: May cover your monthly loan payment if you're injured or get sick.
These insurance plans can make sure you don't fall behind on a loan. However, the credit insurance premiums may be added to your loan's total amount and accrue interest along with your loan.
Buying similar types of insurance from a third party may be less expensive, and it can give you the money directly to help with all your bills rather than only paying this loan. The coverage may also be redundant if you already have life or disability insurance.
Terms Can Vary Depending on Where You Live
OneMain Financial offers loans in 44 states, but loan specifics, including the amount you can borrow, can vary depending on where you live.
Another distinction is that in some states the interest is "precomputed" and added to the account balance when the loan is issued, while elsewhere the interest accrues daily using a simple interest system.
With precomputed interest, the loan's interest is combined with your loan amount when you take out the loan. Your monthly payment is determined by dividing this sum by the number of months you'll be repaying the loan, and making larger monthly payments won't decrease how much interest accrues as you go.
In states with daily simple interest loans, the interest accrues as you go based on your loan's remaining principal balance. Making larger payments can decrease your principal balance and lead to less interest accruing each day.
How Does Paying Off a OneMain Financial Loan Work?
You'll repay a OneMain Financial loan with monthly payments. You can sign up to have these automatically transferred from your checking account or make manual payments each month.
If you choose to make manual payments, you can do so online, at a branch, by phone, by mail or using the OneMain mobile app. You can also ask for a personalized payment code and then pay with cash at participating CVS®, 7-Eleven, Walmart, Casey's General Store® and Family Dollar locations.
OneMain Financial doesn't charge a prepayment penalty, and you can save money by paying off your loan early. Even if your loan's interest was precomputed, OneMain Financial will refund the interest that was factored into your account balance assuming a longer repayment period. Similarly, if you opted to pay for credit insurance, your premium may be prorated.
Making the Right Choice for Your Situation
OneMain Financial may be one of the few options available to you if you need to borrow a large amount of money and have poor credit. However, the high interest rates and fees can make the loan an expensive choice, and using your vehicle as collateral puts you at risk of losing the vehicle if you can't afford a payment. Review the terms carefully and make sure taking out the loan is worth the risk.