OneMain Personal Loans Review: A Last-Ditch Personal Loan for People With Bad Credit

OneMain offers personal loans for a wide range of credit types, including those with low credit scores. In this OneMain personal loan review, we'll explore the size and terms of OneMain personal loans, the APRs and other drawbacks, and who should consider OneMain as a lender.

This personal loan is a good fit for: Applicants with troubled credit histories who have struggled to get a personal loan from other lenders with better rates.

Top perks

Applicants with fair or poor credit may be accepted

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

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

Check for prequalification online

You can use the prequalification tool online to see if you prequalify for a loan. Checking for prequalified offers uses a soft credit pull that won't impact your credit score. This can be a good first step if you're not sure 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 fairly 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 either iOS or Android devices. The mobile app has decent ratings overall in both app stores. Reviewers say it's easy to make payments, but also report that the app's interface could use improvement.

Allow applicants with cosigners

OneMain is one of the few personal loan lenders that allows joint applicants. This can be helpful if you can't qualify for a loan on your own due to credit or income limitations. However, personal loan cosigners are legally obligated to repay the loan if the primary borrower can't make the payments. As such, you should only use a cosigner if you're certain you can repay your loan.

What could be improved

Loan interest rates are extremely high

The biggest 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 any other personal loan lender we've reviewed.

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

Origination fees

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

Larger loans require collateral

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

Larger loans will require you to use a vehicle for collateral. Accepted collateral may include:

• Automobiles
• Trucks
• Motorcycles
• Boats
• Campers
• RVs

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

Not available in some states

Rates, fees, and loan terms will all vary based on your state. But that's not all. OneMain personal loans are only available in the 44 states that host brick-and-mortar OneMain branches. You can't get a OneMain personal loan if you live in: Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, or Vermont.

To get a personal loan from OneMain, you need to:

• Be at least 18 years of age
• Live in an eligible state
• Have a valid government-issued ID
• Be able to provide proof of residence and income
• Have an active bank account

Application process

Applying for a loan through OneMain can be a straightforward process as long as you have your documents in order. To apply:

• Fill out the online application. You'll need to provide personal information, as well as answer questions about your income and employment history.
• Chat with a loan specialist. Once approved, you'll discuss your options with a loan specialist.
• Provide any required documents. OneMain may ask you for a copy of your government-issued ID, proof of residence, and proof of income.
• Review and sign the loan paperwork.

OneMain personal loans are best used as a hardship loan for people with low credit scores who cannot get loans from lenders with lower interest rates. Consider OneMain if you:

• Have a low credit score or troubled credit history: OneMain doesn't have a minimum credit score requirement. It also has a reputation for accepting borrowers other lenders have turned down for a loan.
• Are comfortable using your vehicle as collateral: If you have a vehicle that is paid off, or almost paid off, OneMain may offer you a secured personal loan. Be sure you can make your payments, however, or you could lose your collateral.
• Need a cosigner to be approved: OneMain allows borrowers to apply with a cosigner. This may net you a lower interest rate or larger loan. There are drawbacks to being a cosigner, however, so be sure to do your research.
• Need a payday loan alternative: While OneMain's interest rates are high, they're still better for you than a predatory payday loan. If you're trying to stop relying on payday loans, consider OneMain instead.