OneMain Financial Bad Credit Loan Review

OneMain Financial is a lending company that gives clients personal loans that can be used to cover various expenses. Most people use OneMain Financial for debt consolidation, medical expenses, home improvement projects, or for vehicle financing.

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    This personal loan company has been around since 1912, when it was founded in Baltimore, Maryland, as Springleaf Financial. In 1998, the company joined with Citicorp, and in 2011, the name changed to OneMain Financial and has been working with that name ever since.

    Most clients have stated that applying for a loan was easy and ideal for those with bad credit. Some noted that all the fees and interest rates are stated clearly, and the company is upfront about them. It was said that the staff are kind, understanding, and helpful to clients.

    As of the beginning of 2019, OneMain Financial has loaned out money to more than 15 million customers. The company works in 44 of the 50 states and have a total of 1,600 branches nationwide. Its headquarters is located in Evansville, Indiana, and is run as a public loan company.

    We are going to go over some specifics about OneMain Financial so you can decide if you want to take out a personal loan with them today.

    OneMain Financial Terms in a Glimpse

    Loan Amounts
    $1,500 - $20,000
    Term Length
    24 - 60 months
    Loan Rates
    18% - 35.99% APR
    Min Credit Score
    No Minimum
    Better Business Bureau RatingA+
    Time to Funding
    Same day - 1 business day

    OneMain Financial Highlights

    OneMain Financial is a perfect lending company for those with less than ideal credit scores. You should only take out a loan with them if you need to. The rates are on the higher side because their clients are usually high risk.

    Here are some details regarding a personal loan from this lending company.

    Pre Qualify with Soft Credit Pull

    You can apply for a loan online, on the phone, or in-person at one of the many branches nationwide. The application is straightforward; it asks you for the necessary personal and financial information for OneMain Financial to make a decision. This section should only take a few minutes if you have all the required details.

    OneMain Financial does not have a minimum credit score for the application process, which is terrific for those who need to work on their rating. The company considers multiple factors about your financial history. They look at the loan’s purpose, your work history, and your economic background to determine if you can be approved and what the rates will be on the loan agreement.

    Although there is no minimum credit score required, once you are approved and accept the offer, they will do a hard credit check, which can impact your credit rating. They do not offer a soft pull option.

    High Debt to Income Ratio Allowed

    This lending company looks at your debt to income ratio during the application process, but there is no limit to what rate will be approved or not. They consider many factors during the application, so even if you have a high debt to income ratio, you can get approved.

    Line of Credit

    You can take out a personal loan with the amount of $1,500 - $20,000, and you can use it for any expenses you may have. When getting approved, the lending company will ask you the purpose of the loan.

    Most people use the loan for debt consolidation, which can help you to improve your credit score and debt to income ratio. It can also be used for auto, home, or medical expenses. There are also other cases where people use their loans for weddings, funerals, or other expensive life events. You can’t apply for a OneMain Financial, personal loan for education, or student loan, though.

    The annual percentage rates or APR is a range of 18% to 35.99%, which is on the higher side when referring to interest rates. However, OneMain Financial loans to those without the best financial history and are high-risk clients, so the rates are there to ensure the borrowed money is paid back.

    This lending company should only be considered if no other company will loan you money, and you need it because you don’t want to find yourself with even more debt or a lower credit score at the end of the loan repayment period.

    On top of the APR that needs to be paid back along with the money borrowed, there is an origination fee, but the amount varies depending on which state you reside in.

    Credit Health Tools

    If you are using your personal loan for debt consolidation, then it can improve your overall credit health. When you consolidate your debt, you lower your credit utilization, which is responsible for 30% of your overall credit score. Credit utilization is a ratio that is based on the amount of money you have spent and own against your total amount of available credit.

    Even if you do not use your loan for debt consolidation, if you are responsible and pay your monthly rate every month and on time, then this can raise your credit score. 35% of your overall credit score is based on if you are consistent with your payments.

    If you can improve both of these factors, your credit score will rise drastically.

    Hardship Programs

    Unfortunately, there is no hardship program for OneMain FInancial. They already give loans to people who are considered high risk, so they cannot allow those people to not pay without any penalty.

    There are late fees if you do not pay on time or the correct amount. The fee amount is determined from which state you are living in, so it is a good idea to ask a representative from your state about what the fees are.

    No Prepayment Penalty

    There is no penalty for paying off your loan early or paying more each month towards clearing it.

    Unsecured Loans

    OneMain Financial provides loans that are not secured against your valuable possessions. Instead, they use your credit score and other factors of your financial history to determine if you will be approved for your loan, the interest rate, and the amount given.

    OneMain Financial and Fees

    The minimum fees that you have to pay are the interest rate, the money you borrowed, and the origination fee if you always pay on time. There are additional fees if you are late making payments.

    To qualify, you need to fill out the application with your financial history. There is no minimum credit score or high debt to income ratio. There is also no minimum income required to get approved for the borrowed money.

    This lending provider is available in 44 of the 50 states in the United States of America. The states that this company doesn’t cover are Vermont, Rhode Island, Massachusetts, Connecticut, Arkansas, Alaska, and Washington, D.C.

    General Conditions

    You must be in one of the 44 states that OneMain Financial works in to be approved for a loan. You must be 18 years or older to qualify. During the application process, the company will ask you for your monthly income, if you own property, and if you have a bank account.

    Although you do not need these things to apply, having these things will help you get approved.

    The Bottom Line

    OneMain Financial is an excellent lending company if you find yourself in a situation where no one else will loan you money. This should not be your first place to borrow money because of the high-interest rates.

    If you are in a desperate situation and need the money because you want to consolidate debt, you have a necessary home improvement, an unexpected medical bill, a wedding, or a funeral, then OneMain Financial can help you.

    OneMain Financial can approve you within minutes, and you will have your money the same day or up to two business days.