OneMain Financial Personal Loans Review – Good for Debt Consolidation?

Personal loans can be a useful tool for consolidating high-interest debt. OneMain Financial is a large personal loan provider known for serving borrowers with bad credit. But are their loans a good option for debt consolidation?

This comprehensive review will analyze OneMain Financial personal loans, examining their features, requirements, loan amounts, rates, fees, application process, customer service, and more. We’ll provide an in-depth look at using OneMain loans for debt consolidation, including pros and cons. Read on for the full OneMain Financial personal loans review.

Overview of OneMain Financial

OneMain Financial is a leading personal loan provider that specializes in serving borrowers with less-than-perfect credit. They have over 1,500 retail branches across the United States.

OneMain is a subsidiary of Springleaf Holdings. They have been in business for over 100 years, previously operating as Springleaf Financial and American General Finance.

While OneMain does report to credit bureaus, they work with borrowers who may not qualify for loans from traditional banks and credit unions. So they can be an option for debt consolidation for those with bad credit.

Types of Personal Loans Offered

OneMain offers unsecured personal installment loans. Borrowers receive the full loan amount upfront, which is repaid in fixed monthly payments over the loan’s term.

They offer personal loans for:

  • Debt consolidation
  • Major expenses
  • Home improvements
  • Auto repairs
  • Medical bills
  • And more

In addition to their standard personal loans, OneMain offers joint loans for borrowers who want to apply with a co-applicant. This can help qualify for improved terms.

Loan Amounts and Terms

OneMain personal loan amounts range from $1,500 to $20,000. However, qualified borrowers with good income and credit scores may be approved for up to $30,000.

Loan terms are either 24, 36, 48, or 60 months (2 to 5 years). Longer terms come with lower monthly payments but higher total interest costs.

OneMain’s minimum loan amount and term length make their loans a viable debt consolidation option. The loans can pay off a range of smaller debts, while the multi-year repayment terms keep monthly payments manageable.

Personal Loan Interest Rates and Fees

OneMain does not disclose interest rates online. Like most lenders for borrowers with poor credit, their rates are higher than traditional banks. Exact rates depend on individual factors like credit score, income, and loan amount.

In customer reviews, borrowers report rates ranging from 18% to 35.99% APR. Lower rates go to qualified applicants with good credit and income. Higher risk borrowers get rates above 25%.

OneMain charges origination fees of 4% to 10% of the loan amount borrowed. Lower credit score borrowers pay higher fees. There are no prepayment penalties.

Late fees are 5% of the overdue payment, capped at $30 per late payment. Returned payments cost $20 each.

Paying off debt consolidation loans from OneMain Financial will cost more in interest and fees compared to good credit borrowers. But it can still be far less expensive than carrying revolving credit card balances.

Eligibility and Qualification Requirements

OneMain has more flexible eligibility requirements than banks and credit unions. They factor in your ability to repay the loan based on income and expenses.

Here are the main eligibility criteria:

  • Minimum credit score of 550 (average scores of approved borrowers are higher, around 600)
  • Minimum individual annual income of $24,000
  • 4 years of credit history
  • Valid U.S. checking account
  • Be at current address for at least 3 months

Joint applications can help applicants who don’t meet minimum requirements qualify.

Approval is not guaranteed. OneMain will analyze debt-to-income ratio and may request additional documents to verify income and personal information.

They will run a soft credit check before the full application, so you can get an idea of eligibility. This won’t impact your credit score.

How to Apply for a OneMain Financial Personal Loan

You can apply for a OneMain Financial personal loan online, over the phone, or in-person at a local branch.

Apply Online

To start the online application, visit the OneMain website and click “Apply Now.” You’ll first answer a few basic questions for an initial pre-qualification check without impacting your credit score.

If pre-qualified, you will then fill out the full online application form including:

  • Personal information (name, DOB, SSN, etc.)
  • Contact information
  • Income and employment details
  • Expenses
  • Checking account info
  • Loan purpose and amount requested

After submitting the online application, OneMain will request documents to verify your identity, income, and personal information.

You can upload documents directly through their portal. The main items they may ask for are:

  • Government-issued ID
  • Recent paystubs
  • Bank statements
  • Utility bill/proof of residency

OneMain says online loan applications take around 5 minutes to complete. You will get an instant decision on pre-qualification, but final approval takes 1-2 days once all documents are submitted.

Apply by Phone

To apply by phone, call 1-800-991-4532. A lending representative will guide you through the application, document submission, and approval process over the phone.

Applying by phone allows you to get assistance and instant feedback from a OneMain representative. The overall process takes around the same 1-2 days as the online application.

Apply at a Local Branch

You can also apply in person by visiting your nearest OneMain Financial branch. Their website has a locator to find the closest branch.

The branch representative will help you fill out the application paperwork and submit any required documents in person. This can be the quickest application route, with some borrowers getting instant approval or funding the same day.

Funding Timelines

If approved, how long does it take to get loan funds from OneMain?

For online applications, expect funding in 1-4 business days after approval. They deposit funds directly into your nominated checking account via ACH transfer.

For in-branch applications, you may receive instant approval and same day funding. Otherwise, expect next day funding upon approval.

OneMain does not offer direct-to-debit card funding for instant access to loan funds. The ACH transfer takes at least 1 day for online applications. So it’s not the fastest option if you need an emergency cash infusion.

How to Use OneMain Loans for Debt Consolidation

The first step is to determine all outstanding debts you want to consolidate and add up the payoff amounts. Then apply for a OneMain personal loan with at least that total loan amount.

Upon approval and receiving your loan funds, you’ll start by paying off any credit cards, payday loans, medical bills, or other debts you want to consolidate. Make sure to get written confirmation each balance is paid in full and closed.

With all debts consolidated into the OneMain loan, you will now make a single monthly payment to OneMain Financial until your loan is fully repaid.

A debt consolidation loan simplifies your finances into one predictable monthly payment. Your goal is to pay off the loan before interest costs get out of hand. Make payments on time to limit fees and avoid credit score damage.

Benefits of using OneMain Financial for debt consolidation include:

  • Fixed interest rate – your monthly payment stays the same
  • May save on interest compared to credit cards and payday loans
  • One monthly bill instead of multiple accounts
  • Helps avoid late fees and over-limit charges
  • May be able to release cosigners from previous debts
  • Simple payoff plan compared to debt management
  • Potential to rebuild your credit by making on-time payments

Drawbacks to watch out for when consolidating debt with OneMain:

  • Higher interest rates than with good credit
  • Origination/admin fees add to costs
  • Loan terms up to 5 years means paying more total interest
  • Missed payments hurt your credit score
  • Lumping all debt together can encourage further overspending

Analyze the interest rate savings and make a payoff plan as early as possible to maximize the benefits of consolidating debt with OneMain Financial.

OneMain Financial’s Customer Service

OneMain Financial provides customer service 7 days a week by phone and through their online portal:

Phone: 1-800-991-4532

Hours: Monday through Friday, 7am to 10pm CT. Weekends, 8am to 5pm CT.

Online: Login to your account portal to use their contact form.

Reviews of OneMain’s customer service are mixed. Some customers report great experiences working with helpful, knowledgeable representatives.

However, others faced long phone holds, inconsistent answers from different reps, and difficulty resolving issues. They advertise access to real people for personalized service. But delays and frustrations can happen when you need timely support.

If considering OneMain Financial, pay attention to customer service responsiveness when you apply. It’s important to have a reliable support team when managing a multi-year loan for debt consolidation.

Pro Tips for OneMain Financial Personal Loans

Here are some pro tips for getting the most value out of a OneMain Financial personal loan:

  • Check rates: Because OneMain does not disclose rates publicly, make sure to check personalized rates from multiple lenders when exploring debt consolidation options.
  • Negotiate loan costs: If your credit score is over 600, negotiate for lower origination fees. This saves substantially on costs.
  • Apply with a co-signer: Adding a creditworthy co-signer may help you qualify for a lower interest rate. Look for someone with income and a 680+ credit score.
  • Autopay discount: Enroll in autopay from a checking account to benefit from a 0.25% interest rate reduction. Every little bit of savings helps.
  • Pay early: Make payments before the due date to pay down the principal faster and reduce interest costs. Even an extra $20 or $50 can make a difference.
  • Pay weekly: If possible, make smaller payments on a weekly vs. monthly basis. This increases total annual payments to take a chunk out of principal.
  • Check for prepayment penalties: OneMain does not charge prepayment penalties. Take advantage by paying extra whenever possible to pay off debt faster.

Alternatives to OneMain Financial Personal Loans

OneMain Financial is not the only option for bad credit debt consolidation loans. Here are a few top alternatives to consider:


  • Minimum 580 credit score
  • Rates from 5.99% to 35.89% APR
  • $1,000 to $40,000 loans
  • No prepayment penalties


  • Minimum 580 credit score
  • Rates from 9.95% to 35.99% APR
  • $2,000 to $35,000 loans
  • 4.75% admin fee


  • Minimum 560 credit score
  • Rates from 5.94% to 35.97% APR
  • $1,000 to $50,000 loans
  • No origination fees


  • Minimum 660 credit score
  • Rates from 4.29% to 19.99% APR
  • $5,000 to $100,000 loans
  • No fees

Compare rates and fees across multiple lenders to find the best personal loan for debt consolidation based on your specific credit profile and financial situation.

OneMain Financial personal loans allow borrowers with bad credit to consolidate debts under one fixed-rate installment loan. This can provide a structured repayment plan and potentially save on high credit card interest rates.

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However, applicants with lower credit scores will pay very high interest rates and fees with OneMain debt consolidation loans. You need to run the numbers carefully to ensure consolidation makes sense based on your savings.

Here are some key questions to consider:

  • What is your estimated interest rate with OneMain vs. current debts?
  • How much can you save monthly and overall on interest charges?
  • Are fees affordable based on your budget?
  • Can you handle the large monthly payments?
  • Will a multi-year loan term cause you to overspend again?

Most importantly, make sure you have a solid plan to improve your credit and not fall back into unmanageable debt once consolidated. Then you can refinance to a lower rate loan in the future.

While OneMain Financial is not usually the first choice for top-tier borrowers, their loans can be a reasonable option for certain borrowers with bad credit needing to consolidate high-interest debts under one loan. Apply with caution by comparing all costs and alternatives first.

OneMain Financial Personal Loans – FAQs

Still have some questions about using OneMain Financial for debt consolidation? Here are answers to the most frequently asked questions:

Does OneMain Financial check credit?

Yes, OneMain will perform a soft credit check during pre-qualification and a hard inquiry when you apply for final approval. They allow credit scores as low as 550, but typical approved borrowers have scores around 600.

How long does OneMain take to approve a loan?

Online applications take 1-2 days for approval after submitting all documents. In branch applications can get instant approval in some cases. Funding takes 1-4 days depending on application method.

Can I get approved for $40,000?

While OneMain’s stated maximum loan amount is $30,000, some borrowers report getting approved for up to $40,000 with excellent credit and income. Large loans still have high rates and fees.

Does OneMain do home equity loans?

No, OneMain only offers unsecured personal installment loans. They do not provide home equity lines of credit or mortgages. Only personal loans that do not use your home as collateral.

Can I pay my OneMain loan early?

Yes, you can prepay a OneMain personal loan early without penalty. This allows you to pay off debt faster and save on interest charges. Consider adding extra to monthly payments.

Does OneMain allow co-signers?

Yes. Applying for a joint personal loan with a co-signer may help you get approved and qualify for a lower interest rate if the co-signer has good credit.

How long do OneMain loans take to fund?

Online applications take 1-4 days for loan funding upon approval. In branch applications can offer same day funding in some cases. No option for instant funds via debit card.

The Bottom Line – OneMain for Debt Consolidation

OneMain Financial personal loans allow borrowers with bad credit to roll multiple debts into one installment loan potentially saving on interest. However, very high rates and fees are common.

Tread carefully, run the numbers on interest savings, and compare multiple lenders before consolidating debt with OneMain. Stick to a payoff plan and use their loans as a stepping stone to improve credit for lower rate financing in the future.

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