Fair credit loans with flexible terms
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Applying for a personal loan can feel like you are in the dark, especially when your credit score is far from perfect. While there are dozens of personal loan lenders out there, not all banks will lend you the amount you need with the right repayment plan that fits your budget.
OneMain Financial offers four different terms, giving eligible borrowers the option to repay the money in 24, 36, 48, or 60 months. So we ranked OneMain Financial as the best lender for flexible payment plans on our list of the best personal loans for bad credit.
And although having a credit score below 670 most often disqualifies you for the majority of personal lenders, OneMain Financial does not have a minimum credit score requirement for applicants, and even offers a secured loan option. (with guarantee) to make the loan more accessible.
Ahead, Select looked at OneMain Financial, looking at the APR, benefits, fees, loan amounts and length of terms. (Learn more about our methodology below.)
OneMain Financial Personal Loan Review
OneMain Financial personal loans
Annual percentage rate (APR)
Purpose of the loan
Debt consolidation, large expenses, emergency costs
Flat rate of $ 25 to $ 400 or percentage ranging from 1% to 10% (depends on your state)
Up to $ 30 per late payment or up to 15% (depends on your state)
Find the best personal loans
OneMain Financial charges a high APR, from 18.00% to 35.99%, and there is no automatic payment reduction. In comparison, LightStream, for example, offers lower rates ranging from 2.49% to 19.99% * when you sign up for automatic payment. At the time of writing, the average two-year personal loan interest rate is 9.46%, according to the Fed.
The final APR for which you are eligible is based on your individual loan application. Factors such as credit score, income, loan amount and loan term will be taken into account.
OneMain Financial approves applicants with fair credit and sometimes those with bad credit, and there is an option to apply for a secured loan when borrowers do not qualify for an unsecured loan based on their credit history.
Secured loans allow borrowers to use their car’s equity to potentially qualify for lower interest. Rates, reimbursement conditions and agreements vary depending on the individual and the state in which they apply.
Secured loans require a first lien on a motor vehicle that meets the value requirements of OneMain Financials, titled on behalf of the borrower with valid insurance. The lender places a lien on the collateral until the loan is fully repaid.
Applicants can also apply with a co-applicant or, if married, can apply for a loan separately from their spouse. However, no co-signer is allowed.
The downside to OneMain Financial loans is the high origination fees ranging from $ 25 to $ 400, a percentage ranging from 1% to 10% (it depends on your state). Fortunately, there are no prepayment fees or penalties if you want to make additional payments on your loan to pay off the balance faster.
For loans with no set-up fee, check out our best personal loan list.
Amount of the loan
Applicants looking for smaller loans may qualify for a OneMain Financial loan, which starts at $ 1,500. The maximum loan amount you can take out is $ 20,000.
There are four different duration options to choose from (pending final approval). Borrowers can take out a OneMain Financial loan for 24, 36, 48 or 60 months.
At the end of the line
While Upstart loans are best for borrowers with no credit history, OneMain Financial is a solid option for fair credit borrowers looking for flexible terms to choose from. But beware of fees and interest charges with this lender: the APR sits higher on the spectrum, from 18.00% to 35.99%, and the setup fee can go up to $ 400.
That said, OneMain Financial can give borrowers the option of securing their loan with collateral, potentially making it more affordable. For another secured loan option, check out Before Personal Loans.
RELATED: Learn more about secured and unsecured loans
Find the best personal loans
To determine which personal loans are best for consumers with bad credit, Select analyzed dozens of US personal loans offered by online and physical banks, including major credit unions. Where possible, we’ve chosen loans with no origination or enrollment fees, but we’ve also included options for borrowers with lower credit scores on this list. Some of these options have set-up costs.
When selecting and ranking the best personal loans, we focused on the following features:
- Fixed rate APR: Variable rates can go up and down over the life of your loan. With a fixed rate APR, you lock in an interest rate for the life of the loan, which means your monthly payment stays the same, making it easier to plan your budget.
- Flexible minimum and maximum loan amounts / conditions: Each lender offers several financing options that you can customize based on your monthly budget and the time you need to pay off your loan.
- No prepayment penalty: The lenders on our list do not charge borrowers for prepayment of loans.
- Simplified application process: We looked at whether lenders offer same-day approval decisions and a fast online application process.
- Customer service: Each loan on our list offers customer service available by phone, email or secure online messaging. We have also opted for lenders with an online resource center or advice center to help educate you about the personal loan process and your finances.
- Disbursement of funds: The loans on our list deliver the funds quickly by wire transfer to your checking account or in the form of a paper check. Some lenders (which we have noted) offer the option of paying your creditors directly.
- Autopay discounts: We have noted lenders who reward you for signing up for automatic payment by lowering your APR from 0.25% to 0.5%.
- Creditors payment limits and loan amounts: The above lenders provide loans in a range of sizes, from $ 1,000 to $ 100,000. Each lender advertises their respective payment limits and loan size, and a pre-approval process can give you an idea of your interest rate and monthly payment for that amount.
The rates and fee structures advertised for personal loans are subject to fluctuation based on the Fed rate. However, once you agree to your loan agreement, a fixed rate APR will secure your interest rate and the monthly payment will remain constant for the life of the loan. Your APR, monthly payment, and loan amount depend on your credit history and creditworthiness. To take out a loan, many lenders will conduct a rigorous credit investigation and request a full application, which may require proof of income, identity verification, proof of address, and more.
Editorial note: The opinions, analyzes, criticisms or recommendations expressed in this article are those of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.