Is OneMain Financial Legit for Personal Loans?

OneMain Financial offers personal loans to people with bad credit—but is OneMain Financial legit? OneMain promises to say yes when other banks say no. They give loans from $1,500 to $20,000 with same-day funding and in-person service at more than 1,500 branches. OneMain can seem like a lifeline for people who need money and don’t have any other options.

Then you read the fine print and see that the interest rates range from 18% to 35.99% APR. That means that over three years, you could have to pay back more than $7,000 for a $5,000 loan. On top of that, origination fees can reach 10% of the loan amount. The total cost of borrowing can be almost twice as much as what you get.

This review explains what OneMain Financial is, if it’s real, how much their loans really cost, and who they help. Then it talks about how these high-interest loans keep borrowers in debt cycles, and how Beem offers a better way forward.

What is OneMain Financial and How Does it Work

OneMain Financial is one of the oldest companies in the US that lends money to people. The company has been around since 1912 and has more than 1,500 physical branches nationwide. OneMain is a company that helps people with bad or fair credit get personal loans when they can’t get a regular bank loan.

OneMain offers personal loans that are either secured or unsecured. To get a secured loan, you need to put up something of value, like a car, boat, or other property. You don’t need collateral for an unsecured loan, but the interest rates are higher. You can borrow between $1,500 and $20,000, and you have 24 to 60 months to repay it.

OneMain doesn’t specify the minimum credit score. This means that they lend money to people whom other lenders turn down. You can fill out the application online or in person at a branch. Many people who borrow money prefer to do it in person because OneMain staff can help them with the process and answer their questions.

Compared to regular banks, funding is quick. You can get the money the same day or within 2 business days of approval. That speed can be appealing to people who need money right away. The downside is that you have to pay a lot more in interest than you would at a bank or credit union.

Also Read: Five Daily Habits That Slowly Lift Your Credit Score Over Time

Is OneMain Financial Legit

OneMain Financial is a real business with more than 100 years of history. The company is a consumer finance company and follows all lending laws in the states where it does business. The Better Business Bureau gives OneMain an A+ rating, indicating the company responds to complaints and follows business practices.

But just because a business has an A-plus rating from the BBB doesn’t mean that customers are happy. OneMain has more than 600 complaints with the BBB, many of which are about high interest rates, aggressive refinancing tactics, and loan terms that are hard to understand. Some borrowers say they feel like they have to refinance their existing loans before they are paid off. This resets the clock and makes them pay interest for a longer time.

OneMain is not a scam in that they don’t just take your money and leave. It is a real lender that issues real loans and complies with the law. But just because something is legal doesn’t mean it’s cheap or right. Many people think OneMain’s interest rates are too high, which they call “predatory lending.” In comparison, credit card interest rates are typically 15% to 25%, while personal loan rates from banks and credit unions are typically 6% to 18%. OneMain’s rates can reach 35.99%.

OneMain Loan Costs and Fees

Depending on your credit score, the loan amount, whether it is secured or unsecured, and where you live, OneMain’s APR can range from 18% to 35.99%. Most people with bad credit will be offered rates at the top of that range.

Another high cost is the origination fee. Depending on where you live, OneMain may charge you an origination fee of up to 10% of the loan amount. So, if you borrow $5,000, you might have to pay a $500 fee up front. Some states limit origination fees to lower amounts, but most allow them to reach 10 percent.

Think about an example to help you understand the real cost. If you borrow $5,000 at a 25% annual percentage rate (APR) for three years, you’ll pay about $2,000 in interest alone. With a $500 origination fee, the total cost is $2,500, plus the $5,000 principal. You have to pay back $7,500 to get $5,000. If the APR is 35.99 percent, the interest charges would be even higher.

If you don’t pay on time, you’ll have to pay late fees, which add to the total cost. OneMain doesn’t charge prepayment penalties, which is good because you can pay off the loan early without having to pay extra fees. But most people with this level of credit have trouble making regular payments, let alone paying early.

Secured vs Unsecured Loans

OneMain offers both secured and unsecured personal loans. You have to put up collateral, like a car, boat, or other valuable property, for secured loans. If you don’t repay the loan, OneMain can take the collateral and sell it to recover its money. Because lenders face less risk, secured loans usually have slightly lower interest rates.

You don’t have to put up collateral for an unsecured loan. That means that OneMain can’t just take your property if you don’t pay. They can, however, send your debt to collections and even sue you to recover it. Because lenders take on more risk, unsecured loans have higher interest rates.

OneMain’s secured and unsecured loans often have rates that differ by only a few percentage points. Both choices are still more expensive than bank or credit union loans. You should think carefully before deciding to offer collateral. If you put up your car and then lose your job or have to pay for something you didn’t expect, you could still owe money and lose your car.

Who OneMain Accepts

OneMain only lends to people with bad or fair credit scores, typically between 600 and 700. These people have been turned down by regular banks and credit unions. OneMain will also lend to people with little credit history or who have filed for bankruptcy.

People who own collateral, such as a paid-off car or other valuable property, are more likely to be approved and to receive slightly better rates. People who want to talk to someone in person about their loan also tend to choose OneMain.

If you can get a lower interest rate, OneMain is not the best choice for you. Before you consider OneMain, look into credit unions, online lenders, or even credit cards if your credit score is over 650 and you have a steady income. Because of the high interest rates, OneMain should be your last choice, not your first.

Pros and Cons

OneMain is good for borrowers who are having trouble. The best thing about them is that they will accept people with bad credit and no minimum credit score. That gives people who don’t have any other options a chance. Some borrowers prefer lenders with physical branches because they can get help in person. Funding is quick; you can get your money in one or two business days. OneMain offers both secured and unsecured options, giving borrowers some flexibility. The rates are lower than those of payday loans, which usually have APRs in the hundreds.

The cons for OneMain are big and shouldn’t be ignored. Interest rates between 18% and 35.99% are very high and can keep people in debt for a long time. Origination fees of up to 10% can add hundreds or even thousands of dollars to the total cost. When the loan is paid off, borrowers may have to pay back almost twice what they borrowed. If you can’t make your payments on a secured loan, your property is at risk. Many people who borrow money complain that OneMain staff pressures them to take out new loans before they pay off their old ones. Most borrowers have better options, such as credit unions, peer-to-peer lending, and cash advance apps for smaller needs.

What Beem Is and Where It Fits

Beem is a U.S.-based money app that helps people avoid high-interest loans like OneMain. You can find out more at https://trybeem.com. Beem is a good option for people who need money quickly but don’t want to take out expensive personal loans with double-digit interest rates.

OneMain offers loans of $1,500 to $20,000 with interest rates as high as 35.99% and origination fees up to 10%. That structure can keep people in debt for a long time. Beem will give you up to $1,000 in Everdraft™ cash advances with no interest. A $1,000 advance is enough to cover the immediate need for many people who need money quickly without taking out a loan that lasts for years.

Beem also has a Subscription Monitor that looks for zombie charges that keep taking money from your account every month. Those memberships you forgot about, and services you don’t use, can cost you $30 or more a month. You can use the money you save by canceling them to pay for things without borrowing. OneMain does not help you address the real reasons you are stressed about money. Beem’s main goal is to stop leaks and keep people from drifting, which is what makes them need expensive loans in the first place.

Also Read: Secured vs Unsecured Loans: Which One Should You Choose in 2026?

Why Choose Beem Over High-Interest Loans

The first big difference is the cost. OneMain charges an annual percentage rate (APR) of 18% to 35.99% plus fees to start. Beem does not charge interest on Everdraft advances. That difference could save you a lot of money. A $5,000 OneMain loan with a 25% APR costs about $2,500 in fees and interest. A $1,000 Beem advance has a flat fee with no interest that accrues over time.

The second difference is the amount of debt. OneMain loans require monthly payments for 2 to 5 years. You are still responsible for those payments even if your financial situation gets worse, or you could lose your collateral. You won’t have to pay back your Beem advances until your next paycheck, so you won’t have to worry about long-term debt.

The third difference is that it deals with the root causes. OneMain gives you cash, but it doesn’t improve your finances. You get some relief for a short time, but then you have to pay interest for years. The Subscription Monitor in Beem can help you find hidden fees by detecting leaks. That proactive approach can save you money you didn’t know you were wasting, so you won’t need to borrow more in the future.

The fourth difference is that it’s flexible. OneMain loans are structured products with fixed terms and payment plans. Beem lets you choose how much access you need without making you sign a contract for several years.

When OneMain Might Make Sense

You should consider OneMain only as a last resort after you’ve tried everything else. If you need a lot of money, like $10,000, and every bank, credit union, and online lender has turned you down, OneMain might be one of the last places you can go. You should still look into borrowing from family, selling items you own, getting a side job, or working out payment plans with creditors before taking out a loan at 35.99 percent APR.

OneMain loans are a little better than payday loans, which often have APRs in the hundreds of percent. But that’s not saying much. If you get a OneMain loan, be aware that you will likely have to pay back almost twice what you borrowed. Make sure you have a clear plan to repay your loan and avoid refinancing traps. Don’t let OneMain talk you into getting a new loan before you’ve paid off the old one.

Final Verdict

OneMain Financial is a real business with more than 100 years of history. The company follows lending rules, so it’s not a scam. But the interest rates of 18% to 35.99% are very high and can keep borrowers in debt for a long time. Origination fees of up to 10% are even worse because they take hundreds or thousands of dollars right off the top.

You should consider OneMain only as a last resort after exploring credit unions, online lenders, family loans, and other options that cost less. Taking out a multi-year personal loan with high interest rates is not a good idea for most people who need money quickly. It makes things worse, not better. Beem is a better option because it offers cash advances with no interest and tools to help you address the real causes of financial stress.

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