OneMain Financial review: Personal loans with flexible terms for borrowers with fair credit

Applying for a personal loan can feel like a shot in the dark, especially when your credit score is less than perfect. While there are dozens of personal loan lenders out there, not every bank will loan you the amount of money you need with the right payoff plan suitable for your budget.

OneMain Financial offers four different term lengths, giving qualifying borrowers the option to pay back the money in 24, 36, 48 or 60 months. We therefore ranked OneMain Financial as the best lender for flexible payment plans on our list of best personal loans for bad credit.

And while having a credit score below 670 most often disqualifies you for the majority of personal loan lenders, OneMain Financial has no minimum credit score requirement for applicants, and even has a secured loan option (with collateral) to make borrowing more accessible.

Ahead, Select reviewed OneMain Financial, looking at APR, perks, fees, loan amounts and term lengths. (Read more about our methodology below.)

• APR
• Perks
• Fees
• Loan amount
• Term length
• Bottom line

OneMain Financial charges high APR, at 18.00% to 35.99%, and there is no autopay discount. In comparison, LightStream, for instance, offers lower rates ranging from 7.99% - 24.99% APR when you sign up for autopay. At the time of writing, the average two-year personal loan interest rate is 9.46%, according to the Fed.

The final APR you qualify for is based on your individual loan application. Factors like credit score, income, loan amount and loan term will be considered.

OneMain Financial approves applicants with fair credit and sometimes those with bad credit, and there's an option to apply for a secured loan when borrowers don't qualify for an unsecured loan based on their credit history.

Secured loans let borrowers use equity from their car to potentially qualify for lower interest. Rates, repayment terms and agreements vary by individual and the state in which they apply.

Secured loans require a first lien on a motor vehicle that meets OneMain Financials' value requirements, titled in the borrower's name with valid insurance. The lender places a lien on the collateral until the loan is paid in full.

Applicants may also apply with a co-applicant or, if married, may apply for a loan separately from a spouse. However, there are no co-signers allowed.

The downside of OneMain Financial loans is the high origination fees starting at $25 to $500, or a percentage ranging from 1% to 10% (this depends on your state). Fortunately, there are no early payoff fees or penalties if you want to make extra payments on your loan to pay down the balance faster.

For loans with no origination fees, check out our best personal loan list.

Applicants looking for smaller loan amounts can benefit from a OneMain Financial loan, which start at $1,500. The maximum loan amount you can take out is $20,000.

There are four different term options to choose from (pending final approval). Borrowers may take out a OneMain Financial loan for 24, 36, 48 or 60 months.

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 watch out for fees and interest charges with this lender: APR sits higher on the spectrum, from 18.00% to 35.99%, and origination fees may reach as high as $500. That said, OneMain Financial may give borrowers the option to secure their loan with collateral, potentially making it more affordable.

RELATED: Read more about secured vs. unsecured loans

To determine which personal loans are the best for consumers with bad credit, Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions. When possible, we chose loans with no origination or sign-up fees, but we also included options for borrowers with lower credit scores on this list. Some of those options have origination fees.

When narrowing down and ranking the best personal loans, we focused on the following features:

• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan.
• Flexible minimum and maximum loan amounts/terms: Each lender provides more than one financing option that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
• Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
• Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
• Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
• Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $1,000 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

The rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee your interest rate and monthly payment will remain consistent throughout the entire term 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 hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.

*Your LightStream loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 7.99% APR with a term of 3 years would result in 36 monthly payments of $313.32.