What One Main Financial Does
One Main Financial is a lender that offers personal loans and lines of credit to people with lower credit scores or limited credit history. The company operates physical branches in most U.S. states and also takes applications online. Unlike a bank, One Main does not require a high credit score to borrow — they look at your income, employment, and ability to repay instead.
One Main offers two main products: a personal loan (a fixed amount you receive upfront and repay in monthly installments) and a line of credit (a revolving account where you draw money as needed, similar to a credit card). Both come with interest rates that vary based on your credit profile, income, and the amount you borrow.
The company is owned by Enova International and is regulated by state lending laws and the Consumer Financial Protection Bureau. If you have questions about your account or a complaint, you can contact One Main's customer service or file a complaint with your state's attorney general or the CFPB.
Key Takeaways
- One Main charges interest rates that range widely depending on your credit score and income; rates are not published online, so you must contact a branch or apply to see what you would pay.
- Personal loans from One Main come with origination fees (typically 1% to 10% of the loan amount) that are deducted from what you receive or added to what you owe.
- If you miss a payment, One Main will charge late fees and report the miss to credit bureaus, which will lower your credit score.
- One Main offers secured loans (backed by collateral like a car or savings account) at lower rates than unsecured loans, but you risk losing the collateral if you default.
How Interest Rates and Fees Work at One Main
One Main does not publish interest rates online. Instead, you must visit a branch, call, or complete an online application to receive a rate quote. The rate you are offered depends on your credit score, income, employment history, and the loan amount and term you choose. Rates vary significantly — some borrowers pay single-digit rates while others pay rates in the double digits.
In addition to interest, One Main charges an origination fee when you take out a loan. This fee typically ranges from 1% to 10% of the loan amount, though the exact percentage depends on your credit profile and the loan type. If you borrow $5,000 with a 5% origination fee, you would owe $250 in fees. One Main may deduct this fee from the money you receive (so you get $4,750 instead of $5,000) or add it to your loan balance, meaning you repay the fee plus interest over time.
One Main also charges late fees if you miss a payment. The amount varies by state but is typically $15 to $25 per missed payment. If you pay more than 30 days late, One Main will report the late payment to the three major credit bureaus (Equifax, Experian, and TransUnion), which will damage your credit score and make it harder to borrow in the future.
Secured vs. Unsecured Loans
One Main offers both secured and unsecured personal loans. A secured loan is backed by collateral — an asset you own that One Main can take if you stop paying. Common collateral includes a car, savings account, or other valuables. Because the lender has a way to recover their money if you default, secured loans carry lower interest rates than unsecured loans.
An unsecured loan has no collateral backing it. One Main relies entirely on your promise to repay and your income to make payments. Because the lender takes on more risk, unsecured loans carry higher interest rates. If you default on an unsecured loan, One Main cannot take your car or savings — they can only sue you, report you to credit bureaus, or send your account to a debt collector.
If you choose a secured loan, understand that One Main can repossess your collateral if you fall behind. For example, if you use your car as collateral and miss several payments, One Main can take the car and sell it to recover what you owe. You would lose the vehicle and still owe any difference between what the car sells for and what you borrowed.
What Happens If You Miss a Payment
One Main's loan agreements typically allow a grace period of 10 to 15 days after your payment due date before a late fee is charged. If you miss a payment by that amount, contact One Main immediately to make the payment and ask whether the late fee will be waived. Some branches may waive a single late fee if you have a good payment history.
If you are 30 or more days late, One Main will report the late payment to credit bureaus. This report stays on your credit report for seven years and significantly lowers your credit score. A lower score makes it harder and more expensive to borrow in the future — you will face higher interest rates on credit cards, auto loans, mortgages, and other debt.
If you fall behind by 60 or 90 days, One Main may declare your loan in default and demand full repayment immediately. If you cannot pay, the company may sue you in court to obtain a judgment, which allows them to garnish your wages or place a lien on your property. For secured loans, One Main can repossess the collateral without a court order.
How to Compare One Main to Other Lenders
Because One Main does not publish rates, comparing them to other lenders requires getting quotes from multiple places. Other lenders that serve borrowers with lower credit scores include LendingClub, Upstart, Elevate, and OppFi, as well as credit unions and some banks. Each lender uses different criteria to set rates, so your rate at One Main may be higher or lower than at another company.
When comparing offers, look at the total cost of borrowing, not just the interest rate. Calculate the total interest and fees you would pay over the life of the loan, then divide by the loan amount to see the true cost as a percentage. A loan with a lower advertised rate but higher fees may cost more overall than a loan with a slightly higher rate and lower fees.
Also consider the repayment term — how long you have to pay back the loan. A longer term means lower monthly payments but higher total interest paid. A shorter term means higher monthly payments but lower total interest. Choose a term that you can afford to pay without falling behind, because missing payments costs more in late fees and credit damage than the interest savings from a shorter term.
One Main's Line of Credit Product
In addition to personal loans, One Main offers a line of credit, which works differently. Instead of receiving a lump sum upfront, you receive access to a credit limit. You draw money as you need it, and you only pay interest on the amount you have borrowed, not the full credit limit. This is similar to a credit card but typically with higher interest rates.
One Main's line of credit usually comes with an annual fee (typically $25 to $100) in addition to interest charges. The interest rate is variable, meaning it can change over time based on market conditions or changes to your account status. If you miss a payment on a line of credit, the same late fees and credit reporting rules apply as with a personal loan.
Lines of credit can be useful if you need access to money over time but do not need a large lump sum upfront. However, because interest accrues on any balance you carry, it is important to pay down the balance regularly to avoid paying interest on old debt while you continue to borrow new money.
Questions to Ask Before You Borrow
Before you take out a loan or line of credit from One Main, ask the branch or loan officer these questions: What is my interest rate, and is it fixed or variable? What origination fees and other upfront costs will I pay? What is my monthly payment, and how long do I have to repay? What happens if I pay off the loan early — are there prepayment penalties? What is the grace period before a late fee is charged, and how much is the late fee?
Also ask whether One Main offers any hardship programs if you fall behind on payments. Some lenders will work with borrowers who face temporary financial difficulty by allowing a payment deferral (skipping a month or two) or a loan modification (changing the terms to lower the monthly payment). Knowing whether this option exists before you borrow can help you avoid default if your circumstances change.
Frequently Asked Questions
Can I get a One Main loan with bad credit?
Yes. One Main specializes in lending to people with credit scores below 650 and those with limited credit history. The company looks at your income and employment stability as much as your credit score. However, a lower credit score will result in a higher interest rate.
What is the difference between One Main and a payday lender?
One Main offers longer repayment terms (typically 24 to 60 months) and lower interest rates than payday lenders, which usually charge rates above 300% and require repayment within two weeks. One Main is regulated more strictly and is generally a less expensive way to borrow if you have time to repay over months rather than weeks.
Will taking out a One Main loan hurt my credit score?
A hard inquiry (when One Main checks your credit to make a lending decision) will lower your score slightly, usually by 5 to 10 points. However, once you have the loan, making on-time payments will help your score recover and build credit over time. Missing payments will hurt your score much more than the initial inquiry.
Can I pay off a One Main loan early without a penalty?
Most One Main loans allow early repayment without prepayment penalties, meaning you can pay off the balance in full at any time without extra charges. Paying early saves you interest. Confirm this with your loan officer before you sign, as terms vary by state and loan type.
What should I do if I cannot make a payment?
Contact One Main as soon as you know you will miss a payment. Ask whether they offer a hardship program, payment deferral, or loan modification. Communicating before you miss a payment is better than waiting, because it may prevent late fees and credit reporting. If you are unable to reach an agreement, you may want to speak with a nonprofit credit counselor about your options.