No, OneMain Financial does not always require collateral. The lender offers both unsecured personal loans, which rely on your promise to repay, and secured loans, which are backed by an asset you own. Whether OneMain requires collateral from you comes down to your credit profile, your income, and how much you want to borrow.1OneMain Financial. Personal Loans – Apply Online
When OneMain Will Ask for Collateral
OneMain doesn’t publish a single credit score cutoff. The company works with a wide range of scores and evaluates your full financial picture instead.2OneMain Financial. What Credit Score Do You Need for a Personal Loan Still, a few patterns are clear from how the lender describes its process.
Applicants with lower scores or a limited credit history are more likely to be offered a secured loan than an unsecured one. Debt-to-income ratio matters too. OneMain’s educational materials point to keeping that ratio under 36%, though the company doesn’t disclose a hard threshold.3OneMain Financial. What Are the Requirements to Get a Personal Loan
Loan size is the third trigger. Larger loans require a first lien on a motor vehicle that is no more than ten years old and meets OneMain’s value requirements.4OneMain Financial. How Much Money Do You Need So if you’re asking for a smaller amount and your credit and income look solid, an unsecured loan is on the table. If you need closer to the top of OneMain’s $1,500 to $20,000 range, expect the collateral question.1OneMain Financial. Personal Loans – Apply Online
What OneMain Accepts as Collateral
A titled motor vehicle is the standard pledge. OneMain accepts cars, trucks, and motorcycles, and may consider boats, RVs, and trailers. The lender takes a first lien on the vehicle, which means the title must be in your name and the vehicle can’t already be pledged to another lender.5OneMain Financial. Our Lending Process
OneMain’s broader collateral guidance also mentions that a savings account or other valuable personal property may be used.6OneMain Financial. What Is Collateral Whether a specific asset qualifies varies by branch and by state, so ask before you assume.
Vehicle Requirements If You Pledge One
When you offer a vehicle, you’ll need to provide the vehicle identification number, the certificate of title showing you as the owner, and the current odometer reading. OneMain uses third-party valuation tools to estimate the vehicle’s market worth from its age, mileage, and condition.
You’ll also have to carry full comprehensive and collision insurance on the vehicle for the entire life of the loan. The deductible can be no more than $1,000, and only personal policies are accepted; business insurance doesn’t qualify.7OneMain Merchant Services. Dealer and Customer Stipulations Letting coverage lapse can put you in default even if your payments are current.
The Trade-Off of Pledging Collateral
Because a secured loan lets the lender recover some of its losses by repossessing and selling the asset, it may allow you to borrow more or receive more favorable terms than an unsecured option would.8OneMain Financial. Secured vs Unsecured Loan – Whats the Difference Fixed APRs at OneMain run from 18.00% to 35.99%, and your specific rate depends on your credit, income, loan size, and whether you pledge collateral.1OneMain Financial. Personal Loans – Apply Online
The downside is the risk to your property. Miss payments and OneMain may send a notice giving you a window to catch up before repossession begins. If you default for another reason, such as an insurance lapse, that notice may not be required. The lender can repossess your vehicle with or without a court order, depending on state law.9OneMain Financial. Consumer Loans – Your Rights and Responsibilities
Repossession doesn’t necessarily erase the debt. If the vehicle sells for less than you owe, you can still be responsible for the deficiency, and in most states the lender can sue for a deficiency judgment as long as it followed proper procedures.10Consumer Advice – FTC. Vehicle Repossession Missed payments also get reported to Equifax, Experian, and TransUnion.11OneMain Financial. What Does it Mean to Default on a Loan
Applying with a Co-Signer Instead
If your credit, income, or borrowing history makes it hard to qualify on your own, adding a co-signer is another path. A co-signer shares legal responsibility for the loan, which can improve your chances of approval or help you qualify without pledging collateral.12OneMain Financial. Cosigning on a Loan – Heres What to Expect Missed payments hit both credit reports, so the arrangement carries real consequences for the person helping you.
One boundary worth knowing before you plan around any of this: OneMain doesn’t lend in Alaska, Arkansas, Connecticut, the District of Columbia, Massachusetts, Rhode Island, Vermont, or U.S. territories.5OneMain Financial. Our Lending Process