OneMain Financial does not always require collateral. The lender offers both unsecured personal loans, which rely only on your promise to repay, and secured loans, which are backed by an asset you own such as a car. Whether OneMain Financial requires collateral in your case depends on your credit profile, income, debt load, and how much you want to borrow.1OneMain Financial. Secured vs Unsecured Loan – Whats the Difference
When You Can Borrow Without Collateral
Unsecured loans from OneMain don’t tie any of your property to the debt. If you stop paying, the lender can pursue collection, but it can’t seize a specific asset. Because the lender carries more risk, unsecured loans generally come with lower borrowing limits than secured ones.
OneMain works with a wide range of credit scores and doesn’t publish a fixed minimum.2OneMain Financial. What Credit Score Do You Need for a Personal Loan Applicants with stronger credit and a manageable debt load have the best shot at qualifying for an unsecured loan. OneMain’s guidance suggests keeping your debt-to-income ratio below 36%, though the company does not publicly disclose a hard cutoff.3OneMain Financial. What Are the Requirements to Get a Personal Loan If you only need a smaller amount and your credit profile is solid, you may qualify without pledging anything.
When OneMain Will Ask for Collateral
Two situations push you toward a secured loan. The first is the loan size. OneMain states that larger loan amounts require a first lien on a motor vehicle that is no more than ten years old and meets the company’s value requirements.4OneMain Financial. How Much Money Do You Need Personal loans range from $1,500 to $20,000 overall, with fixed APRs between 18.00% and 35.99% and repayment terms of 24 to 60 months.5OneMain Financial. Personal Loans – Apply Online State caps can lower the maximum further; in Maine, for example, the ceiling is $7,000.
The second is your credit and income profile. Applicants with lower scores or thin credit history are more likely to be offered a secured loan than an unsecured one. Pledging collateral can also open the door to a larger loan amount or better terms than you’d get on an unsecured basis, because the lender can recover some of its losses if you default.1OneMain Financial. Secured vs Unsecured Loan – Whats the Difference
What OneMain Accepts as Collateral
The most common form of collateral is a titled motor vehicle. OneMain accepts cars, trucks, and motorcycles, and may also consider boats, RVs, and trailers.6OneMain Financial. Our Lending Process The lender requires a first lien, so the title must be in your name and the vehicle can’t already be pledged to another creditor.
OneMain’s general guidance also mentions that a savings account or other valuable personal property may be used to secure a loan.7OneMain Financial. What Is Collateral What’s accepted varies by branch and by state, so confirm directly with OneMain if you want to pledge something other than a vehicle.
When you offer a vehicle, you’ll need to provide the VIN, the certificate of title, and the current odometer reading. OneMain uses third-party valuation tools to estimate market worth based on age, mileage, and condition.
Insurance Rules That Come With a Secured Loan
If you pledge a vehicle, you must carry full comprehensive and collision insurance on it for the entire life of the loan. OneMain requires the deductible to be no more than $1,000, and only personal policies qualify—business insurance does not.8OneMain Merchant Services. Dealer and Customer Stipulations Letting your coverage lapse can put you in default even when your payments are current.
What’s at Stake If You Default
Missing payments on a secured loan puts your collateral at risk. OneMain reports late payments to Equifax, Experian, and TransUnion, which can lower your score and make future borrowing harder.9OneMain Financial. What Does it Mean to Default on a Loan
If you fall behind, OneMain may send a notice giving you a window to catch up before repossession begins. If the default is for a reason other than missed payments, such as lapsed insurance, that notice may not be required. Depending on state law, the lender can repossess the vehicle with or without a court order.10OneMain Financial. Consumer Loans – Your Rights and Responsibilities
Losing the vehicle doesn’t necessarily wipe out the debt. If the lender sells it for less than you owe, you may still be on the hook for the deficiency, and in most states the lender can sue for a deficiency judgment as long as it followed proper repossession and sale procedures.11Consumer Advice – FTC. Vehicle Repossession
Applying With a Co-Signer Instead
If your credit or income makes it hard to qualify on your own and you’d rather not pledge property, OneMain lets you apply with a co-signer. A co-signer shares legal responsibility for repaying the loan, which can improve your chances of approval or help you qualify without collateral.12OneMain Financial. Cosigning on a Loan – Heres What to Expect Missed payments hurt both people’s credit, so the arrangement carries real consequences for the co-signer as well.
Where OneMain Lends
OneMain is not available everywhere. The company does not lend in Alaska, Arkansas, Connecticut, the District of Columbia, Massachusetts, Rhode Island, Vermont, or U.S. territories.6OneMain Financial. Our Lending Process If you’re in one of those places, the collateral question won’t come up because you’ll need to look at a different lender.