Both Personify and OneMain Financial work with borrowers who may not qualify for other personal loans. Despite high rates and multiple fees, these are two of the best lenders on the market for people with bad credit.
However, Personify has an APR that reaches into the triple digits – and OneMain Financial has high origination fees. Carefully consider the potential costs of a personal loan from both lenders before making a final decision.
Personify vs. OneMain Financial at a glance
Personify and OneMain Financial offer similar products for borrowers with bad credit, but OneMain Financial has more competitive rates.
| Personalize | OneMain Financial | |
|---|---|---|
| Bank rate score | 4.1 | 4.4 |
| Better for | Small loan amounts | Lower rates |
| Loan amounts | $500 – $15,000 | $1,500 – $20,000 |
| APRs | 19.00%-179.50% | 18.00%-35.99% |
| Length of the loan | 12-48 months | 24-60 months |
| Cost |
|
|
| Minimum credit score | Not specified | Not specified |
| Time for financing | As soon as the next working day | As soon as the same day |
Personalize personal loans
Plus points
- Low starting amount.
- Completely online process.
- Prequalification available.
Cons
- Exceptionally high APR.
- Limited state availability.
- Origination fees up to 5%.
Personal loans from Personify are open to borrowers with bad credit. However, the high maximum APR makes it a better choice if you have fair credit, as a fair credit score will help you qualify for rates on the lower end of the spectrum. And while higher than many personal loans out there, a 19 percent APR is significantly cheaper than an APR of almost 200 percent.
However, it’s not just about rates. With Personify you can only borrow $500. Most lenders have a minimum loan of $1,000 – and OneMain Financial requires you to borrow at least $1,500 to qualify.
OneMain Financial Personal Loans
Plus points
- APR is up to 35.99%.
- Fast financing.
- Personal branches.
Cons
- High starting rate.
- Limited state availability.
- Origination fees up to 10%.
OneMain Financial, a bad lender that offers personalized service. It also has significantly lower rates than Personify, making it a good choice if you have bad credit and want to avoid a high APR on your loan. If you have good to excellent credit, you may want to compare rates from other lenders as they have a high starting APR.
It also offers secured loans, which require you to provide collateral. This may help you qualify for lower rates, but if you default, you will lose your property or other assets.
However, OneMain Financial may also charge an origination fee of up to 10 percent. Personify has an origination fee of up to five percent, so you’ll have to deal with it no matter which lender you choose. However, you will have to pay more with OneMain, especially if you have a 10 percent origination fee for one of the smaller loans.
How to choose between Personify and OneMain Financial
Ideally, you should apply to both Personify and OneMain Financial. Because each lender gives you the opportunity to pre-qualify for a loan, you can compare rates without affecting your credit score.
Then calculate the costs of your loan. Because Personify has lower origination fees than OneMain Financial, you may be able to borrow more from Personify even if both lenders offer the same amount. However, a higher APR has a significant impact on how much you spend on interest, which can make one choice much more affordable than another.
Personify has smaller personal loans
Personify has relaxed eligibility requirements, making it easy for borrowers to qualify. There are also no prepayment penalties, so you may be able to save on interest if you can pay off your loan ahead of schedule.
It differs from OneMain Financial by the smaller loan amounts. Most lenders require you to borrow at least €1,000, but Personify’s starting amount is just €500. This makes it a good choice if you need quick financing for a small expense.
OneMain Financial has lower overall rates
OneMain Financial has similar eligibility requirements. However, it has much lower rates, with a maximum of 35.99 percent. And while OneMain will require you to borrow more, you won’t be charged a prepayment penalty either. You can pay back any amount you need before interest starts to accrue to minimize costs.
However, OneMain Financial has a higher potential origination fee. Its availability is also limited to residents of certain states, just like Personify loans are.
Compare lenders before applying
If you need a quick loan, both Personify and OneMain Financial may be able to finance you. Despite high rates and multiple fees, they are two of the few personal loan providers that are less predatory than lenders offering personal loans or similar products.
But if you can, it might be better to wait to borrow until you improve your credit score. This gives you access to lenders that offer better rates than Personify or OneMain Financial. You can also compare other bad credit loans to see if you can qualify for lower rates elsewhere.
