No, OneMain Financial offers both secured and unsecured personal loans, so not every loan requires collateral.
When you see a lender that lends to people with fair or damaged credit, it is easy to assume every loan must be backed by a car or other asset. OneMain Financial does lean on secured loans, yet the picture is more mixed than many borrowers expect.
If you have wondered, are all onemain financial loans secured?, you are really asking two things. First, what mix of secured and unsecured offers OneMain actually provides. Second, how that mix affects your own cost, risk, and chances of approval.
Are All OneMain Financial Loans Secured?
In plain terms, no. OneMain states in its lending process overview that it offers both unsecured and secured personal loans, along with some auto loans, across most of the United States.
In practice, the offer you see depends on your credit profile, income, existing debts, and whether you own a vehicle that meets the lender’s collateral rules. Some borrowers will see only unsecured offers. Others will see a choice between secured and unsecured terms, often with different rates and amounts.
| Feature | Secured OneMain Loan | Unsecured OneMain Loan |
|---|---|---|
| Collateral Required | Yes, usually a vehicle with a clear title | No collateral required |
| Typical Borrower Profile | Lower credit scores or need for a larger amount | Stronger credit or smaller loan needs |
| Loan Purpose | Often tied to a vehicle or larger expense | Debt consolidation, repairs, medical bills, and more |
| Loan Amount Range | Can allow higher loan amounts when collateral value allows | Often capped lower than secured offers |
| Rates And Fees | May come with lower rates than an unsecured offer | May carry higher rates because the lender has more risk |
| Risk To You | Lender can repossess collateral if you stop paying | No collateral at risk, but missed payments still hurt credit |
| Approval Factors | Vehicle value and title status matter a lot | Credit history, income, and existing obligations weigh more |
| Availability | Offered only in states and situations that meet collateral rules | Offered across most of OneMain’s footprint |
This mix means the question are all onemain financial loans secured? has a clear answer. OneMain uses both models, and its own materials describe secured and unsecured personal loans side by side. For your budget, though, the more pressing step is to understand how each kind of loan works.
OneMain Financial Secured Loans Explained
A secured OneMain loan uses something you own as collateral, most often a car, truck, or motorcycle. OneMain’s lending process states that it requires a first lien on an eligible vehicle, along with proof of insurance and a valuation that fits its loan to value rules.
In plain terms, the lender wants a vehicle that is in your name, insured, and worth enough to cover the loan amount if the worst happens and you stop repaying.
Collateral And Vehicle Requirements
For a secured personal loan, the vehicle usually must be no more than a set number of years old. It also must have a clean title without another lender already listed. OneMain lists typical collateral as cars, trucks, and motorcycles, and in some cases may consider boats, RVs, or trailers.
The lender will review value data, your state’s title rules, and your insurance details. If everything lines up, the car or other asset backs the loan. If you default, the lender can repossess that asset to recover what you owe.
Why Some Borrowers Choose Secured Loans
Borrowers with lower credit scores or past payment problems may find approval easier on a secured loan. The collateral lowers risk for the lender, so a secured offer may come with a lower rate, a longer term, or a higher amount than an unsecured option would allow.
That does not make a secured OneMain loan a simple win. Placing a vehicle on the line raises the stakes. Losing a car can disrupt work, family duties, and daily life. Before you sign, walk through how you would handle the payment if your income dropped or other expenses rose.
How OneMain Financial Unsecured Loans Work
Unsecured OneMain loans do not tie the debt to a particular asset. Instead, the lender leans on your credit record, income, and debt to income ratio to gauge how likely you are to repay on time.
This kind of loan appeals to borrowers who either do not own suitable collateral or simply prefer not to risk it. You still sign a binding contract, though, and missed payments can lead to collection calls, late fees, and damage to your credit report.
What Lenders Look At For Unsecured Personal Loans
Across the personal loan market, unsecured offers usually go to people with stronger credit files. Review sites note that OneMain can reach borrowers with fair or poor scores, yet rates tend to be higher than for secured loans with the same lender.
To judge an unsecured application, a lender will check your credit reports, score, income, and current obligations. They want to see that you have enough steady cash flow to handle the new payment without stretching your budget too far.
Common Uses For Unsecured OneMain Loans
Unsecured personal loans work well for predictable, one time needs. People often use them for debt consolidation, medical bills, moving costs, home repairs, or large purchases such as appliances. Since no asset backs the loan, you keep more flexibility if you choose to sell a car or move house later on.
At the same time, an unsecured loan still carries real risk. A missed payment can trigger fees and calls from the lender. A series of missed payments can damage your credit record for years. Many advisers, including Consumer Financial Protection Bureau materials on secured and unsecured loans, stress borrowing only what you can repay on time.
Choosing Between Secured And Unsecured OneMain Loans
Once you know that not every OneMain Financial loan is secured, the real task is picking the structure that fits your situation. Both options can help with a cash shortfall, yet they trade cost, approval odds, and risk.
Questions To Ask Before You Apply
Start with your own numbers. How stable is your income. How much room do you have in your monthly budget for a new payment. Would you feel comfortable putting your car or other asset on the line to lower that payment.
Next, list your goals. Are you trying to shrink high interest credit card debt, cover a repair, or bridge a gap after a move. Different goals may call for different loan amounts and terms.
Finally, check what offers are on the table. OneMain lets you see potential loan terms before you accept anything. Take time to compare any secured and unsecured options side by side, including the rate, term length, and total cost over the life of the loan.
| Borrower Situation | Loan Type To Consider | Points To Check |
|---|---|---|
| Owns a newer car outright and needs a larger sum | Secured OneMain loan | Vehicle age, mileage, title status, and insurance |
| Has fair credit and wants a smaller consolidation loan | Unsecured OneMain loan | Total interest cost versus current card rates |
| Worried about losing a vehicle used for work | Unsecured loan if approval and terms are reasonable | Monthly payment comfort level without collateral |
| Credit file too thin for unsecured approval | Secured loan based on an eligible car | Risk of repossession if income drops |
| Needs to refinance an existing OneMain loan | Ask about secured and unsecured refi options | Whether the lender must pay off the old balance |
| Lives in a state with lower loan caps | Either type, subject to state law limits | Maximum allowed amount and any state fees |
| Plans to sell current vehicle soon | Unsecured loan or wait before pledging a new car | How a lien would affect sale or trade in |
Costs, Rates, And Fees To Watch
Every OneMain offer lists an annual percentage rate, or APR, along with fees and term length. Secured loans often sit near the lower end of the lender’s APR range, while unsecured loans may fall higher. The difference can add hundreds or even thousands of dollars over a multi year term.
Look beyond the monthly payment. A longer term lowers that payment but raises the total interest paid. A shorter term raises the payment but clears the debt faster. Try to pick the shortest term that still feels realistic for your budget.
Practical Steps Before You Apply With OneMain Financial
Before you send in an application, pull your credit reports from the major bureaus and scan them for errors. A cleaner report may help you qualify for better terms, whether you pick a secured or unsecured structure.
Next, set a firm borrowing limit based on what you can repay each month without stress. That number should shape your decisions more than the maximum you may qualify for.
Then review OneMain’s explanation of secured and unsecured loans and its lending process. The lender’s legal pages explain where it operates, what collateral it accepts, and how state rules shape loan amounts and fees.
By the time you reach this stage, that main question about OneMain and secured loans should feel settled. The lender uses both structures, and your own offer may lean one way or the other depending on your profile and goals.
When you see a mix of choices on screen, slow down and read each one with care. Check whether collateral is required, how the rate and term compare, and what happens if life throws you a curve ball. If anything in the offer is unclear, ask the lender to explain it in plain language.