Key takeaways
- Personify and OneMain Financial are top lenders for borrowers with bad credit, but both have high rates and fees.
- OneMain Financial has more competitive rates and faster funding times, which is handy for emergency expenses.
- Personify has a lower minimum loan amount, making it a good option for a small expense.
Personify and OneMain Financial offer personal loans for bad credit with small loan amounts and a wide range of terms. Each sets similar minimum personal loan rates starting in the double digits, but Personify’s maximum rate hits the triple digits, making it a very pricey choice.
On the positive side, Personify’s origination fees are half of the maximum origination fee charged by OneMain Financial, and the minimum loan amount is smaller if you just need a quick emergency loan. Comparing the pros and cons of each lender’s loans will help you decide which is a better fit for you.
Personify vs. OneMain Financial at a glance
Personify and OneMain Financial offer similar products for borrowers with bad credit. OneMain Financial has more competitive rates but Personify charges lower fees.
| Personify | OneMain Financial | |
|---|---|---|
| Bankrate score | 3.5 | 4.3 |
| Better for | Small borrowing amounts | Lower rates |
| Loan amounts | $500–$15,000 | $1,500–$20,000 |
| APRs | 36.00%-179.50% | 18.00%-35.99% |
| Loan term lengths | 12–48 months | 24–60 months |
| Fees | Origination fee of 5% | Origination fee up to 10% |
| Minimum credit score | Not Specified | Not specified |
| Time to funding | As soon as the next business day | As soon as the same day |
Bankrate’s view
Personify is one of few lenders that offers a minimum amount of $500, which makes it a good choice for an unexpected expense like a car repair or emergency root canal that you want to pay off quickly. However, try to pay the balance as quickly as possible to avoid paying an APR of up to nearly 180 percent.
Pros
- Low minimum amount.
- Shorter terms than most lenders.
- Prequalification available.
Cons
- Triple-digit maximum APRs.
- Only available in 25 states.
- No stated eligibility criteria.
Bankrate’s view
OneMain Financial stands out for its same-day funding, giving you potential access to funds the day you apply. It may also be a good option if you want to avoid triple-digit rates and need to borrow up to $20,000. The major downside is that many of its personal loans are secured — and you will pay an origination fee up to 10 percent.
Pros
- APR cap of 35.99%.
- Longer repayment terms.
- Same-day funding available.
Cons
- Higher minimum loan amount.
- Limited state availability.
- Origination fee up to 10%.
How to choose between Personify and OneMain Financial
Both lenders offer competitive options for borrowers with no or limited credit. Choosing one over the other depends on how much you need to borrow and how urgently you need the money. It’s best to be prequalified with each lender and then calculate the cost of your loan based on the offers.
APR range
OneMain Financial’s minimum APR is slightly higher than other lenders, but that’s not surprising, considering it caters to the needs of borrowers with bad credit. Personify’s minimum APR is a tad higher than OneMain’s but balloons well into triple digits for its maximum rate. If you are able to, check your rates with both to see which has the better offer for you.
Minimum credit score
Neither lender discloses its minimum credit score requirement. Given the high maximum rates at Personify, it may be willing to work with applicants who have low credit scores . You may also not be eligible for higher loan amounts or longer terms if your score is very low.
Repayment terms
Personify is the clear choice if you want to pay your loan quickly — although there are no prepayment penalties, so you can repay your loan as quickly as you are able. Just make sure you can afford the payment, especially considering Personify rates could spike to over 100 percent. OneMain Financial is better if you want to spread your payments out to 60 months, which may help you have a more affordable monthly payment.
Loan amount
If you need a small loan, Personify offers loans as low as $500, while OneMain’s minimum loan amount is $1,500. But if you are seeking a larger loan, OneMain Financial will lend up to $20,000 — if you qualify — compared to Personify’s maximum of just $15,000.
Fees
Personify’s origination fee is only 5 percent, half of the 10 percent you could pay for a personal loan from OneMain Financial. You may also be charged a late fee or non-sufficient funds (NSF) fee if you are late on or miss a payment.
The bottom line: Which is better?
Personify is your best bet if you need to borrow less than $1,500 and prefer a short repayment term. Lower fees help offset the potentially higher rates, making it a go-to lender for emergencies that require a quick cash solution. One caveat: If you only qualify for the highest rates, make every effort to pay the balance early so you don’t get stuck paying sky-high interest charges over the life of the loan.
OneMain beats Personify when it comes to funding speed and lets you spread the balance over a longer time period than Personify. You can also borrow more funds and add a co-borrower’s income to help you qualify. You’ll also pay a much lower maximum APR, even if you have bad credit, which, combined with OneMain’s contract term options, could result in a much lower monthly payment.
Compare more lenders before applying
The best way to find the lender that best meets your specific needs is to shop around and compare multiple lenders. Here are a few other top personal loan lenders for borrowers with bad credit:
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