What the OneMain Financial Credit Card Is

OneMain Financial offers a secured credit card designed for people building or rebuilding credit. You deposit cash as collateral, and that deposit becomes your credit limit. The card reports to all three credit bureaus, so on-time payments help your credit score grow. OneMain is a lending company, not a bank, and they handle the card directly rather than through a partner.

The card itself has an annual fee and a higher interest rate than cards for people with established credit. There is no rewards program. The main purpose is to demonstrate you can borrow and repay responsibly, which can open doors to better cards and loan terms later.

OneMain also offers personal loans and auto loans, but the credit card is separate. You do not need an existing loan with them to get the card, and getting the card does not require you to take out a loan.

Key Takeaways

  • OneMain's secured card requires a cash deposit that becomes your credit limit, ranging from $500 to $10,000 depending on what you deposit.
  • The card charges an annual fee and a higher interest rate, so carrying a balance costs more than it would on a standard credit card.
  • Your payment history reports to all three credit bureaus, meaning on-time payments build your credit score over time.
  • After 12 to 18 months of on-time payments, you may be able to convert the card to an unsecured card and get your deposit back.

How the Deposit and Credit Limit Work

When you open the account, you choose how much to deposit. OneMain requires a minimum deposit of $500 and allows up to $10,000. Your deposit sits in a savings account that OneMain holds, and your credit limit equals that deposit amount. If you deposit $1,500, your limit is $1,500.

The deposit earns no interest. You cannot withdraw it while the account is open—it stays locked as collateral for the entire time you hold the card. If you close the account or convert it to an unsecured card, OneMain returns the deposit to you.

Your deposit is separate from your monthly payment. If you charge $500 and make a $200 payment, you still owe $300 on the card, and your $500 deposit remains untouched in OneMain's account.

Fees and Interest Rates

OneMain charges an annual fee for the card. The exact amount varies, but it is typically in the $39 to $99 range. This fee appears on your statement once per year and counts toward your balance if you do not pay it separately.

The interest rate (APR) is higher than standard credit cards—often 24% to 35% depending on your credit profile and the current market. If you carry a balance, interest accrues daily and adds to what you owe. Paying your full statement balance each month avoids interest charges entirely.

Late payments trigger a late fee, usually $25 to $35 per occurrence. Missing a payment also damages your credit score and may trigger a call from OneMain's collections team.

How to Open an Account

You can start the process online at OneMain Financial's website or visit a branch in person. Online, you will enter your personal information, Social Security number, and income details. OneMain performs a soft credit inquiry (which does not affect your score) and a hard inquiry (which does). The hard inquiry appears on your credit report.

You will need to verify your identity and income. Acceptable income documents include recent pay stubs, tax returns, or bank statements showing regular deposits. OneMain may ask for a copy of your driver's license or state ID.

Once approved, you choose your deposit amount and fund it. You can transfer money from a bank account or mail a check. OneMain typically funds the account within one to three business days. After funding, you receive your card in the mail, usually within 7 to 10 business days.

Building Credit and Converting to Unsecured

Every payment you make on the OneMain card reports to Equifax, Experian, and TransUnion. On-time payments build your payment history, which is the largest factor in your credit score. Keeping your balance low relative to your limit (under 30% of your credit limit) also helps your score.

After 12 to 18 months of on-time payments, OneMain may offer to convert your card to an unsecured card. This means your deposit is no longer required as collateral. OneMain returns your deposit to your bank account, and your credit limit may increase. You keep the same card and account number.

Conversion is not automatic—OneMain reviews your account and decides whether to offer it. Consistent on-time payments and low balances make conversion more likely. If OneMain does not offer conversion, you can request it after 18 months of perfect payment history.

Comparing OneMain to Other Secured Cards

Other secured card options include Capital One Secured Mastercard, Discover Secured Card, and cards from regional banks. Capital One has no annual fee but charges interest on late fees. Discover Secured Card also has no annual fee and offers 1% cash back on all purchases. Both report to all three bureaus like OneMain does.

OneMain's main difference is the annual fee and higher interest rate. You pay more to hold the card and more if you carry a balance. The advantage is that OneMain may be more willing to approve applicants with lower credit scores or recent negative marks, since they are a lending company accustomed to higher-risk borrowers.

If you have any credit history at all, comparing OneMain's terms to Capital One or Discover is worth your time. If your credit is very poor or you have recent collections or bankruptcy, OneMain may be easier to get approved for.

What Happens If You Miss a Payment

If your payment is late by 30 days, OneMain reports it to the credit bureaus. This damages your credit score and stays on your report for seven years. A late payment also triggers a late fee on top of the interest you already owe.

If you miss a payment by 60 days or more, OneMain may freeze your account and stop letting you use the card. You still owe the full balance, and the account remains in default until you pay it off or settle with OneMain.

If your account goes to collections, OneMain may sue you to recover the debt. A judgment against you can lead to wage garnishment or bank account levies, depending on your state's laws. If you fall behind, contact OneMain when ready to discuss a payment plan or hardship options.

Closing Your Account and Getting Your Deposit Back

You can close the account at any time by paying off your balance and requesting closure. OneMain returns your deposit within 5 to 10 business days after the account closes. The deposit goes back to the bank account you used to fund it originally.

Closing the account does not hurt your credit score, but it does remove an active account from your credit report. If you are still building credit, keeping the account open (even if you do not use it) helps your score by maintaining a longer credit history and a lower overall credit utilization ratio.

If you convert to an unsecured card, you do not need to close anything—OneMain straightforward releases your deposit and changes the card type. You keep using the same card and account.

Frequently Asked Questions

Can I use the OneMain card right away after opening the account?

No. You must fund your deposit first, and OneMain must process it. This usually takes one to three business days. After that, you receive your physical card in the mail, which takes another 7 to 10 business days. Some OneMain branches offer when ready card numbers you can use online while waiting for the physical card.

What if I want to increase my credit limit?

You can increase your limit by depositing more money into your collateral account. Contact OneMain and request a deposit increase. Your new limit will equal your total deposit. You cannot increase your limit without adding more collateral.

Does OneMain do a hard credit inquiry?

Yes. OneMain performs both a soft inquiry (which does not affect your score) and a hard inquiry (which does). The hard inquiry appears on your credit report and may lower your score by a few points temporarily. The impact fades after a few months.

Can I get the card if I have no credit history?

Yes. OneMain does not require existing credit history. They review your income, employment, and identity. Having no credit history is not a barrier, though OneMain may ask more questions about your income sources or request additional documentation.

What happens to my deposit if I declare bankruptcy?

Your deposit is collateral for the card debt, so it may be used to pay down your balance as part of bankruptcy proceedings. The exact outcome depends on your bankruptcy chapter and your state's laws. Discuss this with your bankruptcy attorney before filing.