A loan from OneMain Financial will temporarily hurt your credit score because the company will perform a hard pull of your credit history when you officially apply, which will cause a drop in your score by about 5 to 10 points. In the long run, your credit score can also drop if you don't make on-time payments.
You can avoid damaging your credit score for no reason by pre-qualifying first. OneMain Financial only uses a soft pull of your credit, which does not affect your score, to pre-qualify potential applicants, and your odds of approval are very high if you get pre-qualified.
The negative impact on your credit from applying for and opening a new loan does not have to last long, either. A loan from OneMain Financial will help your credit score in the long run if you pay the monthly bills on time, as doing so adds positive information to your credit reports. This should offset any initial decrease in your credit score after you take out the loan.
To predict how your credit score will be affected, check out the free credit score simulator on WalletHub.
This answer was last updated on 04/18/24 and it was first published on 01/06/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
