Are you looking for a personal loan but have less-than-perfect credit? If so, you may have come across OppLoans in your research.
OppLoans is an online lending platform that provides instalment loans of up to $4,000 to middle-income consumers with poor or no credit history. With quick decision-making, easy applications, and no hidden fees, OppLoans aims to provide a borrower-friendly loan experience.
However, while OppLoans offers loans to those with bad credit, its rates are quite high compared to alternatives. This article on OppLoans will cover what you need to know, including:
- What is OppLoans and how does it work?
- OppLoans loan options, terms, fees, and eligibility
- The application and funding process
- Pros and cons of borrowing from OppLoans
- OppLoans reviews, reputation, and trustworthiness
- Alternatives to consider for bad credit loans
What is OppLoans?
OppLoans, operated by Opportunity Financial LLC, is an online lender that offers instalment loans of $500 to $4,000 for borrowers with poor credit or thin credit histories.
Unlike payday loans that require a lump sum payment by your next paycheck, OppLoans are repaid in multiple instalments over 6 to 24 months. This can make the debt easier to manage.
OppLoans focuses on providing a high approval rate for middle-income customers who may not qualify with traditional lenders. They tout no origination fees, no prepayment penalties, and no late fees as borrower-friendly advantages.
The company promises a quick and easy application process with funds deposited as soon as the next business day after approval. But how good of a deal are OppLoans for bad credit borrowers? Let’s dig into the details.
OppLoans Requirements: Do You Qualify?
To qualify for an OppLoans personal instalment loan, you must:
- Be a citizen or permanent resident
- Be at least 18 years old
- Have a regular source of income of at least $800 per month
- Have a checking account (required for loan disbursement and payments)
- Have access to a working phone number and email
Importantly, OppLoans is available in 28 states. If you live in California, Iowa, North Dakota, or West Virginia, you cannot currently get an OppLoans loan.
In terms of credit requirements, OppLoans does not have a minimum credit score threshold. They state that they may approve borrowers with credit scores “as low as 350.”
This makes them more accessible for those with very poor credit or no FICO credit scores due to limited credit history. Proof of income and ongoing employment is strongly considered.
OppLoans Loan Amounts, Terms, and Costs
OppLoans offers instalment loans between $500 and $4,000. The loan amounts offered may vary by state based on local laws.
Loan terms range from 6 months (for smaller loans) up to 24 months (for larger loans). Having a longer repayment term makes the monthly payments lower, but increases the total interest paid.
The APR on OppLoans is 99% to 199%.
This is quite high compared to other lenders specializing in bad credit loans. For comparison, personal loans for bad credit often range from 25% to 40% APR when you can qualify.
While OppLoans has no origination fee or prepayment penalties, the extremely high-interest rates are where they make their profit. Let’s break down an example $2,000 loan:
- Loan amount: $2,000
- Term: 24 months
- APR: 99%
- Monthly payment: $172
- Total interest paid: $1,416
As you can see, the interest nearly equals the original principal. You’ll end up paying back a total of $3,416 for that $2,000 loan when making minimum payments.
OppLoans states that an APR of 199% translates to about 37% interest plus fees. Still, given the high rates, you want to pay off an OppLoans loan as fast as your budget allows.
How to Apply for OppLoans Personal Loans
The application process for OppLoans is quick and can be completed entirely online. Here are the steps:
- Go to the OppLoans website and select your desired loan amount and term. Use the slider to choose a loan from $500 to $4,000.
- Provide personal information including your name, birth date, Social Security Number, contact information, and income source.
- Connect your checking account electronically so OppLoans can review your income deposits and withdraw payments.
- Review and electronically sign the loan documents. This includes disclosures about rates and terms.
OppLoans states that approval decisions are made in minutes and that funds can be deposited as soon as the next business day after loan approval.
For additional verification, OppLoans may ask for supporting documents like a pay stub, utility bill, or government ID during the application process.
Once approved, the loan funds will be deposited directly into your checking account using ACH transfers. OppLoans then withdraws scheduled payments from this same account. Payments are due every 2 weeks.
The Pros and Cons of OppLoans
To determine if OppLoans is the right choice for you, weighing the pros and cons is crucial:
Pros
- Fast approvals and next-day funding available
- Installment loans are easier to budget than payday loans
- Loans available for applicants with bad credit or no credit history
- No origination fees or prepayment penalties
- All payments are reported to credit bureaus, helping you build credit
Cons
- Interest rates extremely high at 99% to 199% APR
- The maximum loan amount is only $4,000
- Late fees are $15, so payments must be on time
- Limited loan terms of 6 to 24 months
- Not available in IA, CA, ND, WV
For borrowers with poor credit who need funds quickly, the high approval odds and fast access to cash are big advantages. However, the sky-high interest rates make OppLoans an extremely expensive financing option long-term.
OppLoans Alternatives to Consider
While OppLoans accepts applicants with bad credit, the ultra-high interest rates make it an expensive way to borrow unless you have no other options. Here are a few alternatives to consider first:
- Credit builder loans from companies like Self and Credit Strong charge lower rates while helping you establish a credit history.
- Peer-to-peer lending sites like Upstart may offer reasonable rates for bad credit borrowers who meet their income and employment requirements.
- Payday alternative loans (PALs) from credit unions provide small loans at 28% APR or less. However, availability is region-specific.
- Secured personal loans use collateral like a car or savings account to guarantee approval for bad credit applicants at lower rates.
- Co-signer loans let a creditworthy cosigner assist you in qualifying for improved loan terms.
Conclusion
OppLoans provides an option for instalment loans up to $4,000 even with very poor credit. The quick approvals and funding can be a lifeline when you have an urgent financial need but few borrowing alternatives.
However, you’ll pay a very high price for the convenience. With APRs of 99% to 199%, interest rates are exponentially higher than most bad credit lenders. Payments only cover interest at first before chipping away at the principal.
We only recommend OppLoans if you cannot qualify for any other instalment loans and need immediate access to cash. The high rates make this a short-term or bridge financing option only. Make payments on time and pay off loan as fast as you can, then explore other bad credit lending options with lower rates.
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