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OppLoans, part of OppFi, is an online lending platform focused on serving middle-income consumers who might have limited access to traditional credit due to their credit history. Their goal is to offer a safer, simpler, and potentially more affordable way for these individuals to access credit and improve their financial well-being. OppLoans has received an A+ rating from the Better Business Bureau and positive ratings on platforms like Trustpilot and LendingTree for their customer service.
When you're considering a personal loan, especially with less-than-perfect credit, reading reviews is essential. These reviews provide insights from other borrowers about customer service, loan term transparency, and potential issues. Understanding these experiences can help you make a well-informed financial decision. This guide offers a detailed review of OppLoans to help individuals considering their services.
OppLoans primarily offers online personal installment loans for individuals who may not qualify for traditional bank loans. These loans typically range from $500 to $4,000. A key feature is their high interest rates, with APRs generally between 160.00% and 195.00%. Many financial experts consider APRs above 36% to be unaffordable. However, some sources suggest these rates might be lower than those of comparable payday loans.
Repayment terms for OppLoans are usually short, ranging from 9 to 18 months. This is often shorter than the 24 to 60-month terms offered by other personal loan lenders. To be eligible for an OppLoans loan, you generally need to be at least 18 years old, have a bank account (checking or savings), live in a state where OppLoans operates, have a regular income source (including employment or benefits like Social Security or Disability), and receive income via direct deposit. While OppLoans doesn't have a minimum FICO credit score requirement, they do consider other factors like alternative credit bureau data and bank information. Notably, OppLoans typically doesn't charge an origination fee or prepayment penalties.
The combination of high APRs and short repayment terms means that while OppLoans can provide quick funds for those with limited credit options, the overall cost can be significant. Focusing on factors beyond traditional credit scores allows OppLoans to serve a broader range of borrowers. However, this accessibility comes at a high financial cost due to the elevated interest rates. Potential borrowers should carefully consider the benefits of fast funding against the high cost of borrowing over the short loan term.
Customer reviews for OppLoans show a mix of positive and negative experiences. Many customers appreciate the speed and efficiency of the loan process, often mentioning quick approval and funding, sometimes on the same day. The easy online application and straightforward requirements are also frequently praised. Some customers have reported positive interactions with customer service, finding representatives polite and helpful. Additionally, the fact that OppLoans reports payment history to all three major credit bureaus is seen as a big plus for those looking to build credit. For individuals with poor credit who have limited lending options, OppLoans can be a helpful resource in financial emergencies.
However, a significant number of reviews express concerns, mainly about the very high interest rates. Some reviewers felt surprised by the actual rates offered, suggesting this information wasn't as clear as they expected. The short repayment terms are another common concern, as they can lead to high monthly payments and potential financial difficulty. Some negative reviews mention issues with customer service, such as slow responses or difficulty resolving problems. Complaints filed with the Better Business Bureau include issues with billing, order problems, service and repair concerns, customer service, and product issues. Some customers were also unhappy with refinancing options, noting they didn't lead to lower interest rates. A few reviewers shared experiences of feeling trapped by the loan terms or facing a lack of flexibility during repayment challenges.
The Better Business Bureau (BBB) gives OppLoans an A+ rating. However, the average customer review rating on the BBB website is 3.89 out of 5 stars based on 229 reviews. Other sources show a 4.9/5 star rating with over 14,000 online customer reviews and a 4.6/5.0 star rating on Trustpilot with more than 3,600 reviews. This difference between the positive ratings and the specific complaints about high interest suggests that while many customers are satisfied, the cost of borrowing is a major concern.
Here's a summary of the advantages and disadvantages of considering an OppLoans personal loan:
Pros:
Cons:
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When considering OppLoans, it's important to compare it with other lending options. While OppLoans is often presented as a better alternative to payday loans due to longer repayment periods, its interest rates are still very high compared to most other forms of credit.
Several other online lenders cater to borrowers with less-than-perfect credit. NetCredit, for example, may offer larger loan amounts and a lower APR range, but might have origination fees in some states. OneMain Financial also works with various credit profiles and may offer larger loans with potentially lower APRs, though fees may apply. Upstart considers factors beyond credit scores and may offer loans with significantly lower APRs for qualified borrowers. RISE is another option for bad credit, but its APRs can be even higher than OppLoans.
For individuals with better credit, traditional personal loans from banks or credit unions usually offer much lower interest rates and more favorable terms. Exploring these options should be a priority if you qualify. Other alternatives include credit cards (especially those for building credit), cash advance apps like Earnin and Dave, which might offer short-term funds at lower costs, and borrowing from friends or family.
The decision to choose OppLoans should only be made after carefully evaluating all available alternatives and understanding the complete cost of borrowing. While OppLoans offers easy access and fast funding, the high interest rates come at a significant price. Potential borrowers should ensure they have explored all other options before committing to such a high-cost loan.
OppLoans has faced legal and regulatory scrutiny, common for lenders in the non-prime lending market. In April 2021, the District of Columbia Attorney General filed a lawsuit against Opportunity Financial, alleging predatory lending practices with interest rates as high as 198%, exceeding the District's legal limit. The lawsuit claimed OppFi misrepresented its high-interest loans and falsely claimed they would help build credit. In a November 2021 settlement, OppFi agreed to pay over $2 million in refunds and penalties to District consumers and to stop charging rates above 24% APR in the District.
California's Department of Financial Protection and Innovation (DFPI) has also taken legal action against OppFi, alleging a "rent-a-bank" scheme to bypass the state's 36% interest rate cap. This model involves partnering with a bank in a state with more lenient interest rate laws to issue loans that would be illegal in the borrower's state. The DFPI argued that OppFi, not its Utah-based partner bank FinWise, was the "true lender". OppFi has contested these claims.
Additionally, the Consumer Financial Protection Bureau (CFPB) has investigated OppFi regarding compliance with the Military Lending Act, which protects active-duty service members and their families with interest rate caps on certain loans.
These legal and regulatory challenges highlight the concerns surrounding OppLoans' high-interest lending model and the potential risks for borrowers, especially those who are financially vulnerable. Potential borrowers should be aware of this history when considering OppLoans' services. The outcomes of ongoing legal battles and regulatory scrutiny could impact OppLoans' interest rates or loan terms in the future.
OppLoans offers a credit option for individuals who might have limited access to traditional loans due to their credit history. They provide a fast online application, potential for quick funding, and the benefit of reporting payments to credit bureaus. These can be attractive features for those needing funds urgently or wanting to improve their credit.
However, it's crucial to carefully consider the significant drawbacks, particularly the very high APRs ranging from 160% to 195%. These rates can lead to a substantial total cost of borrowing, especially with the short repayment terms of 9 to 18 months. The combination of high APRs and short terms can result in monthly payments that may be difficult to manage.
Before taking out an OppLoans loan, it's strongly recommended to explore all other financial options. Compare terms and interest rates from other lenders, consider options like credit cards or cash advance apps, and explore borrowing from friends or family. If more affordable options are available, they should be prioritized. OppLoans might be considered as a last resort when other avenues have been exhausted. By carefully weighing the pros and cons and understanding the full financial implications, potential borrowers can make an informed decision that aligns with their financial well-being.
You generally need to be 18 or older, have a regular income source, an active bank account, and reside in a state where OppLoans operates. OppLoans also looks at factors beyond just your credit score.
If approved, OppLoans aims to deposit funds as soon as the next business day, though the exact timing depends on your bank.
OppLoans uses alternative credit data, so the initial application process typically involves a soft credit inquiry, which does not negatively impact your FICO score. OppLoans does report payment history to the major credit bureaus, this will effect your credit score positively when on time payments are made.
OppLoans offers installment loans ranging from $500 to $4,000, and repayment terms vary depending on your state and individual circumstances.
OppLoans' interest rates can be higher than traditional bank loans, reflecting the higher risk of lending to individuals with less-than-perfect credit; it is important to check the terms and conditions for your specific state.
OppLoans primarily uses ACH (Automated Clearing House) for electronic payments, allowing for both recurring and one-time payments. They also allow for payments via paper check, and debit card payments through their customer portal.
Yes, OppLoans reports your payment history to the major credit bureaus, which can help improve your credit score with consistent on-time payments.
OppLoans encourages borrowers to contact their customer service team if they anticipate payment difficulties, as they may offer hardship plans or other solutions.
OppLoans operates as a licensed online lender, and works with bank partners. It is always important to review loan terms and conditions before committing to any loan.
OppU is OppLoan's financial literacy platform, offering educational resources on topics like budgeting, saving, and credit management. This is a free resource to help consumers increase their finacial literacy.
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