On this page:
OppLoans has emerged as a significant player in the online lending landscape, particularly for individuals seeking installment loans with less-than-perfect credit. This review delves into the specifics of OppLoans' offerings, examining their loan terms, interest rates, eligibility requirements, and customer service to provide a comprehensive understanding of their services. If you're considering OppLoans as a potential financial solution, this will equip you with the information needed to make an informed decision about whether their loans align with your financial needs and circumstances.
OppLoans provides personal installment loans that differ from traditional bank loans, especially regarding cost and structure. Knowing these features is vital before applying.
Loan Amounts
OppLoans offers relatively small loan amounts, usually between $500 and $4,000. This might cover small emergencies like car repairs or medical bills. However, this maximum is lower than many other personal loan providers offer, making OppLoans unsuitable for larger financial needs.
Repayment Terms
Repayment terms are short, generally ranging from 9 to 18 months. This is much shorter than the typical 24 to 60 months (or more) offered by other personal loan lenders. Shorter terms mean higher minimum monthly payments compared to a loan spread over a longer period, which could strain a budget.
Annual Percentage Rate (APR)
The most critical factor is OppLoans' extremely high Annual Percentage Rate (APR). APR includes interest and certain fees, representing the total annual borrowing cost. OppLoans' APRs usually range from 160% to 195%. This rate is far above the 36% APR often cited by experts as the limit for affordable lending.
For example, based on Texas rates, a $2,000 loan at 160% APR repaid over 9 months would require 9 payments of $394.58, totaling about $3,551. OppLoans acknowledges this high cost on its website, calling its loans an "expensive form of credit".
Fees
A potential positive is that OppLoans typically doesn't charge origination fees or prepayment penalties. While this sounds good, the extremely high APR is the main cost driver, making the absence of these specific fees less significant. Borrowers should still review their agreement carefully, as late payment or NSF fees might apply depending on the state and terms.
Overall Cost Structure
The mix of small loan amounts, short terms, and very high APRs presents a challenge. While positioned as an alternative to payday loans , this structure can lead to unaffordable payments. This might cause missed payments, credit damage, or needing to re-borrow, similar to payday loan debt cycles.
OppLoans aims for a simple application process, appealing to those needing funds quickly and facing traditional lending barriers.
Application Process
The application is mainly done online via the OppLoans website (opploans.com). Applicants provide personal and employment details. The process often includes automated bank verification, where applicants securely link their bank account for a read-only snapshot to verify details quickly. Decisions are often made rapidly, sometimes in minutes.
Eligibility Criteria
To qualify for a loan via OppLoans, applicants generally need to meet these criteria :
Crucially, OppLoans does not have a minimum FICO credit score requirement. Eligibility considers various factors, including alternative credit data and bank information.
Credit Check
OppLoans or its partners usually perform a soft credit inquiry during the application. This often uses data from alternative agencies like Clarity Services and Experian. Importantly, this soft check does not affect the applicant's FICO score, a plus for those worried about damaging their credit.
Documentation
While aiming for minimal paperwork, applicants might sometimes need to provide proof of income (pay stubs, bank statements) or identity (ID, driver's license). This is more likely if income comes from sources like alimony or benefits.
Funding Speed
A major appeal is potentially fast funding. Approved borrowers might get funds in their bank account the same or next business day. This speed helps those with urgent financial needs.
Co-signers and Co-applicants
OppLoans does not allow co-signers or co-applicants. Each person must apply and qualify individually.
Accessibility vs. Cost
The lack of a minimum FICO score, a soft credit check, and fast funding make OppLoans accessible, especially for those excluded from mainstream credit. However, this accessibility comes with the high costs discussed earlier. The direct deposit and bank verification requirements streamline collections for the lender but risk overdraft fees or defaults for borrowers if funds are insufficient.
Online reviews for OppLoans show mixed feedback, reflecting the trade-offs of their loans. High average ratings exist alongside significant concerns.
Overall Sentiment
OppLoans has high ratings on several platforms, like an A+ from the Better Business Bureau (BBB) with around 4.27/5 stars from customers , 4.5/5 on Trustpilot , and 4.7/5 on Credit Karma. However, these scores coexist with many negative reviews, over 300 BBB complaints in three years , and legal challenges alleging predatory practices.
Common Positive Themes
Positive reviews often highlight:
Common Negative Themes
Negative reviews and complaints frequently mention:
Regulatory Context
The volume of BBB complaints and lawsuits from entities like the D.C. Attorney General and California's DFPI add weight to negative feedback. These actions accuse OppFi (OppLoans' parent) of deceptive marketing and illegally high rates, sometimes called predatory lending.
High ratings might reflect initial relief at getting funds, possibly before the full cost is felt. Complaints and legal actions suggest deeper issues with the loan's cost and structure. Concerns about inadequate support during hardship are worrying for a lender serving a vulnerable group.
OppLoans presents distinct advantages and disadvantages for potential borrowers.
| Pros | Cons |
|---|---|
| Accessible with bad/no credit | Extremely high APRs (160%-195%) |
| Fast application and funding | Very short repayment terms (9-18 months) |
| Reports payments to 3 credit bureaus | Limited loan amounts ($500-$4,000) |
| No origination or prepayment fees | Subject to regulatory scrutiny/lawsuits (predatory lending claims) |
| Soft credit check (no FICO impact) | Potential for unaffordable payments & debt cycle (Implied from cost/terms) |
Credit Reporting Considerations
Reporting payments to credit bureaus can theoretically build credit. However, the high APRs and short terms increase the risk of missed payments or default. A missed payment can severely damage credit, potentially outweighing benefits from positive reporting. Complaints about inaccurate reporting add another risk. The credit-building potential is conditional and risky.
Given the high costs and risks, evaluate these factors carefully before applying.
Cost Versus Need
OppLoans should be a last resort due to its high APRs. Exhaust all cheaper options first. These loans are potentially suitable only for true emergencies where funds are unavoidable and no other credit is available.
Affordability Check
Realistically assess your budget. Can you manage the high monthly payments over the short 9-18 month term? Calculate the total repayment (principal + interest) to understand the true cost before committing.
Credit Impact
The credit impact is mixed. On-time payments reported to bureaus could help build credit , but the high cost makes timely payments difficult. Missed payments will harm credit. Inaccurate reporting complaints add risk.
Legal and Regulatory Environment
Be aware of ongoing legal challenges and scrutiny facing OppFi/OppLoans. Lawsuits allege using partnerships with out-of-state banks (like FinWise Bank ) to charge rates exceeding state limits—a "rent-a-bank" scheme. These raise questions about the model's fairness and transparency.
Read the Fine Print
Carefully read and understand the entire loan agreement before signing. Check the APR, total repayment, payment schedule, fees (which vary by state ), and terms for late/missed payments. Ensure everything is clear and acceptable.
Given OppLoans' high cost, exploring alternatives is crucial. Less expensive options often exist, even for bad credit.
Importance of Comparison
Shop around and compare rates and terms from various lenders. Pre-qualifying with multiple lenders (using soft checks) can reveal options without harming credit scores.
Specific Lender Alternatives
These online lenders cater to bad credit and may offer lower APRs (though still relatively high):
Other Financial Options
Consider these alternatives beyond direct lenders:
External Resources
For reliable information and help:
The variety of alternatives, many with lower costs, highlights OppLoans' high pricing. Exhausting other options before considering OppLoans is critical.
OppLoans serves a specific market: providing fast funds to those with poor credit and few alternatives. However, this access comes at an extremely high cost, with APRs from 160%-195% and short terms leading to high payments. Reviews show this split: praise for speed is countered by complaints about cost, repayment issues, service problems, and legal concerns.
Choosing OppLoans means balancing urgent need against potential long-term financial strain. While it might seem like a solution in an emergency with no other options, the high cost risks trapping borrowers in debt. The potential credit-building benefit is often undermined by the difficulty of making payments.
Exercise extreme caution. Before applying, diligently explore all alternatives, especially lower-cost bad credit options. Fully understand the total repayment, ensure payments are affordable, and review the agreement carefully. Consider the mixed reviews and legal scrutiny. Use resources like the CFPB for guidance. Prioritizing long-term financial health often means seeking less expensive solutions.
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.
Are you facing a sudden financial hurdle in Arizona and searching for a quick solution? Understanding the landscape of short-term lending options in the Grand Canyon State is crucial, especially when considering the regulations surrounding what are commonly known as payday loans.
If you've been told that an unsecured credit card is out of reach due to past credit challenges, think again – a strategic approach can unlock opportunities to rebuild your financial future without the need for a security deposit. Discover how these specialized cards work, what to look for, and how they can be your powerful tool in paving the way towards better credit and greater financial flexibility.
Adding money to Venmo without a bank account requires some creative maneuvering. Here's how you can achieve it: enlist a trusted friend to transfer money from their bank account to yours on Venmo, or use a credit card for the transfer (though a 3% fee applies). Keep an eye out for future features that might allow cash deposits at retail locations.
