OppLoans is a unique online lending platform that specializes in serving middle-income consumers facing challenges related to their credit scores. The company offers fixed-rate alternatives to the types of predatory, high-interest loans normally available to consumers who match the OppLoans profile. As of June 2020, OppLoans has helped more than 500,000 customers find loans that suit their borrowing needs.
What Types of Financing Does OppLoans Offer?
OppLoans specializes in loans for borrowers in middle income brackets who need relatively small amounts of cash. The company essentially functions like a better alternative to a payday lender, as its personal loans range in size from $500 to $4,000. Borrowers can receive their loan proceeds in a lump sum.
Consumers commonly turn to OppLoans when they need money for:
- Day-to-day expenses
- Auto repairs
- Home renovations or repairs
- Debt consolidation loans
- Medical bills
The annual percentage rate (APR) charged on your loan will vary, depending on prevailing conditions in the financial markets. However, in general, OppLoans’ APRs tend to be on the higher side of the range. There are a few reasons for this: the company works primarily with credit-challenged borrowers, and its repayment periods tend to be short. As of April 2021, the following terms typically apply:
- APRs: 59% to 160%
- Repayment terms: Varies by state; in most states, OppLoans borrowers have up to 18 months to pay off their loans
- *Subject to credit approval and verification. Actual approved loan amount and terms are dependent on standard underwriting guidelines and credit policies. Installment loan amounts typically range from $500 to $4,000. APR ranges from 59% to 160%. Installment loan lengths range from 6 to 18 months. Example: A $2,000 installment loan repayable in 9 monthly payments would have an APR of 160% and monthly payments of $395.58. OppLoans does not offer credit products in all states.
- Minimum credit score: No minimum FICO scores
Most loans do not require a FICO credit check, making OppLoans a good alternative to payday lenders and other bad-credit specialists. Instead of pulling FICO scores, OppLoans refers to borrower data generated by Clarity Services, an Experian-affiliated company that works exclusively in the low-credit vertical.
OppLoans Eligibility Requirements
One of the most appealing aspects of OppLoans is that it offers loans to people who would not, generally, be able to access credit. This can be a critical step in the process of rebuilding a low credit score, as demonstrating responsible use of borrowed funds is one of the fastest and most effective ways to improve your rating.
As such, the company extends eligibility for its loans to a wide range of potential customers. To apply for a loan, OppLoans generally requires the following:
- A U.S. citizen or documented permanent resident
- At least 18 years of age (19 in Alabama)
- Employed or an enrolled recipient of government benefits such as Social Security (note that self-employed individuals are ineligible as of April 2021)
Additionally, the following terms and conditions apply: (requirements vary by state)
- You must provide documentation confirming that you make at least $1,500 per month before taxes
- You must receive your employment income via direct deposit into a checking account
- You must have a United States-based checking account that has been open for a minimum of 30 days prior to your loan application
The OppLoans Application and Approval Process
To get a loan from OppLoans, eligible would-be borrowers go through an easy four-step process:
- Fill out an easy online application.
- Verify your income by providing bank account details for OppLoans to review.
- Look over the loan agreement you will receive, approve its terms and conditions, and return an endorsed copy to OppLoans.
- Wait for your decision. OppLoans seeks to approve as many applicants on the same day though additional verification may be required.
In some cases, OppLoans will ask you to provide additional documents and/or information. If this applies to you, OppLoans will notify you after you have submitted your online application and specify the documents and information you are requested to provide.
How OppLoans Puts Customers First
OppLoans prides itself on its customer-centric business model. The company aims to offset its relatively high interest rates by providing a very positive customer service experience. Here are some of the company’s most noteworthy borrower-friendly features:
- Because OppLoans does not check the FICO credit scores of borrowers, your credit rating will not be affected by your loan application
- The company does not charge origination fees or penalize borrowers for paying off their loans ahead of schedule
Financial education resources are also available through the site free of charge.
Pros and Cons of OppLoans
On the positive side:
- If you meet eligibility requirements you should be approved.
- The company provides a cost-effective alternative to payday loans and predatory lenders who target consumers who could not otherwise access credit
- Loan applications are processed quickly, and loan proceeds can be released as soon as the next business day
- Borrowers do not face any extra charges, hidden fees, or prepayment penalties
On the down side:
- Interest rates are relatively high, making OppLoans more of a last resort for borrowers who cannot obtain financing elsewhere
- Most borrowers cannot access more than $4,000 at a time
OppLoans’ website prominently promotes its strong customer satisfaction metrics: As of April 2021 the company has an A+ rating from the Better Business Bureau (BBB) and its Google rating is 4.9 out of 5. Over on Trustpilot, OppLoans has a 4.8 out of 5 score from over 1500 user-submitted reviews, with 85% of respondents giving the company a perfect 5 out of 5. Ratings on third-party websites may periodically change; please check the third-party websites for up-to-date reviews and ratings.
Our take: OppLoans provides an appealing alternative to middle-income borrowers with existing credit challenges, giving them access to funds they would not otherwise have been able to secure. This can help boost flagging credit scores and help transition the customer back into a position where he or she can qualify for lower-interest loans. If you meet the eligibility requirements and can’t get approved for a loan elsewhere, OppLoans is a worthwhile and safer alternative to payday lenders.