OppLoans offers short-term installment loans to borrowers, often those with poor credit who have an immediate financial need. The company describes itself as a safer, cheaper alternative to payday loans, and can help borrowers cover unexpected expenses like car repairs and medical emergencies. While OppLoans’ rates are generally lower than that of payday loans and other predatory lenders, it still poses a significant burden for borrowers already in a difficult financial situation. OppLoans also offers loans with no hard credit checks, which can be a boon for borrowers with bad credit.
Overall, it’s a viable option for borrowers with bad credit who need funds immediately in order to cover a time-sensitive expense. However, borrowers with good credit or whose need is less immediate may be able to find lower rates elsewhere.
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OppLoans at a glance
|Min. Loan||Max. Loan||APR Range||Terms||Key Benefit|
|OppLoans||$500||$4,000||99% – 199%||Up to 3 years||Funds available next business day|
What we like about it
If you’re considering a short-term personal loan, OppLoans is a safer, more affordable option than a payday loan. OppLoans also issues loans without a hard credit pull, which can be a good thing for borrowers with bad credit having trouble securing a loan elsewhere. While OppLoans does have relatively high rates, it issues funds quickly, has a hassle-free online application,and provides personalized customer service. It also reports on-time payments to Equifax, Experian, and TransUnion, which can help borrowers to build good credit.
With funds issued quickly, easily and without a hard pull, OppLoans can help borrowers in a tight financial situation get back on their feet. Overall, OppLoans is a decent alternative for borrowers with low credit scores who need to borrow funds during a financial emergency, such as a medical expense, car repair, the loss of a job, or another unexpected financial burden.
Things to consider
While OppLoans does have lower rates than some predatory lenders, you’ll still probably be able to find better rates elsewhere, especially if you have decent credit. OppLoans’ APR can reach 199%, putting an added financial burden on borrowers already struggling to make ends meet. And although OppLoans does make the claim that it can help you to build good credit, there are less expensive ways to raise your credit score than a personal loan. Because OppLoans only offers loans of up to $4,000, it also might not be the best choice if you need a higher loan amount.
While it’s hard to beat OppLoan’s speed and convenience, there are better, cheaper options if you don’t need the money right away. Even in an emergency, you should do your best to exhaust all other options before taking out a personal loan with a high-interest rate. Despite OppLoans’ APR being lower than payday loans, it should be viewed as a last resort.
What you need to know about OppLoans
OppLoans offers short-term loans between $500 and $4,000, with an APR of 99% to 199% and a term length of up to 3 years. The application process is all online, and OppLoans offers customer support to answer any questions or concerns that might come up during the application process. Depending on your situation, your application may be approved and funds deposited in your bank account in as little as one or two business days.
OppLoans fees and penalties
The rates and terms offered by OppLoans vary from state to state, and there may be a late fee for overdue payments depending on where you live. In addition to location, your income and credit score may also influence your rate. OppLoans doesn’t charge any prepayment penalties, so you have the option of paying your loan off early in order to avoid accumulating additional interest. If you’re having trouble paying back your loan, OppLoan encourages borrowers to contact its customer service team in order to find a payment plan that works for them.
OppLoans collateral and criteria
OppLoans offers personal loans in 37 states and the District of Columbia. Borrowers must be at least 18 years old, have a regular source of income, a traditional bank account with at least 90 days of history and receive their paychecks through direct deposit (except for the state of New Mexico, which is exempt from the direct deposit requirement). Borrowers must apply online and provide accurate information about their financial situation. OppLoans issues unsecured loans and does not offer secured loans at a lower interest rate.
The bottom line
If you’re in a tight financial situation, OppLoans is a much better alternative than a payday loan or another form of predatory lending. The application process is quick and easy, and your funds may be deposited into your bank account within one or two business days. OppLoans reports payments to credit bureaus to help you to build good credit, offers flexible repayment plans, and doesn’t charge a prepayment penalty. Unlike some other types of personal loans, an application won’t affect your credit score by triggering a hard inquiry.
While OppLoans does have some benefits, it’s only a good alternative for borrowers with poor credit facing a financial emergency. OppLoans has relatively high APR rates, so loan recipients pay even more back in interest over time. In order to secure a loan, borrowers must also have a stable income and bank account, which may limit access.
If you have average or good credit or don’t need the funds immediately, there are better options available. In many cases, borrowers will be able to find more favorable terms elsewhere, which can save money in the long run. Even in the case of emergencies, it’s usually a good idea to exhaust all other funding possibilities before resorting to a high-interest personal loan. You may be able to receive a loan from another bank, assistance from friends or family, or help from a charitable organization in order to make ends meet. Although OppLoans is a good last resort, borrowers should be sure to explore other options first.
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