OppLoans Personal Loans Review
OppLoans Personal Loans Review

OppLoans is one of the highest-rated online lenders in the non-prime market. They offer lower rates payday and title lenders, which non-prime borrowers have historically used to meet their financing needs.

OppLoans provides installment loans. This type of loan allows borrowers to make small, regular payments that fit better into their budget. In addition, OppLoans reports on-time payments to the credit bureaus to help boost their customers’ credit scores.

To receive a loan from OppLoans, borrowers apply online. OppLoans does not conduct a credit check with the three major credit bureaus, so applying won’t hurt an applicant’s credit score. If approved, customers typically receive their loan within one business day. A loan through OppLoans does not require collateral, so unlike title loans, borrowers do not risk losing their vehicle.

Read on to learn more about OppLoans and decide if their loan offerings are right for you.

OppLoans Personal Loans

Borrowers can access between $1,000 and $4,000 with OppLoans, which is more than payday and title loan alternatives. APRs are approximately half the cost of payday loans but are still high, ranging from 99% to 199%. The exact range depends on eligibility and state of residency.

OppLoans’ personal loans are larger, longer-term, and fully-amortizing compared to payday loans. While longer installment plans result in more accrued interest, they make for lower monthly payments and a decreased chance of defaulting. Since there are no prepayment penalties with OppLoans, it’s beneficial to pay off loans as quickly as possible.

OppLoans installment loans are currently available to borrowers in the following states:

  • Alabama
  • California
  • Delaware
  • Georgia
  • Idaho
  • Illinois
  • Mississippi
  • Missouri
  • Nevada
  • New Mexico
  • Ohio
  • South Carolina
  • Texas
  • Utah
  • Wisconsin

Residents living in these states may be eligible for a line of credit from OppLoans:

  • Kansas
  • Tennessee
  • Virginia

OppLoans services loans originated and funded by FinWise Bank in the following states:

  • Alaska
  • Arizona
  • District of Columbia
  • Florida
  • Hawaii
  • Indiana
  • Kentucky
  • Michigan
  • Minnesota
  • Montana
  • Nebraska
  • North Dakota
  • Oklahoma
  • Oregon
  • South Dakota
  • Washington
  • Wyoming

Borrower Profile

While application requirements at OppLoans aren’t nearly as strict as with other lenders, you’ll still need to meet a few basic qualifications. To start, you must be at least 18 years old with a bank account that must be at least 90 days old.

There’s no credit minimum, but you do need a job and must be with the same employer for at least the last three months. You must also receive your paychecks via direct deposit.

OppLoans’ customers often use their loans to cover unexpected expenses like car repairs, or for emergencies like medical, education, debt consolidation, or childcare costs. The average OppLoans customer has a credit score of 560.

lady on laptop

Loan Process

The OppLoans application process is simple and user-friendly, with a digital application that can be completed in a matter of minutes. In fact, 70% of customers apply on their phones through OppLoans’ mobile-optimized website.

The application consists of creating a user profile with some basic personal information including age, bank account, employment history, and annual income. OppLoans does not perform a credit check through the credit bureaus.

Once submitted, the application will be reviewed using a proprietary approval algorithm. OppLoans offers better terms than its competitors due in part to its data-driven credit scoring algorithm, which looks at factors like income, employment, and banking activity. These online verification tools allow for same-day approvals.

Once initially approved, you’ll receive a customized loan offer detailing your interest rate, payment amount, number of payments, and total cost of the loan. This information helps you make an informed decision about whether or not the loan is right for you.

If you’re happy with the loan terms, you can accept the agreement and move to the next stage – verifying the details of your application.

A payment schedule is provided at the time of contract signing and on the customer self-service portal. Throughout the length of the loan, Loan Advocates work with customers to adjust their payment plans based on evolving financial situations and needs.

If at any point during this process you have questions or need assistance, Loan Advocates provide unparalleled customer service and personalized support through OppLoans’ friendly call center.

Once You’re Approved

Once you’re approved, the loan amount is either deposited directly to your bank account, usually within one business day, or mailed by check, if preferred.

Depending on the state in which you reside, you may only be offered a line of credit and can begin to make withdrawals once funds are available. In this case, you’ll have a minimum required monthly payment and can make additional withdrawals as long as the total amount is below your credit limit.

Regardless of loan type, you can check your account balance and loan agreement at any time by accessing the feature-rich, easy-to-use customer dashboard on the OppLoans website.

Payments are either made through payroll deductions or through automatic payments via electronic transfer, which withdraws funds from your bank account on the same day each month.

With OppLoans, there are no prepayment penalties so loans can be paid off anytime to drastically reduce their APR. This simple trick can save you a lot of money on interest payments over time.

Special Features

Unlike payday loans, a loan through OppLoans can help establish or rebuild credit. OppLoans reports to all three credit bureaus, so on-time monthly payments will boost their customers’ credit scores. However, because OppLoans reports to the credit bureaus, the reverse is also true – missed payments will have a negative impact on a customer’s credit score.

Another special feature that OppLoans offers is a suite of free online financial tools about budgeting and credit-building available through its education branch, OppU. At OppU, customers can learn to take control of their money with standards-aligned financial education courses to help set and meet financial goals.


OppLoans’ History

Founded in Chicago in 2012, OppLoans started as a storefront lender before turning digital in 2013. Since then, OppLoans has made its mark as the highest-rated non-prime online lender in the FinTech space. In fact, it was named one of Inc.’s fastest-growing companies in 2016, 2017 and 2018.

OppLoans is dedicated to providing top-notch customer service and socially responsible products for non-prime borrowers. To date, OppLoans has served over 200,000 customers and originated over $250 million in loans. The company has a 4.8/5-star customer review average on LendingTree and an “A+” BBB rating. 95% of customers would recommend OppLoans to a friend.

What to Consider When Getting a Bad Credit Loan with OppLoans

Although OppLoans provides a safer and more affordable alternative to predatory loans for non-prime borrowers, it is still an expensive form of credit. If your aim is to raise your FICO score, there are more efficient ways to build credit. For example, you may qualify for a secured credit card or a credit-builder loan.

In addition, be sure to explore all other options. Alternatives to a personal loan include:

  1. Asking family and friends for a loan.
  2. Seeking assistance from local nonprofits, charities, government assistance programs, and religious organizations.
  3. Buying time from your creditor or working out a payment plan.
  4. Facing the short-term consequences such as late fees.
  5. Getting a payday alternative from a credit union.
  6. Asking your employer or using an app for a paycheck advance.
  7. Selling your belongings at a consignment store or pawn shop.

Lastly, don’t depend on multiple loans from OppLoans, as they are too expensive to be a long-term or repeat financial solution. As CEO Jared Kaplan has made clear, OppLoans doesn’t want you to be a repeat customer either. Instead, the company’s goal is to assist customers in graduating to less expensive forms of credit.

When you have bad credit, you should take extra care when making any major financial decision. Not only do you need to make sure your choice helps to rebuild your credit, you also need to make sure your current financial situation is in good order.

Here are a few things to think about before taking out a loan with OppLoans or any other lender.

What are your current finances like?

An installment loan with OppLoans is a commitment. Look at your income and monthly budget and make sure you can comfortably afford the payments.

You should also have an emergency savings stash tucked away. That way, you’re prepared in case another financial necessity crops up, like a hospital bill or a car repair. The last thing you want to do is back yourself into a corner where you have a lot of financial commitments and no safety net.

Also, think about your current job situation. Do you feel like you have a secure position? Are you paid regularly with a healthy minimum of hours scheduled each week?

Most lenders, including OppLoans, have certain employment requirements. In addition to meeting those, you should also satisfy your own requirements to help you feel secure that you can fulfill your financial obligations each month.

Where is your credit score headed?

An installment loan with OppLoans can positively impact your credit score since the company reports on-time monthly payments to the credit bureaus. But if your budget is already feeling maxed out each month, it might be risky to take on an extra loan.

Yes, your timely payments are listed on your credit report. But if you eventually end up defaulting on your loan, your credit score will take a nosedive again.

Plus, those defaults stay on your credit report for seven years, so it’ll be difficult to get out of the cycle of bad-credit financing. It’s important to remain prudent when deciding on new loans and do your best to prepare a financial cushion.

Walk through your worst case scenario and figure out how you would deal with it should it actually happen. This is an extremely valuable mental exercise when you’re making any kind of big decision.

While an installment loan from OppLoans is reported to the credit bureaus, it’s still going to add to your credit utilization. Depending on the situation, this could help or hurt your credit score.

If you’re paying off credit card debt, you may end up helping your score because revolving credit is viewed less favorably than an installment loan. But if you’re simply adding on fresh debt, you could see a dip in your score if you have high debt amounts in other areas.