Overview
OppLoans are small, short-term loans offered by Opportunity Financial, or OppFi. OppLoans borrowers don’t undergo a hard credit check, and while the company markets these loans as affordable alternatives to payday loans, its interest rates are exceptionally high.
NerdWallet doesn't recommend personal loans with annual percentage rates above 36% unless you’ve exhausted all other borrowing options.
» COMPARE: Best personal loan lenders
Detailed breakdown
We review lenders’ annual percentage rate offerings and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.Customer experience (20%)
We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.Underwriting and eligibility (20%)
We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.
We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.Application process (15%)
We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.
Read more about our ratings methodologies for personal loans.
Where OppLoans stand out
- Fast funding: OppLoans says it makes loan approval decisions within minutes and can fund a loan the same day for applications approved by 12 p.m. CT. The lender may fund loans as quickly as the next business day for applications approved after that cutoff time.
- No fees: OppLoans personal loans do not come with origination fees or other fees, which add to the cost of the loan.
- Reports payments to all three major credit bureaus: Unlike some high-interest lenders, OppLoans reports payments to all three major credit bureaus. This means on-time payments may help build your credit.
- Low income requirement: OppLoans requires borrowers to have a monthly gross income of at least $1,500 — much lower than the median U.S. household income. The lender says that income can come from employment or other sources such as Social Security, disability, child support or alimony.
- Options to choose and change your payment date: OppLoans says borrowers can choose their initial payment due date. Borrowers are also able to change that monthly due date during the repayment process. This can be helpful if you change jobs and get paid on a different schedule.
Where OppLoans fall short
- Rates exceed 36%: Installment loans from OppLoans have annual percentage rates from 160% to 195%. Most consumer advocates say an affordable loan’s APR should be no higher than 36%. Triple-digit interest rates are often a sign that a loan may be difficult to repay on time. OppLoans’ interest costs can make up more than half of what you borrowed. For example, if you borrow $2,000 at 160% APR with a nine-month repayment term, you’ll repay a total of $1,551 in interest. Learn the risks of high-interest loans.
- Does not perform a hard credit check: OppLoans says it only performs a soft credit check on applicants before lending, not a hard credit check. Lenders that only conduct soft inquiries may not accurately predict whether the applicant can repay the loan. These lenders take on more risk and often make up for it by charging high rates.
- No rate discount: OppLoans does not provide an opportunity for borrowers to reduce their APRs. Several other personal loan lenders offer rate discounts, such as a 0.25 percentage point reduction for enrolling in automatic payments.
- Limited loan amounts and repayment terms: OppLoans range from $500 to $5,000 with repayment terms ranging from nine to 18 months. Personal loans typically can be up to $50,000 or more with terms from two to seven years.
- No co-signed, joint or secured loan options: The lender doesn’t allow borrowers to add a co-signer, co-applicant or collateral to improve their chances of getting a lower rate or larger loan amount.
How to qualify
OppLoans says its personal loans are primarily for borrowers with fair credit, bad credit, thin credit or no credit (those with scores in the low 600s or below). The lender only performs soft credit checks on applicants. There will be no hard credit inquiry which can cause your credit score to dip.
OppLoans does not offer loans to residents of CO, CT, GA, IA, MD, MA, NY, SD, VT, WV or Washington, D.C.
OppLoans’ borrowing requirements
- Minimum credit score: None.
- Minimum monthly gross income: $1,500.
- Must be a U.S. citizen.
- Must be employed on a W2 basis (not self-employed) for at least 30 days with your current employer.
- Must have a valid U.S. bank account and receive salary or wages via direct deposit.
» MORE: How to get a personal loan
Ready to check rates? See what rate you can get by pre-qualifying.
Profile of an average OppLoans borrower
Compare OppLoans to the best lenders
Personal loan lenders offer different rates, loan amounts and special features, so it pays to weigh other options. The best personal loan is usually the one with the lowest APR.
