Pros & Cons
- Reports payments to all three credit bureaus.
- Able to fund loans within 1-2 business days.
- Rates are high compared with other bad-credit lenders.
- Short maximum repayment terms of up to 18 months in many states.
- Not available in all states.
Get more smart money moves — straight to your inbox
Become a NerdWallet member, and we’ll send you tailored articles we think you’ll love.
Full Review of OppLoans
When to consider: A last resort in an emergency after you’ve exhausted other options.
OppLoans is a short-term installment loan offered by the lender Opportunity Financial, or OppFi. OppLoans borrowers don’t undergo a credit check, and while the company markets OppLoans as a fast, affordable alternative to payday loans, rates can still reach 160%.
NerdWallet doesn't recommend loans with annual percentage rates above 36% unless you’ve exhausted all other borrowing options. OppFi also encourages borrowers to seek cheaper loans if they qualify.
» MORE: Installment loans for bad credit
OppLoans at a glance
The lender doesn't check your credit score from the three major credit bureaus, but it does check data provided by Clarity Services, an offshoot of credit bureau Experian that collects information on consumers with low credit scores.
Information like your history with online small-dollar lenders, auto title loans and payday loans may be included on this report. Bank account transaction data and inquiries showing how often someone seeks a loan are also factors in a loan decision.
The application review process assesses a borrower's ability to repay the loan with an emphasis on income.
Here are some things you need to qualify for a loan.
Minimum credit score: None required.
Minimum monthly gross income: $1,500.
Have a bank account in your name with 40 days of history.
Receive your paychecks through direct deposit.
Live in one of the states that offers OppLoans.
The lender offers loans directly in some states and services loans funded by FinWise, First Electronic and Capital Community banks in many other states.
Offers refinancing after making $400 in loan payments or paying down 15% of the loan, whichever comes first.
Financial education is available on the lender's website.
Reports payments to Equifax, Experian and TransUnion for most customers.
On-time payments reported to the credit bureaus can positively affect a borrower’s credit score.
Loan terms range between nine and 18 months, and the lender encourages customers to call and discuss a hardship plan if they can’t pay.
What to know about OppLoans
In some states, OppLoans' interest rates are higher than those states' mandated maximums. In California, for example, the Fair Access to Credit Act caps annual simple interest rates on loans between $2,500 and $10,000 at about 36%, but OppLoans’ website lists rates up to 160% for loans in that range.
The lender uses banks in Utah, where there are no interest rate caps, so the lender argues it adheres to federal laws.
In April 2021, the attorney general in Washington, D.C., sued OppFi for offering loans to residents at APRs above D.C.'s 24% interest rate cap between February 2018 and May 2020. In a statement, the attorney general's office also accused OppFi of misrepresenting the loans as helping borrowers to build credit.
OppFi denied violating any laws in an emailed statement, adding that the accusations lack "merit and fail to account for well-established and longstanding federal banking and lending laws."
The lender doesn't currently list loan options for borrowers in Washington, D.C.
Loan example: The average OppLoans customer has a credit score of 550, makes under $45,000 a year and borrows $1,400 at an average annual percentage rate of 156%, according to the company.
A $1,400 OppLoans installment loan with a repayment term of nine months at 140% APR would carry:
Monthly payments: $259
Total interest: $943
Total amount due: $2,335
How OppLoans compares
Here’s how OppLoans compares with similar loans.
Oportun loans have a 36% maximum APR, but they’re available in a limited number of states. The company says it would consider credit history if a loan applicant had it, but it’s not a requirement. Oportun also says it processes most loan applications and funds loans the same day.
Rise offers similar loan amounts but has much higher APRs. This lender offers installment loans in a limited number of states and lets borrowers return a loan up to five days after borrowing.
OppLoans is not a good idea if:
You are trying to build credit: OppLoans reports payments to all three credit bureaus, so your score can grow if you make on-time payments. However, there are faster and cheaper ways to build credit, including a secured credit card or credit-builder loan. If you don’t know your score, you can get it for free on NerdWallet.
You can get cash elsewhere: Cheaper alternatives are not always fast or convenient, and sometimes they require asking for help. But they could save you from overpaying in interest and getting caught in a cycle of debt.
Alternatives to OppLoans
Here are some alternatives that may be cheaper than borrowing.
For help meeting basic needs: Seek assistance from local nonprofits, charities and religious organizations. They can help you get food, clothing and access to transportation for job interviews.
For help with rent or utilities: Contact your utility company, landlord or mortgage issuer for help deferring a payment. If you need long-term help, consider seeking other housing or contact a housing counselor.
To pay medical bills: Learn about ways to cover medical costs, including payment plans.
To cover other one-time emergency expenses:
Ask your employer for a paycheck advance or use a loan app to borrow against your next paycheck.
Get a payday alternative loan or a small personal loan from a credit union. You have to be a member to use this option, but it’s one of the most affordable ways to pay for an emergency.
Try other ways to make money. You need some extra time to make this option work.
If you take an OppLoans loan
After considering alternatives and weighing the costs, you may decide that taking an OppLoans installment loan is your best option. In that case, try to carve out room in your budget to pay the loan off as quickly as possible. For most people, this loan is too expensive to be a long-term or repeat solution.
NerdWallet rates lenders that offer high-interest personal loans separately from other lenders due to the consumer risk associated with these loans. We define high-interest loans as those with rates that exceed 36%, which is the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. The maximum allowable rating for high-interest lenders that we review is four stars. We award points to lenders that offer loans that minimize harm to consumers through affordability, transparency and practices that prioritize consumers’ needs. This includes: checking credit and reporting payments to credit bureaus, monthly payments that don’t exceed 5% of a borrower’s monthly income, fully amortizing repayments, transparency of loan rates and fees, and accessible customer service and financial education. NerdWallet does not receive compensation for our star ratings.
Frequently asked questions
OppLoans is an installment loan from OppFi, which directly originates loans in some states but services loans through banks in many others. The loans have high interest rates (up to 160%) that may exceed state-mandated interest rate caps. Though not technically illegal, consumer advocates contest this practice.
If your goal is to build credit, there are cheaper ways to go about it.
OppLoans does not have a minimum credit score requirement for borrowers. Instead, it uses data from Clarity Services, an Experian offshoot that collects data from small-dollar lenders, check cashers and prepaid card issuers. To make a loan decision, OppLoans also considers an applicant’s income, bank account transaction data and information about how often an applicant has applied for a loan.
Yes. OppLoans reports payments to Equifax, Experian and TransUnion for borrowers in all states where OppLoans are available except for Texas and Ohio.