The Bottom Line: An option for bad-credit borrowers, but with high rates should only be considered as a last resort.
Min. Credit Score
Pros & Cons
No credit check required.
Payment flexibility options.
Short repayment terms.
To review OppLoans, NerdWallet collected more than 30 data points from the lender, interviewed company executives and compared the lender with others that seek the same customer or offer a similar loan product. Loan terms and fees may vary by state.
When to consider: A last resort in a true emergency after you’ve exhausted other options.
OppLoans makes short-term installment loans with no credit check. The company markets itself as a fast, affordable alternative to payday loans and title loans. Customers commonly use its loans for emergencies, such as car repairs or medical expenses, says Jared Kaplan, CEO of OppLoans.
OppLoans’ rates are lower than those from payday lenders, but they’re still an expensive form of credit when you need quick cash. NerdWallet recommends exploring the alternatives outlined below before taking this loan.
Minimum credit score: None required.
Minimum monthly gross income: $1,500.
Must be employed or have benefits (not self-employed).
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 OppLoans serves.
Offers refinancing after on-time payments.
Payment date can be changed online.
Offers financial education content.
Reports payments to Equifax, Experian and TransUnion.
The average OppLoans customer has a credit score of 560, makes under $45,000 a year and borrows $1,400 at an average annual percentage rate of 140%, according to the company.
Loan example: For a borrower with poor credit, a $1,400 OppLoans installment loan with a repayment term of five months at 140% APR would carry:
Monthly payments: $385
Total interest: $526
Total amount due: $1,926
No credit check: The lender does not check your credit score from the three major credit bureaus, but it does check other data about you provided by Clarity Services, a bureau that collects information on consumers with low credit scores. OppLoans also scans your bank transactions to get a picture of your cash flow.
Refinance option: Borrowers may be eligible to refinance into a larger loan or extend the loan term after making on-time payments for a few months, the company says. You can also change your payment date online, and if you cannot pay, you can call the company to discuss going on a hardship plan.
How OppLoans compares
Other lenders that offer alternatives to payday loans include Oportun, which has lower starting rates, and LendUp and Rise, which give rate reduction options to borrowers. OppLoans does not offer that feature.
» MORE: Compare online installment loans
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 increase 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 your free credit score on NerdWallet.
You can get cash elsewhere: Cheaper alternatives are not always fast or convenient, and sometimes they require asking for help. But NerdWallet strongly recommends exhausting alternatives first, even in an emergency. Take the quiz below to explore your options:
Before you take an OppLoans loan
Try all other options: If none of the alternatives listed above work for you, see if you can buy time from your creditor, work out a payment plan or face the short-term financial consequences of not paying, such as a late fee.
Compare the cost of taking the loan to the cost of not taking it: Calculate the overall cost of not having funds for your purpose, then weigh that against the typical cost of an OppLoans loan in your state.
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, do what you can 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.
Personal Loans Rating Methodology
NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.