OppLoans Installment Loans: 2021 Review

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%.

The company started issuing loans in 2012 to help consumers access credit, which had become increasingly difficult after the 2008 financial crisis, says Jared Kaplan, CEO of OppFi.

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

OppLoans details

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, Kaplan says.

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.

Consumer-first features

• 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.

» MORE: Compare bad-credit 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 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.

If you need 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 a friend or family member for a loan, or form a lending circle to borrow from those you trust without accruing interest.

• 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