OppLoans is a financial technology company founded in 2012 and maintains its headquarters in Chicago, Illinois. The lending company operates in 37 states — including Washington, D.C. — across the United States and was rated as one of the 500 fastest-growing companies in the country by Inc. Magazine in 2016.
However, its target market is non-prime customers with bad credit. OppLoans doesn’t perform a credit check with any of the three major bureaus before lending, therefore making its interest rates very high compared to the competition. You might keep OppLoans as a last resort — it could be a better option than a payday loan but could be much more expensive than a traditional loan.
How OppLoans stacks up
- No credit check
- Fast funding
- High customer satisfaction ratings
- Extremely high interest rates
- Short repayment terms
- Online-only application
What’s interesting about OppLoans
One nice thing about OppLoans is that it’s quick. You could get the money by the next business day after qualifying. To qualify with OppLoans, you need to meet the following criteria:
- You are 18 years of age.
- You have held a job for the last three months.
- Your monthly gross income is at least $1,500.
- You have a checking account in your name opened at least 40 days prior.
- You receive paychecks through direct deposit (except in New Mexico).
OppLoans reports its payments to all the major credit bureaus, so your credit score could be boosted by on-time repayment. Keep in mind, though, that there are less expensive and quicker ways to boost your credit than through a subprime loan.
OppLoans also doesn’t charge a prepayment fee or other small charges that some lenders will. Its exact prices will depend on the state’s laws where you live.
Things to consider
Exceptionally high rates mean you might want to rely on these loans only to cover emergencies, such as unexpected medical bills. Before deciding to go with OppLoans, check around with other lenders, including family and friends. With a high-cost loan, you risk getting stuck in a cycle of debt repayment and being forced to take out other loans to cover the payments. This type of debt is difficult to escape, so do your best to avoid it from the get-go.
You can borrow anywhere from $500 to $4,000 through OppLoans. These loans come with an APR of 99% to 199%, which is significantly higher than other personal loan options. The average APR for other well-rated personal loan options falls between 5% and 36%. The lowest OppLoans APR is almost three times that of the highest average rate of external institutions. If you can qualify for a loan with another lender, you’ll likely save a lot of money on repayment.
The real reason to use OppLoans is if your credit score is too low to qualify for loans from other lenders. OppLoans doesn’t check your credit before offering you the loan. Therefore, a bad credit history won’t affect your ability to receive a loan from OppLoans. If you’re in a bind and considering turning to a payday loan, OppLoans could be a better option for you.
You have up to 36 months to repay the loan, which is a shorter period than some other options out there but much longer than a payday loan.
OppLoans doesn’t offer mortgage loans. If you have bad credit and are shopping around for a mortgage, you could try New American Funding. This lender requires a low minimum credit score of 580. The company will look at your entire financial wellbeing when deciding whether or not you qualify for a loan.
If you have a low income and haven’t been able to save up for a down payment, you can look at CitiMortgage. It offers U.S. Federal Housing Administration loans as well as Veterans Affairs loans.
OppLoans also doesn’t offer mortgage refinancing. If you’re in the market to refinance your mortgage for a better rate, you could try Rocket Mortgages or Suntrust. Rocket Mortgages is entirely online, so it doesn’t offer in-person help, but the refinancing process is sped up through its web-based verification.
SunTrust is a more traditional refinancing option with a national reach. It offers an array of different types of mortgages for customers who are looking for choices.
Home equity loans & HELOC
OppLoans doesn’t provide home equity loans or home equity lines of credit (HELOCs). If you’re looking to borrow money against your home, you can look into loanDepot or, again, SunTrust. SunTrust provides an introductory discount rate for the first year, as well as several ways to access funds — in person, via mobile, or online.
LoanDepot is an online lender rather than a bank and is available over the phone. Additionally, they operate 180 locations around the U.S. However, loanDepot doesn’t offer HELOCs.
OppLoans doesn’t provide car loans to its customers, but if you’re searching for money to purchase a car, there are other options available. LightStream is the reliable and high-satisfaction car loan lending arm of SunTrust Bank and will be a great first stop to look at rates and terms.
If you have low credit, you might look into Capital One, since its minimum credit score is 500. The lowest rate it offers is 3.39%, but that requires excellent credit to qualify.
The final word
Anyone in a sticky situation who can’t qualify for a loan from another lender — or from friends and family — might find OppLoans helpful. If your credit score is too low to be eligible with other lenders and you need emergency cash flow, OppLoans could work for you.
Anyone with a credit score over 580 should be able to find a much lower rate with a different lender, making OppLoans at the bottom of the list of lenders to check out.