- No credit score requirements
- No prepayment penalties
- No collateral required
- The application process is fast and easy
- Funds are disbursed quickly
- Website advertising is clear and informative
- Financing isn’t available in some states
- Low borrowing amounts
- Rates can be expensive
- Some additional fees are charged
Do you need a loan for your small business? Have you been turned down by banks, credit unions, or alternative lenders because of a low credit score? Do you just need a lender to give you an opportunity…and the funding you need? When you’ve exhausted just about every other possibility, OppLoans may still be willing to cut you a check.
Since 2009, OppLoans — also known as Opportunity Financial or Opportunity Loans — has provided personal loans to borrowers with credit challenges. Although OppLoans technically offers loans for personal use, the money can be used for entrepreneurial or startup projects. Since these are personal loans, you can also use them for other purposes, such as medical expenses, car repairs, or emergencies. Borrowers can receive a maximum of $4,000.
OppLoans provides short-term loans with better interest rates and terms than you’d get from payday loans. Borrower requirements are much less stringent than with other personal or small business loans, so you may qualify even if other lenders have denied your application. One drawback is that these loans come with much higher interest rates than options available to borrowers with high credit scores. However, even with higher rates, OppLoans could offer the solution you need when you’re in a financial bind.
Think OppLoans may be the right lender for you? Read on to learn more about this lender, including rates, terms, and borrower requirements, to determine if moving forward with an application is the right financial step for you.
Table of Contents
OppLoans is an online lender that offers short-term personal installment loans to subprime borrowers. Short-term loans provide the borrower with a lump sum, which is paid back, along with a flat fee, in daily or weekly installments for the length of the term (usually less than a year).
Although loans from OppLoans are technically for personal use, they can be used for business startup purposes.
Is OppLoans A Payday Loan?
The financial product available through OppLoans is not a payday loan. We strongly advise you to steer clear of payday loans. A payday loan is a small amount of money ($1,000 or less) that is loaned at a very high rate of interest. The amount of the loan plus fees and interest are typically repaid on the borrower’s next payday. Some lenders may allow a borrower to rollover their loan for an additional pay period by paying a finance charge. Other lenders may withdraw multiple payments over several paydays until the loan is repaid. The main drawback of payday loans is staggering interest rates. On average, payday loans have a 400% APR. With some lenders, the APR might be even higher. The sad fact is that most payday loans are nothing short of usury, and payday lenders prey on people who can least afford it.
Because OppLoans is a personal lender, it only evaluates your personal creditworthiness, not your business’s. OppLoans specializes in working with borrowers with low credit scores, so qualifying for a loan is much easier than with other lenders.
To qualify through OppLoans, you must meet the following minimum requirements:
- Be at least 18 years old OR at least 19 years old in Alabama and Nebraska
- Have a source of income for at least the last two months
- Have a checking or savings account with at least three months of history
- Receive direct deposits
There are no minimum income or personal credit score requirements. However, OppLoans uses the credit reporting agency Clarity to verify personal information provided on the application. Additionally, OppLoans uses third-party providers MicroBilt and DecisionLogic to verify your bank account and financial information.
You must also reside in one of the 37 states that OppLoans services. Residents in Arkansas, Colorado, Connecticut, Iowa, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Vermont, and West Virginia are ineligible to apply for funding through OppLoans.
In certain states, OppLoans is the originator of your loan. In the following states, FinWise Bank is the originator and funder of OppLoans products: Alaska, Arizona, California, District of Columbia, Florida, Hawaii, Indiana, Kentucky, Louisiana, Maine, Michigan, Minnesota, Montana, Nebraska, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Washington, and Wyoming.
Even if FinWise Bank funds your loan, all loans are serviced by OppLoans. If you have questions or concerns about your loan, OppLoans will always be your point of contact.
I Have Good Credit. Should I Get A Loan From OppLoans?
OppLoans specializes in lending to borrowers with low credit scores. It uses alternative credit data, employment history, and a borrower’s bank account history to determine if a borrower can repay their loan. The trade-off is that you receive shorter terms and a higher interest rate than you would through traditional lenders.
If you have a solid credit score, look into other more affordable options. Lenders that take a more detailed look at your credit may have higher borrower requirements and require more documentation. However, the cost of borrowing will likely be much lower, and you’ll receive more favorable terms. Check out our comparison of the top personal loans for business to find the loan that’s right for you.
|Lender||Borrowing Amount||Term||Min. Credit Score||Next Steps|
|$1K-$50K||3 or 5 years||8.16%-27.99%||620||Apply Now|
|$2K-$35K||3 or 5 years||6.95%-35.99% APR||640||Apply Now|
|$1K-$40K||3 or 5 years||5.32%-30.99%||640||Check Rate|
Terms & Fees
Note that terms and rates for OppLoans vary depending on your state.
|Term Length:||Up to 36 months|
|Additional Fees:||Varies by state but includes administrative, late, and returned check fees|
There are no prepayment penalties or hidden fees. Any additional fees are disclosed by OppLoans and vary by state.
Are Installment Loans Better Than Payday Loans?
Installment loans are a serious step up from payday loans. With payday loans, you’ll receive a loan at a very high-interest rate with a short amount of time — usually two weeks — to repay it. If you’re unable to pay your loan, you may be able to extend your payment period by paying a finance charge. However, these finance charges are often very expensive, and you can easily end up in a cycle of debt.
With a short-term installment loan through OppLoans, you get more time to pay off your loan. Instead of one lump sum payment, you’ll make several smaller payments over a longer period. You’ll also receive a lower interest rate. Still, loans through OppLoans are quite expensive when compared to other loan options. But if you need extra money, have a low credit score, and no other financing options, the loan may be worth the high cost of borrowing.
To get started with OppLoans, fill out the secure application on the OppLoans website. This application will require some personal information, including your first and last name, address, phone number, date of birth, and Social Security Number. You will also need to add your email address and create a password. These will serve as your login credentials.
Then, you will need to enter information about your employment status and income. You’ll provide your employer name, date of hire, monthly income, and details on when you get paid. In this step, you’ll also provide your bank account information, including your routing number, account number, and length of time your account has been open.
Finally, you will be required to agree to the lender’s terms, which include a Credit Report Pull Authorization and Bank Verification.
Once you click Submit, your application is sent to OppLoans. Within 24 hours, you will receive an email notification letting you know if your application was approved or declined. If your loan is approved, you can receive the funds in your bank account as quickly as the next business day.
I Was Preapproved For A Loan From OppLoans. What Does That Mean?
If you’ve received a preapproval letter from OppLoans, this means that you’ve been identified as a potential borrower. You will be required to apply through the OppLoans website, and the lender will verify your identity and credit information to determine if you qualify. You must meet all criteria to receive a loan. A preapproval is not a guarantee that you will qualify for a loan.
When Does OppLoans Check My Credit Score?
OppLoans is different from other lenders because it does not perform a credit check through Equifax, Experian, or Transunion. Instead, this lender uses the credit reporting agency Clarity to check credit scores and verify borrower data when you submit your application.
Applying for a loan through OppLoans does not have an impact on your FICO credit score since it performs a soft inquiry. If you accept a loan offer, OppLoans reports to the three major credit bureaus in all states except Ohio and Texas, helping you boost your credit score if you make on-time payments.
I Got A Loan From OppLoans. Now What?
You’ve submitted your information and been approved for a loan. You should expect to see the funds hit your bank account within one to three business days. You’ll be able to log into your account on the OppLoans website to view details about your loan.
Your repayment schedule will be based on how often you get paid, so you may have terms that are weekly, bi-weekly, semi-monthly, or monthly. When it’s time to make your payment, you have two options: use electronic fund transfer (EFT) or a debit card.
With EFT, your bank account will be automatically debited when each payment is due. If you’d rather use a debit card, you can add the debit card information into the customer portal to set up a one-time payment or recurring payments. If you face a hardship that makes it difficult to make a payment on time, you can contact an OppLoans Customer Advocate to discuss your options.
With a history of on-time payments, you may also qualify for refinancing. Also, OppLoans reports to all three major credit bureaus so that you can build your credit with each payment.
OppLoans Declined My Loan Request. Now What?
If you’ve been denied by OppLoans, you’ll receive an email letting you know your application was declined. OppLoans does not provide a reason for denying loans in this email, but you can write to the lender within 60 days for an explanation as to why your loan request was turned down.
In the meantime, you can work on building your credit score to qualify for other loan options in the future. Start by applying for your free credit score online. Do a thorough check of your credit report to see where you need improvement. Then, take a few easy steps to boost your credit score. Even though it takes time to build your credit, there’s no better time than right now to get started.
Sales & Advertising Transparency
OppLoans is very transparent about its terms, rates, and fees, which is very rare in the subprime market. State laws vary, and OppLoans provides detailed information on maximum APR, repayment terms, and fees for each state on its website.
Customer Service & Technical Support
OppLoans has a toll-free customer support number that applicants and borrowers can use to get in touch. Please note that OppLoans does not accept loan applications over the phone. If you want to apply for a loan, you’ll need to fill out the secure application on the OppLoans website.
OppLoans has a dedicated customer support email address. The lender can also be reached via US mail. Customers with credit reporting disputes can contact the lender through either of these methods.
Borrowers can also receive the latest news and updates through the lender’s social media pages on Facebook, Google+, and Twitter.
Negative Reviews & Complaints
Overall, OppLoans has a very high rating among borrowers. However, there are some negative reviews and complaints about the lender. Currently, the lender has 108 customer complaints with the BBB. OppLoans is very communicative with its customers, however, and many of these complaints have been resolved to the customer’s satisfaction.
The most common complaints and negative reviews about OppLoans include:
- Consumers received preapproval mailers but did not qualify for a loan
- Borrowers received a smaller loan than they were preapproved for
- High-interest rates
- Borrowers were unable to enter into a payment plan when facing a hardship
Positive Reviews & Testimonials
Consumers have an overall positive view of OppLoans, as shown through the many reviews available online. The lender has over 1,100 reviews with an average of nearly 5 stars on the BBB. It also fares well on Trustpilot with a 4.7 out of 5 start rating from 608 reviews. Reviewers were pleased with the following:
- Excellent customer service
- Easy loan process
- Fast approvals
- Fast funding
OppLoans’ products are small and pricey, making them of limited use to the average business. That said, if you’re just starting out or are in a temporary rough spot, you may find OppLoans to be a decent lender of last resort. It’s primarily positioned as a safer and more affordable alternative to payday loans, and within that niche, OppLoans excels.
However, if you have a solid credit score, shop around for other more affordable options available to you.