If you’re currently in a position where you have a less than desirable credit score, but you’re in need of financing, then you might need to consider a specialist lender. Such lenders are able to facilitate loans to those with poor credit, albeit at a much higher lending rate than what would otherwise be offered to those in a healthy financial position.

One such lender that is looking to capitalize on this space is OppLoans. The US-based lender offers loans to those with poor credit, ranging from $500 up to $5,000.

If you’re thinking about taking out a loan from OppLoans, be sure to read our comprehensive guide first.

We’ll cover everything that you need to know, such as who OppLoans are suitable for, how much you are likely to pay in interest and fees, and any other important points we think you should know.

Let’s start by quickly exploring who OppLoans actually is.

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Who is OppLoans?

OppLoans is a specialist US lender tailored towards consumers with poor credit. Led by CEO Jared Kaplan, OppLoans was first launched in 2009, and now has its headquarters located in Chicago.

Unlike many of its industry counterparts, OppLoans is actually a direct lender. This means that you will be borrowing funds directly from the company, as opposed to a third party lender that you are matched up with. This is somewhat beneficial, as you will only deal with OppLoans themselves.

According to the company, OppLoans offer “Fast Funding, Lower Interest, and a Personal Service.” While funding might be fast, it is important to recognize that the interest rates offered by OppLoans will be anything but low. On the contrary, you could see yourself paying upto 199% APR.

However, this is to be expected, especially when one considers the higher-than-normal risks of lending to those with poor credit. Moreover, in comparison to Payday Loan lenders – which charge an average APR of 400%, OppLoans are actually more cost-effective.

In terms of the lender’s regulatory status, OppLoans holds a number of state-based licenses. As such, not all US states are able to use the lender – notably because certain states prohibit the types of high-interest loans that the company offers.

Finally, the OppLoans platform is also behind a number of educational blogs that seek to provide customers with useful financial tips. This is to ensure that you have a firm grasp of the risks of taking out a high-interest loan.

So now that we’ve covered the basics, let’s take a look at who OppLoans is suitable for.

Who is OppLoans Suitable for?

First and foremost, and as noted above, OppLoans is not available in all US states. To ensure that you are eligible for a loan, you need to be based in one of the following states.

Alabama, Alaska, Arizona, California, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota Tennessee, Texas, Utah, Virginia, Wisconsin, Washington or Wyoming.

Moreover, you will need to be at least 18 years old to apply for a loan, be a permanent resident of the US, and have a valid social security number.

Next, you also need to consider the regulations surrounding minimum income requirements. In a nutshell, each US state will dictate how much you need to be earning each month to be eligible for certain lending products.

Most US states have this set at $1,500 per month, although others are much higher. For example, the likes of California and Alabama have a minimum monthly income requirement of $3,600 and $3,200, respectively.

If you meet these requirements, you’ll then need to assess your current FICO credit score. At an absolute minimum, you’ll need to have a FICO credit score of at least 350, up to a maximum of 600. This, according to credit rating agency Experian, is defined as a ‘Very Poor’ rating.

With that being said, the good thing about the OppLoans website is that you get to check your eligibility without it having an impact on your credit rating. Known as a ‘Soft Credit Credit’, the platform is able to let you know if you qualify, and at what rate, without the search appearing on your credit file. As such, you have nothing to lose by undergoing the initial online enquiry.

So now that we’ve covered eligibility, in the next section we are going to unravel what interest and fees you can expect to pay with OppLoans.

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OppLoans: Interest, Fees and Charges

If you take out a loan with OppLoans, your APR will fall between 99% and 199%. The specific amount that you are offered will depend on your individual financial circumstances.

For example, the lender will take into account your current FICO score (there is a BIG difference between 350 and 600), debt-to-income ratio, employment status, and how much you earn. Moreover, the amount that you choose to borrow, alongside the pay-back period, can also determine the rates you are offered.

Once again, you do have the option of exploring your rate before committing by performing a soft credit check application.

Nevertheless, regardless of whether you are closer to an APR of 99% or 199%, it is important to note that in the grand scheme of things, this is still a lot cheaper in comparison to other lenders that specialize in poor credit loans. In fact, as noted earlier, the average APR charged on a Payday Loan in the US is actually 400%. Often, this can even surpass 1,000%.

As such, although an APR of between 99% and 199% is significantly higher than what you would be offered by a traditional retail bank, in the world of poor credit, it’s a highly competitive rate.

Funding Fees

As an added bonus, OppLoans does not charge any application fees to obtain a loan with them. Typically, lenders will charge an origination fee of between 1%-5% to cover the costs of taking out the loan. However, no such charge exists with OppLoans.

	OppLoans	Payday Loans	Title Loans
Loan amount	$1,000 – $4,000	$350	$959
APR	99 – 199%	339%+	291%
Term	Up to 36 months	14 days	1 month
More affordable payments	✔️	❌	❌
Ability to build credit history	✔️	❌	❌
No collateral needed	✔️	❌	❌

Late payments

As with any lender you decide to take out a loan out with, you need to assess the financial consequences of missing a payment. While you should not be taking out a loan with OppLoans if you think that a missed payment is likely (or even possible), it’s always worth having a grasp of what will happen.

Worryingly, OppLoans notes within its disclosure statement that of all the loans it services, 4 out of 10 people need to refinance their loan at least once.

Firstly, if you do miss payments, OppLoans does report this to the main three credit agencies. As such, if you’re already in possession of a poor credit score, it’s like to get worse. On the other hand, if you meet all of your payments on time, you stand a very good chance of improving your FICO score, as this will also be reported by OppLoans.

In terms of late payment fees, this will all depend on the specific state that you live in. The reason for this is that OppLoans has a separate lending license for each of the states it operates in, so you are best off clarifying this before you proceed.

Ultimately, if you do think that you are going to miss a payment, you are best contacting OppLoans straightaway. The lender offers a Flexible Payment Date option that allows you to change your repayment date. This could come in handy if you are waiting on an incoming payment that falls just short of your OppLoans repayment date.

OppLoans: How Much can I Borrow and for how Long?

OppLoans allows you to borrow an amount between $500 and $5,000. The amount you are eligible for will of course depend on your financial circumstances at the time of the application.

When it comes to the loan term itself, OppLoans services loans between 9 and 36 months.

The Loan Process at OppLoans

As is now standard in the lending space, you can apply for a loan with OppLoans via the online platform. To get started, you will first need to enter some personal information, such as your full name, address, social security number and date of birth.

You’ll also need to enter some financial information, such as your employment status and current FICO score. OppLoans will then let you know whether or not you qualify for a loan, and if you do, at what APR rate. You’ll likely be offered a number of different APR rates based on the length of the loan itself.

At this point of the application you are under no obligation to proceed. As the search was based on a soft credit check, the application won’t appear on your score if you decide not to go ahead.

If you do, you will then be required to provide OppLoans with additional information. This will seek to unravel more information about your current financial situation.

For example, the lender will want to know how much you currently earn, where you work, and what your current debt levels are like. You will also need to provide your bank account details. In most cases, if you were pre-approved via the soft credit check, then you should have no issues getting the loan finalized the very same day.

In fact, most applications are approved and processed before 7.30pm (EST). If it is, then you will receive your funds the very next working day.

However, if OppLoans is unable to verify your information automatically from the third party sources they have available to them, then they will likely ask you to upload supporting documentation. This might include a government issued ID to prove your identity, or a recent pay stub to validate your stated income.

OppLoans: Customer Support and Reviews

The customer support team at OppLoans operates 7 days per week. Between Monday-Friday, the team work 7am to 11.30pm (EST). On Saturday and Sunday, the team are available between 9am and 5pm (EST).

You can call the OppLoans team during operating hours at (800) 990-9130.

If you don’t want to call OppLoans, you can send them an email at help@opploans.com.

In terms of the customer reviews available in the public domain, TrustPilot is often a good starting point. However, with just one review, we can’t really use this as any sort of indicator.

Alternatively, across 132 individual customer reviews, OppLoans has a Credit Karma score of 4.7/5. This includes a 4.5/5 rating for the application process and customer support.

It is also worth noting that the Better Business Bureau – who has accredited OppLoans since 2015, gives the lender an A+ rating. Moreover, across more than 1,167 individual customer reviews, the lender has a rating score of just under 5/5.

OppLoans Review: The Verdict?

In summary, although lenders that specialize in poor credit should always be a last resort, OppLoans actually stacks up quite well. They are very upfront about the fees that they charge, and at between 99% and 199%, this is significantly more competitive than the average poor credit lender.

Moreover, OppLoans does not charge any origination fees. Typically – and especially in the case of high interest lenders, an origination fee can cost as much as 5% of the overall loan amount.

We also like the fact that the application process is very straightforward. By simply entering a few details linked to your personal and financial background, you get to check whether or not you are eligible without it having an impact on your credit score. You can also view your pre-approval rates before committing, which is an added bonus.

Ultimately, if you do decide to take out a loan from OppLoans, just make sure that you are confident that you will be able to meet all of your payments.

While paying on-time will give you the chance to improve your FICO score, missing a payment will have the opposite effect.

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OppLoans

8.2

Ease of Use

9.0/10

Interest Rates

7.0/10

Reputation

8.0/10

Customer Support