Oportun is a direct lender based in Redwood City, Calif., that works with members of the population who are underserved by the financial sector. This company used to be called Progreso Financiero but changed its name to Oportun – which is the beginning of the word oportunidad in the Spanish language.
This lender welcomes customers to apply for a personal loan regardless of whether they speak only English or Spanish.
The main appeal of this particular lender is the fact that it accepts applicants who have no credit history under their belt. But that results in much-higher-than-average interest rates.
Application Process and Eligibility Requirements
Oportun loans are only offered to residents of nine states: Arizona, California, Florida, Illinois, Missouri, Nevada, New Mexico, Texas, and Utah. Only legal U.S. permanent residents may apply.
Oportun is known for its very flexible credit score requirements. The credit score range that borrowers must fall into in order to be eligible for an Oportun loan is generally 300-700, but it will also approve people who have no credit.
In order to verify your eligibility for an Oportun loan, borrowers will need to provide verified documents, including recent pay stubs to prove your income, and a photo ID or other proof of citizenship or residence.
Alternatives to Oportun Personal Loans
Basic Information: Rates, Terms, Fees, and Limits
Oportun provides its borrowers with unsecured installment loans that start at $300 and go up to $7,000 – but the larger loan options are only available to returning customers who have borrowed from Oportun in the past.
The loan interest rate can fall in the range of 30% APR and 39% APR, and the terms of the loan can be in the range of seven months to 35 months.
There are late fees, but no prepayment fees with Oportun loans.
For borrowers who are applying for an Oportun loan, there is no need for any credit history in order to be eligible. For people who have little credit history, it opens up lending opportunities to populations of borrowers who can’t get approved for loans from other lenders.
The interest rates offered by this lender (30%-39%) are much higher than average, so that’s technically a negative – but Oportun has a much lower APR maximum than a lot of its competitors. For other lenders that accept extremely low credit scores, APRs can get into the 200%-300% range. That can be a positive for some borrowers.
Another benefit is that this lender reports to two out of the three main credit bureaus – TransUnion and Experian. That way, borrowers who are looking to boost their credit scores have an opportunity to do so with this lender.
Also, this platform is really fast – loan applications only take between 10 and 15 minutes to get done, and a response is usually provided that same day.
With Oportun, you can apply for a loan online. But they only recently launched an online loan application process, and that option is only available in a few select states. Meanwhile, the majority still have to call or go into a physical retail location.
Also, the customer reviews for this company are very weak. According to the Better Business Bureau (BBB), 100 percent of the 18 customers who reviewed Oportun had a negative experience. Many of the complaints have to do with the product or service and with billing issues.
Finally, the fact that people often have to submit documents at a physical location is a drawback, especially when there are competing lenders that handle 100% of the application process online.
Oportun loans might be worth considering for people who have little to no credit and don’t want to get suckered into predatory payday loan-type schemes. With an APR capped off at 39% (which is, indeed, high compared to loans given to people with good credit), it might be one of the better places to take out a personal loan compared to lenders that offer higher rates to borrowers with poor or no credit.3.94 Oportun Personal Loans
Author: Jeff Gitlen
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