Personal loans are sometimes unavoidable and there are a variety of reasons you might need to apply for one. If you need car repairs to keep your vehicle operating or you have an essential appliance conk out on you at home and you don’t have any emergency savings, a personal loan can save the day.
There is no shortage of personal loan companies out there, and OppLoans might be one option to consider. This OppLoans review will cover the pros and cons of using their personal loans, so you can determine whether this company is right for your needs.
In this review:
- What is OppLoans?
- Interest Rates, Loan Terms, & Loan Amounts
- Eligibility Requirements & Application Process
What is OppLoans?
OppLoans is an online lender for people who need short-term loans. It does claim to be more affordable than payday loans, which is another type of loan that people turn to when they need a small but quick infusion of cash and don’t have the best credit score. OppLoans, however, charges less interest than payday loans, though their rates are typically higher than personal loans for people with good credit.
The trade-off is that even though the interest rates are still high, OppLoans doesn’t do a hard credit check and they have more lax credit requirements as compared to other lenders.
Despite the ease of the application and how quickly you can receive your money, OppLoans should be generally viewed as a last resort for people who need money quickly.
OppLoans Interest Rates, Loan Terms, & Loan Amounts
OppLoans’ loan amounts range from $1,000 to $4,000. In addition, the repayment period is much longer than payday loans, which often have a repayment period of 14 days. With OppLoans, the loan term is up to 36 months, and that longer timeframe can help people who need affordable payments. Plus, if you are able, you can repay the loan faster with no penalties for doing so.
Many payday loans can have annual percentage rates (APRs) of up to 400%. Compared to that, OppLoans has an APR of 99% to 199%. While that’s lower than some payday loans, it is much higher than you should pay unless you have no other options. Most other personal loans from banks and lenders will have a much lower APR if you are eligible.
OppLoans Eligibility Requirements & Application Process
OppLoans will not perform a credit check through the three major credit bureaus: Experian, Equifax, or TransUnion. However, it will obtain an applicant’s credit score from Clarity Services, Inc., which is a credit reporting agency. OppLoans says this will provide only a high-level look at your credit standing and will be considered a “soft pull” on your credit, and therefore will not affect your credit score.
Even if you have poor credit, OppLoans evaluates applicants by their ability to repay. The lender will look to see if you have proof of regular employment – for at least two months – and a traditional bank account in your name for at least 90 days.
To qualify for an OppLoans loan, you will need proof of employment, a bank account in your name, and to live in one of the states serviced by OppLoans.
OppLoans offers installment loans in Alabama, California, Delaware, Georgia, Idaho, Illinois, Mississippi, Missouri, Nevada, New Mexico, Ohio, South Carolina, Texas, Utah, and Wisconsin.
FinWise Bank originates and funds loans in Alaska, Arizona, Florida, Hawaii, Indiana, Kentucky, Louisiana, Maine, Michigan, Minnesota, Montana, Nebraska, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Washington, and Wyoming.
Residents in Kansas, Tennessee, and Virginia have access to a line of credit product.
>> Read More: Best personal lines of credit
The application process can be quick – you can complete it online and receive funding as soon as the next business day. But it might take longer if they require additional documentation which will depend on your personal situation.
Pros of OppLoans
- It’s an easy way to get cash fast; you may receive the money as soon as the next day after applying. You wouldn’t receive a loan that quickly from a traditional bank.
- No credit check required.
- You don’t need collateral, which means you don’t run the risk of having your car repossessed if you fall behind on loan payments.
- If you pay back the loan quickly, the high interest rate isn’t a problem.
- For people who can’t afford huge payments, there is the option of up to 36 months for a repayment period. Of course, it’s better to pay it off before that, but if you can’t, you can set up more affordable payments because of the longer term of the loan.
- It can help you rebuild or establish your credit score if you make timely monthly payments.
- No co-signer is necessary, which is good for people who don’t have someone who is willing or able to help them out.
- There are no hidden fees, which is a nice change from many payday loans that have hard-to-decipher billing that can hide a lot of fees.
Cons of OppLoans
- Even though it isn’t as expensive as some payday loans, it’s still a pricey way to borrow money.
- Most people will have some sort of better option for borrowing money.
- The loans aren’t available in every state.
- High-interest loans like this can create a cycle of debt for people that can be difficult to escape.
- This loan won’t be ideal for debt consolidation or paying off credit cards because the interest rate is so high.
The interest rate for this loan is high, so you might want to find a better alternative if you can. But if you’re in need of bad credit loans and you don’t have any other options, OppLoans might be the best personal loan for you.
Before taking out this loan, however, you should first try to exhaust all your other possibilities. And if you end up taking out this loan, you should strive to pay it back as quickly as you can to cut down on the interest you owe.
Author: Shannon Serpette
Personal Loans Information
Personal Loan Reviews