OppLoans – There are so many unexpected expenses life can throw you that can upset even the most carefully planned budget off balance. Whether it’s an emergency car repair or a surprise medical bill, many Americans find themselves in need of quick access to cash.
Unfortunately, traditional bank loans can be slow to process and difficult to qualify for, especially for individuals with poor or limited credit histories. This is where alternative online lenders like OppLoans swoops in to save the day.
OppLoans, offered by OppFi, is an online lender that caters to borrowers with less-than-perfect credit. Unlike payday loans, notorious for practices that are predatory, this platform positions itself as a more responsible and transparent lender.
How Does OppLoans Work?
OppLoans provides installment loans, which are loans repaid over time with a fixed number of scheduled payments. This is different from payday loans, which are usually due in full on your next payday.
What’s more, the application process is completely online and quite simple. All borrowers have to do is submit basic personal and financial information through the OppLoans website.
If approved, funds can be deposited as quickly as the next business day. Then, the repayment terms typically range from 9 to 18 months, depending on the loan amount and borrower eligibility.
OppLoans does not rely solely on credit scores from the major credit bureaus. Instead, it evaluates alternative data, such as income, employment status, and banking activity.
This approach helps people with poor or no credit access the funds they need while offering manageable repayment structures.
Features and Benefits of OppLoans
OppLoans stands out among alternative lenders for several reasons, making it a potentially safer option for financially vulnerable borrowers. Here’s a breakdown of its most notable features:
Fast Funding: Once approved, borrowers can receive their funds as soon as the next business day which is perfect for dealing with emergencies.
No Credit Check via Major Bureaus: OppLoans also performs a soft credit check, meaning it doesn’t affect your FICO score. The company mainly focuses on non-traditional data points to assess creditworthiness.
Longer Repayment Terms: With the loan terms ranging from 9 to 18 months, borrowers have enough time to repay, which reduces the likelihood of default or rollover.
Fixed Monthly Payments: Also, the repayment terms are predictable with fixed monthly payments, which makes it easier to budget over time compared to payday loans with lump-sum repayments.
Eligibility Requirements
While this platform is designed to be accessible, there are still certain requirements borrowers must meet which are:
- Minimum age of 18 (or 19 in some states)
- An active checking or savings account
- U.S. citizenship or permanent residency
- Steady source of income
- Live in a state where OppLoans operates
In addition to this, OppLoans does not offer loans in every U.S. state. Hence, borrowers should check their eligibility based on location during the application process.
Cons Of OppLoans
Despite the many benefits Opploans offer over payday loans, OppLoans still comes with high interest rates. APRs can range from 59% to 160%, depending on state laws and the borrower’s profile.
While this is lower than the triple-digit APRs of traditional payday loans, it’s still higher than the rates offered by banks or credit unions.
Hence, borrowers should also be cautious not to treat OppLoans as a long-term financial solution. These loans are best used as short-term relief options and not as a repeated borrowing cycle. It’s very important to have a repayment plan to avoid falling into further debt.
Frequently Asked Questions
What Credit Score Do I Need To Qualify For OppLoans?
There is no minimum credit score requirement. OppLoans evaluates other factors like income and bank activity, which makes it easier and more accessible to those with poor credit.
How Long Does It Take To Get Approved?
The approval process can be completed within minutes, and funds are typically deposited as soon as the next business day after approval.
Does Applying Affect My Credit Score?
No. OppLoans only performs a soft credit inquiry, which does not impact your credit score.