OppLoans Personal Loans Review
OppLoans ranks among the leading online lenders offering loans to non-prime borrowers. They are able to lure them in because of their low rates.
In addition, they also offer installment loans which allow the borrower to make small payments on a regular basis. In exchange, OppLoans will report the on-time and regular payments to the credit bureaus to help them improve their credit score.
To get a loan from OppLoans, you’ll have to apply online. As an incentive, OppLoans won’t perform a credit check with the credit bureaus, therefore, your score won’t take a hit. If you get approved, you will receive the funds within a single business day.
Also, you’ll not be required to put up collateral for the loan. If you’re interested in OppLoans, read on to find out more about their personal loans.
Personal Loans from OppLoans
Borrowers can take out loans starting from $1,000 to $4,000 at OppLoans. This is more compared to title loans and payday loans. The APRs are also low, at least half of what payday loans charge, but they are still quite high with the lowest starting from 199%. However, these rates vary from state to state.
Compared to the payday loans, personal loans from OppLoans are bigger and last for a long time. Although a longer loan duration means paying more in interest, you’ll bear a lighter burden on your monthly installments. In addition, there are no early payment penalties, thus if you come across an opportunity to pay off the loan, take it.
About the Borrower
OppLoans doesn’t use strict terms during application, but you’ll have to meet certain basic requirements. First off, you need to be 18 years old and older and own a bank account at least 90 days prior to the application.
You don’t need a minimum credit, but you’ll need to provide proof of income. If you’re employed, you need to have been in the same job at least for three months. Your paychecks must also be made through direct deposit.
An OppLoans customer has an average credit score of 560 since many of them use these loans on debt consolidation, medical emergencies, car repair and the likes.
The Application Process
The application process at OppLoans is quite friendly and simple since everything can be done online. All you need is a smartphone with internet access. You can fill out the forms in a few minutes.
In the application process, you’ll come across requirements such as your bank account, annual income, employment history and your age. An interesting note is the fact that OppLoans doesn’t conduct credit checks through the credit bureaus.
After submitting your application, it will go through a review using certain algorithms built around data acquired from their customers and other financial sources. Some of the factors that will influence whether your application gets approved or not include employment, banking activity and income. With these factors available, you can get approvals on the same day.
After pre-approval, you’ll get a personalized loan offer complete with interest rates, installment amounts, the number of installments and the entire cost of the loan. With this information, you can make an informed decision on whether you can afford the loan or not.
If you’re satisfied with the terms of the loan, you can continue to accept the offer and move on to the next stage which will involve verification of the details you provided in your application.
The payment schedule will then be available to you through the customer service portal and at the time of signing the contract. During the loan duration, you’ll have access to various representatives who will help you if you have any queries. You can even adjust your payment schedule should you encounter a snag along the way.
What Next After Approval?
After approval, the funds will be disbursed to your bank account or you can receive a check via mail. The method will depend on your preference and it will take about a business day.
Also, depending on which state you live in, you may receive a credit limit and you can withdraw the funds as soon as they are available. If this is the case, you’ll make minimum monthly payments and also make extra withdrawals as long as you don’t surpass the credit limit.
You can check for your loan balance irrespective of your loan type as well as the loan agreement by logging in to your dashboard through OppLoans website. Your monthly payments can be made either through automatic payments by electronic transfer, which is withdrawal done straight from your bank account or through payroll deductions.
If you come across extra cash and you decide to channel it toward paying off your loan, you won’t suffer from early payment penalties.
Different from payday loans, loans from OppLoans can help you rebuild or establish your credit. This is because OppLoans reports your progress to the three major credit bureaus. Therefore, if you make early payments, you can be sure that your credit score will improve.
Vice versa is also true. Should you skip a single payment, or delay in making payments, you can be sure your score will suffer a negative impact.
Further, OppLoans also offers a wide range of online tools you can use for various financial purposes such as credit building through the education branch OppU, as well as tools on budgeting. With OppU, customers will learn how to take control of their finances through a series of educational courses which will help them meet their goals.
When Did OppLoans Start?
OppLoans was founded in 2012 in Chicago, but it started out as a brick and mortar lender before it digitized its services in 2013. Since then, OppLoans has grown from strength to strength, with Inc naming it among the fastest growing companies in 2016, 2017 and 2018.
The company is focused on delivering world-class customer service as well as educating consumers on responsible borrowing. Up until 2018, OppLoans has worked with at least 200,000 customers and has processed more than $250 million worth of loans.
Tips For Taking Out a Bad Credit Loan
OppLoans offers other affordable ways to get loans for non-prime borrowers, but they are still expensive. If you intend on improving your FICO score, you can use other effective methods to achieve the same result. Some of them include:
- Getting loans from friends and family members
- Asking your lender to work out a different payment plan which is favorable
- Seeking payday alternatives from credit unions
- Get a paycheck advance from your employer
- Get a loan from a pawn shop
- Get help from religious organizations, government programs, charities and local nonprofit organizations.
Also, don’t go for multiple loans from OppLoans since they can be expensive as well in the long-term. What’s more, OppLoans main objective is to help their customers move to favorable loan terms.
Other Factors to Consider When Taking Out a Loan
Installment loans from OppLoans or any other lenders are long-term commitments. Therefore, you need to analyze your income to make sure you can afford these installments.
It’s also important for you to have an emergency fund to cater for unexpected occurrences. By doing this, you set a financial cushion for those turbulent financial days. Furthermore, you need to think about your job. Will you be there for the duration of the loan? Is the income stable enough to cater for the monthly installments?
Apart from the employment requirements set by lenders such as OppLoans, you also need to ask yourself tough financial questions to make sure you are ready for the financial obligations you are about to bear.
How Will the Loan Impact Your Credit Score?
Installment loans will have a positive impact on your credit score because OppLoans reports to the major credit bureaus. However, should you default, the negative reports will be reported and don’t forget that the negative entries will remain on your credit report for as long as seven years.
With this in mind, it’s vital for you to maintain on-time and consistent payments on top of deciding whether the loan is good for you. Think of the worst scenario and think of ways you’ll use to deal with them. This psychological preparation will help you if you indeed encounter such a problem.