Is Opploans Just A Payday Loan Company
With payday loans having such high interest rates and quick repayment terms, borrowers in need of quick cash are better off using an alternative lending solution. Personal loans are one option however, most personal loans require the borrower to have good to excellent credit. Thats where companies like OppLoans come in. They cater to individuals who have less-than-stellar credit.
Opploans Personal Loans: 2021 Comprehensive Review
Ben Luthi is a personal finance and travel writer who loves helping people learn how to live life more fully. His work has appeared in several publications, including U.S. News & World Report, USA Today, Yahoo! Finance and more.
Chelsea has been with Bankrate since early 2020. She is invested in helping students navigate the high costs of college and breaking down the complexities of student loans.
Is Opploans Good For Personal Loans
OppLoans personal loans are expensive because of the high annual percentage rates and short repayment terms. Because of this, we dont recommend them. They can be a viable form of credit if you need cash in an emergency and you cant borrow from other sources, but we recommend looking at other bad-credit lenders first.
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What To Consider When Getting A Bad Credit Loan With Opploans
Although they provide a safer and more affordable alternative to predatory loans for non-prime borrowers, it is still an expensive form of credit. If your aim is to raise your FICO score, there are more efficient ways to build credit. For example, you may qualify for a secured credit card or a credit-builder loan.
In addition, be sure to explore all other options. Alternatives to personal loans include:
Lastly, dont depend on multiple loans from OppLoans, as they are too expensive to be a long-term or repeat financial solution. As CEO Jared Kaplan has made clear, OppLoans doesnt want you to be a repeat customer either. Instead, the companys goal is to assist customers in graduating to less expensive forms of credit.
When you have bad credit, you should take extra care when making any major financial decision. Not only do you need to make sure your choice helps to rebuild your credit, but you also need to make sure your current financial situation is in good order.
What Will Show Up On My Credit Report
A loan funded through one of our lending partners will reflect on your credit report both as OppLoans and the name of the partner in question.
For FinWise Bank LoansReporting on your account will show up on your credit report as FinWiseOppLoans OR FinWise/OppLoans .
For First Electronic Bank LoansReporting on your account will show up on your credit report as FEBOppLoans
For Capital Community Bank LoansReporting on your account will show up on your credit report as CCBank/OppLoans
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Who Is Eligible For An Opploans Personal Loan
To meet the minimum requirements for an OppLoans personal loan, you’ll need to:
- Live in one of the 37 states where OppLoans or its partners operate
- Be 18 years old or older
- Not be covered by the Military Lending Act
- Have worked at the same employer for at least the past three months you may also qualify if you have a regular source of income that’s not from employment
- Have had a traditional bank account open for at least 90 days
- Get paid via direct deposit
Even if you meet those requirements, your application could still be denied or you may not receive as large of a loan as you want.
Improve Your Payment History
As youll recall, your payment history determines 35% of your score overall. This means that making your installment loan payments on time every month will go towards improving that chunk of your score. If you dont have a great history of on-time payments, it just might help to start fresh!
Of course, that all depends on your lender actually reporting your payment information to the . And if you have bad credit, you might find yourself dealing with lenders who dont report any payment information at all. This is especially true for most payday and title lenders. While many of their customers will be grateful that these lenders dont report payment information, someone whos looking to be responsible and improve their credit score will not.
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Ways Auto Loans Can Hurt Your Score
If youre not careful, there are several ways auto loans can damage your credit score. These include:
- Late payments: One late payment can tank your FICO score. The good news is youll have 30-days to bring the loan current before its reported to the credit bureaus.
- Repossessions: A repossession can lead to a collection or judgment being reported on your credit report. Both items remain on your credit report for seven years.
- A hard inquiry will be generated for the initial loan application and if you decide to refinance the loan later on down the line. Fortunately, each hard inquiry only decreases your score by five points or less, and the impact is only temporary.
Before applying for any type of loan or credit, it pays to understand how it will impact your credit. This article provides practical ways you can improve your credit score.
Read this article if you need an auto loan but you have bad credit.
How Does It Compare
Comparing Opploans to a traditional lender is difficult because Opploans isnt a traditional lender.
The company doesnt look at your credit score and offers far smaller loans than most personal loan providers.
Instead, the company positions itself as a better alternative to payday lenders.
Generally, Opploans is far inferior to a traditional personal lender.
It charges interest rates ten-to-twenty times higher than the rates charged by most lenders. It also has a much lower borrowing limit.
The only time you should consider borrowing from Opploans is when you have no other option and cant qualify for a loan from a bank or traditional lender.
On the other hand, Opploans is a good alternative to payday lenders, which charge massive interest rates and often rely on predatory fees and tactics.
For borrowers with no other option, Opploans can be a fine alternative to payday loans and give them a path toward building credit and working with traditional lenders in the future.
Ideally, youll set aside some money to build an emergency fund, saving you from having to consider working with a payday lender or Opploans in the first place.
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No Hard Credit Check Required
When you apply for an OppLoans personal loan, you don’t need to agree to a hard credit checkâthe type that may hurt your credit scoresâbecause OppLoans won’t review your Experian, TransUnion or Equifax credit reports.
However, OppLoans will review a report and credit score from Clarity Services, a specialty consumer reporting company that’s owned by Experian. Clarity Services focuses on nontraditional data, including loans and financial services for lower-income and subprime lenders.
OppLoans will also consider your employment status, income, bank records and financial history when deciding whether to offer you a loan.
Except in Texas, OppLoans reports your loan to the three major credit bureaus, which can help you build credit if you make your payments on time. Missing a payment could hurt your credit and, in some states, lead to a late payment fee.
Use The Loan To Build Good Credit
A major drawback of working with alternative lenders that dont look at your credit score, beyond the high cost of borrowing from them, is that most wont report your loan activity to the credit bureaus.
That means that you wont build credit, even if you repay your loan on time.
Unlike payday lenders, Opploans reports your loan activity to the major credit bureaus.
If you make your loan payments before the due date every month, that can help you build or rebuild your credit score. Eventually, you may be able to qualify for a loan from a traditional lender at a much lower rate.
On the other hand, if you dont make your required payments, it can damage your credit score further, making it even harder to qualify for traditional loans.
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Provide A Copy Of The Letter To Your Bank
You should provide your bank with a copy of the letter that revokes your authorization for automatic withdrawals. The CFPB also provides a sample letter for notifying your bank that you’ve told the lender to stop withdrawing money from your account. Once you notify your bank that you have revoked your authorization of the automatic withdrawal, it must block all future payments, as long as you provide the notice at least three business days before the scheduled payment. The bank shouldn’t charge a fee for this service.
Asking your bank to stop payment is a different process.
Military Lending Act Prohibits Giving Payday Loans to Servicemembers
The Military Lending Act is a federal law that prevents lenders from gouging military servicemembers and their dependents with outrageous interest rates. The MLA caps the interest on many kinds of loans at 36% per year and generally prohibits the extension of payday loans, vehicle title loans, and other types of harmful loan products to military personnel if they’re serving for more than 30 days. -,).
Student Lines Of Credit
A student line of credit features one of the lowest interest rates youll find at OPPA Credit Union: Prime rate plus 1.5%.
- The student line of credit is offered to all members attending a recognized college or university as a full or part-time student
- Your overall credit limit can be as high as $60,000, with annual amounts of $15,000 staggered over a maximum of four years
- After graduation, you have six months before youre required to begin repaying any of the principal youve borrowed and your loan is converted to a regular personal loan
- Interest only paid monthly while in student status
- Interest rate is OPPA Credit Union Prime rate plus 1.5% during student status
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An Alternative To Payday Loans
If you need to borrow money and aren’t able to get approved for a low-rate loan, get relief from creditors or find another way to make ends meet, you may find yourself considering a payday loan. But payday loans’ high fees and short repayment periods can lead to the equivalent of a nearly 400% annual percentage rate or higher. They can also land borrowers into a debt trap if they’re unable to repay the original loan and repeatedly have to borrow money to pay off the loan.
As an alternative to payday loans, OppLoans offers high-rate installment loans with longer repayment terms to borrowers who don’t have good credit. This type of loan may be one of the few sources of credit you can qualify for, particularly if you need to borrow a few thousand dollars and don’t want to use a vehicle as collateral. And, the long repayment period can lead to more manageable payment amounts.
In many states, OppLoans may offer loans with a fixed 160% APRâwhich is still an exceptionally high rate. The rate could even be even higher, such as 199% APR in South Carolina, or as low as 99% APR in some states. Georgia is an outlier with the lowest rate of 59% APR, although that’s still more than three times the average purchase APR for credit cards.
Considering the high APR and potentially frequent repayment schedule, you’ll want to shop around before taking out one of these loans. But in an emergency, it could be one of your better options.
Opploans Personal Loan Features
Same Day Funding Available
OppLoans disburses loan proceeds on the same day you apply as long as your loan application is approved before 8:00 p.m. EST from Monday to Friday.
OppLoans TurnUp Program
The OppLoans TurnUp program helps applicants find more affordable loan options even if it isn’t with the lender itself. When you check your rate through OppLoans’ initial application form, you can opt into this program. What happens is the lender will check for rates with around 15 other similar lenders to help you compare options.
No Credit Check
OppLoans doesnt conduct hard credit inquiries. Instead, it relies on other factors, such as income, employment, and history of banking transactions. This means that even with a bad or limited , you may be able to qualify for an OppLoans personal loan.
No Prepayment Penalties
OppLoans wont charge extra fees if you pay off the remaining balance of your loan or make extra payments toward it.
Low Loan Amounts
At $500, this minimum loan amount is best for those who dont need a lot of cash for their borrowing needs.
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Bank Verification Terms Of Service
We ask you to verify your authority and access to external financial accounts, confirm your ability to access such accounts, and verify your financial information as part of the application process . The Bank Verification process is subject to the following terms and conditions . Proceeding with Bank Verification constitutes your assent to and acceptance of these terms and conditions.
As used hereafter, the terms you or your shall mean the consumer submitting an application, and the terms we or our shall refer to Opportunity Financial, LLC.
Application Verification Process.We may verify your bank account by using one of the methods set forth below:
Please Note: All applicants must verify their bank account information by one of the above methods in order to be eligible for a loan through OppLoans. You understand and acknowledge that providing your bank account information as part of your loan application does not represent or imply that your loan application has been, or will be, approved. Please contact us if you have any questions ator.
Alternatives To An Opploans Loan
There are better options than the OppLoans personal loan if you need to borrow money, even if your credit needs work. Here are some alternatives to look into:
- Bad-credit personal loans. Some lenders offer personal loans for people with poor credit with much more reasonable APRs. Before applying, ask if the lender offers a prequalification. This option helps you check your rate without a hard credit inquiry, so you can easily compare terms and find the best loan.
- Secured loan. Because secured personal loans are backed by collateral, you may have an easier time qualifying for a secured loan with an affordable APR compared to an unsecured loan. Just be aware that if you default on your loan, you could lose your collateral.
- Withdraw from your retirement account. You also might be able to withdraw from or borrow against your 401 or another type of retirement account. While this is generally seen as a last resort, it can be a better option than high-cost loans if you need funds in an emergency. Before taking out the money, check whether youll need to pay taxes and early withdrawal penalties.
- Outside assistance. If youre struggling to pay bills or living expenses, you may be able to negotiate a payment plan with your creditors or seek help from non-profit organizations. Alternatively, a friend or family member might be able to help you out of a tight spot.
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Is Fraud The Issue
Bob Lotich: Stolen my identity or something.
Jake Blount: Yeah, so thats the first thing I say is, I think someone has stolen my identity. And he was like, Its happened before. We got to figure this out. And I was like, Wheres it at? Hes like, Its at Pinnacle Bank. And Im like, Pinnacle Financial Partners, thats who I bank with. And I was like, Wait, I bank there. Im like, Somebody stole my identity and had the audacity to pull a huge loan in my name.
Bob Lotich: At your bank.
Jake Blount: At my bank. And so Im totally following this whole thing of fraud or whatever, thinking that that was whats happening. Because Im all in thinking, Im not thinking about the Paycheck Protection Program, which is it ended up being was the Paycheck Protection Loan was that loan because it was at the time a two year payback period. If youre talking about a $15,000 loan with a two year payback period, so it was this massive debt on my account and totally.
Bob Lotich: Unexpected. You didnt know it was there.
Jake Blount: Unexpected.
How Opploans Compares: Key Benefits Of Opploans’s Personal Loan
Here are some of the reasons that OppLoans borrowers love OppLoans personal loans:
- Lower Rates: OppLoans offers lower rates for poor credit personal loans compared with payday loans.
- Focused on Bad Credit: OppLoans focuses on solutions for personal loans for poor credit.
- Easy Online Application: You can apply for an OppLoans personal loan completely online.
- Quick Disbursement: Funds are disbursed directly to your bank account in as little as 1 day.
- Customer Service: OppLoans offers live customer support 7 days a week
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