If you have bad credit, it can be tough to get approved for a personal loan. However, OppLoans is an online lender that specializes in working with bad-credit borrowers, giving them a decent alternative to predatory short-term loans.
That said, the lender charges APRs as high as 160 percent, so you’ll want to think twice about whether you need the funds and check to see if cheaper alternatives are available before you apply for a bad-credit loan.
Pros and cons of OppLoans personal loans
Here’s a breakdown of some of the benefits and drawbacks of an OppLoans personal loan.
- Alternative to payday lenders: OppLoans specializes in personal loans for people with bad credit, serving as a good alternative to payday lenders, which may have APRs as high as 400 percent.
- Quick funding: Funding depends on your financial institution, but OppLoans borrowers may receive funds in as little as one business day.
- No prepayment penalties: Unlike some lenders, OppLoans does not charge you prepayment fees, so you’re free to save on interest costs by paying off your loan early.
- High APRs: OppLoans is designed for people who may not be able to get a loan elsewhere, but as a result, its APRs are sky-high. Because of this, it’s not a good option for people who have fair to excellent credit.
- Small loan amounts: The most you can borrow from OppLoans is $4,000. While this lender may be a good fit if you need to fund a small emergency expense, it’s not the right option if you need a more substantial loan.
OppLoans personal loans range from $500 to $4,000 and are designed for borrowers with bad credit.
APRs range from 99 percent to 160 percent, depending on your creditworthiness and the legal maximum interest rate for your state. Terms range from six to 24 months, giving you far more time to repay the debt than you’d get with a payday loan or title loan.
The lender doesn’t disclose a minimum credit score or income requirement, but you must live in one of the 37 states where the lender operates. Other requirements include:
- You’re at least 18 years old (19 in Alabama and Nebraska).
- If your income is through employment, you’ve been working with your current employer for at least three months.
- You’ve had a traditional bank account in your name for at least 90 days.
- You receive your paychecks through direct deposit (New Mexico residents are exempt from this requirement).
- You’re not a covered borrower under the Military Lending Act.
If you get approved, you’ll receive the loan funds as soon as the next business day.
Fees and penalties
OppLoans doesn’t charge an application fee, an origination fee or a prepayment penalty. With APRs as high as they already are, the lack of fees can be a relief. The lender may, however, charge a late fee or a nonsufficient funds (NSF) fee, depending on the state where you reside.
How to apply for a loan with OppLoans
OppLoans offers online applications only, and you can apply for a personal loan through the lender’s website using your computer, smartphone or tablet.
To start the process, you’ll need to provide basic information about yourself, including your name, address, phone number, date of birth and Social Security number. You’ll also be asked to create an account with OppLoans with your email address and a password.
Then, you’ll be asked to share information about your employment situation and income, plus bank details so that OppLoans can send your funds if your application gets approved.
After you submit your information, OppLoans will run a credit check, but it won’t affect your credit score because the lender doesn’t check with any of the major credit reporting agencies. Instead, it checks your credit score through Clarity Services, Inc., another credit bureau, whose report doesn’t impact your credit score.
The lender does, however, report your payment activity to the three major credit bureaus — Experian, Equifax and TransUnion — so paying on time can help improve your credit score.
You may also need to provide some documentation to prove income sources, such as alimony, disability or Social Security benefits.
Before you accept a loan, though, take a little time to see if you might be able to qualify for more favorable personal loan rates from other top lenders.