OppLoans was founded in 2010 as an alternative to pricey payday loans that charge exorbitant interest rates and trap consumers in a cycle of debt. While these loans may indeed be considered “personal loans,” OppLoans focuses on offering short-term installment loans to high-risk borrowers. The biggest benefit of these loans is the fact that there is no credit check required.
It’s true that OppLoans has higher interest rates and ongoing costs than many other personal lenders, but they are easier to qualify for and their rates are significantly lower than payday loans. For that reason, we think OppLoans could be useful as a lender of last resort when you can’t get approved for a traditional personal loan with a lower interest rate and better terms.
OppLoans Installment Loans: Key Takeaways
Apply for an installment loan with an APR between 99% and 199%.
Repay your loan for up to 36 months.
There are no hidden fees, and you won’t pay any prepayment penalties if you pay your loan off early.
Loan amounts are offered between $1,000 and $4,000.
Use one of these loans to build your credit and improve your credit score.
OppLoans Review: A Lower Cost Alternative to Payday Loans
Let’s be clear: OppLoans installment loans are not the best personal loan option available, and shouldn’t really be considered by most people who need to borrow money. However, these loans can work well for a specific type of consumer: individuals trapped in payday loan hell.
Because short-term payday loans charge interest rates as high as 400% a year, they often trap borrowers in a cycle where they’re living paycheck to paycheck and relying on these high-cost loans to fund their living expenses. The cycle can be very difficult to break out of, due to the exorbitant interest rates and brief payback windows of payday loans — and the fact that they wind up devouring more and more of your take-home pay the longer you rely on them.
OppLoans steps in to help consumers break the cycle by offering an alternative to payday loans for consumers with bad credit. OppLoans installment loans charge annualized interest rates of 99% to 199% — which, while sky-high, are still considerably lower than payday loans. The best part is, they don’t require a credit check.
If you’re constantly having to rely on payday loans to stay afloat, borrowing with OppLoans could help you dig your way out. You could use one of these loans to borrow up to $4,000 and pay off your payday loans for good. From there, you can focus on paying off your OppLoans installment loan for up to 36 months with no prepayment penalties.
In the meantime, you can take time to educate yourself about personal finance so you never wind up using a payday loan again. In addition to installment loans, OppLoans offers an OppU online learning platform. This online university of sorts includes interactive courses that can help you learn better financial habits.
At the end of the day, OppLoans isn’t trying to be the most affordable lender on the block. Instead, this company focuses their offerings on a specific niche and goal, by offering a lower-cost alternative to payday loans and title loans that consumers can apply for without a credit check. OppLoans isn’t a perfect solution by any means, but this company does have loans that could be advantageous in certain situations.
One final detail to note is the fact that OppLoans lets you see if you can qualify without a hard inquiry on your credit report. This is a big bonus since many lenders make you complete a formal application with a hard inquiry on your credit report to find out if you can qualify at all.
Related: No Credit Check Loans
OppLoans Installment Loans: What to Watch Out For
The biggest downside of using OppLoans for your lending needs is obvious: With interest rates between 99% and 199%, OppLoans is one of the most expensive ways to borrow money.
If you were to take out a $4,000 installment loan from OppLoans at their lowest advertised APR of 99%, and chose to pay it off over their longest timeline (36 months), that $4,000 would end up costing you a grand total of $12,600.
Borrowing money at such a high interest rate isn’t just costly over time — it will also leave you with a high monthly payment that could be difficult to afford. If you fail to repay your loan, you’ll wind up hurting your credit so much that it could take years or even decades to repair it. For that reason, we can only suggest OppLoans to consumers who have no other options available to them.
Another downside of OppLoans is the fact they are not available in all 50 states. Currently, this lender only originates installment loans in Alabama, California, Delaware, Georgia, Idaho, Illinois, Mississippi, Missouri, Nevada, New Mexico, Ohio, South Carolina, Texas, Utah, and Wisconsin. If you live somewhere else, you’ll have to find a different lender.
Finally, keep in mind that OppLoans doesn’t offer the large loan amounts many other lenders do. Because they have a specific niche, you can only borrow up to $4,000 and repay it in 36 months or less.
Who OppLoans Is Best For:
Consumers who are stuck taking out payday loans and need a way to break the cycle.
Anyone who can’t qualify for a different loan with a lowest interest rate and better loan terms.
People who have a concrete plan to repay their loan funds in a short amount of time.
How We Rate OppLoans Installment Loans
At The Simple Dollar, we aim to provide a general overview of a lender’s products and services through a standard rating process. After a thorough research and discovery period, here’s how OppLoans stacks up:
How to Apply for an Installment Loan from OppLoans
While OppLoans is far from perfect, they do have one big advantage compared to many other lenders. You can complete the entire application process online without having to speak to anyone.
This is a big advantage over payday lenders and title loan companies who make you visit a physical branch and stand in line. You’ll save money on interest using OppLoans in place of a payday loan, but you’ll also save yourself plenty of hassle and stress.
To apply for a loan through OppLoans, you’ll need to provide:
Your full name
Address of residence
Date of birth
Social Security number
Date of last payday
Preferred loan amount and repayment timeline
Proof of checking or savings account
Bank account number
Once you provide the required information, you could receive approval for your loan within a few hours. Depending on when you apply, you could also receive your funds electronically in your bank account as soon as the next business day.
The Bottom Line
If you need to borrow money, it’s crucial to shop around with different lenders to compare loan rates, terms, and fees. No matter your credit score and income, you’ll find a wide range of offers available to you — including some that are much better than others.
OppLoans is a lender of last resort for people with poor credit who need help paying off payday loans or title loans. With interest rates that range between 99% and 199%, these loans are going to be more expensive than most personal loans on the market.
With that being said, it’s possible OppLoans could be your best bet. The only way to find out is to see if you can get pre-qualified with a loan marketplace that lets you compare rates across multiple lenders. Don’t assume OppLoans is the best you can do; take steps to find out for sure.