OppLoans installment loans — what they cost, who qualifies, and what to try first
When a bill cannot wait and every other options is not available, some people turn to high-interest online lenders. OppLoans is one of the most widely known of these lenders, offering installment loans to borrowers with bad credit who have been turned away elsewhere. It is a legitimate operation — but it comes with high fees that every borrower should understand before applying.
This page explains what OppLoans actually charges, who can and cannot qualify, and — critically — what lower-cost options to use first. Using OppLoans before exploring those alternatives would likely make a difficult financial situation harder.
- COST - INTEREST RATE RISK: While OppLoans says they are an alternative to high priced lenders like a payday company, OppLoans still will charge close as much as 195% as an interest rate - which is as much as ten times more than a credit card. So the interest rate and cost of using them is very high and risky.
What OppLoans is
OppLoans is an online lending platform operated by Opportunity Financial (OppFi), based in Chicago. It does not originate loans directly — it partners with community banks that issue the loans, which OppLoans then services. The loans are unsecured installment loans, meaning no car or property is used as collateral, and they are repaid in fixed payments over a set term.
The company positions itself as an alternative to payday lenders for borrowers who cannot qualify at traditional banks or credit unions. That positioning is accurate in one narrow sense: OppLoans does offer longer repayment terms and somewhat lower rates than typical payday loans, which often carry APRs above 400%. But that comparison sets a low bar. Relative to any other lender such as a bank or credit union, OppLoans is expensive, and it should be treated as a last resort rather than a routine borrowing option.
OppLoans is available in roughly 40 states. It does not currently operate in Colorado, Connecticut, Georgia, Iowa, Maryland, Massachusetts, New York, South Dakota, Vermont, West Virginia, or the District of Columbia. Residents of those states will need to look at other lenders. The full current list of available states and their specific rate structures is posted at https://www.opploans.com/rates-and-terms/.
Try these options before applying to OppLoans
OppLoans charges annual interest rates that range from 160% to 195%. On a $1,500 loan with a nine-month term, that level of interest adds up to hundreds of dollars beyond what was borrowed. For anyone facing a crisis, that additional burden can compound the original problem rather than resolve it. Before contact this lender, the following options are worth contacting first — and in this order.
- Nonprofits and charities may provide direct financial help that never has to be repaid. Many cover rent, utilities, groceries, and medical costs for households in need, that meet income and other requirements. Organizations that help with emergency bills can be found through the resources at the NHPB financial assistance by area directory.
- Credit unions offer small personal loans and salary advance programs at rates that are a fraction of what high-cost online lenders charge. A credit union loan at 18% APR versus one at 180% APR represents a difference of hundreds of dollars on even a modest amount. Credit union salary loan programs and options are at the credit union loan page.
- Zero-interest and low-interest nonprofit loans exist for specific situations — car repairs, medical costs, home stability — and never carry the triple-digit rates of lenders like OppLoans. A guide to those programs is at the guide to interest free loans.
Creditor payment plans are worth asking about as well. Many hospitals, landlords, and utility companies would rather set up a payment arrangement than lose the account entirely. A medical bill, for example, can often be reduced or placed on an interest-free installment plan simply by calling the billing department. Borrowing at 160% to pay a bill that could have been restructured for free is an outcome worth working to avoid.
If none of those avenues work and the need is immediate, OppLoans is one option to consider.
What borrowing from OppLoans actually costs
The annual percentage rate on an OppLoans loan runs from 160% to 195%, depending on the state, the loan amount, and the applicant's financial profile. There is no range that comes close to what most financial advisors consider affordable — consumer advocates generally consider any loan above 36% APR to be high-cost.
To help you understand the cost: borrowing $2,000 at 160% APR with a nine-month repayment term results in roughly $1,550 in interest charges alone. The total repaid would be close to $3,550 on a $2,000 loan. On an 18-month term at the higher end of the rate range, the interest cost grows further.
Loan amounts run from $500 to $5,000, and repayment terms are between nine and eighteen months. There are no origination fees, application fees, or prepayment penalties, which means paying off the loan early reduces the total interest paid. Paying it off as quickly as possible is the single most important way to limit the cost of this type of borrowing. OppLoans reports payment history to all three major credit bureaus, so on-time payments may help build credit over time — though that benefit does not offset the cost of the interest being paid.
Who often qualifies — and who does not
OppLoans does not use a minimum FICO credit score as a requirement, which is the main reason some borrowers turn to it after being declined elsewhere. The application involves a soft credit check at the time of inquiry, which does not affect a credit score. If the loan is accepted, a full review follows.
To qualify, applicants must be at least 18, be a U.S. citizen, have a valid U.S. bank account with direct deposit set up, and earn at least $1,500 per month in gross income. Income can include wages, Social Security benefits, disability payments, child support, or alimony.
One requirement that frequently catches people off guard: OppLoans requires W2 employment and at least 30 days with the current employer. Self-employed individuals, freelancers, and gig workers — Uber and Lyft drivers, delivery workers, independent contractors — do not qualify under OppLoans' current underwriting standards. Borrowers in that situation should review the options at the gig worker loan option page, which covers lenders and programs that accept non-traditional income.
TurnUp — checking for a lower rate before committing
OppLoans offers a feature called TurnUp that runs a soft credit check before the application is finalized and checks whether the applicant qualifies for a lower-rate loan — under 36% APR — from a different lender. If a match is found, OppLoans redirects the applicant to that lender instead of offering its own high-rate product.
Only a small share of OppLoans applicants qualify for a TurnUp referral, but it is worth looking into. Accepting a referral to a lower-rate lender is almost always the better outcome. The check does not affect a credit score.
How the application works
The application is completed online at https://www.opploans.com/ and typically returns a decision within minutes. Applicants provide personal information, employment details, Social Security number, and bank account information for income verification. If approved, funds can be deposited as soon as the same business day, though next-business-day timing is more common.
Fixed payment amounts and due dates are established at the time of funding. OppLoans allows borrowers to choose and, later, adjust their payment due date — a useful option for anyone whose pay schedule changes. There is no penalty for paying off the balance early.
Phone support is available at (800) 990-9130 seven days a week.
Comparing OppLoans to other high-cost lenders
For borrowers who have already determined that a high-cost loan is the only remaining option, the comparison to payday lenders is relevant. A payday loan typically carries an APR above 400%, must be repaid in full within two weeks, and is secured against the next paycheck. OppLoans charges less in annual rate terms, allows repayment over months rather than weeks, and does not require collateral. For someone who has ruled out every lower-cost alternative, that structure is more manageable.
That said, credit card cash advances, pawn loans, and other short-term borrowing options may still be worth comparing depending on the individual situation. You can also see a guide to lenders and loan options for people with poor to fair credit on NHPB.
The information on this page is provided for general guidance only and does not constitute financial advice. Loan terms, rates, and availability change; confirm current details directly with OppLoans before applying. Borrowers are encouraged to explore nonprofit assistance, credit union programs, and other lower-cost options before taking on a high-interest loan.
Related Content From Needhelppayingbills.com
|
Need help navigating programs?