Bad credit borrowers usually struggle to qualify for traditional lending products. Because of this, online lenders like OppLoans draw interest from applicants who’ve either exhausted mainstream options or never had access due to low credit scores.
In fact, according to an October 2024 study by FICO, approximately 16.3% of Americans have poor credit, with FICO scores between 300 and 599.
So, if you have poor credit and want to apply for a loan, will OppLoans be worth it?
What Is OppLoans?
OppLoans is a digital lending platform that works with bank partners to issue unsecured installment loans to applicants who fall outside traditional credit criteria.
This lender launched in 2005 and is based in Chicago.
The OppLoans personal loan platform also relies on financial technology and alternative data sources to support application underwriting.
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OppLoans Personal Loan Details: Rates, Terms, Requirements, Availability
| Detail | Information |
| Credit score requirement | No minimum score required |
| APR range | 160% to 195% |
| Loan amounts | $500 to $5,000 |
| Repayment terms | 9 to 18 months |
| Approval time | Decisions may be made as early as the same business day |
| Availability | Not offered in Colorado, Connecticut, Georgia, Iowa, Maryland, Massachusetts, New York, South Dakota, Vermont, or West Virginia |
| Late/NSF fees | May apply, though exact amounts are not disclosed |
| Other charges | Additional fees not publicly listed |
What Loans Does OppLoans Offer?
OppLoans provides fixed-term installment loans that align repayments with the borrower’s income schedule, including biweekly payments.
These loans are unsecured and do not require collateral. Unlike secured loans, they do not put your assets at risk.
Additionally, a refinance option is available, allowing access to more money without another hard inquiry.
Who Qualifies for OppLoans Personal Loans?
To apply, you must be:
- 18 or older and live in a state where OppLoans operates
- A valid bank account with direct deposit is required
- Income must be steady and can come from employment, government benefits, or retirement
Credit score isn’t a disqualifier because approval is based on several factors, such as banking information, income, and recent customer payment history.
Therefore, OppLoans can reject your application due to insufficient income or banking issues.
A soft pull from Clarity or the Experian credit report is also used during the initial check.
Why Does OppLoans Prequalify Borrowers?
Prequalification lets you view potential loan offers, including annual percentage rate and loan terms, without hurting your credit.
This process uses a soft pull and evaluates eligibility based on stated income and credit policies.
In addition, prequalified users may receive notifications by mail or email, outlining a possible actual approved loan amount before they complete the application.
What Fees Does OppLoans Charge?
OppLoans does not charge origination fees or prepayment penalties, so you can repay early without extra cost.
On the other hand, the annual percentage rate (APR) ranges from 160% to 195%.
Late fees or NSF fees may also apply, though specific amounts are not listed publicly.
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How to Apply for OppLoans
To apply for OppLoans, you must first go to its website. Then, follow these steps:
Submit Your Online Application
Fill out the OppLoans application form, which asks for details like income, contact info, and banking information.
You’ll also need to verify your bank account and submit employment details. The process is entirely online and takes just a few minutes to complete.
Wait for the Approval
Next, a soft credit check from Experian credit report or similar data providers helps determine your offer.
In most cases, loan approval occurs almost immediately, though additional verification may follow before final approval.
Receive Your Funds as Soon as the Same Business Day
Once approved, OppLoans will disburse the loan to your account within the same business day.
Benefits of Using OppLoans
OppLoans provides the following features that may appeal to borrowers with limited access to credit.
Easy Application Process
Since the application is online, OppLoans evaluates banking information directly. As a result, it can skip steps that slow down traditional loan reviews.
Fast Funding
If your credit approval and account verification are successful, OppLoans can release loan funds on the same business day.
This makes OppLoans a practical option if you need to receive money quickly for time-sensitive expenses, without relying on high-cost cash advance services.
Option to Refinance
Once you repay at least $400 or 15% of your balance, you may qualify for a refinance that provides more money without another credit pull.
This option extends access to cash if your financial situation changes.
However, while the offer skips a hard inquiry, it doesn’t automatically lower your interest rates, and any added amount will adjust your monthly payment.
Reports to Credit Bureaus to Help Improve Credit Score
OppLoans sends customer payment history to all three major credit bureaus (Experian, TransUnion, and Equifax).
If you make consistent payments on time, this reporting can support efforts to improve your credit score.
It’s not a fast-track fix, but for borrowers with thin or damaged files, it may improve their credit visibility across the major credit bureaus.
Transparent Terms and Predictable Payment Schedule
Before finalizing your loan, you’ll see the full cost breakdown. This includes the total interest owed and a fixed monthly payment across the term.
OppLoans doesn’t have hidden fees, so what you’re quoted is what you’ll pay.
Loan Options for Bad Credit Profiles
OppLoans does not require a minimum FICO score. Instead, it evaluates several factors such as income, employment status, and banking information to assess risk.
This approach helps those who don’t qualify with traditional lenders access installment loans without being penalized solely for past credit mistakes.
A Safer Alternative to Payday Loans with Longer Terms
OppLoans’ unsecured installment loans can extend up to 18 months, offering longer repayment timelines that reduce re-borrowing after a single pay cycle.
Compared to payday loans, which charge a maximum APR of over 400%, OppLoans’ rates are lower and more structured.
No Origination or Prepayment Fees
OppLoans does not deduct origination fees from the disbursed amount, so you receive the actual approved loan amount.
You can also pay off your balance early to save on finance charges without triggering any prepayment penalties.
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Risks and Limitations of OppLoans
Although easy to access, OppLoans may present the following risks and limitations, affecting your repayment over time.
Extremely High APRs Ranging from 160% to 195%
OppLoans’ APRs are far above the 36% benchmark generally cited by consumer protection groups.
With rates between 160% and 195%, the cost of borrowing can escalate quickly, especially if the loan is held for the full term.
High Cost of Borrowing Can Strain Your Finances
Even when repaid on time, the total cost can double the original loan amount. This is due to daily interest accumulation on high balances.
For borrowers on tight budgets, meeting the monthly payment while keeping up with other expenses may be difficult.
Risk of Falling Into a Debt Trap
Borrowers who struggle with late payments or rely on refinancing to keep up may extend their debt longer than expected.
Since unpaid interest continues to accrue, this debt trap can trigger a cycle where future income is committed to past borrowing.
Misleading Marketing Allegations
Legal filings by the D.C. Attorney General in 2021 accused Opportunity Financial, the parent company of OppLoans, of advertising its products as quick credit-building tools without properly disclosing their long-term cost.
This case highlighted concerns around how the loans were presented in marketing campaigns.
Uses Bank Partnerships to Bypass State Rate Caps
OppLoans issues loans through bank partners, which allows them to sidestep state-specific usury limits in places where they’re not licensed directly.
This practice has led to lawsuits claiming the structure is designed to bypass local interest rate restrictions.
Refinancing May Increase Loan Costs
Although refinancing gives borrowers access to more money, it also restarts the interest clock.
At the same time, it typically does not result in better terms.
Instead, it increases the loan balance and extends repayment, which can result in higher interest rates.
Small Loan Amounts May Not Meet All Borrowing Needs
OppLoans limits its loans to $5,000 or less. For borrowers facing larger expenses, such as medical bills, vehicle replacements, or high-cost repairs, the actual approved loan may fall short of what’s required.
Short Repayment Terms
OppLoans’ terms range from nine months to 18 months. While this short timeline limits long-term exposure to interest, it also results in relatively high monthly payments, especially on balances closer to the maximum.
APR Disclosure May Not Be Prominent During Application
Some borrowers have reported that maximum APR figures are not clearly presented during the early stages of the application.
Without upfront clarity, applicants may accept terms without fully understanding how expensive the loan will become.
Not Available in Every U.S. State
OppLoans does not operate in all 50 states due to licensing limits and regulatory restrictions.
This means eligibility depends not just on personal credit policies and income, but also on geographic location.
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What Do People Say About OppLoans?
Borrowers have mixed opinions about OppLoans.
While some highlight fast processing and helpful support, others point to high costs, repayment challenges, and limited transparency.
Better Business Bureau (BBB)
OppLoans has held BBB accreditation since 2016 and currently maintains an A+ rating.
It has an average rating of 3.75 out of 5, based on more than 200 customer reviews.
Many borrowers highlight the simplicity of the online application and the ability to receive money quickly after final approval.
However, other users describe the loan experience as expensive, with some reporting minimal progress on their balances despite consistent biweekly payments.
On the other hand, over 300 complaints have been filed in the last three years, most involving loan terms and high interest rates.
Several borrowers claimed that the total cost of the loan more than doubled their original balance. Other issues include unclear contract language and delays with customer support.
Trustpilot
Trustpilot shows a 4.5 out of 5 TrustScore across more than 5,000 reviews. Most 5-star comments mention helpful support, fast approvals, and straightforward repayment terms without hidden fees.
On the other hand, negative reviews cite delays in funding and confusion over rate disclosures.
Several reviewers also say that their actual approved loan amount was smaller than the range listed during prequalification.
WalletHub
WalletHub reports a 4.8 out of 5 rating from over 10,000 reviews for OppLoans.
Highly rated reviews point to smooth processing and customer service that takes time to explain details.
Meanwhile, lower ratings mention steep finance charges and repayment structures that feel difficult to manage over time.
Reddit users across subreddits like r/USPersonalFinances, r/CRedit, and r/personalfinance generally describe OppLoans as extremely expensive, citing APRs ranging from 160% to 199%.
Some shared examples of small loan offers with large total repayment amounts, and others warned about the burden of biweekly payments that barely reduce the balance.
On the other hand, many advised canceling applications before final approval occurs and recommended paying more than the minimum or avoiding the loan altogether if lower-cost alternatives exist.
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When to Use OppLoans
OppLoans may be worth considering for the following situations:
Need Fast Funds for Emergencies
If you need to cover an urgent bill, same-day funding from OppLoans is possible. This could be relevant for situations like car repairs or medical expenses when traditional processing is ineffective.
Have Limited Loan Options
You can consider OppLoans when other lenders have declined your application or disqualified you based on your credit score alone.
Since there’s no minimum score required and approval occurs based on income, banking activity, and other credit policies, it can serve borrowers with limited choices.
Want an Alternative to Payday Loans
OppLoans offers installment loans with longer repayment terms than payday lenders. With terms of up to 18 months, the repayment structure allows more flexibility than loans due on your next paycheck.
When to Avoid OppLoans
OppLoans offers the least value for the following situations:
You Can Qualify for a Loan with a Lower APR
If your credit history supports it, many online lenders and credit unions offer loans under 36% APR. Choosing those options may reduce finance charges substantially compared to OppLoans’ offerings.
Need a Larger Loan Amount Than OppLoans Offers
The maximum APR on OppLoans loans applies to amounts up to $5,000. If you need more for medical debt, relocation, or other large expenses, other lenders can offer loans well beyond this cap.
Prefer Longer Repayment Terms for More Flexibility
The upper term limit of 18 months may not be enough to make the monthly payment manageable, especially if your income fluctuates. It’s best to choose other lenders with options that stretch over three to five years.
Have Access to Lower-Cost Alternatives
If you can borrow from family or a bank, you may pay less in fees and interest.
Additionally, credit union payday alternative loans (PALs) and budgeting help may offer more sustainable solutions.
Other lenders also offer lower-cost alternatives for specific loans, such as bridge loans, home loans, piggyback loans, electric vehicle financing, personal loans for debt consolidation, and business loans.
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Is OppLoans Legit?
OppLoans operates under Opportunity Financial, LLC, and is accredited by the BBB with an A+ rating.
It partners with FDIC-insured banks to issue loans and complies with applicable federal rules.
However, it has faced lawsuits regarding rate caps and lending practices, and borrowers should read all terms carefully before proceeding.
How OppLoans Compares to Other Lenders
| Lender | Loan Amount | APR / Fees | Credit Check | Funding Time | Reports to Bureaus? | Best For |
|---|---|---|---|---|---|---|
| OppLoans | $500 to $5,000 | 160% to 195% | Soft or hard credit inquiry | Same business day | Yes | Urgent expenses with poor credit |
| SoFi | $5,000 to $100,000 | Low fixed APR, no fees | Hard inquiry | 2–7 business days | Yes | Long-term borrowing with good credit |
| Best Egg | $2,000 to $50,000 | 6.99%–35.99% APR, 0.99%–9.99% origination fee | Soft pull initially, hard pull at approval | Same/Next business day | Yes | Fast personal loans with secured or unsecured options |
| Transform Credit | $1,500 to $7,000 | ~35.99%, no fees | Soft pull initially | 1–2 business days after approval | Yes | Poor-credit borrowers with strong co-signer |
| Varo | Up to $500 | No monthly fee, $1.60–$40 transfer | Yes | 1–2 business days | Yes | Traditional banking needs |
| Earnin | $150/day, $750 max | Tip-based with optional express fee | No | 1–2 days (faster for a fee) | No | Early paycheck access |
| Cleo | Up to $250 | $5.99 monthly membership | No | 3–4 days, or instant with a fee | No | Small cash help + budgeting |
| Current | $50 to $750 | No fees | No | Up to 3 days, or instant (paid) | No | Temporary account gaps |
| CreditNinja | $300 to $5,000 | Triple-digit APR possible | May include a hard credit check | Same day | Yes | High-risk personal loans |
| CreditFresh | $500 to $5,000 | Triple-digit APR possible | No hard check | 1 business day (if approved) | No | Access to a flexible line of credit with fast approval |
| Sunshine Loans | $100 to $500 (varies by state) | ~182% to over 722% | Soft check | Same day if approved before 11:30 a.m. CT | No | Short-term borrowing when other options aren’t available |
| Bright Lending | $300 to $3,000 | 500% – 725% | No hard check | Next business day | No | Short-term cash for borrowers with poor credit |
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Conclusion: Should You Use OppLoans?
OppLoans provides fast access to loan funds for borrowers with poor credit, but its relief is short-term and expensive.
The high APR, short repayment terms, and limited flexibility can create more pressure than support, especially if your income varies or your budget is already strained.
If you qualify with another lender, even a basic personal loan from a bank or credit union will likely offer better rates, longer terms, and lower risk.
You can also explore more targeted types of loans, such as auto loans, medical loans, or loans designed specifically for home improvements or education.
If you’re using a loan to manage existing balances, speak directly with your lender about repayment plans, debt settlement options, or how their credit policies handle debt consolidation requests.
On the other hand, for long-term strategies, credit counseling, nonprofit programs, or DIY debt payoff methods like the avalanche or snowball approach may provide better stability.
But if you’ve reviewed your situation and still plan to move forward, check that you meet the eligibility requirements, know the cost of the actual approved loan, and fully understand how the monthly payment fits into your budget.
Before applying, always confirm current loan terms, state availability, and which bank partners fund your loan through the official site.
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Frequently Asked Questions
What Credit Score Do I Need for OppLoans?
OppLoans doesn’t require a specific credit score. It uses factors like income, banking information, and soft pulls from reports instead of full-score assessments.
Can I Refinance My OppLoans Balance?
Yes, but only after you repay at least $400 or 15% of the original loan. While refinancing may provide more money, it generally extends repayment and increases the total interest.
Is OppLoans Available in My State?
OppLoans is available in 40 states. However, due to licensing limits and rate cap regulations, it doesn’t operate in Colorado, Connecticut, Georgia, Iowa, Maryland, Massachusetts, New York, South Dakota, Vermont, and West Virginia.
