Comparing Personal Loans From Lenders NetCredit and Opploans Across 11 Criteria for 2024!
We’re going to compare the personal loans offered by OppLoans and NetCredit. We have spent years in the lending industry and track dozens of lenders. We are going to bring that experience to help you make the decisions that would be best for your personal finances.
The first thing we are going to look at is the loan amounts that they offer. OppLoans offers loans as low as $500. NetCredit will not lend less than $1,000. So, if you need just a little bit of money, OppLoans is a better bet. On the other hand, if you are looking for a more substantial amount of money, OppLoans will lend up to $4,000 while NetCredit will lend up to $10,000. NetCredit gets the marks on maximum loan amount.
OppLoans offers terms between 9-18 months, so they are clearly designed for short-term borrowing. NetCredit will lend as short a term as 6 months and as long as 60 months, or 5 years. Honestly, 5 years seems like a long time to be paying back a loan that is less than $10,000. If you get a loan for that term, I would work pretty aggressively to make as many extra payments in the first year as I could. That would save you a lot of money on interest over the course of the loan.
Now let’s look at the cost of the two personal loans from NetCredit and Opploans.
OppLoans’ lowest rate is 160% while NetCredit’s lowest rate is 34%. NetCredit gets the credit for having the lower rate, here.
Opploan’s maximum APR is 179%. NetCredit’s maximum tops out at 155%. Obviously NetCredit gets the win on this one. Those APR numbrs are so high that I think we need to talk about them a little bit more. The first thing you need to know is that the APR you are offered will most likely have more to do with the amount you ask for in the state in which you live than it does your financial situation.
That being said, there are two reasons why the APRs are generally that high. The first one has to do with lending small amounts for a short time. Lending small amounts of money for just a few months just isn’t profitable at more traditional interest rate. Consider a 6-month loan of $1,000 at an APR of 24%. The total interest paid would be $71.15. In many cases, that would not even cover the cost of processing the loan. This is why so few banks lend small amounts anymore. The second reason why the APRs are that high involve the next thing on this list: who the loans are for.
OppLoans and NetCredit primarily lend to people with poor or damaged credit. People with credit scores between 550 and 620. Most of these borrowers will pay back their loans without any trouble. But, probably around 15-20% of them will fail to repay. Not only do these companies lose the interest they would have earned, they also lose a portion of the principal they lent out. So, they have to price the loans higher to account for that potential loss.
So, in practical terms, how much interest do you actually pay for a 6-month loans for a $1,000 at an APR of 100%? Remember that the APR is an annualized measure, but this is only a six-month loan. So, ultimately you would pay $282.82 in interest.
Now let’s look at their origination fees. OppLoans does not charge an origination fee. NetCredit charges a fee that would range between 1-5%. The origination fee comes out of the proceeds of the loan. That cost is in the APR. The APR is the origination fee plus the interest rate charged. If you pay the loan off early, you save on the money that you would have paid in interest, but you don’t get a reimbursement on the origination fee.
Now let’s consider some of the operational features of the two lenders.
OppLoans does not charge any late fees. If you are late with a payment, the amount will continue to accrue interest, but they will not charge you an additional fee. NetCredit, on the other hand, will charge you between $10-15. $10-15 isn’t a bad late fee; I’ve seen a lot worse. But, nothing is better than something when it comes to late fees, so OppLoans wins this category.
Neither OppLoans nor NetCredit offer loans in every state. OppLoans operates in 34 states and NetCredit operates in 37 states. Here is a comparison of their state coverage. They both have pretty good geographic coverage, but they largely stay out of the Northeast. If you live in any of the grayed out states, you won’t be able to apply for a loan. We’re going to give NetCredit the green box on this one for being able to lend in three more states than OppLoans.
Both OppLoans and NetCredit say that they will make a decision on whether to lend you money on the day that you apply. In fact, their systems are automated and are likely to let you know within minutes. Likewise, they say that you can have the money in your account as soon as the next business day
So, let’s summarize what we’ve found comparing Opploans Personal Loans vs. NetCredit Personal Loans.
They each have their share of green cells, but it’s hard for OppLoans to overcome the fact that their lowest APR rate is higher than NetCredit’s highest. After all, the cost of the loan may be the most important factor in a lender, especially for people with poor or damaged credit who don’t have many options. That’s why we always recommend that shop around. Each lender will have a different algorithm for deciding who to lend to. You may not qualify for one, yet still qualify for a better option. You never know. At The Yukon Project, we’ve tried to make shopping around easy. If you visit our marketplace page, you can apply to any one of our featured lenders and behind the scenes, we will check your rate with up to 40 other lenders. Our partners use a soft credit check, so applying won’t hurt your credit score. We will show you all of the approved offers so you can pick the loan that’s best for you.
If you do end up with a personal loan from OppLoans or NetCredit, come back and leave a comment about how it went. If you found this video useful, please like it and subscribe to our channel. Thanks for watching.
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