Opploans Personal Loans: Complete review guide of Opploans $500 to $4,000 personal loans. #loanguide
We’re going to go over everything you need to know about Opploans personal loans, so you can make an informed decision of whether to use them for a major purchase or just to cover a short-term financial emergency. The first thing you should know is that Opploans does not lend in every state. They lend in these forty states. If you live in one of the states that isn’t included here, you will need to find a different lender. Now let’s get into the details.
Let’s start with how much you can borrow from Opploans.
OppLoans minimum loan amount is $500. In Minnesota and Hawaii, their minimum is over $1300. Opploans is a great place to go if you are looking for a small-dollar, short-term loan, but you want to avoid payday loans. Opploans is expensive, as we will see, but much better than some of the alternatives in this space.
On the other hand, if you are looking for a more substantial amount of money, OppLoans will lend up to $4,000. $4,000 is probably more than you want to borrow for this type of loan. It is also very possible that Opploans will only lend that top amount to their returning customers.
OppLoans offers terms between 9-18 months, so they are clearly designed for short-term borrowing. If you’re borrowing only $500, don’t take 9 months to pay it back. You can save a lot of money on interest by being aggressive about making extra payments in the first few months of the loan.
Now let’s look at Opploans’ APRs.
These loans should only be for short-term borrowing and only for emergencies…because they aren’t cheap. OppLoans’ minimum APR is 160%. OppLoans has two maximum APRs. In 40% of their states, the maximum APR is 160%. In 60% of the states, their maximum is 179%. Of course APR stands for Annual Percentage Rate. It is meant to give people an easy way to compare the costs of different loans. The problem is that APR starts to become counterintuitive when you are talking about short-term lending. Let me give you an example: If you borrow $500 from Opploans at a 179% for 9 months, your intuitive might tell you that you will pay more than $500 in interest alone. But you would actually pay $440 in interest. That’s because the interest is calculated at the daily level based on the outstanding balance. That’s why making extra principal payments when your balance is the highest—at the beginning of the loan—will save you so much money in the long run.
Opploans is expensive. No question about that. And the reason for that has to do with who they lend to. They primarily lend to people with Poor credit scores. I believe most of their customers have credit scores between 550 and 620. People with poor credit don’t have many options, so it’s not uncommon for them to default on loans if they run into additional trouble. Of course, most borrowers pay back without any trouble. But Opploans writes off around 15% of the money they lend out. They charge a higher APR to compensate for those losses.
It’s also important to point out that Opploans won’t just use credit score to determine whether to approve you. They have their own algorithm that is based on a lot of different metrics like payment history, your debt-to-income ratio, amount and type of income, information from alternative credit bureaus, bank transaction data, and other financial data.
Opploans will not charge an origination fee on their loans.
An origination fee is a fee that comes out of the proceeds of the loan and is a percentage of the borrowed amount. The fact that Opploans doesn’t charge an origination fee means that the full cost of borrowing is wrapped up in their interest rate.
If you are late on your payment, OppLoans will not charge you a late fee. That’s great, but they will continue to charge you interest on any late amount. Given how high their interest rate is, being late isn’t…free.
If you struggle to get approved for the credit you need, one thing you can do is add a cosigner to your loan. A cosigner is someone who agrees to pay off the loan if you fail to. Unfortunately, Opploans will not accept cosigners. So, if you need a little extra help getting approved, you might need to turn to another lender.
One thing that can catch first-time borrowers off guard is the payment schedule. Traditional credit products like credit cards and mortgages have monthly payments. You actually make payments to Opploans semi-monthly or bi-weekly. Essentially, they are just lining up your payments to come out of your bank on your paydays. When you see the loan agreement, you might think it is more affordable than it is, if you think the payment is monthly.
Now let’s do a deep dive into their application process. You can only apply to Opploans online. In order to apply, you will need to verify your social security number with either a social security card or an IRS-issued tax document, like a w-2. You will need to produce a current ID, like a drivers license, passport, or permanent resident card. You will need to show proof of income. Usually the easiest way to do that is with a pay stub. And you will need to authorize an automated bank verification. This is where they gain read-only access to your bank account. They will look at deposit sizes and frequency, average account balances, and spending.
They strive to get you a decision on your application within 24 hours. It is very possible that you could get an answer on the same day that you apply. If they need additional information from you, it could 2 or 3 additional days.
When you apply, they will only do a soft credit check.
That will allow them to pull the information that they need to determine whether to lend you money. If you agree to take the loan, they will do a hard credit check which will show up on your credit report.
After you accept the loan, you can have the funds directly deposited into your bank account the next business day. If you complete the process before noon Central time, you could receive the funds on the same day. Opploans uses ACH processes to disburse funds and receive payment.
So, what is a personal loan from Opploans good for. Their APRs are too high to use one of their loans for debt consolidation or for discretionary spending. You really would only want to use one of their loans for short-term, small-dollar emergencies. They would be a good alternative to a payday loan. They could be a good source of funds to get you out of an unexpectedly bad financial month. This is especially true if you know you can pay the loan off quickly. I think you want to avoid holding an Opploans loan for many months or years. The interest expense would just drain your resources.
So, let’s summarize what we’ve found about Opploans personal loans.
The most important fact about personal loans from Opploans is that they are small-dollar loans that should only be taken for a short period of time. They lend limited amount of money and their interest rates are high. It is good that they don’t charge origination fees or late fees.
If you do have poor or fair credit, it can be particularly challenging to know who will extend credit to you. Each lender will have its own algorithm for making lending decisions. You might be denied by one only to be approved by a better option. That’s why it’s so crucial to shop around. You owe it to yourself to seek out the best deal that you can get. 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 have any questions we didn’t cover, leave a comment below and we’ll try and get it answered. If you found this video useful, please like it and subscribe to our channel. Thanks for watching.
Stop paying the high interest rates from carrying a monthly balance on your credit card!
Soft Credit Pull, Up To 40 Lenders at Once, See what you’re approved for!
