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OppLoans Review: Considering a Payday Loan? You Have Other Options

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Let’s say you haven’t gotten your most recent paycheck yet. You think you’re doing fine financial-wise, until you’re hit with an unexpected expense. You have bills to pay, but no funds to pay them. What are your options?

It’s in these circumstances that most people consider taking out a payday loan. Payday loans are short-term loans that are usually for $500, and often have high-interest rates. Typically, these loans require full repayment in two weeks up to a month.

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    If you cringe at the thought of a payday loan, you might have good reason to. It’s pretty easy to fall into the payday loan trap. When you’re not careful, you could find yourself in a vicious cycle where you never have enough to pay it all off. So the amount you owe will roll into a new payday loan for an additional fee. Which might, unfortunately, grow over time. And it doesn’t help that, on average, payday loans have APRs of 400%.

    Sure, payday loans can be useful if you’re very, very careful. But some might find that it isn’t worth the risk. Luckily, you have other options, such as personal installment loans. That’s where OppLoans comes in. 

    Personal Loans 101

    personal loan is money that you borrow from a lender, such as a bank or online lender. When you pay back a personal loan, it’ll be in monthly installments. Much like payday loans, personal loans are typically used for unexpected expenses. But unlike payday loans, personal loans tend to have a significantly lower APR. 

    Make sure to check your credit score before you apply for a loan. That’s because your credit score affects not only what type of personal loan you qualify for, but also the interest rate you’ll be charged. But here’s the good news—if you pay back your loan installments on time and in full, you could help boost your credit score. 

    What is OppLoans?

    OppLoans is an online lender that offers fast and affordable personal installment loans. Specifically created as an alternative to payday loans, OppLoans boasts lower APRs and loan amounts up to $4,000. 

    Like with any loan or financial decisions, there are pros and cons to consider. So before you jump in head-first into your decision, make sure to keep your financial situation and needs in mind. Here’s our lowdown on what OppLoans has to offer.

    The Pros

    We’ve established that payday loans aren’t always ideal. And while personal loans are better, it can still be hard to qualify if you have bad or poor credit. So what can you do? OppLoans offers an alternative. 

    You know how most lenders look at your credit score when you apply? OppLoans doesn’t do that. So your credit score won’t a hit because of a hard inquiry. Instead, when you apply, OppLoans looks at the following:

    • Your bank account
    • Your employment
    • Your income details
    • Your financial history

    If you get approved for a loan, you can expect to get it by the next business day if you apply before 7:30 p.m. (ET) on Monday through Friday. This makes getting a loan a lot easier, especially if you have poor credit.

    Wondering how OppLoans differs from payday loans? OppLoans’ personal loans offer the following:

    • Loan amounts up to $4,000
    • 99–199% APR
    • Terms up to 24 months
    • Builds credit history
    • No prepayment or hidden fees
    • No collateral 

    In comparison to traditional payday loans, OppLoans has a leg up on the competition. Like we mentioned before, payday loans traditionally have an APR of 400%. OppLoans has an APR of half of that. Also, while payday loans are usually for $500 or less, OppLoans offers up to $4,000.

    The Cons

    The biggest con to OppLoans is that, despite have a lower APR than payday loans, their APRs are pretty steep. An APR ranging from 99% to 199% is nothing to scoff at. If you do plan on getting personal loan through OppLoans, we recommend that you pay it back as soon as possible. Otherwise, you could find yourself paying more than you originally wanted to. 

    Also, OppLoans is not available in all 50 states. OppLoans is offered in 13 states, while FinWise Bank, a partner of OppLoans, funds loans in 25 states. So if you’re not listed as a state that OppLoans services, you’ll have to find another alternative. 

    Who Is This For?

    Loans, like the ones offered by OppLoans, shouldn’t be just taken out on a whim. If you find yourself facing a bill or unexpected expense and have other means to cover it, try to use those first. Personal loans like these should only be used as a last resort, when you have no other options.

    With that said, if you’re considering OppLoans, there are much worse options out there. Just make sure that you go in with a plan. Before you apply for OppLoans, figure out exactly when and how you’d pay the loan back. Because their loans have a steep APR—much lower than payday loans, but still high—you want to make sure to pay this loan back as soon as possible.

    The Bottom Line on OppLoans

    No one wants to be in a situation where they don’t have the funds for an emergency. But if you find yourself in that position, OppLoans is a good option. Any short-term solution will have its drawbacks—like OppLoans’ high APR. But in comparison to the APR of your average payday loan, an APR of up to 199% isn’t too bad.

    Plus, the fact that OppLoans’ loan limit is up to $4,000 is a definite plus. That’ll give you a little more leeway on what you can use your personal loan for. But any short-term loan is risky, so try to pay it back as soon as you can. 

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