What Can You Expect from Opploans?

FT Contributor  | 

There are times when an unexpected emergency throws you a curveball. Your car may break down on your way to work, requiring thousands of dollars in repairs. Or you may need expensive emergency dental surgery for a painful abscess. If you don’t have an emergency savings fund to draw funds from to cover the cost, where do you turn?

Some people could pay for the car repair or dental surgery by charging it to their credit card. Or they may qualify for financing through the dentist’s office, car dealer, or a lender.

But some individuals don’t have the luxury of options. They may have a poor credit history or are just getting over a bankruptcy, making it difficult to impossible to qualify for a credit card or a low-cost personal loan. Opploans steps in to help people with bad credit by providing unsecured installment loans so they can get the funds they need — and fast.

Opploans Review

Opploans is a lender that promises small, relatively short-term loans with a quick turnaround when you’re in a pinch. You won’t have to undergo a credit check when you apply for a loan — Opploans evaluates whether you receive regular income to finance the loan instead.

The whole process happens online. Apply for a loan, receive an answer, provide your banking information, and look out for the funds you need, sent by automated clearing house (ACH) payment straight to your bank account, as soon as the next business day.

Opploans’s fees, rates, and loan amounts may vary according to state regulations. Depending on where you reside, you may borrow $500 to $5,000. Repayment terms range from nine to 24 months, although there are no penalties for paying your loan sooner.

You’ll want to pay off your loan sooner to save yourself money — the lender’s interest rates are much higher than national averages. Here’s the annual percentage rate (APR) of an Opploans loan, state by state:

  • Georgia: 59% APR;
  • Illinois: 99% APR;
  • Nevada: 159.32% APR;
  • Alabama, Alaska, Arizona, California, Delaware, Florida, Hawaii, Idaho, Indiana, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Dakota, Tennessee, Utah, Virginia, Washington, Wisconsin, Wyoming: 160% APR;
  • South Carolina and Texas: 199% APR.

Once you’re approved for a loan, Opploans will deposit the funds into your bank account. You’ll know exactly how much you owe each month, which is a requirement for all lenders in accordance with the federal Truth in Lending Act.

Opploans will electronically debit the monthly payment each month from your bank account via an electronic funds transfer or ACH payment until the amount is paid back in full. You can also make additional payments using a debit card.

Although a hard credit check isn’t required to qualify for a loan, Opploans reports your payment history to all three of the credit bureaus. This can be a great advantage for rebuilding your credit, as long as your bank account is funded at the time that your monthly automated repayment is debited.

If for whatever reason, you’re unable to make the next scheduled payment, Opploans suggests you call them at 1-855-408-5000 and speak to a customer service representative to let them know and make other arrangements.

Pros and Cons of Opploans

Opploans considers its service an alternative to a payday loan. There are some important points you need to consider before you decide to borrow money from the lender. Weigh the pros and cons carefully:

Pros

  • No credit check required;
  • Fast funding;
  • A+ rating from the Better Business Bureau (BBB);
  • The online application process can be completed in just a few minutes.

Cons

  • High-interest rates between 59% and 199% APR;
  • Funding limited to 37 states and D.C.;
  • Small loan amounts.

Is an Opploans Right for Me?

Opploans should be a last-resort solution for when you need money fast. Unless you’re facing a serious emergency, a loan from Opploans isn’t recommended. The lender’s interest rate of up to 199% could cost you almost double the amount you borrow.

For example, borrowing $2,100 and paying it back in under 10 months means you’ll need to pay $374.84 per month. If you’re repaying the loan at an APR of 159.32%, it will cost you a total of $3,748.45 to have borrowed a little over $2,000. You would have paid $1,648.45 in finance charges over the time period.

Considering that most loans have terms of over a year, the amount of interest you would have to pay back would be even higher. If you must borrow money, go with the smallest loan amount necessary to cover your cash crunch and pay it back as quickly as possible.

There are alternatives to borrowing more than you may be able to afford. Instead of turning to a high-interest loan, seek alternatives to cover your cash shortfall, such as:

  • Turning to a credit card;
  • Selling items you no longer need;
  • Asking for a personal loan from a friend or family member;
  • Putting money towards an emergency savings fund each month;
  • Asking your employer for a paycheck advance;
  • Asking for a grant or financial assistance from a state or non-profit organization;
  • Comparison shopping with other loan providers for a better rate.

Getting an Opploan

Getting an Opploans loan doesn’t require you to go through a credit check, simplifying the process and increasing your odds of approval. But there are other requirements you’ll need to meet to apply. They are:

  • Must be a resident of D.C. or the 37 states in which Opploans operates;
  • Be at least 18 years of age (or at least 19 in Alabama and Nebraska);
  • Have a checking or savings account that’s at least 90 days old;
  • Receive steady income from an employer for whom you’ve worked for 90 days or longer;
  • Receive paychecks or income by direct deposit (New Mexico residents are exempt from this requirement).

If you meet all these requirements, you can apply for a loan online. Part of the online application process involves verification of your bank account. You’ll need to give Opploans permission to check your account/banking history.

If you’re unable to complete the online bank verification or feel uncomfortable with the automated process, you can manually upload three months’ worth of bank statements by logging in to your account and clicking on “Upload Documents” in the upper right-hand corner.

Besides the bank account verification step, you’ll need to provide the following:

  • Name, address, and contact information;
  • Social Security number;
  • Upload paystubs if you’re a resident of Illinois or Nevada.

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