OppLoans provides loans to struggling people
OppLoans is a mission drive, social fintech-loan company that families can turn to for a source of low cost funds. They provide cash to borrowers of all income levels including to people with low FICO scores or non-existent credit histories. The borrower can use the loan to help pay any bills they have. OppLoans loans, and their local community lenders that issue loans and that the company partners with, help families or individuals pay any bills they may have as noted below.
The money loaned out to moderate or low-income families, as well as people with poor credit scores, can pay for regular living expenses or “unplanned” costs including a car repair or even upcoming bills that are known well in advance, including travel or for an upcoming surgery. OppLoans combines flexible underwriting, competitive interest rates as well as educational resources to help borrowers not only meet immediate cash needs but also build financial wellness over time
Types of borrowers OppLoans helps
The application process is free and can be done online. There are also only soft credit checks done, which limits risk in using the service. The primary beneficiaries include, but are not limited too, the following.
- Low-income households: OppLoans considers a variety of income sources, which can help people working a job with inconsistent paychecks. The lender looks at employment, benefits (e.g., Social Security, disability SSI or SSDI), even child support - so individuals with modest earnings or that work a gig job can still qualify or they can look into other gig worker focused loans.
- Poor- to fair-credit borrowers: There is no minimum FICO score requirement to apply at OppLoans. Instead of relying solely on credit scores, OppLoans’ banking partners use algorithms that assess creditworthiness by examining bank transaction data, income stability, and other factors.
The advantages of using OppLoans for emergency, short term cash is the interest rate is much lower than other sources of funds. The APR rate can be several percentage points lower than a credit card and it will be a fraction of the rate of other options, such as payday loans. This means it is often a much better source of emergency funds for those households that need money to pay for housing costs, rent, car repairs, and other critical expenses. There is also a soft credit check done with the application, so credit scores will not be as easily impacted.
Types of bills that can be paid by OppLoans loans
Any expense the borrower has can be paid. There are no restrictions put into place. However, it is always recommended to look into charitable financial assistance first or government programs before borrowing money to pay for utilities or rental costs. Or explore clinics for free medical or dental care before using a loan. Some of the common bills that can be paid by OppLoans include the following.
- Credit card debts – Since the APR interest rate is often much lower than a bank issued credit card, many people a loan from OppLoans them to consolidate their debts to save money. The monthly payment in the future will be much lower.
- Health care expenses – The provide funds so that families can pay for everything from existing medical debt to an upcoming surgery, dental care, life-saving prescription medications, and other health care costs.
- Home loans – The low cost OppLoans can be used to pay for home improvements, emergency repairs, HVAC units including heaters or air conditioners, water tanks, and more.
- Transportation – A use of OppLoans loans is to pay for unexpected car repairs, especially when someone needs their car to get back and forth to work.
- Planned expenditures – Another use of the OppLoans loan is to pay for planned purchases. Some families use the cash to pay for vacations, weddings, jewelry such as a wedding ring, as well as other major expenditures.
- Past due bills – OppLoans loans can be used to help families pay bills for their critical needs, including back rent, utilities to keep their power on, food, and more. Low to moderate income households often use the borrower when an emergency comes up.
- Car loans – OppLoans can be used to refinance an existing car loan. It is free to sign up for and the peer to peer lender will often help customers save money. There are also other car loan refinancing programs.
Application process to get a loan from Opploans
OppLoans’ community-bank partners evaluate more than just the borrowers income or FICO scores. The lender will also review transaction histories, incoming deposits to the borrowers bank or fintech account, and other non-credit indicators to underwrite loans. This inclusive approach allows many borrowers overlooked by traditional banks, such as single moms or those with under 600 FICO scores, to access credit. Once approved, loans are funded by the partner bank and serviced by OppLoans, with clear, fixed payment schedules to help borrowers plan ahead.
The amount of money available to borrow will vary. The company will generally provide up to $4,000 from one of their loans as a maximum dollar amount. However, the applicant can apply for anywhere from $1 to that maximum. In some cases, only a partial loan amount will be issued to the applicant. if the borrower needs other sources of funds, there are a number of emergency loan programs.
The terms and conditions will also vary based on community lender. In general, a minimum credit score is needed. The applicant should also have a source of income and be able to pay off the loan in as short of a time frame as possible. The funds should not be used to start some cycle of debt or borrowing.
However, if the borrower is using the money to pay everyday bills, such as their rent, the amount borrowed should be minimal. Using any lender, including OppLoans, should also be a last resort. All charities and other sources of emergency funds should be applied to first. Families should never borrow more than they need to splurge.
Financial education and literacy services from OppLoans
The lender not only provides low-cost loans to borrowers, but they also help them build wealth and financial stability over time. The programs offered include the following.
OppU Hub is the name of their service that has a blog and guides. The company partners with Zogo Partnership on the service. It is free to borrowers and the lender offers in-depth articles on bad-credit loans, installment loans, cash advances, and personal-finance basics. There is also step-by-step how-to on budgeting, credit reports, debt management, and more
There are free bite-sized lessons/tutorials. This includes hundreds of micro-modules covering spending, budgeting and saving, credit fundamentals, debt relief and loan strategies. Another service which may appeal to some borrowers is “gamification”, which allows customers to earn virtual “pineapples” or other awards for each completed lesson, redeemable for real-world rewards (e.g., gift cards). These tools are free for OppLoans customers and can be accessed via mobile or desktop - no additional fees, and no impact on credit scores.
Apply and contact information
The online lender, and its partners, provide have a goal of providing loans as well as helping people over the long term. For more information, or to apply for OppLoans loan, try customer service or dial (800) 990-9130.
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