Is OppLoans Just a Payday Loan Company?

With payday loans having such high interest rates and quick repayment terms, borrowers in need of quick cash are better off using an alternative lending solution. Personal loans are one option; however, most personal loans require the borrower to have good to excellent credit. That’s where companies like OppLoans come in. They cater to individuals who have less-than-stellar credit.

What is OppLoans?

OppLoans is the online lending platform of Opportunity Financial, LLC. It was established back in 2012 to meet the needs of the 60 million Americans that can’t get approved for the credit they need in an emergency. The company lists their mission statement as the following: “To provide financial inclusion to the middle income, credit-challenged consumer through the best available products and an unwavering commitment to our customers.”

The loans at OppLoans are personal loans, which means you won’t need collateral, such as a paycheck, to qualify for the loan. Their bad credit loans are designed to help you begin building your credit history. Although the loans are listed as “no credit check loans,” the company will still run a soft credit inquiry through Clarity Services Inc. to get your credit score. This type of inquiry, however, will not affect your FICO score. All of the loans offered by OppLoans are installment loans, so if you qualify, you’ll have a set repayment schedule that is free of any surprises.

OppLoans vs. payday loans

OppLoans can only be obtained online, while payday loans can be applied for at a physical location in a person’s hometown. Even though OppLoans is an online lender, they only work with 37 states. Payday loans are also limited to 37 states, according to the National Conference of State Legislatures. Both offer quick access to funds with payday loans often being the same day and OppLoans being the next business day.

There are five specific areas where OppLoans and payday loans vary greatly.

Loan amount

Payday loans tend to range between $100 and $1,000, depending on the individual’s paycheck, while OppLoans have a range of $500 to $4,000.

Interest rate

OppLoans lists their APR range as 99% to 199%. This may sound high until you compare it to the average payday loan APR of 391%. Some payday loans come with rates that are even higher than the average!


While payday loans must be repaid by the next paycheck, which is typically 14 days later, OppLoans have repayment terms of up to 24 months.

Ability to build credit

You won’t have an opportunity to use your payday loan to help build your credit score back up, but OppLoans does offer this benefit.

Required collateral

Your payday loan will need to be secured by your next paycheck. OppLoans does not require any collateral to get approved for a loan. Instead, they will use the credit score obtained during the soft inquiry, as well as your employment history to make a determination.

Pros and cons of OppLoans

Before applying for a loan with OppLoans, it’s helpful to review both the pros and cons associated with the loan.


  • You won’t find any application fees, origination fees or prepayment penalty fees at OppLoans.
  • Individuals with bad credit can still get approved for a loan.
  • A low minimum loan amount is available.
  • OppLoans makes funds available the next business day after an application is approved.
  • The company provides an online tool that allows you to check on the status of your application at any time.
  • Loans can be used for a variety of emergencies, such as household repairs, medical bills, travel expenses, books for college courses and even debt consolidation.


  • Not all states are eligible for OppLoans.
  • Interest rates are higher than most personal loans.
  • The maximum loan amount may not be enough to meet your needs, especially if you have a large medical bill or you’re trying to consolidate your debt.


While OppLoans’ interest rates are high, they are no comparison to the exuberant payday loan interest rates. OppLoans also spread out the repayment of their loans over several months, instead of requiring the full sum in just two short weeks like a payday loan. This gives borrowers a chance to pay back the loan in smaller amounts without having to rollover the loan or take on more debt.

Although OppLoans are a better choice than payday loans, they are not better than the personal loans offered through local banks. Banks offer personal loans with similar terms, but at much lower interest rates. In fact, the Federal Reserve reported that the average APR for a 24-month personal loan in May of 2020 was 9.5%. That’s a big jump from OppLoans minimum 99% APR. It’s best to apply for a loan through the bank you currently use and use OppLoans as a backup in the event that your application is denied.