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Oportun Loans Review: Pros and Cons

In addition to offering personal loans, Oportun also offers payday loans and title loans, both of which are expensive alternatives to personal loans. Oportun, based in California, provides both secured and unsecured personal loans, with offers ranging between $300 to $10,000.

You can apply for loans online, in person, or over the phone, and if your application is approved, you may be able to receive the funds within a short period. Just remember that the exact time will vary depending on your financial institution.

If you’re considering taking out a personal loan from Oportun to cover an unexpected expense or other financial emergencies, keep reading to find out more. 

What are the eligibility requirements for an Oportun loan?

In terms of credit requirements, Oportun doesn’t have many strict ones. Rather than solely focusing on credit history, the company bases loan decisions on an applicant’s income, expenses, and payments toward utility and cell phone bills. However, the company will consider any credit history an applicant may have.

Applicants must demonstrate that they have a consistent source of revenue and the potential to pay back the loan after all other monthly obligations have been met. 

Per Oportun, the average borrower earns ,000 per year.

What you’ll need to qualify for an Oportun loan is as follows:

  • Proof of address.
  • Proof of income.
  • Valid identification.
  • Be 18 or older.
  • Up to four references.
  • At least $500 in monthly income.

Benefits of Oportun personal loans

The application process is quick.

This platform is extremely fast – borrowers can complete loan applications in between 10 and 15 minutes, and a response is typically provided the same day.

Oportun Loans Can Assist You in Building Your Credit

Another advantage is that this lender reports to two of the three major credit bureaus – TransUnion and Experian – which is a significant advantage. Customers who want to improve their credit scores will have an easier time doing so with this lender.

Low-interest rates in comparison to other types of bad credit personal loans

Oportun has a much lower maximum annual percentage rate (APR) than many competitors who provide bad credit loans. Another lender, who accepts borrowers with extremely low credit scores, can charge interest rates in the 200 percent to 300 percent range.

Any loan with interest rates greater than 36 percent can be costly and make repayment difficult. Before taking out an Oportun personal loan, make sure you understand the total cost of the loan and have a repayment strategy in place.

Accept borrowers with bad credit or no credit.

Credit history is not required to be eligible for an Oportun loan, which means borrowers with no credit history are eligible. It provides lending opportunities to people who have little or no credit history and populations of borrowers who would otherwise be unable to get approved for loans from other lenders.

Drawbacks of Oportun personal loans

There are some states where online applications are not available.

You can apply for a loan online through Oportun’s website. Customers will be able to complete an application without visiting a retail store location. Oportun loans are available online in all states where the company is licensed to do business.

According to the study, the fact that people frequently have to submit documents at a physical location is a disadvantage, especially when there are competing lenders who handle 100 percent of the application process online.

Interest rates are frequently higher than 36 percent.

Although Oportun has lower interest rates than some of its competitors, the lender frequently has interest rates that exceed our recommended maximum of 36 percent. This can increase the loan cost, so it should only be used as a last resort in extreme circumstances.

How reputable is Oportun?

As a member of the Better Business Bureau, Oportun has an A+ rating. In 2021, the Consumer Financial Protection Bureau received 25 complaints about Oportun related to personal loans. Unexpected fees or interest charges and difficulties in obtaining a loan were among the topics addressed by the participants. Oportun provided the Consumer Financial Protection Bureau with a timely response on all but one of the issues. They resolved all with an explanation.

Personal lenders were rated by U.S. News and World Report with an overall rating of 3.6 out of 5 stars, with 1.4 stars for affordability, 3.1 stars for eligibility, and five stars for customer service. According to U.S. News, the median overall rating for personal lenders is 4.

Can I qualify for an Oportun loan with bad credit?

Yes. The ability to qualify for a personal loan can be difficult if you have bad credit or no credit history at all. Oportun may be a viable option for people who have less-than-stellar credit histories. According to Oportun, it looks beyond your credit scores and considers other information such as your income and personal references. It is possible to qualify for a personal loan from Oportun even if you have previously filed for bankruptcy protection.

Does Oportun report to credit bureaus? 

Payments made through Oportun are reported to two major credit bureaus: Experian and TransUnion. Having your payments reported to all three credit bureaus (Equifax is the third) ensures that future lenders will be able to see your good credit history and consider that when determining your interest rate in the future.

Oportun interest rates

Borrowers can get up to $10,000 in unsecured installment loans from Oportun, with loan amounts ranging from $300 to $10,000. However, the more significant loan amounts are only available to customers who have borrowed previously.

According to the state you live in and your financial situation, the interest rates on Opportunity loans range from 12 percent to 36 percent annual percentage rate (APR). In addition, term lengths range from 6 to 46 months, depending on the situation., late fees and origination fees are charged, but there are no prepayment penalties.