Ash The Great | Oct 31, 2017 | 0
Opploans Review – A Payday Loan Company
I usually like Credit Karma, but they are idiots because their website referred our research team to OppLoans and we tried OppLoans, and suffice it to say that we were not impressed. What is most annoying about OppLoans is that it is a shark dressed up as a gold fish. If it didn’t pretend to be something higher than what it is, then it may have received the same so-so reaction that we give most payday loan services. OppLoans has so many flaws that it could be a modern art masterpiece, but despite that fact, compared to other payday loan companies, it is okay (mainly because most payday companies are exploitative, terrible, or both). Still, do not let Opploan fool you into thinking it is anything more than a predatory payday (short-term high-interest) loan company.
What Does OppLoans Do? (They Are A Payday Loan Company)
OppLoans offers short-term loans with a very high interest rate and very high fees. What is annoying is their insistence that they are not a payday loan company simply because they do not call themselves a payday loan company. They call themselves a short-term loan company, yet the periods they loan between are the same as most payday loan companies. In addition, OppLoans claim that they lend at rates that are far lower than most payday loans, but their fees are about average when compared to other payday loans.
The reason they are able to make such claims about their interest rates is because they compare themselves to the top interest rates in their industries. For example, they do not mention the interest rates offered by other companies that call themselves short-term loan companies. For example, the overdraft fees they show are higher than any mainstream bank will charge you for an overdraft (unplanned or not). Here is an image from their website that shows how they represent their interest rates.I do admit that some payday loan companies will charge you a massive interest rate, so I understand why OppLoans would try to exploit that fact. For example, here are a few popular payday loan companies.
- LendUp = 458.86% APR
- CashNetUSA = 805%
- Check Into Cash = 1409%
- RISE = 224.35%
- Advance America = 390%
- Speedy Cash = 460.08%
The difference is that you are almost guaranteed a loan with one of the popular short-term loan companies listed above, but you are far from guaranteed a short-term loan from OppLoans. The company seems to be built for people who are unaware that their credit is not as bad as they think.
OppLoans Is A Legitimate Lending Company
The fact that OppLoans is a legitimate lending company is great these days when there are still so many rogue companies cluttering up the Internet. In addition, they are not a loan matching company that is posing as a lending company. The website is owned by the company that actually forwards the funds to you.
OppLoans Offers Average Interest Rates To People With Poor-But-Not-Terrible Credit
OppLoans claims they are the bees-knees for having interest rates that range between 100% and 200%, which is good for a payday loan company. However, most payday loan companies will give you a loan no matter what your credit rating is. OppLoans will not give you a loan no matter what your credit rating is. As a result, people with bad credit will not be able to get a OppLoans loan, but people with poor-but-not-terrible credit will be able to enjoy an interest rate that is good-to-average compared to other short-term loan companies.
Some People May Receive Their Money Within 1 – 3 Days
If you have good credit, or poor-to-good credit, then you may be able to receive your funds within one day. Some people are delayed for around three days for a variety of reasons. If your loan takes longer, then either you have been denied and OppLoans have not bothered to tell you (you have to log into your account to find out), or they have asked you for extra documentation that you have not provided yet.
OppLoans Has An Ugly Side To Its Marketing And Customer Targeting
OppLoans is another loan-company website that is jam packed with images of non-Caucasian people. Short of thinking the web designer hates white people, are they actually targeting black and ethnic people in the US?
Even if we brush aside the implication that people of color need loans, is the company seriously targeting this group on an almost exclusive level? Are they really that dumb? There are many many many more poor/struggling Caucasian people needing loans because there are more Caucasian people than most others in the US. The whole “White people have it easier” argument expires the moment you stick your nose out the door and walk two blocks.
Maybe I am naive. Maybe OppLoans gets no business at all from Caucasian people. Before our commenters start in on me saying that black and Latino people are statistically more likely to default on a loan, may I point out that if black and Latino people were not so heavily targeted by lenders such as this one, then maybe they wouldn’t get into as much debt and wouldn’t default as often. Just to prove I am not making this up, here is a screenshot of the OppLoans home page.
OppLoans Is Very Unclear About Refinancing
You will be told things such as how you may refinance after six to twelve payments, but it is just not true. They will keep you on the hook for your loan at their high rates for as long as they can. It would be easier to Shawshank out of prison than it would to get out of their loans with a refinancing.
What I find to be their most obvious mark of unfairness is that you can give them your information at the start and get a loan, and then in six months you can give them information that is almost doubly better than what you gave originally, and they still will not refinance your loan.
Add Up The Interest And Fees And Your Principle Repayments Become Pitiful
There are terms where if you take a short-term loan for $2000, then you may end up paying $600 per month with only $160 being knocked off the principle because the rest is going towards fees and the interest you are paying off. OppLoans claim they are better than payday loans, but there are payday loans that offer similar terms that OppLoans do.
Also, if you apply for a loan as a result of one of their per-approval emails or letters, and they then deny you, did you know you will still receive their “You are pre-screened and pre-approved” marketing messages from time-to-time? Such behavior is almost callous in the way they get peoples’ hopes up.
If Your Credit Is New, They Don’t Want You
Even the mainstream banks will give you some sort of lending facility if you do not have much of a credit history. There are hundreds of credit cards out there that will also give you lending facilities if you have little-to-no credit history, and yet OppLoans just says no. It is mind boggling when you consider how many of their adverts say that they deal with the person and not their credit history.
The Website Is Not Clear About The Application Process
The website claims that you simply visit their website, you click to apply now, and then you enter a few basic details. Below is a screenshot of the video they have on their website that claims just that.
This is about as true as those things you read about aliens taking people up to space to run tests on them. If you had the technology to visit different stars, would you spend your time probing our monkey asses? Plus, why would it happen so often? Even our unsophisticated and unevolved species has developed Wikipedia, why would aliens test on humans more than once? Did one of them lose their keys in our abdomen and now has the entire fleet searching human buttholes to find it? But, I digress. The OppLoans application process is not nearly as simple as it appears on their website video, you will have to:
- Register for an account, set up a password and then confirm your account with your email address.
- You will need to enter basic information such as where you live, how long you have lived there, and so forth.
- Your work is the next thing you need to write about, including how long you have worked there, where you have been working, and contact information for your bosses.
- The next section requires a semi-full budget from yourself. You need to enter where you are putting your money, what bills are yours, how much you have left over for personal products and so forth.
- You are then given a retractable quote, which I will cover in the next section. After you see the quote, you are given all of their e-paperwork, which is where all the nasty surprises are hidden.
- After you agree to the retractable quote and you agree to go forwards with the loan, they may ask you for extra documents or checks with your bosses, which may include calls to your boss or you having to scan and send documents.
OppLoans Offers A Retractable Quote
I call it a retractable quote because they may take it back at any time. Even after you have finished the application process, they may still turn you down at the very end for a few reasons. A common one is because your soft credit search didn’t show something that your hard credit search did. Just because you have finished the application process and even if it says you are approved, there is no guarantee that you will get the money until it is in your account.
They Do Check Your Credit Ratings
There are loan and lending companies out there that deal with more than just your credit rating. Such companies take your job, family situation, living situation, current debt, and qualifications into account. There are even companies that take your number of Facebook friends into account. Yet, despite the fact that OppLoans claims they focus on the person and not their credit rating…it just is not true. Your credit rating and credit history plays a massive part in their decision to lend to you.
More and more lending companies are getting away with wordplay that makes them appear as if they do not run credit checks, but they do. OppLoans claims it doesn’t run credit checks through the three credit bureaus, which are Experian, Equifax, and TransUnion. But, they do run credit checks and the information they look over is from the three credit bureaus. The reason that OppLoans (and increasingly more lenders) is able to claim that it doesn’t run credit checks with Experian, Equifax, and TransUnion is because OppLoans get their information from an intermediate company. They get their information from Clarity Services, which is a company that cheaply pulls information from credit bureaus.
OppLoans Are Slow To Resolve Issues
If you have an issue with your loan, the customer service department is very slow to resolve it. For example, if you are having your payments taken out a few days earlier than they are supposed to come out, then you will have to hound the company to get it fixed. Also, why do they ask for bank information so early? Before you are even approved they start asking for your bank information.
To finish the “Cons” section of this article, here is a screenshot of an angry OppLoans user who found out (to her displeasure) some of the things mentioned in this article.
Conclusion – Okay, But Not Great
I may have gone a little easier on the company if their website was not so stuffed with annoying promises and claims. If the company presented itself as a payday loan company that offered short-term loans to people with poor-to-good credit rather than presenting themselves as a short-term loan company that accepts everybody, and if they stopped sending out per-approvals that were not genuine, then this company may be worth dealing with.
Be very careful when shopping around for short-term loans and payday loans because there are often better options. If you can wait a few days, you may have more luck with a credit card. Even the extra charges and the higher interest rate you receive for withdrawing money from your credit card may still come to less than what companies such as OppLoans are willing to charge you in interest and fees.