Oportun loans are personal loans designed to provide accessible and affordable credit to individuals with limited or no credit history. They offer fixed monthly payments and no prepayment penalties. Oportun aims to help borrowers build their credit scores by reporting to major credit bureaus, making it a valuable option for those looking to improve their credit standing. With a straightforward application process, Oportun provides quick loan approvals and flexible loan amounts, catering to various financial needs and emergencies.

Pros and Cons

Pros

1. Pre-Qualify With A Soft Credit Check. This allows potential borrowers to see their loan offers without impacting their credit score.

2. Co-Sign And Limited Secured Loan Options. These options can help borrowers with lower credit scores or limited credit histories qualify for a loan.

3. Accepts Borrowers New To Credit. Oportun is open to lending to individuals who are new to credit, making it accessible for first-time borrowers.

4. Small Loans. This can be particularly useful for those who need a small amount of money for an emergency or unexpected expense.

Cons

1. Origination Fee. This fee can add to the overall cost of the loan.

2. High Rates. The interest rates on Oportun loans can be higher than those of traditional lenders.

3. No Option To Change Your Payment Date. This can be inconvenient for borrowers who need flexibility in their repayment schedule.

How to Apply for an Oportun Loan?

1. Pre-Qualify On Oportun’s Website. Start by clicking "Apply Now" under "Personal Loans" on Oportun’s website. Enter your ZIP code, name, birthdate, and contact information, then click "Next." At this stage, there's no hard credit pull.

2. Preview Loan Offers And Accept The Best Fit. Qualified applicants can see the maximum loan amount they’re approved for. However, the potential APR and repayment term are not shown at this stage. Choose the loan offer that fits your budget.

3. Submit An Application. Complete the formal personal loan application, which might require additional documents such as W-2s or pay stubs. A hard credit pull will be conducted before final approval. Approved borrowers can select from three repayment plans.

4. Make A Plan To Repay The Loan. Since Oportun reports payments to all three credit bureaus, on-time payments can help build your credit score, while missed payments can harm it. Consider setting up automatic payments and monitoring your budget to manage loan payments effectively.

Conditions and Requirements

Conditions

1. Interest Rates. Oportun loans come with interest rates ranging from 29.00% to 35.95%.

2. Origination Fee. This fee ranges from 0% to 8%.

3. Late Fee. Borrowers may incur a late fee of $5 to $15, or up to 5% of the unpaid amount.

4. Nonsufficient Funds Fee. If there are insufficient funds, a fee of up to $15 may be charged.

5. Loan Amount. Oportun offers loan amounts ranging from $300 to $10,000.

6. Repayment Terms. The repayment period for Oportun loans ranges from 1 to 5 years.

Requirements

1. Age and Identification. Borrowers must be at least 18 or 19  years old and possess a valid ID.

2. Minimum Credit Score. There is no minimum credit score required. Approximately half of Oportun’s new customers have no credit score when they apply for a loan.

3. Minimum Monthly Net Income. Borrowers must have a minimum monthly net income of $500. Proof of regular income from sources such as employment, alimony, retirement, child support, or Social Security payments is required.

4. Debt-to-Income Ratio. Oportun does not have a maximum debt-to-income ratio. Instead, the lender reviews borrowers’ debt payments and other living expenses to determine loan approval and amount.

How to Choose a Lender

1. Confirm Licensing. Ensure that the lender is licensed to operate in your state. Verify this information with your state regulator or attorney general. This step is crucial to avoid illegal lenders and ensure the protection of your consumer rights.

2. Check Membership In Reputable Associations. Look for lenders that are members of reputable associations, such as the Community Financial Services Association of America. Membership in such organizations can indicate reliability and adherence to industry standards.

3. Review Terms And Conditions. Carefully review all the terms and conditions of the loan contract. Pay attention to the fine print to understand the lender's policies, fees, and your obligations as a borrower.

4. Examine Interest Rates And Total Loan Cost. Thoroughly examine the interest rates on the loan and ensure your contract includes a detailed breakdown of the total cost of the loan. This helps you understand the full financial impact of borrowing and compare offers from different lenders.

5. Understand Your Right Of Rescission. Take advantage of your right of rescission, which typically allows you to rescind the loan within three days after signing the agreement. Alternatively, use the "cooling-off" period to thoroughly review the contract and make an informed decision before committing to the loan.

Oportun. Apply Online

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