Oportun was established in 2006 with a primary goal to furnish affordable loans and assist people in building their credit history. Unlike conventional lenders, Oportun's unique approach utilizes intelligent algorithms to delve into applicants' income and spending behavior, thereby ascertaining a suitable loan amount. This technology-driven methodology extends beyond just loan provision; it encapsulates a broader financial wellness framework by facilitating effective budgeting, enabling savings, and offering investment opportunities. The savings are automatically channeled into an Oportun deposit account, helping users manage their finances better.
Pros and Cons
Pros
Soft Credit Check for Pre-qualification. Oportun allows potential borrowers to pre-qualify with a soft credit check, which doesn't impact the credit score.
Co-sign and Limited Secured Loan Options. Provides options for co-signing and a limited range of secured loans, thereby enhancing the chances of approval and possibly securing better rates.
Welcomes Credit Newbies. Especially aimed at those new to credit or with thin credit histories, making it easier for them to access financing.
Small Loan Amounts. Offers small loans starting at $300, catering to immediate, short-term financial needs.
Community Development Financial Institution (CDFI). Federally recognized for promoting community development, which is reflected in their services and support offerings.
Cons
Origination Fee. May charge an origination fee up to 8% of the loan amount, which is deducted upfront from the loan proceeds.
High Rates. Despite being below the 36% APR cap, the starting rates are relatively high compared to other online lenders.
Fixed Payment Date. Once set, the payment date cannot be changed to accommodate any changes in the borrower’s financial circumstances.
How to Apply for an Oportun Loan?
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Apply for a Loan. You can apply for a loan from Oportun online. You'll need to provide information such as your name, address, employment information, and financial information to apply.
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Review and Accept Loan Terms. If you're approved for a loan, Oportun will provide you with the loan terms and conditions, including the loan amount, interest rate, fees, and repayment terms. You'll need to review and accept these terms to receive the loan.
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Receive Funds. Once you've accepted the loan terms, Oportun will provide you with the loan funds. This can be done through direct deposit to your bank account or by receiving cash at one of their retail centers.
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Repay the Loan. As specified in the loan agreement, you'll need to repay the loan on the due date. Oportun may automatically deduct the loan repayment from your bank account on the due date, or you may need to repay the loan in-person at one of their centers.
Conditions and Requirements
Conditions
Eligibility. Based on state of residence and creditworthiness.
Loan Amounts. Loan amounts range from $300 to $10,000, providing flexibility for varying financial needs.
Fees. Between $5 to $15 or up to 5% of the unpaid amount, depending on the circumstances.
Repayment. Terms range from 1 to 5 years, allowing for flexibility in managing repayment schedules.
Usage. Personal loans from Oportun can be utilized for a variety of purposes including unexpected expenses, home repairs, medical bills, and debt consolidation among others. However, there are certain restrictions, for example, the loans cannot be used for student loans or business expenses.
Requirements
Age and Citizenship. You must be at least 18 years old and be a U.S. citizen or permanent resident.
Identification. A valid Social Security number or Individual Taxpayer Identification Number is required, along with a government-issued photo ID such as a driver's license or passport.
Residency. You need to reside in one of the 12 states where Oportun operates.
Income. Having a steady income is crucial as it impacts your ability to repay the loan.
Credit Score. While Oportun is known for its flexible credit score requirements, with a general range of 300 - 700, they also cater to individuals with no credit history.
Purpose of Loan. Be prepared to explain what you plan to use the loan for as personal loans can be used for a variety of purposes including unexpected expenses, home repairs, medical bills, debt consolidation, and others. However, there are certain restrictions, for instance, personal loans can't be used for student loans or business expenses.
Editorial Opinion
Important
How to Choose a Lender
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Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
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Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
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Carefully review all the terms and conditions of your payday loan contract.
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Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
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Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
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Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
Additional Resources
- About Oportun
- Full Oportun Account Review
- How to Apply for an Oportun Loan
- How to Repay an Oportun Loan
- Oportun Mobile App
- Oportun Customer Reviews
- All Oportun Coupons and Promo for October 2024
