Oportun is a direct lender based in San Carlos, California, that works with consumers who are underserved by the financial sector. It used to be called Progreso Financiero but changed its name to Oportun – which is the beginning of the word oportunidad (meaning opportunity) in Spanish.
This lender welcomes customers to apply for a personal loan regardless of whether they speak only English or Spanish. Oportun offers personal loans to those who don’t have a credit score and have been shut out of the financial mainstream.
What you need to know about an Oportun Personal Loan
Oportun is an online and storefront lender that markets its loans to people with no credit history. The company says that its loans can be used for expenses like auto repairs and emergencies. And since Oportun reports payments to two of the three major consumer credit bureaus, its loans may help you build your credit history.
Oportun also offers auto loans and $100 cash advances if your bank account’s balance drops below $100.
You may get approved with no credit history
While applying for a personal loan with Oportun means the company will perform a hard credit inquiry — which can negatively affect your credit scores — you may still be approved without any credit history. This is an important benefit since it can be more difficult to get a loan if lenders aren’t able to see that you’ve borrowed money before and paid it back on time.
Oportun personal loans come with fixed monthly payments, with terms ranging from six months to 46 months. And Oportun offers financial coaching to help you figure out the right payment plan for your unique budget and needs, according to an Oportun representative.
An Oportun rep also told us that the average Oportun personal loan carries a high interest rate, so you’ll probably want to shop around to see if you can qualify for a lower rate with another lender.
Loan amounts can range from $300 to $9,000 (but can vary state by state), so an Oportun personal loan may be a good option if you need a small amount of cash and want a lower-cost alternative to a payday loan. Take note though, only people who’ve borrowed successfully from Oportun before are eligible for loans for $6,000 or more.
Regular income required
While you don’t necessarily need credit history to apply for an Oportun personal loan, you do need to prove that you’re earning a regular income. Oportun will ask you for your current pay stubs or bank statements to confirm this.
A closer look at Oportun loans
If you’re thinking about a personal loan with Oportun, here are some other details you should consider.
Potentially quick funding — Oportun says you’ll usually receive funds within 24 hours if you’re approved.
Loan funding options — Your loan funds can be distributed by check, direct deposit into your bank account or an Oportun prepaid Ventiva Card in some states.
No prepayment penalty — You won’t have to pay a fee if you pay off your loan early.
Limited locations — Oportun has about 300 retail locations in Arizona, California, Florida, Illinois, New Jersey, New Mexico, Nevada, Texas and Utah. Online loans are available in those states as well as in Idaho, Missouri and Wisconsin.
Pros and Cons of a Oportun Loan
Offers flexible financing options for people with no credit history, poor credit and no bank accounts
Competitive APR range
Online, phone and in-person application options.
Website supports both English and Spanish
Opportun helps borrowers create a good credit history when they maintain good repayment habits
There are no fees associated with OportunPath
No prepayment fees
The lender can approve a borrower who has faced bankruptcy
Does not require borrowers to have a bank account
It’s a certified Community Development Financial Institution meaning it promotes community development and provides financial education
Only available in 12 states
Higher APR rates than traditional loans
Borrowers have to pay origination fees for personal and auto loans unlike with most other short term lenders
The lender reports account behavior to the nationwide credit bureaus so if you miss a payment, it will negatively impact your credit score
Though you can apply for a loan online, the option is only available in a few states. Most users have to visit a physical store
Who an Oportun loan is good for
An Oportun loan may be a good fit if you don’t have a credit history and need cash for a sudden expense. On-time payments may help you build your credit history, since the lender reports to two of the three major credit bureaus: Experian and TransUnion, according to an Oportun rep.
Oportun’s interest rates are higher than what some other lenders offer, so you’ll probably want to compare rates to see if there’s a more affordable option somewhere else, particularly if you have good credit.
Oportun offers unsecured personal loans of $300 to $9,000 and repayment terms of seven to 49 months. Once your application is approved, you can pick up your loan funds in the form of a check or a prepaid debit card at one of the lender’s locations, or receive them as a check in the mail or as a bank transfer.
Depending on where you live, your loan could include an administrative fee, a returned check fee and a late fee. Fee amounts can vary by state.
Oportun has no minimum credit requirement for its personal loans. To qualify, however, you must reside in a state where Oportun operates, which includes Arizona, California, Florida, Idaho, Illinois, Missouri, Nevada, New Jersey, New Mexico, Texas, Utah and Wisconsin.
Borrowers can find out if they’re prequalified for a loan without a hard credit check on the Oportun website.
How to apply for a loan with Oportun
There are three ways to apply with Oportun: online, in store or over the phone. If you want to apply online, you can first check your eligibility through prequalification, which won’t affect your credit scores.
Keep in mind that prequalification doesn’t guarantee that you’ll be approved for a loan, or at what terms. If you decide to complete a formal loan application, Oportun will then run a hard credit inquiry, which could slightly lower your credit scores.
You’ll need to submit the following information during the application process:
Name and reason why you want a loan
Date of birth
Social Security number or tax identification number
Debt and income information
If you’re approved, Oportun may contact you by phone or email to confirm any loan terms you’re offered and send you any required documents.
Oportun has an A+ rating with the Better Business Bureau. In 2017, the Consumer Financial Protection Bureau received eight personal loan-related complaints about Oportun. Issues were related to:
Struggling to pay the loan.
Getting the loan.
Incorrect account status reporting.
Problem with the payoff process.
Oportun provided the CFPB with a timely response for all issues, with five closed with an explanation and, three with nonmonetary relief and one with monetary relief.
Before you take an Oportun loan
Exhaust all other options: If none of the alternatives listed above works for you, see if you can buy time from your creditor, work out a payment plan or face the short-term financial consequences of not paying, such as a late fee.
Compare the cost of taking the loan to the cost of not taking it: Calculate the overall cost of not having funds for your purpose, then weigh that against the typical cost of this loan in your state.
What personal loan APRs does Oportun Personal Loans offer?
Oportun Personal Loans offers a fixed APR personal loan product that ranges from 20% APR up to 67% APR. Your APR can vary depending on several factors, such as your credit score.
How much can you borrow via Oportun Personal Loans?
Loan amounts start at $300 and go up to $9,000.
What can a personal loan from Oportun Personal Loans be used for?
Personal loans from are typically used for special purchases, debt consolidation, home improvement projects, weddings, unexpected expenses or similar purposes.
What is the maximum loan term you can get with Oportun Personal Loans?
Offers personal loans with terms ranging from 6 to 46 months. Having the option of longer terms allows borrowers to take on larger loan amounts while keeping monthly payments more affordable. However, the longer the term of your loan, the more interest you will pay.
Do Oportun Personal Loans charge an origination fee?
Yes, Oportun charges a loan origination fee.
Does Oportun charge a late fee?
Yes, Oportun Personal Loans may charge borrowers a late payment fee
Do Oportun Personal Loans charge prepayment fees?
No, does not charge prepayment fees. This means you will not have to pay additional fees if you decide to pay the loan off early.
If you decide to take an Oportun personal loan, carve out room in your budget to pay the loan off to save on interest charges. Loans from Oportun are much cheaper than other payday alternative lenders, but they are still an expensive solution for your finances.
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