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Personal Loans

What Is a Personal Line of Credit?

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

what is a personal line of credit

When you need to borrow money, you may think to borrow a personal loan or get a credit card or home equity line of credit (HELOC). But there’s a lesser-known financing option you may not want to overlook: a personal line of credit.

Don’t confuse a personal line of credit with a credit card. It isn’t a piece of plastic you can whip out and swipe at the grocery store. Instead, it’s a line of credit from which you can draw cash that’s often offered by banks and credit unions to existing customers who meet certain requirements. Here’s what you need to know about this financial product.

What is a personal line of credit?

A personal line of credit is a loan you can use and pay back as needed. The terms of the product can vary from one lender to another.

Interest rates: In most cases, personal lines of credit come with variable interest rates. But they can come with a fixed interest rate. You can find rates starting at around 8%, but they may be as high as 20% or more.

Costs: Aside from the interest rate, personal lines of credit may have other costs. Take care to read through the fine print of the terms for these potential fees:

  • Application fees: This is the cost to apply for the account. Many financial institutions don’t charge for applications, but it’s a good idea to double-check.
  • Annual fees: This is a fee charged each year you have the account. For example, Wells Fargo and TD Bank charge $25 annually for personal lines of credit. Some banks will waive fees as long as you have an open bank account. Check the terms for details.
  • Cash advance fees: This fee may be charged each time you withdraw money from your credit line. Many financial institutions don’t charge this fee.

Credit limits: Credit limits for personal lines of credit can vary. Credit limits can be a few thousand dollars to well over $1 million.

Unsecured vs. secured personal lines of credit: What’s the difference?

As you research personal lines of credit, you’ll find that they can come secured or unsecured. An unsecured personal line of credit doesn’t require collateral. A secured personal line of credit, on the other hand, requires collateral and may be backed by the balance in a savings account, certificate of deposit or investment account.

Collateral reduces the risk for the financial institution lending you money. As a result, secured personal lines of credit generally have lower interest rates.

But a secured line of credit comes with a higher risk to you. If you fail to repay your debt, you could lose your collateral. And you may not have access to the collateral you use to secure the credit line until the debt is repaid.

Where you can find a personal line of credit

Personal lines of credit are marketed less widely than other products, but there are several available from small and large banks and credit unions. The first place to shop for a personal line of credit is the financial institution you use for banking.

Some banks, such as Citibank, only take applications from existing customers. Others, such as Santander Bank and TD Bank, will waive fees for their customers.

The requirements to qualify for a personal line of credit vary from one lender to the next. For a Citibank personal line of credit, you need to have a deposit account with a balance over $500 and a, Citibank mortgage or Citi credit card that’s at least 3 months old.

Some financial institutions may not require you to have a checking account to qualify for a personal line of the credit. Be sure to comparison shop to find a personal line of credit that makes sense for you.

How a personal line of credit works

Obtaining a personal line of credit starts with the application.

The creditor may check your debt-to-income (DTI) ratio, credit score and credit history. You may have to turn in pay stubs, W-2s, tax documents and other supporting information for the application. If you already have accounts with the financial institution, it may also dig into the history to see if you have any overdrafts or other signs of misuse that could impact their decision.

Once approved, you get the terms of the agreement to sign at a local branch or online. You will likely get access to the funds within a few days.

To use the credit line, you may be able to:

  • Transfer cash from the credit line into a bank account
  • Get an advance from a physical bank location
  • Write a credit check to yourself or someone else

Some personal lines of credit give you a draw period that lasts a couple of years. During this draw period, you can draw up to the credit limit. After the draw period, the repayment term begins, and you need to pay the money back.

A monthly minimum payment is typically required. Wells Fargo’s minimum payment for an unsecured personal credit line is 1%. The Wells Fargo CD or savings secured personal line of credit has a minimum payment that’s 1/120th of your principal balance. Additional fees may apply.

Some personal lines of credit offer an interest-only payment option. With this repayment option, you’re only required to pay the interest incurred on your credit balance for a certain period. Be careful about getting into the low-cost, interest-only payment trap. Making interest-only payments can lead to much larger payments down the line when you need to start repaying principal and interest.

What can a personal line of credit be used for?

You have the freedom to choose how you use a personal line of credit. You could pay for home repairs, education expenses, unexpected bills or debt consolidation.
The benefit of a personal line of credit is that it can cover unpredictable costs. In comparison, a personal loan gives you a set amount of money with a set repayment period.

Who is a personal line of credit best for?

Personal lines of credit are generally for borrowers who have at least decent credit with some savings socked away.

A solid credit history and savings could qualify you for the best rates and avoid the need for you to put up collateral. But even if you’re opting for an unsecured credit line, a bank may ask to see additional verifiable assets.

Citibank extends its lowest interest rates to elite Citigold and Citi Priority customers or regular account holders with balances of over $200,000. To be a Citigold customer, you must maintain a balance of over $200,000 in eligible accounts. Citi Priority customers must maintain a balance of over $50,000 in checking, retirement and investment accounts at Citibank.

The products above are tailored to high-net-worth clients. Borrowers without six figures in the bank may still be able to qualify for a personal line of credit, but the rate and terms may be less competitive. Compare financial institutions to find which one benefits you the most.

Alternatives to a personal line of credit

Not sure if a personal line of credit is right for you? Consider these alternatives:

Personal loan

A personal loan is an installment loan. You can use the funds from a personal loan for a variety of reasons, from car repairs to medical procedures to weddings. Consolidating debt is a popular reason for taking out a personal loan.

These loans can offer a low fixed interest rate on a fixed term. If you’ve had trouble managing credit lines before, a personal loan gives you a set payment to keep up with until the debt is paid off.

Personal loan amounts can range from about $1,000 to $100,000.

How it works

You can apply for personal loans online through banks, credit unions and online lenders. Each will consider your credit, income and other variables to determine your eligibility for a loan. After you’ve been approved for a loan, the funds will be deposited into your bank account.

Who personal loans are best for

Personal loans are a product for almost anyone. There are personal loans available for people with stellar credit, as well as those who have less-than-perfect credit.

The best interest rates are usually given to borrowers with good to excellent credit scores — generally 640 and above. The good news is you can shop for personal loans to check rates without a hard inquiry for most lenders.

HELOC

A home equity line of credit (HELOC) is secured by your home. HELOCs usually have a variable interest rate that can start out fairly low if there’s an introductory period. Be sure to ask about introductory rate expirations and rate caps to get a clear picture of costs.

How it works

HELOCs are offered through banks, credit unions and other lenders. You may be able to borrow up to 80 percent to 90 percent of your home equity value.

When you apply for a HELOC, your credit score, DTI ratio and the amount of equity you have in your home will be considered.

Some HELOC products allow for interest-only payments. That could be a perk if you need to settle other obligations. But it does come with the risk that you could be stuck in debt longer than you’d like.

Often, HELOCs have a draw period where you’re able to use the line of credit as needed. You may be able to renew the credit line after the draw period ends. If you don’t renew it, you’ll no longer be able to draw money and the repayment period will begin.

HELOCs may have closing costs, annual fees and prepayment penalties. Take care to read the interest rate and fee terms to avoid any surprises.

Who it’s best for

A HELOC is going to be best for borrowers who have sufficient equity in their home and decent credit. You may need a credit score of at least 620 to qualify. A score of 680 or above could make it easier to get approved.

Like a personal line of credit, a HELOC is a product for borrowers who have a history managing available credit responsibly. But a HELOC is secured by your home. If you fail to repay your debt, you could lose your house.

If you’re interested in shopping for a HELOC, you can compare products at the LendingTree marketplace. (Note: MagnifyMoney is owned by LendingTree.)

Credit card

A credit card is a form of credit with which you’re probably pretty familiar. A credit card is a line of credit you can use on the fly. Some credit cards also offer rewards for transactions. You could, for instance, get cash back or earn miles toward free flights with a credit card.

Credit cards are offered by banks, credit unions and other financial institutions.

How it works

You can apply for credit cards online within a few minutes. Your financial information will be taken into account, including your credit history. If approved, the credit card issuer will provide you with a variable interest rate, spending limit, and any other fees associated with the card offer.

A minimum payment is due each month on your account. Over time, your rate can rise or fall. Depending on the card for which you apply, you may be responsible for paying an annual fee. Expect to pay fees for late payments and cash advances as well.

Who it’s best for

You can find credit cards for bad credit, but the best rewards programs and rates are reserved for those with excellent scores.

One major advantage to credit cards is sign-up promotions. Some cards offer a cash reward or bonus miles for signing up. You could even score an introductory 0% APR on purchases and balance transfers for periods of 15 to 20 months. Pay off your balance within that promotional period, and you essentially had a no-interest loan.

Credit cards are best for borrowers who are committed to using plastic and paying it off each month. That’s how you avoid interest charges. If you’ve had a problem with credit cards before, adding a new card to the mix may not be the best idea.

Making the right move for your finances

A personal line of credit has its merits. But you should weigh your options carefully. You may find a personal loan, HELOC or credit card is a better fit.

Ultimately, the right product for you will depend on your goals and financial situation. The best way to find the most competitive product for your needs is by shopping around and considering which products and features matter most to you.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor here

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Get A Pre-Approved Personal Loan

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Won’t impact your credit score

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Personal Loans

Citizens Bank Personal Loan Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

Citizens Bank (RI)
APR

6.79%
To
20.89%

Credit Req.

Not specified

Minimum Credit Score

Terms

36 to 84

months

Origination Fee

No fees

SEE OFFERS Secured

on LendingTree’s secure website

Citizens Bank personal loan details
 

Fees and penalties

  • Term lengths: 36 to 84 months
  • APR range: 6.79% to 20.89%
  • Loan amounts: $5,000 to $50,000
  • Time to funding: Funds can be in your account in as quickly as 2 business days
  • Credit check: Soft Pull
  • Origination fee: No fees
  • Prepayment fee: None
  • Late payment fee: Not specified

Citizens Bank product details

A Citizens Bank personal loan offers you the ability to lower your interest rate. If you have another qualifying Citizens Bank account when you complete your application, you’ll receive the Citizens Loyalty Discount, entitling you to a 0.25% rate discount. Save another 0.25% by opting to have your monthly loan payments automatically debited through ACH. This allows you to reduce your rate by a total of 0.50%.

In addition, if you’re an active-duty service member or are called into active duty before your Citizens Bank personal loan is repaid, you may qualify for special benefits. Eligibility varies according to a number of factors, so contact customer service for more details.

Eligibility requirements

  • Minimum credit score: Not specified
  • Minimum credit history: “Reasonably strong credit history,” per Citizens Bank’s website.
  • Maximum debt-to-income ratio: Not specified.

To qualify for a Citizens Bank personal loan, you must have a strong credit history and a minimum annual income of at least $24,000. You must also be a U.S. citizen or permanent resident of the U.S. or Puerto Rico and have a valid Social Security number. Additionally, you’ll need to be at least the age of majority in the state where you reside.

Applying for a personal loan from Citizens Bank

You can apply for a Citizens Bank personal loan online. To complete your application, you’ll need to provide your Social Security number, gross annual income — accompanied by your most recent pay stub — and requested loan amount. If applicable, you might also be required to specify the name and phone number of your employer and the name and email address of your co-signer. Do note, though, that if you use a co-signer, they’ll also need to provide all the information listed above.

After submitting your application, you might be asked to supply additional documents to verify the information submitted. If you’re asked to provide proof of Social Security number, this could include a copy of your Social Security card, birth certificate or passport. Documents needed for income verification purposes may vary, according to your unique situation. Submit the documents online for the fastest processing, via email or by standard or overnight mail.

If your personal loan is approved, you’ll need to acknowledge and accept the terms of the offer, review and sign your application and promissory note — along with your co-signer, if applicable. Your promissory note can be signed digitally — the fastest method — or physically. The money will be deposited in your account quickly — possibly within two business days — and your first payment will be due 20 to 50 days from disbursement.

Pros and cons of a Citizens Bank personal loan

Pros:

Cons:

  • No fees: Citizens Bank loans comes with zero fees, including origination fees and prepayment penalties.
  • Flexible terms: Choose a monthly payment that fits your budget, with terms ranging from 36 to 84 months.
  • Fast funding: Funds could be dispersed into your account in as quickly as two business days after approval.
  • Interest rate reductions: Take 0.25% off your rate if you qualify for the Citizens Loyalty Discount and another 0.25% for having your monthly loan payments automatically deducted through ACH. This can allow you to reduce your rate by up to 0.50%.
  • Strong credit requirements: While the Citizens Bank website doesn’t provide a specific baseline credit score, it does note that “reasonably strong credit” is needed for loan approval.
  • Income requirements: To qualify for a personal loan from Citizens Bank, you’ll need a minimum annual income of at least $24,000.

Who’s the best fit for a Citizens Bank personal loan?

If you don’t want to pay fees, the Citizens Bank personal loan might be a good fit. Since no fees are attached to the loan — including origination fees and prepayment penalties — you can save money on its total cost.

Considering loans can often be funded within two business days, this could also be a great choice if you need cash fast. If you already have an account with Citizens Bank, you’ll especially want to check this loan out. You could be eligible for a reduced interest rate of up to 0.50% if you qualify for the Citizens Loyalty Discount and have your monthly loan payments automatically deducted through ACH.

Reading Citizens Bank reviews like this one is an important way to gather the facts, so you can make the best choice for your unique financial situation. It’s also advisable to shop around for other low-fee lenders, before signing any loan paperwork.

Citizens Bank consumer reviews

Citizens Bank has an A+ rating from the Better Business Bureau. On LendingTree, our parent company, 92% of reviewers recommend Citizens Bank.

Positive points in consumer reviews include great rates, knowledgeability and helpfulness of the lender, as well as the rapidity of the process. On the negative side, the lack of bank branches was mentioned.

Avik, from Jericho, N.Y., praised the bank employee he worked with: “As a first-time home buyer, we stumbled upon lot of unknowns especially buying [a] little bit above our budget and affordability. David walked us through the process and made it super easy. The bank also closed the loan in such a short notice. We were able to get our home where we were competing against multiple cash offers.” Vladimir from Pomona, N.Y., found the team “very responsive and easy to deal with.”

On the other hand, while Jared from Croton On Hudson, N.Y., did acknowledge that the team was “pretty great,” he added that “the requirement to open an account with them was a bit more work when I realized how few branches were nearby,” though “likely not an issue in the long-term.”

Citizens Bank FAQ

The company offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens Bank also provides mortgage lending, student lending and commercial banking services.

Citizens Bank will take multiple factors into consideration, including employment history, credit history, assets and debt. There is a soft pull credit for the rate quote and a hard credit pull for the application.

The use of personal loans include debt consolidation, engagements and weddings, kitchen and bath remodel, vacations and timeshares, and recreational vehicles.

While Citizens Bank doesn’t charge late fees, not making your payments on time could affect your credit score.

Alternative personal loan options

Wright-Patt Credit Union

Wright-Patt Credit Union
APR

8.99%
To
17.99%

Credit Req.

710

Minimum Credit Score

Terms

60

months

Origination Fee

No origination fee

APPLY NOW Secured

on Wright-Patt Credit Union’s secure website

With no annual fee, low fixed rates and terms up to 60 months, Wright-Patt Credit Union offers personal loans that are great options for those looking to work with a credit union.... Read More

Wright-Patt Credit Union offers personal loans from $500 to $40,000. Personal loans can be used for anything. One of the perks attached to the loan is the Skip-a-Pay Program, allowing eligible borrowers to skip one payment per calendar year without a late fee. You’ll need to join the credit union to apply for a personal loan: Ohio residents in several central and southwest counties, as well as the cities of Columbus and Cincinnati, are eligible for membership; those outside the region can research other means of joining the credit union. If you qualify for membership, this can be a good choice if you need less than the $5,000 minimum Citizens Bank loan.

PenFed Credit Union

PenFed Credit Union
APR

Starting at 6.49%

Credit Req.

700

Minimum Credit Score

Terms

36 to 60

months

Origination Fee

No origination fee

APPLY NOW Secured

on PenFed Credit Union’s secure website

Pentagon Federal Credit Union (PenFed) offers personal loans with terms up to five years and maximum loan amounts of $25,000.... Read More

PenFed personal loans are offered from $500 to $25,000. There’s no hidden costs of borrowing and funds are available immediately. Personal loans are exclusive to PenFed members, but you could be eligible to join through your employer, association membership, volunteerism or military affiliation. PenFed’s baseline APR is slightly lower than the starting 6.49% APR offered by Citizens Bank, so taking this route could allow you to score a better rate.

USAA

USAA Bank
APR

As low as 9.49%

Credit Req.

700

Minimum Credit Score

Terms

12 to 84

months

Origination Fee

No origination fee

APPLY NOW Secured

on USAA Bank’s secure website

USAA offers personal loans for members with low, fixed interest and protections to fall back on if you get behind in payments.... Read More

If you’re a member of the U.S. military — or an eligible family member — you might qualify for a USAA personal loan. Borrowing starts at $2,500 and you must be a member to apply for a personal loan. Decisions are typically made immediately and loans are funded the next day. Assuming you qualify for USAA membership, this could be a good fit if your borrowing needs are less than $5,000 minimum for a Citizens Bank personal loan.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Laura Woods
Laura Woods |

Laura Woods is a writer at MagnifyMoney. You can email Laura here

Yael Bizouati
Yael Bizouati |

Yael Bizouati is a writer at MagnifyMoney. You can email Yael here

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Get A Pre-Approved Personal Loan

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Won’t impact your credit score

Advertiser Disclosure

Personal Loans

OppLoans Personal Loan Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

APR

99.00%
To
199.00%

Credit Req.

Varies

Minimum Credit Score

Terms

9 to 24

months

Origination Fee

Varies

SEE OFFERS Secured

on LendingTree’s secure website

OppLoans personal loan details
 

Fees and penalties

  • Terms: 9 to 24 months
  • APR range: 99.00%-199.00% APR
  • Loan amounts: $1,000-$4,000
  • Time to funding: You can get access to your funds as soon as the business day after approval.
  • Hard pull/soft pull: Soft Pull
  • Origination fee: Varies
  • Prepayment fee: None
  • Late payment fee: Fees may vary by state, but if your payment is more than 15 days late, you will be charged $15.
  • Other fees: These may also vary by state, but you will be charged $15 each time you write OppLoans a bad check. California applicants will also have to pay a $75 administrative fee.

OppLoans’ rates are oppressively high, but there’s a reason they exist. When you find yourself with little money, a mountain of bills and bad credit, it becomes extremely difficult to gain access to low-interest borrowing products.

In these cases, many people turn to payday loans, which can have interest rates of around 400%. Going with a personal loan from OppLoans is a preferable path.

OppLoans makes efforts to help their clientele understand how they can boost their credit scores so they can get back into the traditional marketplace where lower rates can be obtained. They do this through OppU — a collection of free, educational courses that teach you about spending, saving, budgeting, credit and debt. Unless you live in Texas or Ohio, OppLoans also reports your loan activity to the three major credit bureaus, so making on-time payments can help you strengthen your traditional credit file.

Eligibility requirements

Clarity Services, Inc. is a subsidiary of Experian, but is not technically one of the big three credit reporting agencies (Equifax, Experian and TransUnion). Instead, Clarity Services deals with what is known as “alternative credit data.” This data is built by obtaining your credit report from one of the three major credit bureaus and supplementing it with information about recent credit inquiries, potential fraud attempts and your overall financial stability, including income and employment data.

When a lender like OppLoans uses Clarity Services, it’s doing so because it knows that, by traditional credit standards, you might look like a repayment risk, but it also knows that reliable people sometimes go through hard financial times. Clarity’s supplemental information allows OppLoans to make a lending decision on more than just traditional credit data.

If your alternative credit data qualifies you, you will also have to have a steady source of income. If your income is from employment, you have to have been with your employer for at least three months. You must also have a bank account that is at least three months old, where your paychecks are deposited using direct deposit. If you live in New Mexico, you are exempt from the direct deposit requirement.

If you’re active-duty military, you won’t qualify for a loan with OppLoans. That’s because the Military Lending Act protects servicemembers, their spouses and dependents from potentially predatory lenders, and the rates offered by OppLoans are far too high to meet this law’s standards.

Finally, you must be at least 19 years of age to qualify for an OppLoans personal loan if you live in Alabama or Nebraska. Otherwise, you must be 18 and live in one of these states:

  • Alaska
  • Arizona
  • California
  • Delaware
  • District of Columbia
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nevada
  • New Mexico
  • Ohio
  • Oklahoma
  • Oregon
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Virginia
  • Washington
  • Wisconsin
  • Wyoming

Applying for a personal loan from OppLoans

The only way to apply for an OppLoans personal loan is through its online application. Be prepared to enter identifying information such as your name, address and Social Security number, as well as your bank account info and data about your employer or any other way that you bring in income.

At this point in the process, OppLoans will pull your alternative credit data via Clarity Services. If you are approved, you may have to provide supplemental documentation proving you are who you say you are and what you earn.

After approval, many see the money deposited into their bank accounts as soon as the next business day.

Pros and cons of an OppLoans personal loan

Pros:

Cons:

  • Quick funding. With funding available as soon as the first business day following approval, OppLoans often gets its borrowers money fast.
  • Educational initiatives. OppLoans’ OppU educational program is free and online, meaning anyone can access it from anywhere within the confines of their schedule. The effort was launched as a form of advocacy to help consumers improve their financial situation so they don’t have to take out loans with ridiculously high interest rates in the future.
  • Better than payday loans. People who can’t get traditional credit often turn to payday loans to get by. OppLoans can be a good alternative to those payday loans, but it’s not necessarily the best option for getting cash fast.
  • High interest rates. Paying 99.00% to 199.00% interest on your loan is akin to paying over 2-3 times the amount you initially borrowed. For example, if you took out a $3,000 loan at 199.00%, which you needed to repay in three years with monthly payments of $499, you’d end up paying $17,964 total by the time all was said and done.
  • Doesn’t help if you’re in ChexSystems. If your money situation is tumultuous, there’s a chance you may have been put in ChexSystems, a credit reporting agency for checking and savings accounts. When this happens, you won’t be able to open a bank account, and without a bank account which is at least three months old, you’re not going to qualify for an OppLoans personal loan.
  • Direct deposit required. Many employers set direct deposit as the default way to pay employees, and many will oblige if you request this method of payment. If you don’t already have direct deposit set up for your paycheck, you’re not going to be able to get your hands on an OppLoans personal loan quickly until you get that resolved. If your employer doesn’t offer direct deposit, you can’t borrow from OppLoans.

Who’s the best fit for an OppLoans personal loan?

OppLoans is not the best option for a lot of people because of its high interest rates. However, if you have poor credit but have a bank account, have recently been denied by other lenders who offer lower interest rates and need money right now, OppLoans may be your most viable solution. Consider OppLoans before you turn to payday loans.

OppLoans consumer reviews

Despite its staggeringly high interest rates, OppLoans receives mostly positive feedback from its customers. Those who have reviewed the company on LendingTree (MagnifyMoney’s parent company) say the application and funding process is quick and easy, and many note that the customer service is very good.

For example, reviewers praise OppLoans for being “professional, secure, and speedy,” as well as “upfront with fees and payment terms,” and “very helpful if you have any questions.” Ninety-six percent say they would recommend OppLoans — plus, the company has an A+ rating from the Better Business Bureau.

Negative reviews for OppLoans are few and far between, but those that did rate their experience poorly say they weren’t approved by the lender or were unhappy with the high rates and fees.

OppLoans FAQ

OppLoans offers both installment loans (what we’ve covered in this piece) and lines of credit. The latter is only available in a few states.

If you’re approved, OppLoans will deposit your funds directly into the account you provided. You could see the money come through as soon as the next business day, though this depends on what time of day (and day of the week) your application is processed and finalized.

OppLoans accepts electronic funds transfers (EFT), which is basically a debit from your checking account to the lender. You can also use your debit card for one-time payments.

You can use your personal loan for nearly anything. Some of the most common uses include debt consolidation, paying off medical bills, and financing a big purchase.

Yes. OppLoans doesn’t charge a prepayment penalty — if you are able to pay off your loan faster, you’ll save on interest.

OppLoans advises customers who expect to pay late or miss a payment to call the company directly at 855-408-5000. Note that there is a late payment fee that varies depending on where you live.

OppLoans specializes in working with bad credit borrowers but has a number of additional eligibility requirements for its personal loans. If you don’t qualify, take a look at alternatives on MagnifyMoney’s personal loan marketplace. You may find other offers that work for you.

Alternative personal loan options

NetCredit

APR

34.00%
To
155.00%

Credit Req.

Varies

Minimum Credit Score

Terms

6 to 60

months

Origination Fee

1.00% - 5.00%

SEE OFFERS Secured

on LendingTree’s secure website

NetCredit issues personal loans with interest rates up to 155.00%. That’s not great, though it is a bit better than OppLoans’ ceiling of 199.00%. It also has far lower starting rates at 34.00% compared with OppLoans’ 99.00%. You may be able to qualify for a NetCredit personal loan with a credit score as low as 500.

LendingPoint

APR

9.99%
To
35.99%

Credit Req.

585

Minimum Credit Score

Terms

24 to 48

months

Origination Fee

0.00% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

LendingPoint is an online lender that targets borrowers with fair credit, and allows borrowing up to $25,000.... Read More

If you have a credit history strong enough to merit more traditional interest rates, take advantage of it. LendingPoint works with individuals with credit scores as low as 585 according to CEO Mark Lorimer. Interest rates are far lower than OppLoans, at 9.99%–35.99%.

Finova Financial

Finova Financial
APR

18.00%
To
204.00%

Credit Req.

Varies

Minimum Credit Score

Terms

12 to 24

months

Origination Fee

$30

SEE OFFERS Secured

on Finova Financial ’s secure website

Without a traditional bank account, you’re going to have a hard time getting an unsecured loan. You can instead look at title loans. To get these loans, you have to put up some collateral, like your car, which the lender could repossess should you fail to repay your debt. This is very risky, as losing your car could further complicate an already dire situation, but if you find yourself needing to us this type of financial product, consider Finova Financial, which has personal loan-like interest rates on its title loans, currently sitting at 18.00%–204.00%.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here

Emily Long
Emily Long |

Emily Long is a writer at MagnifyMoney. You can email Emily here

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