OppFi Inc.

OppFi, which operates the OppLoans brand, is an online installment lender that primarily serves consumers with bad credit who do not qualify for loans from mainstream banks or credit unions. OppFi works through a bank partnership model, where loans are issued by partner banks and then serviced by OppFi.

OppFi markets its loans as an alternative to payday loans, pointing out that its installment loan products have longer repayment terms and are reported to the credit bureaus, which payday loans typically are not. This is accurate as far as it goes, but consumers should understand that the annual percentage rates on OppFi loans can be significantly higher than those on conventional personal loans. APRs in the triple digits are possible depending on the state and loan terms.

Before applying for an OppFi loan, exhaust other options. Many credit unions offer small-dollar loans and payday alternative loans to their members at far lower rates. Community Development Financial Institutions, or CDFIs, are nonprofit lenders that serve consumers with limited or poor credit at more affordable rates. Employer-based salary advance programs and emergency assistance programs from nonprofits may also be available in your area.

If you do borrow from OppFi, borrow only what you need and have a concrete plan to repay the full loan as quickly as possible. Understand the total cost of the loan over its full term before you sign. OppFi does report payments to credit bureaus, so on-time payments can help build your credit profile, which may help you qualify for lower-cost options in the future.

OppFi is a legitimate registered company. Availability and rates vary significantly by state. Review all terms including the APR, total repayment cost, and any fees before agreeing to a loan.