Oportun, a financial services company that provides small-dollar credit to Latinos and others with limited credit history, has opened its first location in Phoenix.
Oportun's proprietary system determines every loan applicant's ability to repay and approves loans for those it calculates are likely to repay on time. The California-based company also sets loan amounts and terms to fit individual budgets, giving borrowers several months to pay back their loans. Oportun also reports customer accounts to credit bureaus to help customers establish or build credit histories. The company has more more than 190 locations in California, Illinois, Nevada, Texas and Utah, plus the new Arizona location.
According to a study by the Center for Financial Services Innovation (CFSI), loan options typically available to people with limited credit history are on average more than three times more expensive than Oportun loans.
"Individuals with limited credit history don't have a lot of options if they need to borrow money for an unexpected expense," Oportun CEO Raul Vazquez said. "We know there are many responsible, hard-working Arizonans who are both willing and able to repay a loan on time, despite their lack of credit history. We look forward to lending them the money they need while giving them the opportunity to establish their credit history."