A member came in wanting to apply for a credit card and mentioned that it was his first time ever applying for one. I began asking questions about his purpose for applying so I could better explain his options. He shared that he wanted to pay off a current loan because he was paying very high interest. He had the loan with Oportun for a few years and said he had not realized how much he was paying in interest until recently, which helped explain why his balance was not improving.
I explained that he could apply for a personal loan to pay off the loan with Oportun. I let him know that a personal loan typically carries a lower interest rate than a credit card, depending on his credit score, and that either option would offer a much lower rate than what he currently had. The member agreed to apply for a personal loan to see where he stood. After processing the loan and receiving approval, he was visibly relieved and even commented, “Ya puedo respirar,” which translates to “I can breathe now.” He shared how relieved he was to receive a much lower interest rate and monthly payment. He also mentioned that he could continue making the $400 monthly payments he had been paying, which would allow him to pay off the loan even sooner.
