In this article, we will examine the Top 9 Credit Services Stocks to Buy as the US Cuts Interest Rates.
A window of opportunity is brewing up in the financial services sector. According to Wells Fargo, when the US Federal Reserve cuts interest rates, the industry often rallies if there is no recession. With the Central Bank resuming its easing cycle, more people and businesses are likely to seek credit, resulting in heightened activity in the sector.
According to Matt Quinlan, portfolio manager at Franklin Templeton, financial services companies should benefit from a pickup in business activity as interest rates decline. Some of the biggest beneficiaries should be companies that extend credit and make loans to individuals and businesses. That’s in part because lower interest rates make credit and loans cheaper.
In addition, the industry is expected to benefit from deregulation under the Trump administration.
“The credit part of banks and financial companies is holding in there and should hold in there well, and then we’re also seeing some really good dividend growth,” Quinlan said.
Amid the positive long-term outlook, the sector has also come under pressure due to loose lending practices, especially in the opaque private credit market. Companies facing sizable charges due to bad loans to a couple of borrowers are a point of concern.
“Today, I think, the risk to the bank space is idiosyncratic,” said Timothy Coffey, associate director of depository research at Research Janney Montgomery Scott. “The risk to the insured bank space for private credit could be more systemic, as well as the risk to credit quality from a weakening economy.”
Amid the high-interest-rate environment, the credit services sector has lagged the overall market. The sector’s 1-year return stands at 11.32% compared to a 13.68% gain for the S&P 500 over the same period. The underperformance underscores the room for growth as people and businesses seek cheap credit in a lower-interest-rate environment.
Let’s take a look at some of the top credit services stocks to buy amid the US rate cut.
Our Methodology
To compile the list of the top credit services stocks to buy as the US cuts interest rates, we used Finviz to screen for companies that offer credit services. We settled on companies that are popular among elite hedge funds. Finally, we ranked the stocks in ascending order based on the number of hedge fund holders, as reported by Insider Monkey’s Q2 2025 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Top Credit Services Stocks to Buy as the US Cuts Interest Rates
9. Oportun Financial Corporation (NASDAQ:OPRT)
Number of Hedge Fund Holders: 20
Oportun Financial Corporation (NASDAQ:OPRT) is one of the top credit services stocks to buy amid the US rate cut. On October 14, Oportun Financial Corporation (NASDAQ:OPRT) successfully enhanced its debt capital structure. The company closed a $247 million three-year revolving term committed warehouse facility with Citizens Financial Group.
Additionally, it secured a 12-month extension of an existing warehouse facility with Goldman Sachs. The two warehouse facilities are priced at favorable terms and expected to reduce financing costs. In addition, the total committed warehouse capacity has increased to $1.14 billion from $954 million. The weighted term for the combined warehouse facilities has also increased to 25 months from 17 months.
“Reducing total warehouse financing costs while increasing committed warehouse capacity helps ensure Oportun is well placed to continue delivering for our investors and members,” said Paul Appleton, Interim Chief Financial Officer at Oportun.
Oportun Financial Corporation (NASDAQ:OPRT) is a financial services company that provides loans, savings, and budgeting tools, particularly for individuals with limited or no credit history. It offers personal and auto loans, as well as digital banking and savings products, leveraging AI to assess creditworthiness and help manage financial goals.
8. OppFi Inc. (NYSE:OPFI)
Number of Hedge Fund Holders: 23
OppFi Inc. (NYSE:OPFI) is one of the top credit services stocks to buy amid the US rate cut. On October 2, OppFi Inc. (NYSE:OPFI) announced a new $150 million revolving credit facility with Castlelake L.P., replacing its previous arrangement and lowering its interest rate to SOFR plus 6.0%.
The four-year deal reflects improved financing terms and highlights OppFi’s strong liquidity, backed by a current ratio of 19.57. With revenue up 31% year-over-year and analysts raising earnings estimates, the company expects the facility to support growth in receivables and expand access to underserved borrowers. OppFi holds a 35% stake in Bitty Holdings, which provides funding solutions to small businesses.
OppFi Inc. (NYSE:OPFI) is a tech-enabled financial platform that provides installment loans to consumers, often those underserved by traditional banks, through its OppLoans platform. The company partners with banks to offer financial products and uses a data-driven approach with over 500 attributes to assess creditworthiness.