RISE Personal Loans: Comprehensive 2020 Review

RISE Personal Loans: Comprehensive 2020 Review.

RISE Personal Loans: Not everyone has stellar credit, and if you don’t, funding for ordinary things like houses, cars, and other incidentals can be incredibly hard to get. RISE credit is a lending service that provides a solution to this problem by giving consumers with poor credit the opportunity to access unsecured, low-barrier installment loans that deliver cash in as little as one day.

RISE is owned by Elevate, a non-prime lender based on technology that seeks to identify and resolve the financial challenges that can impact those with less than stellar credit. Today RISE financed loan requests from more than 1.8 million consumers with a total origination of over $4.9 billion. Take a look around the company, who it’s right for and what it offers.

In this post:

What Is RISE Credit?

RISE Credit is a lender offering high-interest installment loans and credit lines of high interest. They are specialized in lending to people with poor credit history or no credit history. Rather than investing using conventional rating methods, RISE Credit uses income information and the credit report to set terms and conditions for the loans.

Pros & Cons

Pros

Accepts bad credit.
Fast funding.
Free credit score access.

Cons

High rates.
Hard credit pull.
Available in a limited number of states.

Rise loan details

Requirements:

Have a job or regular source of income.
Have a checking account.
Live in one of the states that Rise serves.*

Consumer-first features:

Loan term can be customized.
Track your TransUnion credit score.
Rate reduction with on-time payments.
Reports payments to Experian and TransUnion.
Financial education.

Tariff discount program: Borrowers are entitled to cut their rate by half after making 24 on-time payments for one or more Rise loans. You will apply for a new Rise loan at 36 per cent APR after 36 on-time payments, which is the upper limit of most non-payday loans.

Rise also allows borrowers to know whether they are eligible for refinancing before the two-year mark, says Leopold.

Graduating to lower rates— while making an appeal— requires you to pick a longer-term loan or multiple loans. We do not suggest long-term, high-rate loans or recurring loans, as the loan may become unsustainable and you may end up paying more interest than the original amount you lent.

What Products Does RISE Credit Offer?

Two products are offered on RISE Credit. The first product in most states is a short-term installment loan with repayment terms that last for up to 26 months. As a borrower, you’ll be required to make loan payments as frequently as every two weeks. Short term loans after 24 months (48 payments) may become eligible for refinancing. Loans range from $500 to $5,000. Loans do not have restrictions on prepayment. Furthermore, RISE Credit does not charge origination fees, so you will save most of the fees if you can pay off the loan quickly.

Many RISE customers will also become eligible for a credit line. A credit line enables lenders to use credit when required and to repay it according to a timeline defined by the loan agreement. You can either make minimum payments on the credit line, or you can pay them off as quickly as possible to prevent further interest accruing. The minimum payment on a credit line will fluctuate depending on the amount that you owe, but you will always pay at least the entire interest accrued during the loan period.

The minimum interest rate is 36 percent for any loan product and the average interest rate is 299 percent. Are these prices actually higher at pawn shops or payday lenders than the others? The reaction depends on the case, but payday loans typically have interest rates of 322% or higher.

What do you need to qualify for RISE Personal Loans?

The minimum age to be considered is 18 or the State’s minimum. Whichever is higher.

RISE Personal Loans has no minimum annual income eligibility requirement or does not disclose it. RISE Personal Loans would consider lenders regardless of their employment status if they can show their ability to repay their obligations.

The Military Lending Act (32 C.F.R. § 232) forbids lenders from charging members of the military for credit extended to covered borrowers by more than 36 per cent APR. APRs for the RISE Personal Loans product fall outside the MLA limits and can not, therefore, be issued to those applicants.

Active duty service members and their covered dependents are considered “covered borrowers” under the Military Lending Act.

U.S. citizens are, of course, eligible for the services offered by RISE Personal Loans. Permanent resident / green card holders are also eligible to apply.

To qualify, applicants may need to provide the following documentation:

Applicants must have an active and valid checking account
Proof of citizenship or residence permit

RISE Personal Loans Eligibility Criteria
Minimum Age	18
Bank Account Required?	Yes
Application Types Accepted	Individual Applications
Credit Score	300 – 650

Where Is RISE Credit Available?

RISE Credit offers loans in the following states: Alabama, California, Delaware, Georgia, Idaho, Illinois, Kansas, Mississippi, Missouri, New Mexico, North Dakota, Ohio, South Carolina, Tennessee, Texas, Utah, and Wisconsin.

Kansas and Tennessee are the only two states that offer lines of credit.

Who a Rise loan is good for

Rising personal loans could be a good option for people who need money quickly and have trouble getting other lenders approved because of their credit. Nevertheless, given the high APRs of the lender, we recommend considering all other potential credit choices and alternatives before receiving a Rise loan.

Alternatives might include receiving an alternative payday loan from a federal credit union or asking a trusted friend or relative to co-sign another lender’s loan, which may improve your approval chances and result in a lower interest rate. Make sure to compare all of your choices and shop around.

If you do get a Rise loan, keep in mind that you have five business days after signing your loan agreement to change your mind and pay back the principal.

Rise is not a good idea if:

Your main goal is to build credit: Getting a secured credit card or credit-builder loan, or paying off existing debt, are faster and cheaper ways to build credit.
You can get cash elsewhere: We recommend exhausting cheaper alternatives first, even in an emergency.

Before you take a Rise loan

Try all other options: If none of the alternatives listed above work for you, see if you can buy time from your creditor, work out a payment plan or face the short-term financial consequences of not paying, such as a late fee.
Compare the cost of taking the loan to the cost of not taking it: Calculate the overall cost of not having funds for your purpose, then weigh that against the typical cost of this loan in your state.

FAQ:

Will RISE Credit check my credit score?

Although RISE Credit is a bad credit lender, they are no a ‘No Credit Check Lender’. In fact, the platform will take your FICO credit score into account when assessing whether or not you qualify for a loan, and how much you should be charged.

When will RISE Credit transfer my loan funds?

If RISE Credit is able to automatically validate the information you provide within your loan application, then you’ll likely receive the funds the next working day. In rarer cases, the platform might ask you for supporting documentation. If they do, then it might delay the process by a couple of days.

Does RISE Credit charge an origination fee?

RISE Credit does not charge any origination fees.

How much will I have to pay for late payments?

RISE Credit will charge you a late payment fee if your loan payment is overdue for 7 days or more. The amount you are charged will be based on the state you live in. You’ll be able to view this in your pre-approval loan agreement.

What APR rate does RISE Credit charge?

RISE Credit can charge anywhere from 36% APR to 299% APR. This will depend on a range of factors, such as your credit profile, annual income, debt-to-income ratio, and even the state that you live in.

What is the estimated funding time for a personal loan via RISE Personal Loans?

RISE Personal Loans will typically approve (or deny) a loan application within 24 hours and fund personal loans within 3 business days of approval.

What Alternatives Should Borrowers Consider?

Whenever you start talking about triple-digit interest rates, it’s important to exhaust every other option before taking out a loan. Because the loans from RISE Credit start as low as $500, you may be able to cover your unexpected expenses by selling an asset (such as an old car, musical instruments, equipment you no longer use, high-end clothing) or working extra hard for a few days.

On top of those options, you should consider the following “loan” or loan alternatives before turning to RISE Credit or any other high-cost loan products.

1. Loans from Family or Friends

If you need a few hundred dollars, a friend, parent, or sibling might be able to help you out in a pinch. If you want to make it an official loan with interest and everything, consider using Lenmo which allows users to make peer-to-peer loans that actually report to credit bureaus.

2. Get a Paycheck Advance

Your HR department may cut a check for the hours you worked to help you out in a pinch, or they may offer an advance on your paycheck which is usually free or very low cost. If you work for a huge company like Home Depot or McDonald’s, using an app like Earnin (formerly Activehours) you may be able to cash out part of your earned paycheck.

Earnin is technically free, but it is funded through a “pay-what-you-think-is-fair” scheme, so you may want to put in a buck or two to help them keep the lights on. Chime (a bank) also provides early access to direct deposit to its users (though this takes a few weeks to establish).

3. Use a Credit Card

If you have a credit card, even one with a very high-interest rate, use it instead of a payday loan. Even a cash advance from a credit card has a lower interest rate than the rate from a RISE Credit installment loan.

4. Negotiate Your Own Payment Plan

Whether you’re at risk of running late on your utilities, a medical bill, school tuition, or you need an emergency car repair, you can probably negotiate a payment plan with less than 100% interest. If you can prove a financial need (or just ask nicely), they’re typically willing to knock off up to 50% or more of the bill.

Bottom Line

Borrowers should first seek to eliminate all other lending options, including credit cards, credit lines, and conventional loans, because of the high-interest rates. This is especially true of those with an average or good credit. Many of these would likely come with lower rates, like credit cards, and will, therefore, be more competitive in the long run.

If those options are out of reach, however, RISE can be a reliable solution providing easy access to cash. In fact, RISE consumers are largely pleased with their experience and tend to provide good customer service because the company maintains a strong ranking on most consumer review sites, including BBB (an “A” rating with a four-star customer review) and Trustpilot (a “Great” rating with an 8.4 out of 10 customer review).

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