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The drawback to RISE is that the APR can be quite high for first-time borrowers since they don’t have any credit minimums. But the more frequently you borrow, the lower your rate becomes. Ready to find out more? Keep reading.
RISE Credit Personal Loans
When taking out a loan with RISE Credit, you can borrow between $500 and $5,000 and can expect delivery of the funds the next business day. Most first-time RISE customers have rates anywhere from 124%-363%.
Those numbers can be quite astonishing considering the fact that most states have a 36% APR cap. But RISE does offer a service that a lot of lenders just aren’t willing to do— lending money to bad credit borrowers fast.
Repayment terms last generally anywhere from 4 to 26 months, and there aren’t any early payment fees (plus interest accrued is prorated). RISE Credit is certainly not the cheapest option out there, but it is definitely one of the fastest, and as you may already know, there are many occasions in a person’s life where that’s all that matters.
To apply for a RISE loan, you need a few things to begin the application process. For starters, you need to be a legal adult, meaning you need to be at least 18 years old ( if you live in Alabama, you must be at least 19 years old).
Secondly, you need to hold a job that provides you a regular source of income — paychecks should be regular and taxes should be withheld. Next, you need an active checking account that you regularly deposit and withdraw money from. Lastly, you need an email address to receive account information from RISE.
RISE currently only serves certain states. You must live in one of the following states to be eligible for a personal loan:
- New Mexico
- North Dakota
- South Carolina
- South Dakota
All RISE applications must be completed online and you’ll get to see your results almost instantaneously. You’ll just need to enter some straightforward information and may then be asked to provide extra documentation to verify your income.
RISE supplies you with an approval amount and you can choose how much you’d like to borrow. If you are denied, they’ll tell you why straight off the bat so you can work on your finances in the spots that are giving you trouble.
Once You’re Approved
If you submit your application before 6 PM ET and are approved, money will be deposited into your account the next business day. So keep in mind if you do it over the weekend your money will be sent on Monday.
Likewise, if you submit your application on a holiday, you’ll have to wait to get your money. How do you get your money? Most people just have it electronically transferred, but receiving a physical check is also an option. If you go this route, however, expect to wait 7-10 days before receiving it.
If your situation changes and you no longer need a loan from RISE or if you find a loan you like better, they have a five day ‘risk-free’ guarantee. Return the loan in full within five business days, and you won’t suffer any fees. If you don’t have the funds in your account, RISE Credit will return the money, but know that there will be fees involved (from both RISE Credit and your bank).
To make your payments, RISE Credit generally sets each customer up with an ACH payment, and your account will be debited every two weeks. As should be expected with any loan company, RISE Credit does report any missed payments to credit bureaus.
However, if you know you’re going to miss a payment deadline, contact them. In some instances, they will grant a 7-day extension. Like other companies, if you fail to make payments, your loan may eventually be sold to a debt collection agency.
If you pay off a loan with RISE and decide you liked the process enough to repeat the experience with another loan, expect to have a lower APR the second time around. You will, of course, need to have made all of your payments on time for the first loan to be eligible. But if you did, you might see as much as a 50% reduction in APR.
Moreover, if you continue to make on-time payments for an additional 36 payments, you may be eligible for an APR as low as 36%. For most customers, this process generally takes two or more loans, but is a far cry from the original lending rates for first-time borrowers.
RISE Credit’s History
Founded by the Think Finance, the company behind Payday One and Plain Green Loans, RISE Credit is a relatively new loan company. Think Finance originally began as an analytics company, providing technology and marketing services to financial businesses. That changed in 2014 when Ken Rees stepped down as the President and CEO, and Martin J. Wong took over.
At that time, Think Finance cut out the middlemen they were servicing and realized that the analytics they were providing to other companies could be used, instead, by them themselves. Growth has been extremely positive.
Think Finance has been listed as one of America’s Most Promising Companies by Forbes, and from 2010 to 2015 they were on the Inc. 5000 list of the fastest growing companies. With a three-year growth rate of 216% and $687 million in revenue in 2013, it’s little wonder why.
What to Do for a Bad Credit Loan
There are a few steps you can take to improve your chances of getting a better loan. If time is not of the essence, take a breather and meditate on the reason of the loan, and go through the appropriate steps to improve your credit score. Either way, here are some tips for the process.
Check Your Current Finances
Before you go through with the loan application, make sure you can afford the monthly payments. Remember: RISE Credit uses an ACH payment system, so funds will be taken from your account regardless of whether or not you can afford it. Food and utilities must always come first. APRs for first-time customers can be quite severe and can range anywhere from 124.67% to 363.97%.
Let’s talk specifics. Say you live in Mississippi and you take out a loan for $1,250. With an APR of 284.22%, your bi-monthly payment will be $150.49 for 23 payments. What does that mean? In the end, you will have paid $3,461.27 for a $1,250 loan or $2,211.27 more than what you borrowed.
Even if you can afford to make the payments, can you afford in the long run to be spending that much money on a loan? Say you make $40K a year. Is it worth 5% of what you’d make in a year?
Of course, loans are all about timing. When you need money and you don’t have many options, you’ve got to go with whatever keeps your wheels turning. For many people, RISE Credit has been a lifesaver.
Yes, they have high interest rates, but out of 993 reviews on eKomi (a feedback company), RISE currently has 95.29% positive feedback. Of the remaining 4.71 percentage points, only 2.07% were negative. Obviously, the company is doing something right to receive such high marks.
Review Your Credit Score
Only you know what you need the loan for, and whether or not it’s time sensitive. Assuming, of course, that the reason you need the loan is a necessity as opposed to a want, see if there is time to improve your credit score before applying. Why? A lower credit score can dramatically raise your interest rates.
If there is time, here are a few things you can do to bolster your score:
- Dispute incorrect negative items on your credit report.
- If you have credit card debt, spread it out across multiple cards instead of maxing out one card.
- Request an extension of credit on an existing credit card.
- Ask a friend or family member to be added as an authorized user on one of their older credit card accounts. You’ll get credit for their on time credit history, as well the age of their account.
Doing just one of these options can bump your score up, but you need to allow for at least several weeks to see the improvement. Again, it just comes down to time. How quickly do you need the loan? If you can wait to improve your score, the APR will be better and you won’t have to pay as much in the long run.