Rise is an online lender that offers small personal loans from $300 to $5,000. Typically, the people who benefit the most from RISE’s services are in a bind and need cash fast. We’re talking about people with broken-down cars, medical emergencies, or anyone who needs to travel fast.
The drawback to RISE loans is that the APR can be pretty high for first-time borrowers since they don’t have any minimum credit score requirements. But the more frequently you borrow, the lower your interest rate becomes.
RISE Personal Loans
When taking out an installment loan with RISE, you can expect delivery of the loan funds the next business day. Most first-time RISE customers have interest rates that range from 124% to 363%. You can find other personal loans for bad credit that are much lower.
Those numbers can be astonishing because most states have a 36% APR cap. But RISE does offer fast, unsecured installment loans to bad credit borrowers — a service that many lenders aren’t willing to offer.
RISE loans have a loan term that is generally between 4 to 26 months, and there aren’t any prepayment fees (plus interest accrued is prorated). Make sure you always read the fine print when reviewing your loan agreement.
RISE Credit is certainly not the cheapest option out there, but it is one of the fastest, and 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 with a regular source of income — paychecks should be consistent, and taxes should be withheld. Next, you need a valid 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 RISE loans:
- New Mexico
- North Dakota
- South Carolina
Kansas and Tennessee are the only two states that offer lines of credit.
RISE Credit Loans Application Process
All RISE loan applications must be completed online, and you’ll get to see your results almost instantaneously. You’ll need to enter some straightforward information and may then be asked to provide extra documentation to verify your income as there are minimum income requirements.
RISE Credit supplies you with a loan amount, and you can choose how much you’d like to borrow. Then, if you are denied, RISE will 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, RISE will deposit money into your bank account the next business day. So keep in mind if you do it over the weekend, RISE will send your money on Monday.
Likewise, if you submit your application on a holiday, you’ll have to wait to get your money. So how do you get your money? Most people have it electronically transferred, but receiving a physical check is also an option. However, if you go this route, expect to wait 7-10 days before receiving it.
If your situation changes and you no longer need a RISE loan or if you find a loan you like better, they have a five-day ‘risk-free’ guarantee.
Return the RISE personal 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 will return the money, but know that there will be fees involved (from both RISE and your bank).
RISE generally sets each customer up with an ACH payment to make your payments, and they will debit your account every two weeks. As should be expected with any loan company, RISE Credit reports payments to the major credit bureaus.
However, if you know you’re going to miss a payment deadline, contact them. In some instances, RISE Credit will grant a 7-day extension. As with other lenders, 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%. This process generally takes two or more personal loans for most customers but is a far cry from the original lending rates for first-time borrowers.
RISE also offers free tools to build your credit, such as a free credit score monitoring service called ‘Credit Score Plus.’
RISE Credit’s History
Founded by Think Finance, the company behind Payday One and Plain Green Loans, RISE Credit is a relatively new loan company.
Think Finance had to pay back $39.7 million on payday loans that charged 375% interest. Lawsuits were filed in Vermont, Virginia, Florida, North Carolina, and California after allegedly engaging in a payday lending operation that used Native American tribes as shields from state laws.
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, meditate on the reason for 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 they will take funds from your account regardless of whether you can afford it. Food and utilities must always come first. APRs for first-time customers can be severe and range from 124.67% to 363.97%.
Let’s talk specifics. Say you live in Mississippi and 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 to be spending that much money on a loan in the long run? For example, say you make $40K a year. Is it worth 5% of what you’d make in a year?
Of course, installment loans are all about timing. When you need money and 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%, only 2.07% were negative. So the company is doing something right to receive such high marks as their customer service maintains good ratings from most review sites.
Review Your Credit Score
Only you know what you need the personal 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 credit score:
- Dispute incorrect negative items on your credit report with the major credit bureaus.
- 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 credit 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 a personal loan? If you can wait to improve your credit score, you can get better loan terms, and you won’t have to pay as much in the long run.
Check out our other personal loan reviews below to continue exploring your options.