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Introduction

Rise Credit is an online lender that offers personal loans to borrowers who may have difficulty obtaining credit from traditional sources. They market their loans as a way to help customers manage unexpected expenses and build credit. However, it’s crucial to understand the costs and potential risks associated with these loans before applying.

Personal Loan Details and Costs

Rise Credit offers personal loans ranging from $500 to $5,000, with terms ranging from 7 to 36 months, depending on your state of residence. The APRs for these loans are extremely high, ranging from 60% to 299%. These rates are significantly higher than those offered by most credit cards and personal loans from banks or credit unions.

You do need to be aware that a Rise personal loan payments occur twice a month, on your paydays. Some applicants are surprised when they fail to look closely and think that the payment is a monthly payment. When you receive your loan offer, you will see the details. You should pay particular attention to whether the payments are monthly, bi-monthly, or bi-weekly. Usually, that will depend on your pay schedule and not by your choice. 

Personal Loan fees

One positive aspect of Rise Credit loans is that they don’t charge application fees, origination fees, or prepayment penalties. 

Rise does offer a seven day grace period after a payment due date before they charge a late fee. For borrowers who might struggle with a payment, they offer payment extensions and deferments, but you must call their customer support line before the due date to be eligible. You do need to know that deferments and extensions will not stop the accumulation of interest. Rise charges interest on a daily basis, so getting behind on your payments can result in payments that are mostly interest. 

Is Rise Credit a Legitimate Company?

Rise Credit is a subsidiary of Elevate, a fintech company that provides online credit solutions to non-prime consumers. Elevate was founded in 2014 and is headquartered in Fort Worth, Texas. Elevate had been a publicly traded company, but in 2023 was bought by private equity. Elevate markets and manages loans under the Rise Credit brand, but the actual loans are issued by FinWise Bank and Capital Community Bank, both are Utah chartered banks. 

Rise Credit’s website states that they are committed to responsible lending practices and providing transparent information about their loan products. They also offer resources and tools to help customers manage their finances and build credit.

What credit score do you need for Rise Credit Personal Loan?

Rise Credit lends to people with poor or fair credit. The average credit score for people approved for a Rise loan is probably around 580. This means that you could be approved if you have a score as low as 550 and have a good chance of being approved if your score is as high as 630. If your score is in the mid-600s, there is a good chance that you could be approved for a lower cost personal loan and so should definitely shop around. 

Application Process and Loan Disbursement

Applying for a Rise Credit loan is done online, and the process is relatively quick. To qualify, you must have a valid checking account, email address, and source of income. Filling out the application could take as little as 5 minutes, depending on whether you have the necessary information handy. 

After submitting the application, most applicants will receive a credit decision within a minute. If approved, you could see your money on the next business day if the offer is accepted before 6 pm Eastern. 

Features

Credit bureau reporting

Rise Credit reports your payment activity to at least one of the major credit bureaus, so making on-time payments could help you build credit over time. Also, being over 30-days late with your payment will be reported late. This will negatively affect your credit score.

Credit Score Plus

Rise Credit offers customers and applicants a service they call Credit Score Plus. When you sign up, you will be able to immediately check your credit score and they will receive free credit alerts over time. These alerts will tell you when changes occur to your credit score and when hard inquiries are reported, indicating that your account has applied for credit. 

Progress to Better Rates

For years, Rise Credit offered customers who returned in good standing the opportunity to receive lower rates. They even steadily lowered their rates for customers. However, it is no longer clear whether they are offering that benefit. Of course, most people take a loan hoping not to have to take another one, so it is possible that it is only a service communicated to its active customers. 

5-Day Risk Free Guarantee

Rise Credit offers a 5-day risk free guarantee. If end up regretting that you accepted a Rise personal loan, you can rescind the loan anytime within the first five days. That means you can give the principal back and they will not charge you and fees or interest. 

BrightDime Financial Wellness Coaching

Rise Credit offers customers a free six-month subscription to BrightDime, which is a third-party digital financial wellness coach. It helps you track your finances, answers personal finance questions, and provides financial literacy content. If you continued after the six months, you will be charged $9.99 per month. 

Is a Rise Credit Personal Loan Right for You?

Rise Credit mentions on their website that “This is an expensive form of credit.” And indeed it is. Given the extremely high interest rates, Rise Credit loans should only be considered as a last resort for emergencies. Do not take a Rise Credit loan for spending that is not necessary. Before applying, exhaust all other options, such as negotiating with existing creditors, seeking assistance from non-profit credit counseling agencies, or exploring cheaper loan alternatives.

As with any financial decision, it’s essential to do your research and compare offers from multiple lenders. Marketplace platforms like The Yukon Project allow you to compare personal loan offers from various lenders with a single application, making it easier to find the most affordable option for your situation.

My recommendation

Elevate is a responsible company that does try and help people who are not able to receive credit from mainstream lenders. You can see this fact in the extra services that they offer their customers. But, Rise personal loans are very expensive. If you can avoid them, you probably should. The interest rate is so high that you are likely to see very little principal paydown for the first three or four months. 

If you cannot get a lower cost form of credit and have an emergency, you could consider Rise. Even, then, I would recommend that you make a plan to pay off the loan within the first year. Do your best to make extra payments in the first couple of months. This will save you a lot in interest over the life of the loan. 

A Rise personal loan should only be taken in emergencies and you should consider it a short-term loan. Even if they offer you 2 or 3 years, you should do your best to pay it off in 8 or 9 months. 

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Jonathan Walker