We have all seen those daytime commercials promising fast money with no credit.
Perhaps, you were binge-watching Judge Judy episodes on your day off or maybe you just had the TV on in the background working from home, either way whenever you hear, “No credit, low credit… No Problem!” your ears perk up.
Whenever you something promising upfront money with no credit, it's better to run the other way. Most of the time, personal loans for bad credit consumers should serve as a last-ditch effort.
This advice goes for Rise Credit too.
Rise Credit offers personal loans for those who have poor credit or even no credit, however, these loans come with high-interest rates. Read the full Rise Credit review below:
Rise Credit 101
RISE Credit offers high-interest loans to those with poor credit or no credit history.
They don’t use traditional scoring methods such as a credit score, and instead have their own built-in internal score by gathering data on your credit, income and banking data. Using all this information, they set terms and conditions for a loan that “Fits you best.”
Potential borrower requirements are minimal, thus the interest rates are much higher.
|Credit Score||APR Interest Rates:||Borrowing Amounts|
|None||36% to 299%||$500 – $5,000|
While we will continue to fully review Rise Credit, anytime interest rates start jumping over 20%, it's vital that you pay attention. Extremely high interest rates can greatly impact your finances long term and it's best to always consider alternate options.
Quick Summary of Rise Credit
RISE Credit have two different products on offer.
Both have terms that last over 24 months and payments can be as often as every two weeks. The loans range from $500 to $5,000, with an option to pay off the loan quickly since there are no prepayment penalties or origination fees.
Some customers may be able to get a line of credit, which means borrowers can use credit and repay it on a certain schedule. The minimum payment on that line of credit will vary based on how much you owe, but you will always end up paying the full interest you’ve accumulated.
Throughout all products, the minimum interest rate is 36%, and the maximum is 299%. Payday loans typically have interest rates of 322% or higher, so although it’s incredibly expensive, Rise Credit may be a better option than payday loans.
Pros of RISE Credit
- No credit requirements
- Fast funding
- Hassle free lending
Cons of Rise Credit
- HIGH interest rates
- Hard credit pull
- Limited by location
Where is Rise Credit Available?
Currently, they originate loans directly in about 14 states. They also service loans originated by FineWise bank in 18 states and DC.
Rise Credit is available in these states: California, Delaware, Georgia, Idaho, Illinois, Kansas, Mississippi, Missouri, New Mexico, North Dakota, Ohio, South Carolina, Tennessee, Texas, Utah, and Wisconsin.
You can also get lines of credit in the states of Kansas and Tennessee.
Rise Credit Products
Each product does differ from state to state.
Their main product is a short-term loan with repayment terms that last 26 months. You will be required to make payments sometimes every two weeks, and you’re eligible for refinancing after 24 months. These loans start at $500 to $5,000. They don’t have prepayment penalties and there are no origination fees, which means you’re allowed to pay off the loan quickly. These kind of loans are useful for emergencies such as home repairs or medical bills.
Their other product is a line of credit they offer to only two states (Kansas and Tennessee). Since they don’t have origination fees, RISE is popular for those who don’t want to pay extra fees.
5 Alternative to Rise Credit
1. Get a Part-Time Job
Instead of taking out a loan to pay your rent or car payment, consider getting a temporary part-time job.
Paying 32% to 299% in interest on a loan is simply not worth it. If you need a $1,000 loan, see if it's possible instead to make an extra $250 a week for four weeks. At $12 an hour for 25 hours a week, after taxes, you will bring home an extra $250 per week.
Use this list of the Best Part-Time Jobs in 2020
2. Find A Side Hustle
If there is demand for skills that you currently use in your full-time job, or you’re looking to try something new, a side hustle may be a better alternative to taking out a loan. The advantage of working on several projects by different companies is that you can work on your own schedule and many times from your own home.
A side hustle could be something such as babysitting, ridesharing on Uber, dog walking or freelance writing. If you’re not sure what to do, consider what your hobbies, skills and network consists of, and try to find something that links the three. Then look for ways to monetise it.
3. Freelance Opportunities
Many Americans are choosing to go the freelance route in order to have more control over their finances and careers. Becoming a freelancer while keeping your day job is a great way to test out different projects and see what works best for you. Could you use your career skills and sell them to someone else? Or have you always enjoyed art and would like to pursue it as a career?
Test to see if people would be willing to pay for your service, and then get started. Do some work for free to beef up your portfolio and then go on platforms such as Upwork and Fiverr to see if there is demand.
4. Drive or Deliver
If you’ve got a car and don’t mind driving a little more, consider working through Uber and Lyft. What you earn does depend on when and where you drive. It also depends on the type of car you drive – a more luxurious car will pay around $3.27 per mile compared to $0.73 per mile for a normal car.
If driving people isn’t your jam, consider delivering food and groceries instead. Companies that do this such as;
- Uber Eats and
You’ll be going to restaurants, picking up orders and then dropping them where your customers are.
You can also choose to deliver packages for companies such as Amazon Flex, Instacart, and others. With a company like Amazon Flex, you can make something like $18 per hour.
5. Start a Blog
Maybe you’re passionate about something that doesn’t make money directly, but what about writing about it?
There are blogs about virtually everything out there making six-figure incomes every year: recipe blogs, health and wellness, fashion or even money. This is a great way to make money through personal branding and a side hustle.
Starting a blog doesn't have to be difficult, for example, this blog took about 45 minutes to set up and publish an article.
Note: Blogging is a long term game, so make sure you like the topic you’ll be writing about, and make sure you’re willing to put in the work because it can be quite time-consuming. You’ll keep the motivation to keep going especially if you like the topic you’re writing about.
Final Word on Rise Credit
I am not hating on Rise Credit, they have to do what they have to do as a company to lend money for borrowers with poor or no credit.
However, my job as a personal finance writer is to inform and help those who might be considering a personal loan with high interest. There are pros and cons to just about everything in life, but in my opinion, loans should never exceed 10% in interest.
According to RISE, on average, a borrower has a credit score of 570. The average borrower earns under $59,000 a year and borrows $2,300 at an APR of 130% to 140%.
Lenders set limits based on credit scores, however, a 130-140% interest rate on a loan is simply absurd. The reason for such high interest rates is due to ‘fear' over the borrower defaulting.
That being said, if you're in the market for a personal loan, don't spend $2.30 to $2.40 for every dollar you borrow!
Josh writes about ways to make money, pay off debt, and improve yourself. After paying off $300,000 in student loans with his wife in less than five years, Josh started Money Life Wax and has been featured on Forbes, Business Insider, Huffington Post, and many more! In addition to being a life-long entrepreneur, Josh and his wife enjoy spending time with their newborn son, their chocolate lab named Morgan, working out, being outside, traveling, and helping others with their finances! In case you were wondering, Josh uses Personal Capital to track his net worth and his first investment account ever was an Acorns account 😎