Need cash fast? Payday loans aren’t your only option
Payday loans are small, short-term loans are intended to cover you until you receive your next paycheck.
You can apply for a payday loan online or in person at a storefront. Payday lenders typically charge a fixed fee based on the amount borrowed, and you have until your next payday to pay off the amount borrowed plus the fee.
Online payday loans and traditional payday loans can help with an emergency today, but often create a heavy financial burden for tomorrow—that’s why it’s smart to consider other ways to quickly borrow money.
The trouble with payday loans
- Hard to pay back on time: Because the lump sum is due relatively quickly, some borrowers find it difficult to repay a payday loan on time. According to the Consumer Financial Protection Bureau, four out of five payday borrowers renew their loans, usually before their next paycheck, and one in five renew their loan at least seven times. Each time a loan is rolled over or a new one is taken out, the lender charges more fees—creating a cycle of debt that can be difficult to break.
- Typically only available in small amounts: Depending on your state, you may only be able to borrow a few hundred dollars, which might not be enough to cover your emergency expense.
- Unattractive terms: The interest rate on a payday loan is usually on the higher end of the spectrum for short-term loans.
- Won’t build your credit: Payday lenders don’t usually report your payment activity to the major credit bureaus, so paying your loan back on time won’t help you build better credit.
Better alternatives to payday loans
Payday loans aren’t your only option in a financial emergency—there are several other ways to borrow money fast. For example, a personal installment loan, loan from a family member, or loan from a peer-to-peer lending platform might be better a fit for your personal financial situation.
These alternatives are likely to give you more time to pay back the money, have lower fees and/or interest rates, be available in larger amounts, and help build your credit.
Payday loan debt consolidation
If you’re stuck in a painful cycle of payday loans, payday loan relief programs could help you break free. You can also take out an installment loan to consolidate your payday loans and other types of debt, like credit cards and medical bills.
At RISE, we offer a better alternative to payday loans. You can get $500 to $5,000 in your checking account as soon as tomorrow*. Our online application is quick and we report your payment history to 2 major credit bureaus which may help you build credit. Apply today, get money as soon as tomorrow* and build a better financial tomorrow with RISE.
Frequently Asked Questions
What are payday loan alternatives?
Payday loan alternatives provide a safer option than short term loans like traditional payday loans. With longer repayment terms, these loans allow you to make manageable payments over time. RISE offers payday loan alternatives in the form of a personal loan, giving you access to higher loan amounts with no hidden fees.
How does a RISE payday loan alternative work?
A RISE payday loan alternative works like a personal loan but with features tailored to help you avoid the pitfalls of payday loans. Key benefits include flexible repayment terms, loan amounts ranging from $500 to $5,000, no collateral required as RISE offers an unsecured loan, and a credit report review as part of the application process.
Can a payday loan alternative help with emergencies?
Yes, payday loan alternatives like RISE personal loans are ideal for emergencies. If you need quick cash or a cash advance to cover unexpected expenses, RISE provides funds as soon as the next business day*, offering loan amounts to meet your needs with structured repayment terms.
How is a payday loan alternative different from a short term loan?
A payday loan alternative offers longer repayment terms compared to a short term loan. While short term loans often require repayment within weeks, RISE payday loan alternatives allow you to make steady payments over several months. This helps reduce financial strain and improve financial stability.
What makes RISE a good payday loan alternative?
RISE provides personal loans as a payday loan alternative with unsecured loans that don’t require collateral, loan amounts tailored to your financial situation, transparent repayment terms with no prepayment penalties, and tools to help you build better financial habits by reporting on-time payments to credit bureaus.
Can I use a RISE payday loan alternative as a cash advance?
Yes, RISE loans can function as a cash advance, providing quick cash when you need it most. Whether you’re covering medical bills, car repairs, or other urgent expenses, RISE’s payday loan alternatives give you access to a personal loan with flexible repayment terms.
Are RISE loans considered an unsecured loan?
Yes, RISE loans are an unsecured loan, meaning no collateral is required. This makes them a safer and more convenient option for borrowers looking for payday loan alternatives without risking personal assets.
What is the typical loan amount for a RISE payday loan alternative?
RISE payday loan alternatives offer loan amounts between $500 and $5,000, depending on your state and creditworthiness. This flexibility allows you to borrow the amount you need without the limitations of a small loan from payday lenders.
Will a payday loan alternative from RISE affect my credit report?
RISE reviews your credit report as part of the application process. However, checking your options won’t affect your FICO® score**. Your payment activity is reported to credit bureaus, giving you the opportunity to improve your credit score.
What repayment terms does RISE offer for payday loan alternatives?
RISE provides flexible repayment terms, allowing you to choose a schedule that works for your financial situation. Unlike payday loans, which require full repayment by your next paycheck, RISE payday loan alternatives offer manageable fixed payments.
Are payday loan alternatives from RISE better than a small loan from payday lenders?
Yes, RISE payday loan alternatives are often better than a small loan from payday lenders because they provide higher loan amounts, flexible repayment terms, and no hidden fees. With RISE, you also have the opportunity to build credit through responsible borrowing.
