PAYDAY LOANS—
OR A BETTER ALTERNATIVE?

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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. 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 on-time payments to a credit bureau to help you build credit. Get the money you need today and build a better financial tomorrow with RISE.