But you might find yourself desperately needing cash to cover an unexpected expense before your next paycheck hits. If you don’t have enough in emergency savings and have too low of a credit score to qualify for a personal loan, a payday loan might be your only answer.
Although LendUp follows a payday loan structure, it touts itself as being responsible and transparent. For example, the company has an education platform where it teaches potential and current borrowers about the pros and cons of short-term credit.
While the education component is great, there are some important factors to consider before borrowing from LendUp.
Pros of a LendUp payday loan
Getting cash fast is the main reason you’d choose a company such as LendUp. But they have some other benefits, as well.
They offer payment plan options if you’re having trouble paying back the loan.
If you pay your installment loan on time, you could boost your credit score.
The lender has an incentive program called the LendUp Ladder. You’re awarded points as you take out LendUp loans and repay them on time. As you accumulate points, the lender will reward you by allowing you to borrow at progressively lower rates.
Cons of a LendUp payday loan
As with any payday loan, there are some downsides to keep in mind.
Rates are high. As of April 24, 2018, for example, a one-week $250 loan in California would come with $44 in interest, which works out to an APR of almost 920%. Be sure to check the most up-to-date rates for your state on the LendUp website.
Depending on where you live, LendUp might not be available.
- You’re limited to smaller loans, up to $250 with a single-payment loan, or up to $1,000 with an installment loan.
Your maximum repayment period is 30 days with a single-payment loan.
Elevate has two financial offerings to help people get the cash they need fast: Elastic and Rise. Elastic is a bank-issued line of credit where you pay a 5% or 10% cash advance fee. Rise is more like LendUp in that it issues unsecured installment loans.
For the sake of a side-by-side comparison, we’ll focus on Rise. Here are some pros and cons of a Rise loan.
Pros of a Rise loan
Rise offers numerous benefits to those who need money fast:
You can apply for a seven-day payment extension if you can’t pay on time.
You have five days to change your mind if you decide you don’t need the loan.
The company will provide you with free access to your TransUnion credit score.
If you borrow from the company more than once, your interests rates could decrease.
Cons of a Rise loan
As with any loan, there are some downsides to consider.
Rates are better than at many payday lenders, but they’re still high, ranging from 36.00% to 299.00%, as of April 24, 2018. Visit Rise to get the most up-to-date information.
Payments are made biweekly instead of monthly.
Rise loans are not available in all states.
LendUp or Elevate: Interest rates, terms, and fees comparison
Although LendUp and Elevate’s Rise are similar in their loan offerings, there are some details to consider before applying. Here’s a simple chart to review key differences between each lender:
|Loan amount||Interest Rate||Fees||Term|
|Rise||$500 to $5,000||36.00% to 299.00%||Fee disclosures are provided within your loan agreement||5 to 26 months|
|LendUp||$100 to $1,000||From around 30.00% to over 900.00%||Returned check fee of $10; administrative fee of $50 or 5% of the amount financed (whichever is less)||7 days to 1 year|
LendUp or Elevate: Which loan is right for you?
Both LendUp and Elevate’s Rise offer payday loan alternatives. However, even these alternatives have high interest rates. If you’ve already decided to take out a loan, choose the company that’s best for your financial situation and that minimizes your risk.
If you need a small loan fast, LendUp’s loan options might be the better choice if you don’t have good credit. A few hundred dollars in cash could help if you can’t pay rent because you’re waiting for a paycheck to clear. However, the lender offers short repayment terms, so be sure you can repay your debt quickly and on time.
Alternatively, Elevate’s Rise could be the better option if you’re looking for a more traditional loan experience. You can borrow more and have a longer repayment period. This is helpful if you need a chunk of cash to make home improvements or pay for a wedding, for example.
Just be aware that both lenders might offer you high rates. No matter whether LendUp or Rise offers lower rates, you’re still liable to pay a lot in interest. Be sure to research other personal loan companies and explore your options thoroughly.
Note: Student Loan Hero has independently collected the above information related to LendUp and Rise loans. Neither lender provided nor reviewed the information shared in this article.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|7.73% – 29.99%||$1,000 - $50,000||Visit Upstart|
|6.26% – 14.87%1||$5,000 - $100,000||Visit SoFi|
|6.99% – 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% – 25.00%2||$5,000 - $35,000||Visit Payoff|
|4.99% – 29.99%3||$10,000 - $35,000||Visit FreedomPlus|
|5.99% – 18.99%4||$5,000 - $50,000||Visit Citizens|
|15.49% – 34.49%5||$2,000 - $25,000||Visit LendingPoint|
|6.16% – 35.89%6||$1,000 - $40,000||Visit LendingClub|
|6.99% – 18.24%7||$5,000 - $75,000||Visit Earnest|
|9.95% – 35.99%8||$2,000 - $35,000||Visit Avant|