LendUp or Elevate: which is the best payday loan for you?


April 26, 2018

Payday loans can be quite risky. The typical interest rate is around 400.00%, depending on the Consumer Financial Protection Bureau. This high rate could put you in more debt than you can afford.

But you might be in desperate need of cash to cover an unforeseen expense before your next paycheck. If you don’t have enough emergency savings and your credit rating is too low to qualify for a personal loan, a payday loan might be your only solution.

Made To lend Where The rise of Elevate offer a safer solution? Here’s all you need to know.

To lend

Although LendUp follows a payday loan structure, it promotes itself as being accountable and transparent. For example, the company has a education platform where he 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.

Benefits of a LendUp Payday Loan

Getting money fast is the number one reason you would choose a company like LendUp. But they also have other advantages.

  • They offer payment plan options if you are having trouble repaying the loan.

  • If you pay off your installment loan, you could increase your credit score.

  • The lender has an incentive program called LendUp Ladder. You get points when you take out LendUp loans and pay them back on time. As you accumulate points, the lender will reward you by allowing you to borrow at progressively lower rates.

Disadvantages of a LendUp Payday Loan

As with any payday loan, there are some downsides to keep in mind.

  • The prices are high. As of April 24, 2018, for example, a week-long loan of $ 250 in California would have interest of $ 44, 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 may not be available.

  • You are limited to smaller loans, up to $ 250 with a lump sum loan or up to $ 1,000 with an installment loan.
  • Your maximum repayment term is 30 days with a lump sum loan.

Elevate

Elevate has two financial offerings to help people get the money they need fast: Elastic and Rise. Elastic is a bank line of credit for which 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 side-by-side comparison, we’ll focus on Rise. Here are some pros and cons of a Rise loan.

Benefits of a Rise Loan

Rise offers many benefits for those in need of quick cash:

  • You can request a seven day payment extension if you cannot 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 interest rates could go down.

Disadvantages of a Rise Loan

As with any loan, there are downsides to consider.

  • Rates are better than many payday lenders, but still high, ranging from 36.00% to 299.00%, as of April 24, 2018. Visit To augment for the most recent information.

  • Payments are made every two weeks instead of monthly.

  • Rise loans are not available in all states.

LendUp or Elevate: comparison of interest rates, conditions and fees

Although LendUp and Elevate’s Rise are similar in their loan offerings, there are some details that should be considered before applying. Here is a simple table to go over the main differences between each lender:

Amount of the loan Interest rate Costs Term
To augment $ 500 to $ 5,000 36.00% to 299.00% Information on fees is provided in your loan agreement 5 to 26 months
To lend $ 100 to $ 1,000 From approximately 30.00% to over 900.00% Returned check fee of $ 10; administrative fee of $ 50 or 5% of the amount funded (whichever is less) 7 days to 1 year

LendUp or Elevate: which loan is right for you?

LendUp and Elevate’s Rise both 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 best suits your financial situation and minimizes your risk.

If you need a small loan quickly, LendUp loan options might be the best choice if you don’t have good credit. A few hundred dollars in cash might help if you can’t pay the rent because you’re waiting for a paycheck. However, the lender offers short repayment terms, so make sure you can pay off your debt quickly and on time.

Alternatively, Elevate’s Rise might be the best option if you are looking for a more traditional lending experience. You can borrow more and have a longer repayment period. This is useful if you need a large sum of money to do renovations or pay for a wedding, for example.

Just be aware that both lenders can offer you high rates. It doesn’t matter if LendUp or Rise offers lower rates, you are still required to pay a lot of interest. Make sure to research other personal loan companies and explore your options carefully.

Note: Student Loan Hero has independently collected the above information regarding LendUp and Rise loans. Neither the lender has provided or reviewed the information shared in this article.

Interested in a personal loan?

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Student Loan Hero is an advertising-supported comparison service. The site presents products from our partners as well as from institutions that are not advertising partners. While we endeavor to include the best offers available to the general public, we do not guarantee that this information represents all products available.

How is the student loan hero paid

How is the student loan hero paid

Student Loan Hero is indemnified by the companies present on this site and this compensation may have an impact on how and where the offers appear on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the market.

Advertiser Disclosure

Hero Student Loan Advertiser Disclosure

Student Loan Hero is an advertising-supported comparison service. The site presents products from our partners as well as from institutions that are not advertising partners. While we endeavor to include the best offers available to the general public, we do not guarantee that this information represents all products available.

PRICES (APR) Amount of the loan
4.99% – 19.63%1 $5,000 To $100,000
4.37% – 35.99% $1000 To $50,000
5.94% – 35.97%* $1000 To $50,000
99.00% – 199.00%2 $500 To $4000
5.99% – 24.99%3 $5,000 To $40,000
9.99% – 35.99%4 $2,000 To $36,500

NMLS # 1136: general conditions apply

1 Includes AutoPay discount. .
2 Includes AutoPay discount. .
3 Includes AutoPay discount. .
4 .
* .


What happens when you can’t pay off a payday loan?


You have been made redundant but you still have to pay rent. You’re running out of payment for your car and need a little extra help. Your electricity has been cut and you must find a way to pay your overdue bill to turn it back on.

Sometimes you just need a little cash to get by. So, you get a payday loan and solve your bills. But what happens when you can’t pay off a payday loan? Here’s what to do if you get caught up in that borrowing pickle.

What is a payday loan?

A payday loan is a short-term loan taken out for a small amount, usually $ 500 or less. Depending on the state laws, you can get payday loans in person or online.

You take out a payday loan by writing a post-dated check for the total balance including fees and interest that will add up when the loan is due. You can also allow the lender to automatically debit your full bank account balance on the due date.

Payday lenders can charge high fees in exchange for the money you borrow. Mike Sullivan, personal finance consultant for a credit counseling agency Take charge of America, the APRs are about 400%. It can be difficult to stay up to date on your bills and loan with such high interest.

“A $ 200 loan over 14 days may require a payment of $ 235 or $ 35 [in] interest, ”Sullivan said. “Borrowers usually focus on the payment amount and ignore the full cost. “

What happens when you can’t pay off a payday loan?

Americans spend $ 30 billion a year to borrow from payday lenders and other small lenders, according to Pew Charitable Trusts. So if you have taken out a personal loan and are struggling to pay it back, you are not alone. Payday loans disproportionately affect underserved communities, where individuals may not have the resources to use traditional financial institutions, such as banks and credit unions.

“Payday loans are typically taken out by people with very poor credit who cannot find money for immediate needs, such as food, gas or rent,” Sullivan said. “These borrowers often have no other options for borrowing.”

When you take out a payday loan, many lenders don’t check your credit or care about your financial situation. If you don’t have stellar credit, this might sound like a good thing. But that will only send you into deeper financial despair.

“Payday loans are a trap, and there’s not much a borrower can do when they’re trapped,” Sullivan said. “At some point, these loans often become unbearable and the borrower defaults.”

Default is when you can’t pay off your loans on time. This can lead to a drop in your credit rating, garnishment of your salary, and future loans with high interest rates. Your loan could also be turned over to a debt collector, who will work to get you paid off all of your debt. Do your best to avoid defaulting on your payday loans.

What to do if you can’t pay off your payday loan

If you’re struggling to break out of the payday loan cycle, here’s how to get out of it.

1. Check your debt

Review all of your debts, from your payday loan to overdue bills. Focus on those with the highest interest rates. With high rates, the longer you take to pay off the debt, the more money you will end up paying.

2. Extend your repayment plan

Ask your lender for an extended payment plan, which is usually granted if your lender is in the Community Financial Services Association of America. However, you must request an extension before the last due day of your loan.

You will also sign an amendment to your loan agreement. Read it and make sure you understand the new terms and interest rates you agree to. You may be able to get a few extra weeks to pay off your loan.

3. Consider a personal loan

Don’t be afraid of the big banks, at least not when it comes to personal loans. Payday loans and personal loans may look similar, but they are not the same. Make sure you know the difference between personal loans and payday loans.

Taking out a personal loan can help you pay off your debt. These loans have much lower interest rates and longer repayment terms than payday loans. If you have poor credit, you’ll be happy to hear that you can even find personal loans with credit scores below 550.

4. Try a credit union

Credit unions and payday lenders have a lot in common. You can usually find one near you that offers small payment loans that can help you make large payments. Many credit unions have alternative payday loans (PAL) for members.

Although you need to be a member of a credit union for at least a month, you can get anywhere from $ 200 to $ 1,000 with terms of one to six months. The interest rate for a PAL is much lower than the interest rate for a payday loan, up to 28%.

5. Get help

When you’re in a tough spot, it’s always a good idea to get help, whether it’s a credit counselor or a co-signer on a loan. Asking for help is an important step in getting started.

You can get help from the National Federation of Credit Counseling. Make an appointment with someone who can directly assess your financial situation.

If you are trying to get a personal loan and your credit score is not good, you may want to find a co-signer. A co-signer can be helpful, but remember that the loan will impact both of you. You both need to be careful when taking out a loan together.

If you have friends and family who can help in a pinch, use their resources. It is much easier to repay loved ones than a payday lender.

Find your freedom

You could consider a payday loan, but you don’t need it. When you cannot pay off a payday loan, there are many alternatives that you can consider. If you already have one, be careful and know your rights. Explore ways to pay it off as soon as possible so you don’t get trapped in debt.

Forget about filling out tons of forms. Finding your best personal loan rate is now easier than ever.

Disclaimer: Student Loan Hero is a subsidiary of LendingTree.

Interested in a personal loan?

LendingTree allows you to compare the rates of several lenders by filling out a simple form. How is the student loan hero paid

How is the student loan hero paid

Student Loan Hero is indemnified by the companies present on this site and this compensation may have an impact on how and where the offers appear on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the market.

Advertiser Disclosure

Hero Student Loan Advertiser Disclosure

Student Loan Hero is an advertising-supported comparison service. The site presents products from our partners as well as from institutions that are not advertising partners. While we endeavor to include the best offers available to the general public, we do not guarantee that this information represents all products available.

How is the student loan hero paid

How is the student loan hero paid

Student Loan Hero is indemnified by the companies present on this site and this compensation may have an impact on how and where the offers appear on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the market.

Advertiser Disclosure

Hero Student Loan Advertiser Disclosure

Student Loan Hero is an advertising-supported comparison service. The site presents products from our partners as well as from institutions that are not advertising partners. While we endeavor to include the best offers available to the general public, we do not guarantee that this information represents all products available.

PRICES (APR) Amount of the loan
4.99% – 19.63%1 $5,000 To $100,000
4.37% – 35.99% $1000 To $50,000
5.94% – 35.97%* $1000 To $50,000
99.00% – 199.00%2 $500 To $4000
5.99% – 24.99%3 $5,000 To $40,000
9.99% – 35.99%4 $2,000 To $36,500

NMLS # 1136: general conditions apply

1 Includes AutoPay discount. .
2 Includes AutoPay discount. .
3 Includes AutoPay discount. .
4 .
* .