Should You Get a Loan from Rise Credit?

A short-term solution that could cause long-term pain

Andy Spears


Photo by Andre Taissin on Unsplash

Studies on American financial health indicate that most Americans are ill-prepared for an emergency costing more than $1000. These numbers, reported by Fortunly, tell a grim tale:

American savings statistics for 2020 show that nearly 70% of Americans have less than $1,000 stashed away in their bank accounts. That number rose from 58% in 2018. Meanwhile, the number of those with savings between $1,000 and $5,000 stands at roughly 12%.

It’s not difficult to imagine an emergency costing more than $1000. A trip to the ER, even with health insurance, can easily cost $1000 or more in order to meet your policy’s deductible. A flat tire won’t likely run you $1000, but other car repairs just might. What about a busted water heater or a washer/dryer going out? If you have less than $1000 in the bank, all of these situations could spell financial crisis.

This could mean it is time to consider a short-term loan to bridge the gap between your finances and the emergency expense.

If you’ve decided a loan is the right answer right now, you may be wondering where to turn.

One option that may come up is a loan from Rise Credit. The company specializes in short-term loans with repayment terms from 7 to 26 months. They note on their website that if you make on-time payments, they’ll lower your interest rate over time. So, a relatively long repayment option plus rates that get lower if you pay as planned.

Sounds good, right?

Well, not so much.

Here’s a bit more about the Rise experience from their website:

In my state of Tennessee, Rise offers short-term loans from $500 to $5000 with interest rates ranging from 99% to 149%.


They offer an example loan of $2000 with a biweekly payment of $150 over 13 months. That means you’d end up paying $3900. Yes, that short-term fix of $2000 could cost you another $1900. Oh my!

It’s also worth noting that Rise is a subsidiary of Elevate Credit.



Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .