When you need some extra cash, a personal payday loan may be the answer. Sunrise Financial is one company that offers personal loans to borrowers in certain states.
In this blog post, we will explore the reasons to take or not take out a personal loan. Furthermore, we will discuss what Sunrise Financial can do for you if you decide to borrow from them.
But before we get into all that…
A personal loan is a type of unsecured loan. That means that you do not have to put up any collateral, such as your car or house, to get the loan. Personal loans are also sometimes called signature loans or installment loans. They can generally be used for any purpose, unlike other types of loans that must be used for specific purposes, such as buying a car or going to school.
A payday loan is a type of personal loan that is extremely short-term. Because it is a short-term loan, it tends to carry with it a very high interest rate. That’s because the lender expects it to be paid back fairly quickly, and the high interest rate makes it a more worthwhile investment for them. Additionally, they are taking a statistically higher risk with lending these types of loans.
The borrower usually has to give the lender access to their bank account or write a check for the full amount of the loan plus fees. The lender will then hold onto the check or withdraw money from the borrower’s account when the loan is due, which is usually two weeks or less after the loan is taken out.
Sunrise Financial is considered a personal loan company that specializes in payday loans or cash advances.
What are cash advances?
A cash advance is also a type of short-term personal loan. In a cash advance, the borrower takes out the loan with interest and fees already charged up front.
What is the difference between a payday loan and a cash advance?
A cash advance differs from a payday loan in that in a payday loan, fees and interest accrues over time and must be paid back by the end of the agreed-upon term, whereas in a cash advance, the fees and interest are charged up front.
There are many reasons why you might want to take out a personal loan. For example, you may want to:
- consolidate debt
- make home improvements
- pay for medical bills
- pay for car repairs
If you are in a financial emergency situation where you need cash quickly, a personal loan can be a good option. This is because you can usually get the money fairly quickly.
Another reason to take out a personal loan, some may argue, is that it can help improve your credit score. This is because when you make on-time payments on a personal loan, it will show up favorably on your credit report. This can potentially help you get a better interest rate on future loans. However, it’s benefits are quite debatable compared to the risks if this is your sole reason for taking out a personal loan.
There are also some reasons why you might not want to take out a personal loan. The main reason for most consumers is that personal loans have high-interest rates. The high-interest rates on payday loans can make them very costly. For example, a $100 payday loan with a 15% fee would cost $115 to borrow. And if you can’t repay the loan in full when it comes due, you may be charged even more fees on top of that.
Another reason to avoid personal loans is that they can become quite addictive, whether by choice or not. Once you take out a personal loan, you may be tempted to take out more loans. This can lead to a cycle of debt that is hard to break.
Finally, personal loans are not a good option if you already have bad credit. This is because the interest rates on personal loans are higher for people with bad credit. If you have bad credit, you may want to consider other options that will slowly rebuild your credit.
If you decide to take out a loan with Sunrise Financial, they can provide you with the money you need in a few days or weeks. The amount you can borrow will depend on your state of residence, income, and credit history.
Sunrise Financial also offers a simple way to apply for a loan. By simply going to their website, you can fill out an application and get a decision within minutes. In situations where you’re in a financial bind and need cash quickly, Sunrise Financial may be a decent option.
Sunrise Financial only offers its loans to borrowers in the United States. You’d also have to be at least 18 years of age to be able to qualify for a Sunrise Financial loan.
In addition to U.S citizenship (with a valid social security number) and age, it’s also required that you have a job or receive regular income. This helps to show that you can repay the loan. A government ID or a valid driver’s license is also needed.
Lastly, you’ll need to have an open bank account so that if approved, Sunrise Financial can deposit the loan directly into your account. Other requirements such as credit score, loan history, and state of residence may also apply.
You can generally borrow between $500-$1000+ with Sunrise Financial. The amount you are allowed to borrow depends on your state of residence, income, and credit history.
Potentially, some may qualify for as high as $2,500, although this is quite rare as the terms of the loan would be very short-term as a payday loan or cash advance.
The cost to borrow is typically between 261% and 1,304% APR. This translates to roughly 22% to 109% per month or roughly 5% to 25% per week.
You can see how important it is that you pay back payday loans as quickly as you humanly can.
As far as the range of costs shown, the particular rate you’ll get depends on the amount you are borrowing, among other factors. For example, with a lower total amount borrowed, the higher percentage would apply; with a higher total amount borrowed, the lower percentage would apply.
The actual APR will be disclosed to you once you are approved for a loan. The APR includes the fees associated with the loan, such as the origination fee, processing fee, etc.
What is the lending period for Sunrise Financial loans?
You can take out a loan for as short as 14 days and for as long as 24 months with Sunrise Financial.
Is there a prepayment penalty with Sunrise Financial?
There is no prepayment penalty with Sunrise Financial. This is great if you are able to pay back your loan early.
As a general overview, Sunrise Financial is available in most states across the United States. Some jurisdictions may have restrictions on some or all short-term, small-dollar lending.
Pros and cons of Sunrise Financial: The pros
- The application process is simple and straightforward
- You can get a decision within minutes
- They can provide the money you need within a few days or weeks
- It is one of the simpler ways out there to apply for a loan
Pros and cons of Sunrise Financial: The cons
- High-interest rates, though this isn’t specific to Sunrise Financial
- Not a good option if you already have bad credit
- Can be addictive
Is Sunrise Financial legit?
Sunrise Financial is a legitimate and legal company, but that doesn’t mean poor money management won’t still cause you problems. Always have a plan for repaying any loan you take out and only borrow what you can afford to pay back.
Alternatives to payday or personal loans
If you’re looking to take out a high-interest loan of any type, including personal or payday loans, it would be a good idea to first get some credit counseling to see if there are any other viable and less risky options out there for your specific situation or needs.
If you’re considering taking out a personal or payday loan, Sunrise Financial is an option to consider. However, be aware of the high cost of borrowing and the short repayment timeline. If the money is for an emergency, it can be helpful if handled responsibly. If you aren’t careful or if you are using these types of loans as a crutch, they can cause more harm than good. As always, we recommend that you speak with a licensed financial advisor for any major financial decisions.