Background
Sonic Payday was an online lender specializing in personal loans and payday advances for consumers with negative or fair credit. The company differentiated itself by using alternative data and artificial intelligence in its underwriting process, allowing it to approve borrowers who might not qualify with traditional lenders. Sonic Payday aimed to provide fast funding and flexible options for debt consolidation and emergency expenses.
History
Sonic Payday operated in the U.S. payday and personal loan market, leveraging technology to expand access to credit for underserved consumers. The company became known for its rapid funding—often providing loans within one business day—and for reporting payments to all three major credit bureaus. Sonic Payday’s underwriting model, which considered factors such as education, employment history, and earning potential, was recognized by the Consumer Financial Protection Bureau as an innovative approach to expanding credit access.
Types of Loans and Fees Charged
Loan Types: Sonic Payday offered personal loans, payday loans, and debt consolidation loans.
Loan Amounts: Loan amounts varied, with examples including a five-year, $12,000 loan at a 23.4% APR.
Repayment Terms: Borrowers could choose from two repayment term options. Most loans were funded within one business day, except for educational loans, which had a three-day waiting period.
Interest Rates (APR): APRs were competitive with other lenders in the subprime market. For payday loans, borrowers could expect to pay $10 to $30 in interest per $100 borrowed, translating to annual rates between 261% and 1,304% APR.
Fees: Sonic Payday charged origination fees and late fees. There was no discount for autopay. For payday loans, additional fees could apply for renewals or late payments.
Locations
Sonic Payday operated exclusively online, providing services to eligible customers across the United States.
States Where Loans Are Offered and Not Offered
Available States: Sonic Payday loans were available in most states.
Unavailable States: Loans were not available in Iowa or West Virginia. Availability in other states depended on local regulations and company policy.
How to Contact Sonic Payday
As of now, Sonic Payday is no longer in business. The company’s website is inactive, and there is no customer service or support available. Prospective borrowers should not attempt to apply or share personal information on any website claiming to represent Sonic Payday.
