Cash advance apps like Earnin, Dave and Brigit let you borrow a small amount of your next paycheck before you get it. This quick solution might work for you if you have an emergency but it is worth looking at other options. The cost of borrowing via an app is not expressed in terms of an interest rate like personal loans or credit cards. Instead, apps may charge subscription fees and expedited funding fees. Many recommend tipping.
1. Earnin: Low fees at the Best
Earnin tracks your hours by using a timesheet and your location. It is one of the best instant money apps and allows you to borrow money you’ve earned. You can also be alerted when your bank account balance drops and you can request a fee to top it up.
Amount:
Maximums starting at $100 and up to $500
Fees:
Earnin asks for a $14 voluntary tip. You can opt in to overdraft protection by setting up a recurring tip at least $1.50
Repayment:
Earnin will withdraw the money from your bank account on your next payday.
Example of an APR
An APR of 104.3% is achieved by taking out a $100 loan seven business days before payday.
2. Dave: Small advances are best
Dave allows you to borrow small amounts of money to cover your expenses while you wait for your next paycheck or to keep your bank account from getting overdrawn. Dave users have access to a limited number of loans, depending on whether or not they have a spending account. The app also offers a “Side Hustle”, which helps users find side gigs.
Amount:
Customers without a Dave Spending Account will pay $5 to $100. For those with one, it will be $5 to $200.
Fees:
Although the company claims that all fees are voluntary, Dave charges a few.
- You can cancel the $1 monthly fee via the app.
- To get your money quicker, fees range from $1.99 to $5.99. The fee will vary depending on how much you borrow.
- Optional tip of up to 20% on the borrowed amount
Repayment:
Your default payment date is your next payday. However, you can change it.
Also Read- Spotloan
Example of an APR
You will need to pay $7.99 if you borrow $100 seven business days before your next payday. The APR is more than 400%.
3. Brigit: The best budgeting tool
Brigit allows you to get up $250 when you need it. This app is great for those who need quick money. The app’s free plan allows you to get financial advice and budgeting assistance. The paid plan does not allow cash advances. It includes cash advances, automatic deposits to your account in the event of an overdraft and credit monitoring.
Amount:
From $50 to $250
Fees:
The monthly cost of the paid plan is $9.99
Repayment:
Brigit automatically calculates your next payment based upon your income schedule. You can extend your repayment date by using the app for each two advances that you have paid back on time.
Example of an APR
If you purchase a $9.99 Brigit membership, and only use the app to receive a $100 advance, your APR will be more than 500%.
4. Chime: The best overdraft protection
Customers can use Chime’s SpotMe service to overdraw their checking account by a predetermined amount and not incur fees. Although the SpotMe service is more like an overdraft protector than a cash advance it still asks for tips. Chime states that your account can become negative up to the approved amount. Purchases below that amount will be rejected. SpotMe is only available to those who receive at least $200 each month in qualifying direct deposits.
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Amount:
From $20 to $200 Limits begin at $20 and can increase depending on how active you are with your account.
Fees:
There are no fees. If you wish to tip the company, you will be asked.
Repayment:
You will receive the amount Chime has spotted in your next direct deposit.
Example of an APR
If Chime gives you $50, you get a $50 loan at 104.3% APR. You repay the balance in seven days with a $1 tip.
Conclusion
Despite the fact that cash advance applications have their pros and cons, the benefits often outweigh the negatives. For example, interest-free advances are cheaper than payday loans and often come with other benefits. Mobile platforms allow us to transfer money easily, which makes our digital lives easier. A cash advance app can be a great option if you are in need of a short-term loan to pay off your next paycheck.
