The best cash advance apps can help cover expenses until you receive your next paycheck. You could say they help you stop worrying about not having enough money each month.
This post provides all the information you need on these apps, tips to avoid the paycheck-to-paycheck habit, and alternative ways to get capital.
What Is a Cash Advance App?
They are smartphone applications that can give you capital quickly and, usually, without too many requirements.
They provide a temporary solution to cover unexpected expenses.
Just know that every time you get an advance, the lender withdraws what you owe from your bank account the next time your paycheck posts.
Also, cash advance apps aren’t cheap in the long run. Borrowers pay fees and monthly subscriptions for the privilege of getting small amounts of money fast.
You can get into financial trouble relying on regular advances to offset poor money management. You should only use cash advances for one-time emergencies.
Cash advance apps have other names:
- check advance loan apps
- payday loans apps
- short-term loan apps
How does a cash advance app work?
Depending on the lender, an employee can receive up to a 50% advance on their upcoming paycheck. Alternatively, the next paycheck is used as collateral to receive a predetermined amount of cash.
Recipients need to have a steady income coming in to qualify for the service.
A List of Best Cash Advance Apps 2022
Everyone keeps a close eye on how much cash they have available. If your balance dips too low, you can use a cash advance app to access small amounts of money.
These are some of the best apps if you need small amounts of money in a hurry:
Amount: $100 for customers without Dave‘s spending account, $200 when you do.
Fees: $1 monthly membership fee, $1.99 to $5.99 charge to get money faster. Optional tips for up to 20% of the borrowed amount.
Funding Time: Up to 3 days, but you can pay an express fee to get funds in 8 hours with direct deposits.
Repayment: Your next payday by default. You can change the date, though.
Other considerations: This payday cash advance app has no credit check, interest charges, or late fees. It also offers a checking account to anyone that can’t get one.
Amount: $25 to $250. You can even access more money with a MoneyLion checking account.
Fees: The easy cash advance app has optional tips. If you want an instant delivery, though, you’ll pay extra:
- $3.99 for customers with MoneyLion accounts
- $4.99 for non-MoneyLion accounts
Funding Time: When not paying the instant delivery fee, 3-5 days without a MoneyLion account, 24 to 48 hours with an account (direct deposit).
Repayment: Your next scheduled payday.
Other considerations: There’s a late fee for payments later than 5 days.
Amount: $50 to $250, maximum amount based on their “Brigit Score.”
Fees: Free and paid plan of $9.99/month required for a cash advance.
Funding Time: Same day for requests before 10:00 am ET, next business day for others.
Repayment: The pay period is based on the borrower’s income schedule.
Other considerations: This payday advance app has no overdraft fees, credit checks, or a minimum credit score requirement.
Amount: Earning offers $100 to $500.
Fees: Voluntary tips capped at $14,
Funding Time: The lightning Speed feature delivers cash instantly; otherwise, it’s 1-2 business days.
Repayment: Next scheduled payday.
Other considerations: There’s a $1.50 tip option for overdraft protection. Earnin is a cash advance app with no credit check.
Amount: Empower offers $25 to $250.
Fees: Free for the first 14 days; there’s an $8 monthly fee after that.
Funding Time: Instantly, you can get a paycheck advance up to 2 days early.
Repayment: Next paycheck date.
Other considerations: The monthly fee includes automatic savings, budgeting, and spend tracking. There are no overdraft/returned payment fees. But there is a small fee for direct deposits to an external account and a 1% transaction fee for international transactions.
Amount: Branch offers $150 per day or up to $500 of your paycheck.
Fees: Bank account advances free, $2.99 to $4.99 for instance advances to a debit card.
Funding Time: Standard advance 1-3 business days, and instant delivery with paid fee.
Repayment: 60 to 336 days, depending on the loan amount.
Pros and Cons of Cash Advance Apps
Check what’s good and not so good about this type of financing so you can choose if it’s right for you:
- Covers emergency expenses immediately
- Cash advance fees may be less expensive than bank overdraft fees
- Short-term solutions for financial relief
- Usually, you receive the money instantly.
- Many apps offer free financial resources and tools to help with budgeting
- You choose how much cash to withdraw based on lender requirements
- You can access a personal loan and other types of financial products.
- Bad credit borrowers are eligible (often works as credit builder loans)
- Cash advance loan apps have fewer requirements
- Usually, they don’t require collateral.
- Can cause one or more overdraft fees if you have insufficient funds to cover a withdrawal to pay back the cash advance
- The service continues to make withdrawals until they receive the total amount owed
- When overused, advances lead to a debt cycle
- Can contribute to overspending
- Borrowers give access to their checking accounts and personal data
- Cash advance loans don’t build credit
- Lenders could sue borrowers if they fail to repay the debt
Apps for Cash Advance: Interest and Fees
Borrowers don’t pay interest to receive money when using a cash advance app. Instead, what adds up are bank overdraft fees, optional tips, and fees to receive the money quicker.
For example, a borrower might pay $10 worth of tips, a $35 bank overdraft fee, and $4.99 for instant delivery on a $100 advance.
The total of those charges represents a comparable monthly interest rate of 49.99% or an APR of 600%.
Voluntary tips mean just that. You aren’t required to give the lender money in exchange for cash. So, if you’re in a dire situation, it’s best not to tip.
Tips for Breaking the Paycheck-To-Paycheck Cycle
Living paycheck-to-paycheck is not ideal, but sometimes it’s a cycle almost impossible to get out of.
Here are some tips that can help:
Compare income and expenses
People get into financial difficulties when expenses exceed income. Review your last 3 months’ worth of income and spending.
Your goal is to have money left over each month, so cut unnecessary expenses.
Use a budget app
After you determine your spending habits by comparing income and expenses, use a budget app from then on. You set up spending categories, decide how much to spend, and track actual expenses by linking the app to your financial accounts.
Increase your income
As you decrease expenses, look for ways to earn money.
For example, you could rent unused storage space, teach a second language, or sell online courses in your field of expertise.
Limit how many credit cards you use
Using 5 or more credit cards at one time is too much and opens the door to overspending. Instead, pay off 3 of them and use 2 to pay for expenses.
Pay off debt
Eliminating bills frees up cash. Make payments to all creditors monthly.
Then reduce your total debt by paying off your smallest bill first and moving to the next largest bill.
Build your savings account balance
The common 50/30/20 rule means putting 50% of your income toward rent and food, 30% for non-essential items like recreation and spending, and 20% for savings.
Be determined to stick to this rule to improve your finances.
Get financial counseling
If you’re overwhelmed, seek a consultant. They can help you identify your financial problems and provide advice.
Many banks, credit unions, and social service organizations offer free advice.
Alternatives to Cash Advance Apps
Cash advance apps are not the only ways to get money. Check out these other alternatives:
- You can borrow money from family and friends. If you don’t pay them back on time, though, you’ll hurt the relationship.
- If you’re a credit union member, you can get small loans at reasonable rates that you can repay in a few months or longer.
- You can also apply for traditional online cash advance loans, although they tend to have high-interest rates.
- If your business receives credit card payments, look into merchant cash advance financing, where you receive funding in advance for future credit card sales.
- A word of advice: whenever possible, steer away from these loans: they are extremely expensive.
- Credit cards with 0% introductory APR rates can help you get cash advances. Just be aware they may charge fees and late charges.
- Also, you can build a good credit history using a credit card by paying off the balance on time each month.
- Online lenders, like Camino Financial, offer personal loans in amounts ranging from $1,500 to $7,500 you can repay in 24 to 36 months.
- Borrowers pay a fixed rate and can use the money to spend on themselves or even to start a business.
Getting Cash Fast Is Possible
An unexpected expense can wreak havoc on your checking account balance. Using online cash advance apps to cover an unforeseen bill is a good option when you have healthy spending habits.
Even so, you should weigh their advantages and disadvantages before deciding.
In some situations, a better approach to improve your financial outlook is to take out a Camino Financial loan.
Borrowers can apply for small loan amounts without providing a social security number or collateral and receive funds in as little as 2 days.
We invite you to request a quote for a business loan. Once you’re approved, you start building your credit when making timely payments and gain peace of mind by improving your cash flow.
Are cash advance apps payday lenders?
They share similarities, but cash advance apps aren’t considered payday loan lenders.
The most significant difference is that cash advance apps don’t charge interest, but they ask for optional tips and advance fees.
Withdrawals can trigger bank overdraft fees when accounts have insufficient funds, though.
How can I get a cash advance instantly?
Before requesting cash, you’ll need to set up an account. That involves providing your SSN, date of birth, contact information, place of employment, and bank account number.
The application process may take 1 to 2 days. That said, same-day cash advance apps are available where a borrower pays a fee to get cash within minutes or hours.
What app gives you $100?
Nearly all of the ones listed in this post offer cash advances in that amount.
However, you must earn income, use your next paycheck as a type of collateral, and give the lender access to your checking account.
What apps give you cash advances?
Cash advance apps provide small amounts of money to help employees pay expenses until the next paycheck.
Some of the most popular are Dave, MoneyLion, Brigit, Earnin, Empower, and Branch.