6 Payday Apps That Can Help You If You Need Cash
An unexpected cost might severely alter plans while living paycheck to paycheck. Cash advance applications are a temporary fix for financial issues.
Over half of those surveyed by Bankrate would struggle to handle a $1,000 unexpected bill. A faulty transmission or a busted pipe might undermine budgeting efforts and generate financial hardship.
Many individuals borrow money and pay it back later to meet expenses until payday. These loans and applications enable you to borrow money until payday. Payday loans have high APR rates. These fees might lead to long-term financial problems. Visit Oak Park Financial for further details.
Many individuals borrow money and pay it back later to meet expenses until payday. Rather than interest, app developers profit from user “tips” or membership fees. Cash advance applications may be getting more popular due to decreasing prices, stagnant earnings, and financial hardships caused by the coronavirus epidemic.
1. Earnin: Best for hourly employees
Earnin is a mobile app that enables you to instantly borrow against your next paycheck with no fees or interest.
Earnin links users’ bank accounts to verify payment schedules. The software counts users’ hours by monitoring their whereabouts using GPS or submitting a timesheet. It then calculates hourly salaries based on direct deposit.
Earnin enables you to withdraw unpaid earnings. Earnin automatically debits your account when your next paycheck arrives.
Users may withdraw up to $100 every pay cycle at first. The maximum withdrawal is $500 after establishing a record of app usage and payback.
The service is free. Earnin earns money through user-generated tips.
- Fees: gratuities
- $100-$500 max advance
2. Dave: Best for overdraft protection
Dave can help you avoid overdraft costs. Before an account is overdrawn, the Dave app scans for potential overdrafts like a pending payment. The program also delivers a Yours to Spend summary, a tailored budget based on income and previous spending.
Dave can help you out if you need money for an impending expenditure. The maximum advance amount is determined by your ability to pay back on payday. Users must refund the interest-free advance with their next paycheck.
Dave can also help users locate a second income in the gig economy. You work extra hours and are paid less than full-time employment as a side hustle. It may reduce the need for short-term borrowing by giving extra money between paychecks.
A monthly Dave membership costs $1. However, users may give a tip to express their support for the service. Sign up for Dave’s spending account, enabling you to get your salary up to two days early.
- $1/month + optional tips
- Adv. max. : $250
3. Brigit – Pros
Brigit is another budgeting tool that gives cash advances between paychecks.
Brigit has to link to a user’s bank account with 60 days of activity to obtain an advance. The bank must also have a good balance and three direct payroll deposits. Your bank account and spending history are assessed for a Brigit score, which determines your eligibility for fast cash. Users may receive up to $250.
Users who qualify for immediate cash via Brigit may also set up an automated transfer that transfers money to their bank account when they’re about to become overdrawn. Brigit can help you locate a side business to supplement your income, like the Dave app.
Brigit’s basic membership is free but does not include cash advances. For $9.99 per month, users may obtain credit repair, identity theft protection, and payment extensions.
- $9.99 per month for cash advance access
- Adv. max. : $250
4. Current – Best for Spending
Currently is a mobile-only checking account. The app aims to help users save money on fees and budget better.
Current provides a free account, but most services, including overdraft protection, need a $4.99 monthly Premium account. With a premium account, direct deposits arrive up to two days faster, and overdrafts are free up to $25 for new customers, with the option to expand the amount to $200. Pre-authorized holds on transactions with fluctuating quantities, such as petrol stations, are also quickly released. Current releases the hold and credits your account.
The current was also giving new Premium members a $50 incentive when this post was updated.
- Premium: $4.99/month
- Overdraft protection: $25-$200
5. Chime — Best for those Tired of bank fees
Chime is an app for Chime’s Checking Account. The Chime app allows customers to receive direct deposits up to two days early. The software notifies users of new transactions to help them keep track of their spending and avoid fraud. If a user loses their debit card or sees a questionable transaction, they may instantly deactivate it from the app.
Chime has the SpotMe service, which enables up to $200 in account overdrafts. The new user cap is $20. Chime deducts overdraft costs from the user’s next paycheck, allowing them to cover expenditures.
Accounts on Chime are free. Chime’s money from the fees paid to retailers for each debit-card transaction.
- No costs
- Overdraft protection: $20-$200 max advance
6. MoneyLion – For direct deposit users
MoneyLion also offers interest-free loans and quick, direct transfers to assist consumers in meeting costs between paychecks.
Users with recurrent direct deposits may get interest-free cash advances via Instacash. Initially, customers can get up to $25 in cash advances, but they can get $250.
A MoneyLion account has no mandatory fees. Users may pay an extra charge to expedite Instacash transactions.
MoneyLion also provides RoarMoney, an online account necessary to get quicker direct transfers and the most significant cash advance amounts. A RoarMoney account costs $1 per month.
- Costs: $1 per month to unlock maximum cash advances
- Advance: $25-$250
Advantages and Disadvantages of cash advance apps
While cash advance applications might assist pay unexpected needs, there are specific hazards to consider.
Advances of Cash Advance
- Consumers may quickly obtain cash to meet unexpected bills.
- Cash advance apps cost substantially less than payday loans, if not free.
- Some applications, like Dave’s Yours to Spend, have budgeting capabilities.
- Using a cash advance app might help you avoid overdraft costs. Several applications even cover overdrafts.
Payday loan applications drawbacks:
- Cash advances may trap people in debt if they can’t pay them back with their following income.
- The applications may promote unhealthy spending habits since the cash aren’t restricted to emergencies.
- Some applications charge fees, even if they are less than payday loans.
- Signing up for a cash advance app implies disclosing sensitive data that may be compromised. PaymentsJournal revealed that 70% of the top financial applications fail to secure users’ data.
The time between paychecks may be difficult for low-income families. Cash advance applications may help pay unexpected bills, but they should be used in conjunction with emergency savings. That way, you’ll get emergency coverage through the app while simultaneously saving money.