If you are in a pinch and living on a shoestring, unexpected expenses such as car or home repair costs, will certainly make you stressed, especially if your paycheck is still long. You will be confused about how you can borrow money instantly until payday. To cover unexpected expenses until the next payday, one of the things you can do is to borrow money that you pay back with your future salary.
Payday loans and cash advance applications allow you to borrow money instantly until payday. However, on payday loans, high interest rates are charged. If you borrow money from a payday loan, you will incur more debt. You can choose to utilize a cash advance app instead. Unlike payday loans, these cash advance applications charge low interest rates. Well, in this article we will share information about cash advance applications where you can borrow money instantly until payday.
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What is a Cash Advance App?
A cash advance app is an app that allows you to borrow money instantly until your next payday. Most of these apps withdraw the payment directly from your bank account on your payday. There are advantages of cash advance apps over payday loans. These cash advance apps charge lower interest rates. In fact, there are some cash advance apps that do not charge any fees at all. These apps do not charge high interest rates because they usually make money from subscription fees or membership fees and instant payments. In addition, there are also some apps that make money from voluntary tip payments. With these lower interest rates, many people use cash advance apps to cover their unexpected expenses until their next payday without getting trapped in growing debt. If you are in a pinch, and need to borrow money instantly, you can try using a cash advance app. Find a cash advance application that suits your needs and financial situation.
The Best Cash Advance Apps
Apparently, there are many cash advance applications that you can choose and use. Again, make sure you choose the best cash advance application for you, that is, the one that suits your needs and financial situation. For your information, most standard transfers hit bank accounts within one business day. If you do not need the money that day, you can use the standard process to avoid instant payment fees.
Below are several best cash advance apps:
1. Earnin
Earnin is an app that lets you borrow money instantly and pay it back using your next paycheck. The app does not charge any fees or interest payments. When you sign up for the app, the Earnin app connects their bank account to verify the repayment schedule. The app calculates your working hours by tracking how long you work using your phone’s GPS. Alternatively, you can also submit your work time sheet. Then, Earnin app will determine the rate of hourly payment. It is based on the amount of money you receive in direct deposit. So, in essence, this cash advance app is based on your working hours.
With this Earnin app, you will be able to withdraw your salary which has not been paid by your employer. Earnin will automatically debit your account for the amount you borrowed when your next paycheck hits your bank account. Through Earnin, you can withdraw anywhere from $50 to $750, depending on your estimated earnings and pay record. Keep in mind that the amount of money you can withdraw is limited to $100 per day. Again, Earnin does not charge any fees. They make money from your voluntary tips.
2. Dave
If you are spending too much on bills, it is bound to cut into your daily budget. Dave’s cash advance app is here to give you a solution. By borrowing money from this app, you can settle your bills. Dave also warns you before your account is overdrawn. In the app, you can also view a summary of Yours to Spend, a personal budget that helps your account for past income and expenses. That way, you can estimate how much money you can spend freely.
When you are in a pinch and do not have the funds for upcoming expenses, this app offers you a cash advance. The maximum amount you can borrow depends on your ability to repay on your next payday. To avoid interest rates, you must repay your loan as soon as your next paycheck hits your account. If you do not repay it immediately, then interest rates will apply.
In addition, Dave’s app can also guide you to find side jobs in the gig economy. These side jobs have more flexible working hours and pay. Surely these side jobs can be beneficial for you and are worth trying. If you have a side hustle, you will have additional income apart from your salary. Of course, that will help you avoid taking out short-term loans.
For your information, you will be charged Dave’s membership fee of $1 per month. If you want further support for this service, you can send a tip immediately. In addition, the app also has an expense account that users can sign up for. The expense account comes with a feature that allows your paycheck to hit your account up to two days earlier. This is definitely very useful.
3. Brigit
Brigit is an app that allows you to borrow instant money until payday. Apparently, many people are already using this app to meet their unexpected expenses. If you want to try borrowing money through this app, make sure Brigit is linked to your checking account that has an active history of at least 60 days. Also, make sure that your checking account has a positive balance. A record of at least three direct pay check deposits is also required. To determine if you qualify for an instant cash advance loan, there are several factors that influence it; Your bank account valuation and spending history. Make sure your bank account valuation and spending history are good in order to receive the loan. If you qualify, you may also be able to get a cash loan of up to $250. For loan repayment, Brigit will set a due date.
Through Brigit, you can enable an automatic transfer feature that sends an advance to your bank account when you are at risk of overdrawing. Just like Dave’s app, this Brigit app also provides a guide to finding side jobs. That way, you will be able to generate additional income. Whereas in Dave’s app you must pay $1 per month for a membership fee, Brigit does not charge a membership fee, which means you can become a Brigit member for free. However, if you want access to a cash advance, you will be asked for a certain amount of money. You will have to upgrade to Brigit Plus which costs $8.99 per month. While this may sound more expensive, it does include some other features that are very useful for you and for improving your financial health. These features include identity theft protection, a credit builder, and payment extensions that allow you to reschedule their due dates.
4. Chime
When it comes to the Chime Checking Account, this app allows you to receive your direct-deposited paycheck up to two days early. When it comes to unpaid bills and your payday is just a few days away, you can use this Chime app. Chime will provide notifications or alerts for every new transaction. That way, you can keep track of your spending. You can also detect unauthorized spending. If you see a suspicious transaction or your debit card is missing, you can report it to Chime and Chime will immediately deactivate your debit card from the app.
With the SpotMe service, Chime allows you to withdraw overdrawn balance from your account balance up to $200. However, if you are a new user, you can only withdraw $20. Chime will automatically deduct the over-balance amount from the opening balance of your next paycheck. This will certainly help you to avoid over-balance fees. Please note that you can use your Chime account for free. That means you do not have to spend money on membership fees. Chime earns money from fees charged to users for each debit card transaction.
5. Current
Just like Chime, Current also offers you to receive your paycheck up to two days early. The presence of this app helps you reduce spending on fees and find the best ways to budget more effectively. With a Giro account, deposits will be directly transferred to your account up to two days earlier. You will also not be charged any fees. If you are a new account holder, you can withdraw up to $25. However, if you are an existing account holder, the withdrawal limit will increase, allowing you to withdraw up to $200.
Your benefits do not end there, with the Current debit card you will also earn points if you shop from Current participating merchants. You can exchange those points for cash. This is one of the reasons why many people use Current debit cards for shopping. In addition, Current will also immediately release pre-authorization holds on your purchases of varying amounts, which usually hold your account for up to 10 days. Once Current releases the pre-authorization hold, they will send the funds back to your account. We learned that Current also offers a $50 bonus to new members who sign up and receive a direct deposit of $200 or more within 45 days. Are you interested in this?
6. DailyPay
If you are an employee who wants more flexibility in your salary payment, then you can take advantage of the DailyPay app. With this app, you can transfer your earnings from early working hours, even up to daily. There is an advantage that DailyPay has over some other early salary payment applications. The money you transfer does not need to be paid back. DailyPay will directly deduct your paycheck every week or fortnight. In essence, with this app, you can take the money you have earned during the pay period before your payday arrives. Your employer should also use DailyPay so that they have the cash flow to provide money early.
Initially, DailyPay charged a fee to every employee who wanted to use their service for all transactions. However, in 2022, that rule was removed. Now, you can enjoy all transactions for free. Remember that when you make a transfer through the DailyPay app, the money will be able to be deposited into a savings account, checking account, or debit card. You can transfer up to $1,000 every day. Again, make sure that the company you work for is already registered with DailyPay so that you can take advantage of the benefits offered by this app. For each initial payroll payment transfer made, a fee will be charged.
7. Empower
Another cash advance app is Empower. This app offers you cash advances, lines of credit, bank accounts and budgeting tools. Empower takes just one day to fund, which is faster than other apps. In fact, you also pay an instant delivery fee if you want to receive funds within an hour. The Empower app comes with an automatic savings feature. With this feature, you can choose the amount of money from each paycheck to be transferred from your checking account to your savings account. Alternatively, you can also utilize the app to save money by moving funds from your checking account to your Savings account, based on the weekly savings goals you set. Now we will give you an example. If you sign up and pay Empower’s subscription fee of $8, then you get a one-time advance of $150 to be paid back in seven days, plus an instant delivery fee of $6, then your loan has an Annual Percentage Rate (APR) of 486.7%.
Advantages and Disadvantages of the Cash Advance Applications
Cash advance apps can help you to cover unexpected expenses or emergency costs. However, cash Advance apps also come with some risks that you need to be aware of. Below we will share information regarding the advantages and disadvantages of cash advance Apps.
Advantages:
- You can access funds easily to cover unexpected expenses or emergency costs before you receive your next paycheck.
- Cash advance applications have much lower fees and interest rates compared to payday loans. In fact, many cash advance apps do not charge any fees and interest rates at all.
- You will be able to avoid overdraft fees by funding your account before it is overdrawn. Some cash withdrawal apps even automatically cover overdrafts.
- Some cash advance apps come with useful budgeting features or tools, such as the Yours to Spend feature that Dave’s app has.
Disadvantages:
- Cash advance applications can encourage a bad spending habit. That is because the advance funds do not have to be used for emergency expenses only, you can also use the advance funds for shopping.
- Cash advance loans can actually trap you when you can’t repay the loan with your next salary. Therefore, if you have already used a cash advance application to borrow money, make sure the payment is smooth.
- Some cash advance apps have fees and interest charged to users.
- By signing up for a cash advance app, it means that you share your personal data and that can potentially put you at risk.
