Running low on funds before payday? You’re not alone. Fortunately, technology has brought forth a new wave of financial tools to help manage short-term cash flow issues. These mobile apps provide a quick and convenient way to access small dollar loans or advances on your paycheck, potentially helping you avoid late fees or bridge the gap until your next payday. Here’s a look at 5 popular options to consider in 2024:-
Top 5 Apps That Loan You Money In 2024
1. Brigit: Financial Wellness With Fee-Free Advances
Brigit positions itself as a financial wellness app that goes beyond just advances. It offers budgeting tools and resources to help you manage your money better.
- Loan amount: Brigit offers advances ranging from $50 to $250. The exact amount depends on your income and spending habits.
- Free speed: Brigit deposits funds within 1-3 days of approval (free).
- Fast-funding fee: $0.99 to $3.99.
- Other fees: There are no fees for advances themselves. However, Brigit offers an optional subscription service (Brigit Plus) with additional features for a monthly fee ($9.99 or $14.99, subject to change).
Pros and Cons:-
Pros:
- Free Advances: Brigit offers fee-free advances, making it an attractive option compared to some apps with interest charges.
- Focus On Financial Wellness: The app goes beyond just advances, providing budgeting tools and resources to promote long-term financial health.
- Instant Deposits: Funds are typically deposited into your account within minutes of approval.
Cons:
- Lower Advance Limits: Compared to some competitors, Brigit offers a smaller maximum advance amount.
- Limited “Boost” Feature: The free tier only offers one “Boost” per advance, which may not be enough for everyone.
- Subscription Fee For Additional Features: While the basic features are free, unlocking additional tools like overdraft protection requires a monthly subscription.
Who Is Brigit Best For?
Brigit is a good option for individuals who need occasional, small advances and prioritize financial wellness features. Those with consistent income and predictable paydays will benefit most from Brigit’s fee-free model.
2. Empower: Early Paychecks, Budgeting, and More
Empower allows you to access a portion of your already-earned wages before payday. It’s not a traditional loan, but early access to your paycheck.
- Loan amount: The amount you can access depends on your employer and pay cycle, but it typically falls within the $10 to $250 range.
- Free speed: Empower offers free deposits within 1 day of approval.
- Fast-funding fee: For faster access, Empower charges a fee ranging from $1 to $8 (subject to change).
- Other fees: Empower has an optional monthly subscription fee of $8 (subject to change) unless you opt out.
Pros and Cons:-
Pros:
- Early Paycheck Access: A convenient way to access your earned wages before payday without incurring interest charges.
- Free Money Management Tools: Empower empowers (pun intended) users with valuable budgeting and financial planning resources.
- High-Yield Checking Account: Earn interest on your deposited funds, unlike traditional bank accounts that may offer minimal or no interest.
Cons:
- Early Paycheck Limits: The maximum amount of early access may not cover all your needs.
- Subscription Fee For Additional Features: While the core features are free, accessing financial advisors and other premium tools requires a monthly subscription.
- Employer Verification Required: Early paycheck access is dependent on your employer’s participation with Empower.
Who Is Empower Best For?
Empower is a great choice for individuals who frequently need access to their earned wages before payday and appreciate comprehensive money management tools. Those who are comfortable receiving their paycheck in installments and prioritize saving through a high-yield checking account will find Empower particularly valuable.
3. EarnIn: “Earning” Your Paycheck Early
EarnIn allows you to access a portion of your already-earned wages before payday. Similar to Empower, it’s not a traditional loan.
- Loan amount: EarnIn lets you access up to $100 per day, with a maximum of $750 per pay period.
- Free speed: EarnIn offers free deposits within 1-3 days of approval.
- Fast-funding fee: If you need the money faster, EarnIn charges a fee ranging from $3.99 to $4.99 (subject to change).
- Other fees: EarnIn doesn’t have any additional fees besides the optional fast-funding fee.
Pros and Cons:-
Pros:
- Free Earned Wage Access: A convenient way to access your earned wages without interest charges or hidden fees.
- Instant Deposits: Get your funds immediately after approval, helpful for urgent needs.
- Optional Tipping: You have control over how much (or if anything) you tip for the service.
- “Safety Net” Feature (Optional): Provides a buffer against overdraft charges for a small tip (optional).
Cons:
- Reliance On Work Schedule Tracking: Requires accurate work schedule information or timesheet connection.
- Advance Limits May Be Restrictive: The maximum advance amount may not be enough to cover larger expenses.
- Dependence On Optional Tips: While the core features are free, tips are encouraged and may influence access to future advances or features.
Who Is EarnIn Best For?
EarnIn is a good option for individuals with predictable work schedules and hourly pay who need occasional, small advances on their earned wages. Those comfortable with a tip-based system and who don’t mind manually tracking work hours might find EarnIn a convenient solution.
4. Varo: Advance Your Paycheck With A Varo Bank Account
Varo is a mobile banking app with a unique twist – it offers interest-free advances on your paycheck if you have a Varo bank account with direct deposit set up.
- Loan amount: Varo advance amounts depend on your income and banking history with Varo, but typically range from $20 to $500.
- Free speed: Varo offers instant deposits of your advance if approved.
- Fast-funding fee: $0.49 to $8.99.
- Other fees: There are no additional fees besides the fast funding fee, but using Varo requires opening a Varo bank account (which may have its own fees).
Pros and Cons:-
Pros:
- Interest-Free Advances: Get a portion of your paycheck early without incurring interest charges.
- Free Mobile Banking: Enjoy the convenience of a mobile banking app with essential features.
- High-Yield Checking Account: Earn interest on your deposited funds, unlike traditional bank accounts with minimal or no interest.
Cons:
- Requires Varo Bank Account: You can’t access Varo Advances without opening a Varo bank account.
- Advance Limits May Vary: The maximum advance amount may not be enough for everyone’s needs.
- Potential Instant Transfer Fee: There’s a small fee for receiving the advance immediately, which negates the benefit of free advances to some extent.
Who Is Varo Best For?
Varo is a good option for individuals who prefer a comprehensive mobile banking experience with the added benefit of interest-free paycheck advances. Those who are comfortable switching their primary bank account to Varo and don’t mind potential limitations on advance amounts may find Varo a convenient solution.
5. Dave: Advances, Budgeting, and Side Hustle Inspiration
Dave offers interest-free advances on your expected paycheck, along with budgeting tools and inspiration for finding additional income streams (side hustles).
- Loan amount: Dave allows advances of up to $500 on your expected paycheck.
- Free speed: Dave’s free tier offers deposits within up to 3 days of approval.
- Fast-funding fee: For faster access, Dave charges a tip ranging from $3 to $25 (optional, but may impact future access).
- Other fees: Dave has a mandatory $1 monthly membership fee.
Pros and Cons:-
Pros:
- Interest-Free Advances: Access a small sum of money early without incurring interest charges.
- Budgeting Tools: Dave offers basic budgeting tools to help you manage your finances.
- “Side Hustle” Recommendations: Get inspiration for finding additional income streams to potentially reduce reliance on advances.
Cons:
- Limited Advance Amount: The $100 maximum advance may not be enough for larger expenses.
- Subscription Fee For Full Features: Unlocking all features, including unlimited advances and savings tools, requires a monthly subscription.
- Reliance On Optional Tipping: While the core features are technically free, Dave relies on optional tips for advance extensions, which may impact access to future features.
Who Is Dave Best For?
Dave is a good option for individuals who need occasional, small advances and appreciate budgeting resources and inspiration for generating extra income. Those with a tight budget who prioritize building an emergency fund through the “Rainy Day Fund” feature might find Dave Banking’s subscription worthwhile.
Conclusion
Cash advance apps can be a helpful tool for managing short-term cash flow issues. However, it’s crucial to use them responsibly. Here are some key takeaways:-
- Compare options: Each app has its own unique features, pricing structure, and eligibility requirements. Consider your needs and choose the app that best suits you.
- Understand the terms: Read the fine print before using any cash advance app. Be aware of advance limits, repayment terms, and any potential fees.
- Borrow responsibly: Only borrow what you can afford to repay on time. Don’t rely on advances as a long-term financial solution.
- Explore alternatives: Consider alternative solutions for unexpected expenses, such as contacting creditors about a payment extension or exploring a small loan from a credit union.
By being a well-informed borrower and using cash advance apps responsibly, you can bridge the gap between paychecks without falling into a cycle of debt. Remember, these apps are a temporary solution, and building a budget and emergency savings plan is crucial for long-term financial stability.
FAQs
Are loan apps safe?
Loan apps are secure. However, it is still wise to practise caution and take safety measures. Research an app that takes security and privacy seriously, and read online reviews before signing up.
How can I get cash right now?
Most loan requests are processed quickly, allowing you to receive the funds you need in no time. It’s important to select a lender that fits your affordability and requirements to receive the best deal.
Can a pay advance improve or hurt my credit score?
Applying for these loans usually won’t appear on your credit report, but defaulting could affect your credit history.
