These 6 Cash Advance Apps Can Get You Paid Faster

Sometimes you need some extra cash to support yourself when you're between paychecks. Luckily, there are alternatives. You can borrow from a friend, put your essential expenses on a credit card, take out a payday loan or tap your upcoming paycheck early, thanks to a growing number of cash advance apps.

With the latter option, you'll receive a portion of your next paycheck in lieu of the transfer fee or monthly membership cost. In some cases, there is no cost. You can then use the funds as you wish and pay them back when your next paycheck comes.

What is Cash Advance App?

Cash advance apps are tools that can bridge the financial gap between paychecks. You connect your bank account, upload employment and earnings information, and then you can have a portion of your incoming earnings transferred directly to your bank account or to a designated debit card.

Andrew Lokenoth, professor of finance at the University of San Francisco and founder of Fluent in Finance, says, "These apps are designed to give users access to small amounts of money on a short-term basis, usually until the user's next payday. "

Cash advance apps can come in handy for consumers dealing with unexpected costs (like car repairs, for example) or those who need cash quickly.

"One of the main advantages of cash advance apps is their convenience and speed," says Loknath. "They can provide users with instant access to cash without the need to go to a bank or other lender."

They can also be helpful to consumers facing potential penalties when their checking account is low on funds.

"You can pay bills on time, and you can avoid overdraft fees," says Rama Palaniappan, CEO of Earnin, one of the cash advance apps below. "That's money that stays in your pocket."

The exact cost of cash advance apps varies. Some instruments require a one-time transfer fee or subscription fee. Others only act on tips.

6 Cash Advance Apps to Borrow Against Your Next Paycheck

There are many cash advance apps to choose from, so be sure to compare your options before using one. Consider app fees, cash advance maximums, any interest charged, and other features, such as overdraft protection or early access to your full paycheck.

"With any of these options, it's important to know what you're getting into before moving forward," says Jason Noble, certified financial planner and financial advisor at Prime Capital Investment Advisors in Charleston, SC. "Read the fine print, because that's where you'll really know what you're buying."

Earnin 

Earnin is a cash advance app available on both Apple and Android devices. It offers cash advances of up to $750 per pay period and operates on a tip-based platform. Users have the option of adding tips on each transaction to support Ernin's services.

Here's Arnin's description:

• Advance Amount: Users can access up to $100 per day and up to $750 per payment period.
• APR: Earnin does not charge interest for cash advances.
• Repayment: Earnin is automatically debited from your account for the cash advance once it is paid by your employer. You can also pay earnings manually via money order.
• Fees: There is no fee, however, if your payment dates are not correct in the system, the automatic debit of the service may result in an overdraft fee.

Dave

Dave is a cash advance app that you'll find on the Apple App Store and Google Play. It offers cash advances of up to $500 as well as budgeting features and on-the-go opportunities.

• Advance Amount: Dave's advance goes up to $500. The exact amount depends on your eligibility and identity verification when you sign up for the app, but the average amount is $120.
• APR: Dave doesn't charge any interest on his cash advances.
• Repayment: Your payment is due on your next pay day or, if Dave cannot determine that date, the nearest Friday. Payment, plus any applicable fees, is debited from your linked bank account.
• Fees: In some cases, there is a fee for transferring your advance. This can cost anywhere from $1.99 to $13.99 depending on the amount and type of account you're transferring from. You may also choose to tip Dave for his service.

Brigit 

Brigit is a financial health app that you'll find in both the Apple App Store and Google Play. Its instant cash feature allows its users to get an advance of up to $250 on their next paycheck. The basic version of the app is free and also offers overdraft alerts, budgeting and credit-building features.

Here are Brigit's details:

• Advance Amount: A user can receive a maximum of $250, however Brigitte calculates a unique approved amount for each user based on their deposits and spending.
• APR: No interest is charged on Brigitte cash advances.
• Repayment: When you request your cash advance, Brigitte gives you a repayment date and will debit your bank account on this date. There are no late fees or penalties, and users can request a repayment extension if required.
• Fees: Brigitte comes with a $9.99 subscription fee for most services. If you just want budgeting and account monitoring tools, it's free.

Chime

Chime is a mobile banking app that also has a cash advance feature called SpotMe, which allows eligible users to get up to $200 fee-free. The app also provides credit-building and payment features and access to Chime banking and savings accounts.

• Cash Advance: Qualifying users can get up to $200 in cash withdrawals or debit card purchases with no overdraft fees. Friends on Chime can also "boost" this limit.
• APR: Chime does not charge interest on SpotMe advances.
• Repayment: Chime will automatically withdraw the repayment amount, plus any tips, from the user's next direct-deposit paycheck.
• Fees: There's no fee to use Spotme, but you must have a Chime Bank account to qualify. Additionally, users can tip Chime after paying the balance.

MoneyLion 

MoneyLion is a mobile banking app that offers features such as cash advance, credit building and investment services. You can also open a bank account, receive your full paycheck two days in advance, track your spending habits, and buy and sell cryptocurrencies. The app is available on the App Store and Google Play.

• Advance Amount: MoneyLion's cash advance goes up to $500 per pay period, though users start at $25 and go up from there based on their deposit history. If you opt to use MoneyLion's Credit Builder Plus feature and open a RoarMoney account, you can access up to $1,000.
• APR: No interest on MoneyLion cash advances.
• Repayment: MoneyLion automatically deducts your repayment amount from your linked bank account on the due date. If you don't have enough funds in your account, a partial repayment amount is deducted, and MoneyLion will deduct the balance the next day.
• Fees: There is no fee for a cash advance, but there is a fee of $0.49 to $8.99 for transferring money to your RoarMoney account or to an external bank account. You can also choose to tip for the service.

Empower 

Empower is a cash advance app that offers up to $250 with no interest or credit check. It's available on Apple and Android devices, and you can choose to deposit money into your existing bank account or to an Empower Visa card for faster payments. Empower is a subscription-based service.

Here are the details of Empower :

• Advances: Empower offers up to $250 per paycheck, but the exact amount depends on your financial activity, including your spending habits and the amount and frequency of your paychecks.
• APR: No interest is charged on Empower Cash Advances.
• Repayment: You will be given a repayment date based on your pay schedule. The amount will be debited from your linked bank account. If your bank charges you any overdraft fees because of this debit, Empower will reimburse you.
• Fees: There is no fee for the cash advance, however the full Empower service costs $8 per month. This fee is automatically charged every month from the bank account you have linked to your account.

Final thoughts:

Cash advance apps let you quickly access a portion of your paycheck and can be a good option on occasion. As Lokneth points out, however, "these should not be used as a long-term financial solution."

Using cash advances too often can indicate a deeper financial problem, so if you regularly feel the need for help, consider working with a credit counselor or budgeting professional for help. Building an emergency fund can help you better handle any financial emergency.