When you live paycheck to paycheck, an unexpected expense can derail your plans. The best cash advance apps are a temporary solution to such financial problems. Issues such as a failed transfer or a burst pipe could sabotage budgeting plans and cause financial stress if there is no emergency fund to fall back on.
Borrowing money and repaying it with a future paycheck is a common way to cover expenses until the next paycheck. Both payday loans and the best instant cash advance apps allow you to borrow money before your next payday. Lenders charge high annual percentage rates (APRs) to borrow money with a payday loan. These exorbitant fees may result in more long-term financial problems because they can accumulate into more debt.
Money advance apps are a newer development that, like payday loan lenders, provide fast cash ahead of your next paycheck but charge much lower fees or none at all. Rather than interest, app developers profit from voluntary “tip” payments or membership fees. The best cash advance apps may be becoming more popular as a result of lower costs, stagnant wages, and financial difficulties caused by the coronavirus pandemic.
Top 3 Advance Cash Apps For You
1. Earnin – Ideal For Hourly Employees
It is one of the best cash advance apps that allows you to quickly borrow against your next paycheck with no fees or interest payments. Earnin connects users’ bank accounts when they sign up for the app in order to verify their payment schedules. Users’ hours are calculated by tracking how long they are at work using their phone’s GPS or by submitting a timesheet. It then calculates the hourly pay rate based on the amount of money the user receives in direct deposit.
Earnin enables you to withdraw wages that have yet to be paid for by employers. Earnin automatically debits your account for the amount borrowed when your next paycheck arrives. Users can initially withdraw up to $100 per pay period. The maximum withdrawal amount is $500, but only after users create a record of app use and repayment. There is no charge for the service. Earnin is funded by the voluntary tips of its users.
2. Dave – The Best Overdraft Protection
Dave can assist you if overdraft fees are eating into your budget. Dave’s app detects potential overdrafts, such as an upcoming bill, and notifies users before their accounts become overdrawn. The app also offers a “Yours to Spend” summary, which is a personalised budget that takes into account income and previous expenses to estimate how much users can spend freely. This makes it one of the best cash advance apps.
Dave can lend you a small advance if you don’t have the funds for an upcoming expense. It calculates the maximum advance amount based on how much you can pay back on your next payday. Users must repay the interest-free advance as soon as their next paycheck arrives.
Dave can also help users find a side hustle in the gig economy. A side hustle is a job done in addition to one’s main job that may have more flexible hours and pay. Providing supplemental income in between paychecks can help eliminate the need for a short-term loan.
Dave membership costs $1 per month, but users can send a tip to show their appreciation for the service. Users can also sign up for a Dave spending account, which includes a feature that allows paychecks to deposit into your account up to two days early.
3. Brigit – The Best Features
It is yet another one of the best cash advance apps that assist with budgeting and provide cash advances to stretch funds between paychecks. Brigit must connect to a user’s checking account with an active history of at least 60 days in order to receive an advance. The checking account must also have a positive balance and at least three direct payroll deposits. A Brigit score is calculated based on your bank account and spending history, and it is used by the app to determine whether you qualify for instant cash. Users may be eligible for cash advances of up to $250. Brigit then establishes a repayment date for the loan.
Users who qualify for instant cash through Brigit can also enable an automatic transfer feature, which sends an advance to the user’s bank account when an overdraft occurs. Brigit, like the Dave app, can also help you find a side hustle to supplement your income when you need it.
Brigit’s basic membership is free, but it does not include access to cash advances. That service requires a $9.99 monthly upgrade to Brigit Plus, which includes several other features to improve users’ financial health, such as a credit builder, identity theft protection, and repayment extensions, which allow users to reschedule their due dates.
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