Best Apps That Loan You Money Instantly 2022

ElitePersonalFinance
Last Update: July 14, 2022 Apps Loan Reviews Loans

Cash advances are worthwhile products if you need a short-term loan. For example, you can typically borrow upwards of $300, and you usually repay the balance with your next paycheck. Moreover, apps like Dave, Brigit, Earnin, and MoneyLion care more about your cash flow than your credit score, so if you have bad credit, it won’t derail your chances of qualifying.

In addition, while cash advances are similar to payday loans, the former often have 0% APRs. In contrast, payday loans have an average APR of 400%. Therefore, we recommend that you stay away from payday loans and only consider cash advance apps for small-dollar financing.

Also, a personal loan is a better fit if you need more than $300. Through our marketplace, you’ll find lenders that offer $100 to $250,000, with APRs of 2.49% to 35.99%. Moreover, flexible terms range from one to 10 years, and applying won’t impact your credit score. As a result, please click on the “Shop Around” button below to learn more about the available options.

The Best Loan Apps 2022

When you need emergency financing, it increases your chances of falling victim to predatory lenders. Moreover, payday loan providers take advantage of borrowers’ desperation and often trap them in a cycle of debt. However, avoiding the mistake is easier than you think. As a helpful tip, pay close attention to your loan terms and stay away from products that have 400% APRs. Likewise, the options below can hold you over until your next paycheck arrives without impairing your financial health.

ElitePersonalFinance only covers legitimate cash advance apps. We don’t list or review any payday loan apps!

Loan App: Amount: APR: Fees: Credit Check:
Dave Up to $250 0%
  • $1/mo.
  • $1.99 to $5.99 for same-day cash advances
No
SoLo Funds Up to $500 3% – 10%
  • $0/mo.
  • Late payment fee is 15% of the loan amount + $5
No
Brigit Up to $250 0%
  • $9.99/mo.
No
Earnin Up to $150/Day or $500/Period 0%
  • $0/mo.
  • Up to $3.99 per $100 for same-day cash advances (first is free)
No
MoneyLion Up to $250 0%
  • $0/mo.
  • $1.99 to $7.99 for immediate cash advances
No
Possible Up to $500 150% – 200%
  • $0/mo.
No
Grain Up to $1,000 Line of Credit 15% – 17.99%
  • $0/mo.
  • 1% per withdrawal
  • Late payment fee is the lesser of 5% of the balance due or $5
No
Albert Up to $250 0%
  • $0/mo.
  • $6.99 per cash advance to an external bank account
No
Cleo Up to $100 0%
  • $5.99/mo.
  • $3.99 for same-day cash advances
No
Chime Up to $200 0%
  • $0/mo.
No

Dave

Loan Amount: Up to $250
APR: 0%
Terms: Repay manually or with your next paycheck
Fees:
  • $1 monthly membership fee
  • $1.99 to $5.99 for same-day cash advances
Credit Check: No
How to Qualify:
  • Have at least two qualifying direct deposits
  • Have cash leftover after paying your bills
Link External Bank Account: Yes
Learn More

If you’re looking for apps that loan you money instantly, Dave should be on your radar. For example, the cash app lets you borrow up to $250 with no interest or credit check. However, you need to have some money left after paying your monthly bills. In addition, the membership fee is $1 per month. However, Dave is a safe and legit way to receive cash for free within three business days, and you also have the option to pay a fee for same-day funding. On top of that, the Dave app should be available in all states, and you can link an external bank account.

But does Dave work with Capital One? Yes. Whether you bank with Capital One, Chase Bank, Wells Fargo, or several financial institutions, you shouldn’t have any issues setting up an account with Dave. Also, a bonus is that you can repay the advance manually or have the money automatically deducted from your next paycheck.

Pros:

  • Dave is one of the best apps that gives loans up to $250.
  • Dave doesn’t charge interest or check your credit.
  • Standard three-day funding is free.
  • You can link an external bank account.

Cons:

  • You need to pay $1 per month in membership fees.
  • It costs $1.99 for instant cash advances of $5 or less to $5.99 for $100 to $250.

The impact of COVID-19:

While Dave’s policies didn’t change during the pandemic, the cash advance company still offered helpful tips to mitigate the financial difficulties. To learn more about potential hardship programs, you can call Dave at 1-844-857-3283, email support@dave.com, or use the chat function within Dave’s mobile app.

Solo Funds

Loan Amount: Up to $500
APR: Typically 3% to 10%
Terms: Up to 15 days
Fees: Late payment fee is 15% of the loan amount + $5
Credit Check: No
How to Qualify: Depends on the P2P lenders’ criteria
Link External Bank Account: Yes
Learn More

High on our list of apps that loan you money instantly, Solo Funds offers $50 to $500, and there is no minimum credit score requirement. In addition, repayment terms of 15 days or less are available, and tips typically range from 3% to a 10% maximum. Thus, Solo Funds is excellent if you’re looking for apps that pay you real money without worrying about high APRs. For your reference, SoLo Funds is a peer-to-peer (P2P) lender that connects borrowers with investors. Moreover, the app should be available in all states, and applicants with low or no credit scores are welcome to apply.

However, late payment fees will cost you 15% of the loan amount plus $5. In addition, you can’t roll over your loan if you default, and the repercussion is often losing access to the apps’ services.

Pros:

  • SoLo Funds’ cash app offers up to $500 with no credit check.
  • Tips are 3% to a 10% maximum, much less than payday loan APRs.
  • Same-day funding is often available.
  • You can link an external bank account.
  • You’re not charged a monthly membership fee.

Cons:

  • Late payment fees will cost you 15% of the loan amount plus $5.
  • Independent lenders determine approval on the platform.

The impact of COVID-19:

While SoLo Funds provides helpful tips on how to safeguard your finances during these troubling times, you need to contact the company directly to learn about its hardship programs. To do so, you can email help@solofunds.com or submit a ticket through SoLo Funds’ help center.

Brigit

Loan Amount: Up to $250
APR: 0%
Terms: Repay manually or with your next paycheck
Fees: $9.99 monthly membership fee
Credit Check: No
How to Qualify:
  • Have at least 60 days of checking account activity and maintain a balance above $0
  • Have a cash surplus every two weeks after receiving your paycheck
  • Have a Brigit Score that ranges from 40 to 100
Link External Bank Account: Yes
Learn More

We found that Brigit is safe and legit when analyzing apps that give loans. The loan app will front you up to $250 until payday, and you can apply on the cash app without a job. Also, Brigit is one of the best apps that loan you money instantly because its standard and same-day funding options are free. However, you need to become a member to apply, and the membership fee is $9.99 per month. But like Dave, you can repay the advance manually or have the money automatically deducted from your next paycheck. In addition, the Brigit app should be available in all states. And while its proprietary “Brigit Score” determines whether you qualify, a reasonable score of 40 or more should be enough to gain approval.

However, please note that you need to have a checking account with a positive balance and at least 60 days of activity. Moreover, Brigit prioritizes having a cash surplus every two weeks after your paycheck arrives.

Pros:

  • Brigit’s loan app provides up to $250.
  • Brigit doesn’t charge interest or check your credit.
  • You receive the funds in as little as 20 minutes without paying a fee.
  • You can link an external bank account.

Cons:

  • You need to pay $9.99 per month in membership fees.
  • Most qualifying applicants have a Bridgit score of 40 to 100.

The impact of COVID-19:

Brigit provided external resources for those struggling during the pandemic. However, to learn more about company-specific programs, you can email info@hellobrigit.com. But please note that the company recommends that you submit a request through Jess, its automated 24/7 chat function.

Earnin

Loan Amount: Up to $100 per day and $500 per pay period
APR: 0%
Terms: Repay manually via money order or with your next paycheck
Fees: Up to $3.99 per $100 for same-day cash advances (first is free)
Credit Check: No
How to Qualify: Have a checking account with frequent direct deposits
Link External Bank Account: Yes
Learn More

Earnin provides safe and legit access to $100 per day or $500 per pay period. Moreover, there is no interest or credit check, and you can repay the advance manually via money order or have the funds deducted from your next paycheck. Furthermore, since there is no monthly membership fee, Earnin is one of the best apps that loan you money instantly. Also, you receive free cash advances within three business days, or you can pay for instant funding. But your first instant deposit is free, and the app should be available in all states.

The only downside is that you need to provide consent for Earnin to analyze your work email, timesheets, wage stubs, and GPS locations to verify your income and workplace attendance. Thus, while you may or may not approve of the scrutiny, it could be mandatory to gain approval.

Pros:

  • Earnin’s loan app provides $100 to $500 in cash.
  • Earnin doesn’t charge interest or check your credit.
  • Your first same-day cash advance doesn’t incur a fee.
  • You can link an external bank account.
  • You’re not charged a monthly membership fee.

Cons:

  • Earnin requires several identity and location disclosures.
  • You’ll pay up to $3.99 per $100 for subsequent same-day cash advances.

The impact of COVID-19:

Providing pandemic assistance on a case-by-case basis, Earnin helped its customers navigate the uncertainties of COVID-19. To learn more about the options available, please email support@earnin.com.

MoneyLion

Loan Amount: Up to $250
APR: 0%
Terms: Repay with your next paycheck
Fees: $1.99 to $7.99 for immediate cash advances
Credit Check: No
How to Qualify:
  • Have a checking account that’s been open for at least two months
  • Make sure the account is active and has a positive balance
Link External Bank Account: Yes
Learn More

MoneyLion Instacash provides up to $250 with no interest or credit check, and you don’t have to repay the funds until payday. However, since MoneyLion restricts new accounts to $25 or slightly higher when you sign up, consider it a $50 loan instant app until you build a reliable relationship. Moreover, once you demonstrate your creditworthiness, you can borrow $50 and then up to $250. In addition, MoneyLion is a safe and legit way to receive your money for free within five business days, or you can pay a fee for instant funding. Overall, we found that MoneyLion is one of the best apps that loan you money instantly, and it should be available in all states.

Also noteworthy, MoneyLion has a Credit-Builder account that provides financing to borrowers with bad credit. It costs $19.99 per month and includes access to personal loans of up to $1,000, with APRs of 5.99% to 29.99%. Moreover, the company found that more than half of its customers uplifted their credit scores by 42 points or more within 60 days.

Pros:

  • MoneyLion’s loan app provides up to $250.
  • MoneyLion doesn’t charge interest or check your credit.
  • You can link an external bank account.
  • You’re not charged a monthly membership fee.

Cons:

  • You’ll pay $1.99 to $7.99 for instant cash advances.
  • You may only qualify for $25 right away.

The impact of COVID-19:

While MoneyLion doesn’t list any coronavirus-specific policies, help is available if you need it. To learn more, you can call MoneyLion at 1-888-704-6970, email customercare@moneylion.com, or use the company’s 24/7 chat function.

PossibleFinance

Loan Amount: Up to $500
APR: 150% – 200%
Terms: Eight weeks + 29-day grace period
Fees: None
Credit Check: No
How to Qualify:
  • Have a checking account that’s at least three months old
  • Have direct deposits of $750 per month
  • A balance surplus each month can increase your chances of qualifying
Link External Bank Account: Yes
Learn More

While loan amounts vary by state and won’t exceed $250 in California, PossibleFinance typically provides up to $500 with no credit check. However, APRs range from 150% to 200%, and you repay the proceeds in eight weeks. Also, there is a 29-day grace period if you suffer a financial emergency, and payday loans have an average APR of 400% and require you to repay the money with your next paycheck. Thus, while PossibleFinance’s APRs are high, the lender’s products are cheaper than a payday loan. And because of that, PossibleFinance should be considered one of the best apps that loan you money instantly.

To qualify, you need to have a checking account history of at least three months and direct deposits of $750 per month or more. Also, it’s preferable to have a balance surplus each month. In addition, loans are only available in select states; its disclosures revealed: “At the moment Possible is available in Alabama, California, Delaware, Florida, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Ohio, Oklahoma, Rhode Island, South Carolina, Tennessee, Texas, Utah, and Washington.”

Pros:

  • PossibleFinance’s loan app provides up to $500.
  • There is no credit check.
  • There is a 29-day grace period for late payments.
  • You can link an external bank account.
  • You’re not charged a monthly membership fee.

Cons:

  • You will incur APRs of 150% to 200%.
  • Maximum loan amounts vary by state.

The impact of COVID-19:

Standing by its customers in their time of need, PossibleFinance created forbearance plans for borrowers struggling with financial difficulties. To learn more, PossibleFinance recommends that you use the “contact us” function within its app or submit a ticket through its help center.

Grain

Loan Amount: Up to $1,000
APR: 15% – 17.99%
Terms: Repay in full each month or incur interest
Fees:
  • 1% per withdrawal
  • Late payment fee is the lesser of 5% of the balance due or $5
Credit Check: No
How to Qualify: Grain’s algorithm analyzes your linked checking account’s cash flow to determine eligibility
Link External Bank Account: Yes
Learn More

Grain offers lines of credit of up to $1,000, with APRs of 15% to 17.99%. And the app should be available in all states. However, borrowers that enroll in Auto-Pay get the lower rate, while the higher rate applies if you repay your loan manually. In addition, there is no credit check, but interest accumulates if you don’t pay off your balance each month. As a result, if you’re searching for apps that loan you money instantly, Grain fits the bill. Also, if you prefer to repay the proceeds monthly instead of with your next paycheck, Grain is a safe and legit option.

However, please note that Grain charges a 1% withdrawal fee, and late payment fees will cost you the lesser of 5% of the balance due or $5. But while the charges can add up, Grain’s products are still much cheaper than a payday loan. Furthermore, if you don’t qualify for an unsecured loan, you may have to settle for a secured line of credit. From Grain’s perspective, it all depends on the cash flow activity in your linked checking account.

Pros:

  • Grain’s loan app provides up to $1,000.
  • Your APR is 15% if you enroll in Auto-Pay.
  • You can link an external bank account.
  • You’re not charged a monthly membership fee.

Cons:

  • You incur a 1% fee each time you make a withdrawal.
  • Late payments cost you the lesser of 5% of the balance due, or $5.

The impact of COVID-19:

As a show of solidarity during the pandemic, Grain cut borrowers loan payments in half to help them stay above water. To learn about how the company can help you, please call Grain at 1-833-755-0809, email help@trygrain.com, or submit a ticket through Grain’s help center.

Albert

Loan Amount: Up to $250
APR: 0%
Terms: Repay manually or with your next paycheck
Fees: $6.99 per cash advance to an external bank account
Credit Check: No
How to Qualify:
  • Have a bank account with a positive balance that’s been open for at least two months
  • Have regular direct deposits from the same employer
  • Have an account surplus the day after your paycheck arrives
Link External Bank Account: Yes
Learn More

As another of the best apps that pay you real money, Albert advances up to $250 with no interest or credit check. Moreover, free deposits occur within two to three business days, though there is a “small fee” for instant funding. In addition, if you bank with Albert, there are no administrative fees. However, if you deposit the cash in an external bank account, a $6.99 fee will apply. Regardless, Albert’s cash app can help assist until payday, and the app should be available in all states. Also beneficial, Albert doesn’t have monthly membership fees, so you don’t need a premium membership to access cash advances.

To qualify, you have to link a bank account with a positive balance open for two months or more. Moreover, regular direct deposits from the same employer are a must, and Albert also requires an account surplus the day after your paycheck arrives.

Pros:

  • Albert’s loan app provides up to $250.
  • Albert doesn’t charge interest or check your credit.
  • You can link an external bank account.
  • You’re not charged a monthly membership fee.

Cons:

  • It costs $6.99 to have your cash advance sent to an external bank account.
  • You may not qualify for the total amount right away.

The impact of COVID-19:

While Albert’s policies didn’t change during the pandemic, you can inquire about assistance programs by emailing the company at support@albert.com.

Cleo

Loan Amount: Up to $100
APR: 0%
Terms: Repay manually or with your next paycheck
Fees:
  • $5.99 monthly membership fee
  • $3.99 for same-day cash advances
Credit Check: No
How to Qualify: Cleo’s algorithm analyzes your spending habits, payroll, and how well you budget
Link External Bank Account: No
Learn More

When analyzing apps that borrow money, Cleo is another winner, and the app should be available in all states. Moreover, while you may only obtain $20 to $70 until you build a reliable reputation, you can receive up to $100 with no interest or credit check later. However, Cleo has a $5.99 monthly membership fee, and instant cash advances also cost $3.99. In addition, Cleo doesn’t list any options to link an external bank account, so you may have to set up more than one Cleo account.

In contrast, Cleo is one of the best apps that gives loans, and Cleo Plus members can earn back their monthly membership fee by taking advantage of exclusive cash-back shopping offers. For example, you can often earn more than $5.99 by using Cleo’s in-app cash-back coupons. In addition, you can repay the advance yourself or have Cleo automatically deduct the proceeds from your next paycheck.

Pros:

  • Cleo’s loan app provides up to $100.
  • Cleo doesn’t charge interest or check your credit.
  • Standard four-day funding is free.

Cons:

  • You need to pay $5.99 per month in membership fees.
  • Instant cash advances cost $3.99.
  • You can’t link an external bank account.

The impact of COVID-19:

To help struggling borrowers during the pandemic, Cleo created a program where users could donate $5 or more to other members. Then, Cleo’s algorithm would disperse $250 from the pool to the members that needed the money the most. To lean more, please email Cleo at team@meetcleo.com.

Chime

Loan Amount: Up to $200
APR: 0%
Terms: Repay with your next paycheck
Fees: None
Credit Check: No
How to Qualify: Have a checking account with Chime
Link External Bank Account: No
Learn More

If you already bank with Chime, its SpotMe program is a safe and legit way to obtain $200 in overdraft protection, and the app should be available in all states. Moreover, there are no fees, interest, or credit checks, and debit purchases and cash withdrawals are eligible. And avoiding the monthly membership fee can help save you a bundle.

It works like this: if your Chime checking account has a negative balance, an advance of up to $200 will cover the shortfall. Then, Chime pays itself back when you receive your next paycheck. However, please note that you can’t link an external bank account. But if you’re already a Chime member, it’s one of the best apps that loan you money instantly. Also, please consider that you can’t use the service to transfer money to friends, and you may have to build a relationship with Chime before you qualify for the total of $200.

Pros:

  • Chime’s loan app provides up to $200 in overdraft protection.
  • Chime doesn’t charge interest or check your credit.
  • Debit purchases and cash withdrawals are eligible.
  • You’re not charged a monthly membership fee.

Cons:

  • You can’t link an external bank account.
  • You may not qualify for the total of $200 right away.

The impact of COVID-19:

Chime’s policies didn’t change during the pandemic. However, customer service representatives are available if you need help. For assistance, you can call Chime at 1-844-244-6363, email support@chime.com, or use the chat function within Chime’s mobile app.

Is There a Difference Between Loan Apps and Payday Loans?

Yes. Shady lenders often disguise their products as cash advances. However, it’s a scam that’s easy to avoid. That’s why we only list safe and legit cash advance apps, and the majority of the companies on our list don’t charge interest. Conversely, payday loans have an average APR of 400%, and you’ll find this out when unscrupulous lenders reveal the loan’s expensive terms. Therefore, please avoid these companies as they often trap borrowers in a vicious cycle of debt. In contrast, if a cash advance app has a 0% APR and little or no fees, you know it’s a reputable lender.

In addition, since payday loans often require repayment in 15 days, and the amount you can borrow is typically only a few hundred dollars, it’s easy to confuse the product with a loan app. However, the significant difference is that most cash advances are interest-free, while payday loans have an average APR of 400%. Moreover, even if we factor in monthly membership fees, cash advance apps’ all-in APRs are roughly 6% to 60%. Thus, a two-week advance through a loan app is more affordable than a payday loan.

Likewise, penalty fees are often much higher with payday loans than cash advances. As a result, the compounding effect of payday lenders’ practices often impairs borrowers’ financial health. And before they know it, a $300 payday loan incurs more than $300 in interest, fees, and charges. Thus, even if it’s an emergency, we recommend that you avoid payday loans, as there are much better alternatives available in the marketplace.

What Are Loan Apps and How Can They Help Me?

Cash advance apps front you money until your next paycheck arrives. So you should think of them as short-term funding products that help you overcome emergencies. You need to have employment or self-employment income or receive recurring government benefits to qualify. That way, the lender knows that you can repay the proceeds. However, many of the companies on our list don’t charge any interest, so if you’re in a tight spot and need instant funding, cash advance apps can offer safe and legit bridge financing.

Also, loan apps cover small expenses of a few hundred dollars or less. Therefore, if you have a utility bill that’s past due or have to fill an unexpected prescription, loan apps will advance you the money and let you repay the funds with your next paycheck. As a result, if you don’t have emergency savings, loan apps are often an interest-free way to overcome financial challenges.

How Much Can I Borrow?

Cash advance apps typically offer between $5 and $300, and you often repay the proceeds when your next paycheck arrives. Thus, they’re a great resource if you need a quick cash infusion to pay a bill or cover an unexpected expense. However, more considerable expenses often require more flexible loans. For example, weather damage to your home or a new part for your car will likely cost more than $300. In addition, if you live paycheck to paycheck, unexpected expenses can severely impact your budget. Therefore, repaying the loan in 15 days may not fit your needs.

If this is the case, you may want to consider a personal loan. With typical APRs of 5.99% to 35.99% and standard terms of one to five years, personal loans allow you to spread your payments out over a suitable timeframe. As a result, please consult our marketplace and shop around for more options. You can browse dozens of lenders there, and applying doesn’t require a commitment and won’t impact your credit score.

Is It Smart to Use Apps That Loan You Money Instantly?

It depends on your personal preferences. Please remember cash advance apps are great if you need short-term funds for an emergency and don’t want to incur interest. Moreover, since most loan apps don’t have minimum credit score requirements, recurring income is more important than a good credit score. As a result, while it’s rare to find loan companies that offer instant approval, your chances of obtaining a no-interest cash advance are pretty high.

In addition, loan products are like tools, and specific tools handle specific jobs. For example, if you’ve been eyeing a pair of shoes and a flash sale emerges, a loan app will let you make the purchase and repay the funds later. Conversely, if you wait for your paycheck to arrive, the item might be sold out, or the flash sale could be over. Therefore, loan apps are valuable tools when small but unexpected expenses require immediate action. However, when you have the time to plan, personal loans are often more appropriate products.

Do Loan Apps Have Fees?

Yes. Since most loan apps don’t charge interest, their fee structures often make up the difference.

Monthly membership fees:

Many loan apps require premium membership to access their cash advance services. If you scan the reviews above, you’ll notice that the lenders on our list have membership fees that range from $1 to $9.99 per month. And while premium members have access to other benefits like cash-back rewards, you should compare the membership fee to your expected usage to determine if the expense is worthwhile.

Same-day funding fees:

While funding of one to five business days is often free, loan apps usually charge extra for instant deposits. As evidence, the lenders on our list charge $1.99 to $7.99 for immediate cash advances, and you should consider the fee when calculating your all-in APR.

External bank account fees:

While most loan apps don’t levy the fee, Albert charges $6.99 to send cash advances to an external bank account. However, cash advances deposited in an Albert bank account are free of charge, and there is no monthly membership fee. As a result, the same loan app can be perfect for one person and unattractive to another.

Late payment fees:

Most loan apps don’t have late payment fees. However, charges may apply if you don’t repay the funds on time. In addition, late payments can also impact your credit score.

Tips:

While these are voluntary, tips can increase the cost of your cash advance. Many loan apps let you leave a “tip” to show your appreciation for the service. And it often ranges from 0% to 10% of the amount borrowed. However, it’s not a requirement.

Calculating your all-in APR:

Like many financial services companies, cash advance lenders use fees to generate revenue. As evidence, Brigit, Cleo, and Dave have monthly membership fees of $9.99, $5.99, and $1. Thus, if you only borrow $200 once per year, the monthly membership fee can cost roughly 6% to 60% in membership APRs. Therefore, a personal loan is often cheaper.

In addition, if we combine Dave’s $12 annual membership fee with its $5.99 fee for advances of $100 to $250, the total APR is roughly 9%. Likewise, if you only borrow $50 once per year, the actual APR is approximately 36%.

Overall, cash advance apps are cheaper than payday loans. But if you have good credit and can obtain a personal loan with an APR of 5.99% to 10%, you may not need a cash advance app. However, if you have bad credit and don’t need a large amount or flexible terms, a cash advance app may be the right fit.

What Else Should I Know About Loan Apps?

To learn more about whether cash advance apps are right for you, please consult our list below:

Pros:

  • Cash advance apps cost less than payday loans.
  • Cash advance apps cost less than alternative payday loans.
  • Most cash advance apps don’t require you to pay interest.
  • Most cash advance apps don’t conduct credit checks.
  • Cash advance apps approve borrowers with good, fair, bad, and no credit.
  • Most apps let you link an external bank account.
  • Standard deposits of one to four business days typically don’t incur fees.
  • You can often choose to repay the proceeds manually or with your next paycheck.
  • Many cash advance apps don’t charge late payment fees.

Cons:

  • Some apps make you pay a monthly membership fee.
  • You often have to pay a fee for instant funding.
  • You often need a direct deposit history and recurring income to qualify.
  • Some cash advance apps require personal, identity, and mobility disclosures.
  • The short-term loans usually need to be repaid within 15 days.
  • Though voluntary, tips can increase the total cost of your loan.

Can I Borrow Money From Several Loan Apps?

Yes. It’s possible to borrow money from multiple lenders. However, you’ll need to create an account with several companies and disclose this information when submitting your applications. Moreover, if you need more than $300, a personal loan may be more beneficial than applying for multiple cash advances.

To help you decide, please consider that while personal loans incur interest, they have more flexible terms, and you can spread your payments out over several years and ensure that your payback period fits your budget. Conversely, while multiple cash advances may not incur interest, you’ll have to pay them all back with your next paycheck. As a result, the strategy may not be helpful in the long run.

What’s More Important: My Credit Score or My Income?

While specific policies vary by lender, typical cash advance apps don’t check your credit. Instead, they conduct cash flow analysis to ensure that you have enough recurring income to repay the loan. Remember, most apps’ algorithms monitor your bank account to determine if more money is going in than going out. Therefore, your income is of immense importance. However, lenders should approve your request if there is a surplus in your account each month and your spending habits meet their criteria. Thus, your credit score doesn’t matter much when they conduct this analysis.

How Do Loan Apps Differ From Personal Loans?

If you’re unsure of the differences between cash advance apps and personal loans, a few bullet points should help determine which product is right for you.

  • Cash advance apps typically let you borrow between $100 and $300, while personal loan providers offer $1,000 to $100,000.
  • Some personal loan borrowers can qualify for up to $250,000.
  • Cash advances typically don’t incur interest, while personal loans have APRs that usually range from 5.99% to 35.99%, though some can go as low as 2.49%.
  • Cash advances have typical terms of 15 days, while personal loans have standard periods of one to five years.
  • Cash advances often don’t, while personal loans usually have loan origination fees.
  • Both cash advances and personal loans typically have late payment penalties.

As a result, determining which product is right for you comes down to the amount of money you need and your desired time horizon. So if you need to repair your roof or have problems with your car, a cash advance of $100 to $300 likely won’t be enough. However, a cash advance may be appropriate if you need to pay a utility bill or make a small purchase.

How Do Loan Apps Differ From Credit Cards?

Cash advance apps are somewhat similar to credit cards. For example, while the latter has a much higher borrowing limit, credit cards don’t charge interest if you repay your balance before the end of your monthly billing cycle. As a result, both are interchangeable for short-term purchases.

However, the main difference is that most cash advance apps don’t conduct credit checks, while credit card providers often require high credit scores to qualify. Also, most credit card issuers won’t extend unsecured financing to borrowers with poor credit scores. Therefore, a secured credit card is the only option, defeating the purpose since it requires upfront collateral. Conversely, cash advance lenders care more about your cash flow than your credit score, and they often extend credit as long as you have recurring income. As a result, while both can serve the same purpose, credit cards may not be an option for some borrowers.

Are Loan Apps Safe to Use?

Yes. In 2019, the New York Department of Financial Services initiated an investigation into payroll advance companies’ adherence to state laws. Some states have APR caps, and lenders can’t charge more than the regional limit. Therefore, alternative lenders with APRs of 35.99% to 100% or more only operate in select states.

However, the point of the investigation is to determine if cash advance apps disguise monthly membership fees, tips, and other charges as expenses that increase your APR beyond the allowable limit. As mentioned above, most all-in APRs range from 6% to 60%. Thus, some apps may indirectly violate state laws with some loans. However, the companies on our list remain in operation, and many of their partner banks are FDIC insured. As a result, while we can’t state for sure, U.S. regulators likely believe these companies adhere to state laws.

How Did COVID-19 Affect the Industry?

Before the pandemic, loan apps were a niche product. Most borrowers preferred to obtain financing from traditional lenders and conducted most transactions in person. However, with the pandemic upending our daily routines and increasing our digital footprint, mobile lenders thrived in the era of social distancing. Likewise, the pandemic allowed them to showcase their technology’s ease of use and effectiveness.

Also influential, COVID-19 had a detrimental impact on many Americans’ financial well-being. However, with cash advance apps helping borrowers who couldn’t obtain financing elsewhere, their customer bases grew. As a result, these companies hope to capitalize on the momentum post-pandemic.

Why Did We Select These Apps?

We analyzed dozens of lenders with the most reputable services to determine which companies deserve a spot on our list. Then, we reviewed each company to determine the pros and cons. After that, we narrowed our list and selected the ten cash advance apps that had the best combination of terms, fees, and user-friendly features. Thus, the lenders above should fit your needs. But please browse their websites to determine which company is right for you.

Conclusion

While cash advance apps have many pros and cons, the good often outweighs the bad. For example, interest-free advances are cheaper than payday loans, and memberships often include other perks that help justify the fees. In addition, mobile platforms augment our digital lives by making it easy to move money around. Therefore, a cash advance app is an affordable option if you need to obtain a short-term loan until your next paycheck arrives.

MEET THE AUTHOR

ElitePersonalFinance

Recommended Articles

Debt

Best Secured Loans of 2022

EPF July 14, 2022
Debt

Best Peer-to-Peer Lenders 2022

EPF April 16, 2022

AS SEEN ON