Cash advance apps are becoming increasingly popular due to their low costs and the financial hardship caused by the coronavirus pandemic. These apps provide quick cash before your next paycheck, but tend to charge much lower rates than payday loan lenders or none at all. App makers make money from voluntary “tip” payments or membership fees, rather than interest. Earnin is one of the most popular cash advance apps that allows you to borrow against your next paycheck quickly without any fees or interest payments.
When the next paycheck arrives in your bank account, Earnin will automatically debit your account for the amount that was borrowed. There is no charge for the service and Earnin makes money from voluntary tips from its users. Chime is another great option for those who need a cash advance on their salary when they are short on funds. Chime works as an online bank account where you can make direct deposits, transfer money, send checks, pay bills online, and get a cash advance on your salary when you are short on funds.
Chime also offers a Visa debit card that gives you access to more than 38,000 Visa Plus Alliance and MoneyPass ATMs across the United States for free. You will have to pay out-of-network withdrawal fees as long as this access does not apply. Another useful feature that Chime has is the automatic personal savings and spending accounts with a 0.5% interest rate on your savings account balance. Earnin, Chime Bank, Axos Bank, Brigit and MoneyLion are some of the best cash advance apps like Dave that you can use. All of these apps offer different features and benefits such as automated advances, financial health updates, tips for improving your credit, identity theft protection, opportunities to earn additional money, automated savings, monthly expense reports and more.
However, it is important to remember that cash advance applications should be used only in emergency situations and should be combined with the creation of an emergency savings fund.