An unexpected expense can significantly disrupt and cause financial stress. In a poll, Bankrate found that more than half of those polled would be unable to cover a $1,000 surprise expense. So, how can you come out of such a situation?
A common way to cover such expenses is to borrow money that you can payback with your next paycheck. Many companies today offer cash advances which you can avail using smartphones. And, one such popular and most used app for payday loans and budgeting assistance is Dave, but it is far from the only one. A number of other cash advance apps offer similar services, but with somewhat different features and terms.
In this article, we’ll tell you about some of the best cash advance apps that are great alternatives to Dave. Most of them, like Dave, provide small payday cash advances, but others can provide personal loans if you have more serious financial requirements.
Best Cash Advance Apps
- Axos Bank
For those who don’t want to pay the regular subscription cost, Earnin is a perfect alternative to Dave. Rather, the app requests you to provide a tip that you deem fit for the service. You can use this service to receive an upfront salary of up to $100 per day, up to a maximum of $500 per term.
Earnin also comes with additional useful features like Balance Shield Alerts, which will alert you when your bank account balance drops below a set level. By automatically transferring up to $100 to your bank account, the cash-out option can help you avoid overdraft fees.
Apart from the advantages of Earnin, there are many other disadvantages as well. You must have a regular pay schedule to be eligible for a paycheck advance (weekly, bi-weekly, semi-monthly, or monthly). Your employer must have a physical work location or use time-tracking software to use the service. Plus, at least half of your paycheck must be deposited directly into your checking account.
Brigit is another popular cash advance app, offering small paycheck advances of up to $250. There is no interest charged on the loan, but there is a $9.99 monthly membership fee. It’s a lot more expensive than Dave, but it comes with free account monitoring. To aid you in analyzing your earnings and spending habits, budgeting tools will be included.
In the United States, Brigit collaborates with over 15,000 financial institutions, including Bank of America, Wells Fargo, TD Bank, Chase, and others. It prevents overdraft penalties by automatically transferring funds into your account when your balance is low and in the danger of dipping below zero.
Brigit also offers early payback and due date extensions. The app says that it will not share or sell your personal information to third parties and that it will use 256-bit encryption.
MoneyLion is a mobile banking program that allows users to borrow money, save money, invest money and make money all in one place. It, like Dave’s, has an ‘InstaCash’ option that enables instant cash advance and early paycheck access. This allows you to borrow up to $250 from your next paycheck without checking your credit or paying interest. According to the company, the money will be paid into your account quickly, regardless of the time of day. The RoarMoney feature of the app allows you to deposit your paycheck up to two days in advance.
The best advantage of MoneyLion is that there is no minimum balance requirement. The software offers free standard transfers, international transactions, mobile check deposits and card replacement. In addition, the app can assist with your investments by allowing you to transfer money from your savings account to exchange-traded funds that are specifically tailored to your goals and risk tolerance. The basic subscription to the app costs $1 per month, while the ‘Credit Builder Plus membership costs $19.99 per month and gives you access to loans of up to $1,000.
Even, a cash advance app similar to Dave, partners with thousands of firms to help you receive on-demand payments. Although there is no interest, the app charges an $8 monthly subscription fee. On the other hand, some employers subsidize some or all of these expenses. Along with cash advances, the Even app can help you with the budget from paycheck to paycheck by sending you notifications about upcoming bill payments and the amount you need.
It’s worth noting that Even is only available through a restricted number of employers who have collaborated with the app. It also has a partnership with over 18,000 banks for its InstaPay service, which transfers money into your bank account the next working day. Unlike some of the other applications on this list, however, the Even app does not distribute loans. It just gives you instant access to money you’ve previously earned.
5. Axos Bank
A full-service digital banking service, Axos Bank offers high-yield checking and savings accounts, unlike some of the other applications on this list. You’ll also get access to investment opportunities, loans, and personal finance management, among other things. While Axos does not provide a traditional cash advance, it does provide a service called Direct Deposit Express. When your paycheck is deposited in your bank by your employer, it allows you to access your money up to two days early.
Axos also provides a feature called ‘Payback Checking,’ which allows users to earn up to 1% cashback on all signature-based purchases. Axos’ financial services portfolio also includes the ability to deposit checks, transfer payments, and pay invoices on time. It also makes investment recommendations based on your risk tolerance.
Two-factor authentication (2FA), Face ID, fingerprint (or Touch ID on Apple devices), and account monitoring to avoid fraud are among the security features. There are no monthly service fees or overdraft fees with this app. Axos Bank does not have a minimum balance requirement, yet you must have at least $50 in your account to open it.
Current is an account checking app that helps consumers find ways to spend less money on fees and budget more effectively. It offers a free version of its account, but to access most features, including overdraft coverage, you’ll need to pay $4.99 per month for a premium account. With a Premium account, direct deposit transfers and overdrafts up to two days in advance are covered at no charge – up to $25 in overdrafts for new account holders, with the ability to increase that limit to $200 overtime.
Current also immediately releases pre-authorized holds on purchases with variable quantities, such as gas stations, which typically place a hold on your account for up to 10 days. Current releases the hold by sending the funds back to your account. At the time this article was updated, Current also offered a $50 bonus when new members signed up for Premium.
Another account checking app, Chime also offers you to receive direct deposited paychecks up to two days in advance. Chime comes with the SpotMe service, which allows account holders to overdraw their accounts for up to $200. However, the limit is $20 for new users. Chime deducts the overdraft amount from the user’s next paycheck, helping users cover expenses without worrying about overdraft charges.
The app sends out alerts for any new transactions to help users track expenses and detect any unauthorized spending. If a user loses their debit card or notices any suspicious transaction, they can disable the debit card from the app immediately.
Chime accounts are free to use. Instead of levying bank fees on its customers, Chime makes money from the fees it charges merchants for each debit-card transaction.
While cash advance apps can help cover emergency expenses, there are also some risks associated to consider when using them. So, use them only if you cannot borrow money from your family and friends. If you are not able to manage your financial situation, consider using a money management app.