By means of Megan B. Shepherd
The pace of life, unexpected expenses when you are short on cash or between paydays is not a far-fetched scenario. And, if you’ve weighed your quick money options during a cash crunch, you know it’s a scary market out there with high interest rates and predatory lenders.
Cash advance apps offer a quick and easy way to borrow a small amount of money before your next payday, usually under $500, but some as high as $1,000 . Plus, you can skip credit and interest checks altogether.
If you need a small amount of cash to get you to your next payday, here are some scenarios where a cash advance app might be your best option.
1. When you have bad or no credit
If you have no or bad credit and you have tried to apply for a loan in the past, you know that even if a lender considers you for a loan, you will be hit with a very high rate. of interest.
If you have no credit history or are working to improve your credit score, a cash advance app offers a way to access quick cash without a credit check. Most cash advance apps have simple eligibility requirements, although each app varies slightly. General requirements usually include at least 18 years of age, have a bank account at least 60 days old and proof of some kind of income or direct deposit history.
2. You need a small amount of money fast
Cash advance apps usually offer funds within one to three business days, but most apps offer a way to get your money immediately or within minutes. Getting your money instantly has a small fee, usually from $0.99 to $8.99, depending on the app. However, some apps include instant transfer for free with a paid monthly subscription to the app.
3. You’re a gig worker with inconsistent paydays
Cash advances offer gig workers like Uber drivers or freelancers a quick and easy way to access money without a credit check or a steady employer. Some apps, like Cleo, don’t even require a minimum amount for recurring deposits.
As a gig worker who relies on clients to get paid, there may be times between paychecks when you need extra cash for a bill or small emergency. Opting for a cash advance is your best bet compared to an installment or predatory payday loan, because you avoid high interest rates and have a quicker time to qualify.
What to look for in a cash advance app
You have a fair number of options when it comes to cash advance applications, each with unique benefits, fees and requirements. Here’s what to consider when choosing the best cash advance app for your situation:
- Compare each app’s monthly fees, tipping requirements and instant transfer fees. Think about how you will use the app. For example, cheaper apps may look good, but if you want to access regular instant transfers, you can choose a lower-priced app with cheaper instant transfer fees.
- Customer reviews. Online reviews from your app store or Trustpilot are the best place to check what customers have to say about the app. Look for reviews about customer service, how easy or difficult it is to qualify and whether the app is user-friendly.
- Cash advance limits. How much you can borrow varies depending on which app you use. Limits range from $20 to $500 or more, and increasing the amount you can borrow has different requirements depending on the app.
- Payment requirements. With most cash advance apps, you pay off your loan using automatic deductions from your next paycheck. However, if you need more payment flexibility, such as extended payment due dates, you can look for an app that offers this perk.
- Employer requirements. Most cash advance apps are open to the public, but some apps on the market require your employer to support the app, such as Branch, Even and Payactiv.
- Many apps offer budgeting, savings, credit building and investment tools in their paid subscriptions.
Megan B. Shepherd is a personal finance editor at Finder committed to helping Americans navigate the financial world of loans and insurance. Megan’s expertise has graced the pages of Forbes, Fox, Time, Reviews.com, and carinsurance.com, adding valuable information related to loans and insurance. Megan’s expert knowledge of financial topics has also led to contributions to renowned publications such as Nasdaq and MediaFeed, where she meticulously dissects and explains personal loans, financial strategies and borrowing tactic.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.