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By
Elizabeth Rivelli
Elizabeth Rivelli
Contributor
Elizabeth is a freelance contributor to Newsweek’s personal finance team, with a focus on insurance. She has more than four years of experience covering insurance and has written hundreds of articles for publications and insurance companies. Elizabeth is based in New England.
Read Elizabeth Rivelli's full bio
Reviewed By
Claire Dickey
Claire Dickey
Senior Editor
Claire is a senior editor at Newsweek focused on credit cards, loans and banking. Her top priority is providing unbiased, in-depth personal finance content to ensure readers are well-equipped with knowledge when making financial decisions.
Prior to Newsweek, Claire spent five years at Bankrate as a lead credit cards editor. You can find her jogging through Austin, TX, or playing tourist in her free time.
Read Claire Dickey's full bio
Published January 24, 2024 at 3:34 pm
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
A cash advance app can give you access to money before your next paycheck arrives. The best cash advance apps are free to use and allow you to get paid a few days before you normally would. Some even have built-in spending and budgeting tools and can help you build credit.
There are dozens of cash advance apps on the market, but each one has pros and cons. It’s important to choose a cash advance app that meets your needs and works for your financial situation. To get started, you can check out our top picks for the best apps for cash advances.
Our Methodology
Our research is designed to provide you with a comprehensive understanding of personal finance services and products that best suit your needs. To help you in the decision-making process, our expert contributors compare common preferences and potential pain points, such as affordability, accessibility, and credibility.
Our Picks
- Best for large money advances: EarnIn
- Best for gig workers: Cleo
- Best for budgeting tools: Current
- Best for building credit: Money Lion
- Best for no overdraft fees: Varo
Best Cash Advance Apps of 2024
Best for Large Money Advances
Why We Chose It
When you use EarnIn, you can access up to $750 per pay period (up to $100 per day). The company offers free transfers in one to three business days and instant Lightning Speed transfers for a fee.
Pros
- Access up to $750 per pay period
- No credit check required
- 24/7 in-app customer support
Cons
- An existing bank account is required to sign up
- Must earn a regular paycheck
- Instant transfers aren’t free
Best for Gig Workers
Why We Chose It
Cleo’s Cash Advance tool will provide cash advances without submitting your employment history. The app uses the information from your bank account to determine your eligibility. It’s ideal for gig workers and freelancers who don’t have a consistent income.
Pros
- No minimum recurring deposits required
- Don’t have to submit a W2 or proof of employment to enroll
- No credit check
Cons
- Must have a preexisting bank account
- Maximum cash advance is $250 (less for first-time users)
- The advance must be repaid within 14 days
Best for Budgeting Tools
Why We Chose It
Current offers cash advances by providing free overdraft protection. If you overdraw your bank account before getting paid, you’re covered with Current. We also like Current’s budgeting tools, like Savings Pods and Round-Ups, which can help you reach your saving goals faster.
Pros
- Automated budgeting tools in the mobile app
- Overdraft coverage up to $200
- No annual fee to sign up
Cons
- Requires minimum monthly direct deposits
- Can’t access the full $200 in overdraft coverage right away
- Must have a preexisting bank account
Best for Building Credit
Why We Chose It
MoneyLion Instacash can give you a cash advance of up to $500 before you receive your next paycheck. If you need access to a larger amount of money, join the Credit Builder Plus program to get a loan that will build your credit after 12 months of positive payment history.
Pros
- Credit Builder loan provides up to $1,000 and can boost your credit
- Traditional cash advances of $500 or less
- No fees or interest on cash advances
Cons
- Can only get cash advances of up to $10 in the beginning
- Standard transfer is up to five business days
- Bank account age and balance affects the amount of cash you can get
Best for No Overdraft Fees
Why We Chose It
Varo provides cash advances with no overdraft fees. You need to open a Varo Bank Account, but you’ll never pay any overdraft fees. If you overdraw your account, Varo doesn’t penalize you, even if your balance is negative.
Pros
- No overdraft fees for Varo Bank Accounts
- Cash advances up to $500 after a certain period
- 30-day repayment period
Cons
- Must open a Varo Bank Account to enroll
- At least $800 in qualifying direct deposits is required
- Could take a while to reach the highest cash advance limit
What Is a Cash Advance?
A cash advance allows you to borrow money quickly, similar to a payday loan. The most common ways to get cash advances are from your credit card insurer or a third-party app. Most apps let you withdraw money from your next paycheck before you receive it, which can be helpful if you need money for something before payday.
Cash advance apps only allow you to borrow up to a certain amount of money, and the threshold is usually based on the amount of money in your bank account or your paycheck amount. You’re required to repay the money you borrowed, which typically gets debited from your paycheck before it hits your account.
Are Cash Advance Apps Useful?
Yes, cash advance apps can be useful if you need fast cash for an unexpected expense or a single purchase. Many of the best cash advance apps have flexible repayment periods, no interest and no fees for standard delivery. In general, there’s little risk in using a cash advance app once or twice.
However, don’t rely on cash advance apps all the time. It can negatively impact your financial situation if you spend more than you earn. These apps also have drawbacks. Most apps charge high fees for instant transfers which can quickly add up. There’s also a limit to the amount of money you can withdraw during a pay period, and it might not be enough to cover a major expense.
How to Choose a Cash Advance App
There are dozens of cash advance apps out there, but some are better than others. Before you sign up for a cash advance app, it’s important to make sure it meets your unique needs. Here are a few things to consider when choosing an app for cash advances:
- The amount of money you can access: Every cash app has a limit to the amount of money you can borrow during a single pay period. Choose an app that will allow you to borrow a sufficient amount of money to hold you over until your next paycheck comes. Keep in mind that the withdrawal limit often depends on your paycheck amount or the total balance in your bank account.
- What fees the app charges: Many of the best cash advance apps don’t charge monthly fees to use the service, but there may be hidden fees, interest fees and transfer fees. For example, most cash advance apps charge a fee for automatic transfers. If you can’t wait the standard delivery time to get your money, you should choose an app that charges a low fee for instant payments.
- How long you have to repay the money: When you get a cash advance, you must repay the money, which usually gets debited from your paycheck. But if you borrow the entire amount of your paycheck upfront, you must repay that money within a certain period. Before you choose an app, consider the repayment period and look for an app that offers a flexible window.
Frequently Asked Questions
Can Cash Advance Apps Impact Your Credit?
No. Using a cash advance app doesn’t impact your credit score or credit history. The best apps for cash advances don’t run a credit check when you apply. But if you can’t repay your cash advance, your payment could get sent to collections, which can affect your credit score.
What Can I Use a Cash Advance for?
You can use a cash advance for anything you want. You can spend the money, save the money or use it to pay off debt. However, it’s best to use a cash advance when you need money quickly for an emergency expense, like a medical bill or a one-time purchase. Relying on cash advances regularly can cause you to spend more than you earn.
Are Cash Advance Apps Safe?
Cash advance apps are very safe to use. Most apps have security features that protect your money and connected bank accounts. It’s still a good idea to use strong passwords and enable two-factor authentication as an additional layer of protection when possible.
Related Articles
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- How To Get a Personal Loan
- Best Money-Saving Apps
- Best Budgeting Apps
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
Elizabeth Rivelli
Contributor
Elizabeth is a freelance contributor to Newsweek’s personal finance team, with a focus on insurance. She has more than four years of experience covering insurance and has written hundreds of articles for publications and insurance companies. Elizabeth is based in New England.
Read more articles by Elizabeth Rivelli
As a seasoned financial expert with a deep understanding of personal finance, particularly in the realm of cash advance apps, let me delve into the concepts discussed in the article titled "5 Best Cash Advance Apps of February 2024" by Elizabeth Rivelli. With over [X years] of experience in the financial sector, I have a comprehensive understanding of the nuances involved in choosing the right cash advance app tailored to individual needs.
The article explores various cash advance apps, each catering to specific financial requirements and preferences. Here's a breakdown of the key concepts discussed:
-
EarnIn - Best for Large Money Advances:
- Features: Allows users to access up to $750 per pay period with free transfers in one to three business days. Instant transfers are available for a fee.
- Pros: No credit check required, 24/7 in-app customer support.
- Cons: Requires an existing bank account, instant transfers aren't free.
-
Cleo - Best for Gig Workers:
- Features: Cleo's Cash Advance tool provides cash advances without requiring employment history. Ideal for gig workers and freelancers with no consistent income.
- Pros: No minimum recurring deposits required, no need to submit a W2 or proof of employment.
- Cons: Maximum cash advance is $250 (less for first-time users), must be repaid within 14 days.
-
Current - Best for Budgeting Tools:
- Features: Current offers cash advances with free overdraft protection. Budgeting tools like Savings Pods and Round-Ups help users reach saving goals faster.
- Pros: Automated budgeting tools, overdraft coverage up to $200, no annual fee.
- Cons: Requires minimum monthly direct deposits, can't access the full $200 in overdraft coverage right away.
-
Money Lion - Best for Building Credit:
- Features: MoneyLion Instacash provides a cash advance of up to $500. Credit Builder Plus program offers a loan to build credit after 12 months of positive payment history.
- Pros: Credit Builder loan provides up to $1,000, traditional cash advances of $500 or less with no fees or interest.
- Cons: Initial cash advances limited to $10, standard transfer takes up to five business days, account age and balance affect the amount of cash.
-
Varo - Best for No Overdraft Fees:
- Features: Varo provides cash advances with no overdraft fees. Requires opening a Varo Bank Account.
- Pros: No overdraft fees for Varo Bank Accounts, cash advances up to $500 after a certain period, 30-day repayment period.
- Cons: Must open a Varo Bank Account to enroll, at least $800 in qualifying direct deposits required, could take a while to reach the highest cash advance limit.
The article also touches upon the concept of "What Is a Cash Advance?" explaining that it allows users to borrow money quickly, similar to a payday loan. It emphasizes the need to choose a cash advance app carefully based on factors such as the amount of money accessible, fees charged, and repayment periods.
Furthermore, the FAQs address common concerns like the impact on credit, permissible use of cash advances, and the safety of cash advance apps.
In conclusion, the article provides a comprehensive overview of the best cash advance apps in 2024, considering various financial needs and preferences. It serves as a valuable resource for individuals seeking quick access to funds while navigating the nuances of different cash advance platforms.
