One of the most embarrassing things that could happen to anyone is getting stranded. Who do you turn to at this point? What should be your next line of action? Should you apply for a loan at a bank or seek help from a friend? While the latter is a good option, it is not always feasible. The former, also, is quite inconvenient, may take too long to process, and may not be open to you if you have bad credit.
Thanks to the ever-changing lending landscape, you can now apply for small loans via money borrowing apps. It’s convenient, can be done on the go, and is accessible to you even if you have no credit history.
Let’s take a more in-depth look at what money borrowing apps are and the best of the bunch.
What is a Money Borrowing App?
A money borrowing app is an app that allows you to borrow a fraction of your next paycheck before your next paycheck comes in. Apps like this come in handy in the event of an emergency.
Credit checks may not be required for approval. Little to no interests are charged on these loans too. However, you may need to pay a monthly subscription fee. Some apps also prompt you to leave tips. But these tips are optional.
8 Apps That Let You Borrow Money Until Payday
Dave: Best for Low Subscription Fee
Dave is one of the best cash advance apps available today and is popular for its low monthly subscription fee, $1. The loan app, available on both Android and iOS platforms, was designed to help people in financial emergencies with little paycheck advances, up to $250, at zero interest.
This cash becomes available to you when they are at risk of overdrawing your account. It may take one to three days for the borrowed cash to land in your account.
Dave does more than just provide its users with cash advances. It may also connect users to side jobs through which they can earn some money.
- Has additional features like an automatic budgeting system
- Saves you from paying overdraft fees, which may cost $34 on average
- Users can fast-track payment within 8 hours
- A borrower can contact customer service to change the repayment date
- The app requires bank account access
Chime: Best for Banking App
Chime is a financial solution that gives people small loan amounts between paychecks, provides checking and savings accounts for deposits, and is compatible with both Apple and Google Play. Chime users enjoy other banking services like fee-free ATMs, secured credit cards, and high-yield savings accounts.
Chime users with a Chime checking account do not pay any monthly fee. Account holders can also send money, up to $2000 monthly, to friends and family.
- No interest is charged on the loan
- Zero monthly membership fees
- Provides up to $200 in overdraft protection
- No credit checks
- An external bank account cannot be linked to the app
Earnin: Best for Overdraft Protection
Earnin, formerly known as Activehours, was specially built for hourly, on-demand or salaried employees who need small amounts of their earned wages before their usual payday. It’s ideal for employees who get paid via direct deposit and have just one employer.
Users must give the app permission to track the number of hours they’ve worked or how many days they’ve been at work. What you can borrow depends on your earnings up till that point. However, you can only borrow up to $500 per pay period.
The app has a balance shield feature that protects you from overdrawing your account by sending you a $100 Earnin loan once your balance goes below $100. Like with others on this list, there are no ongoing interest or fees. But users are prompted to provide an optional tip for the service.
- Has a balance shield feature designed to protect you from overdrawing your account
- Can borrow up to $100 a day
- Quick funding
- Automatic payout
- It isn’t suitable for freelancers and remote workers
Brigit: Best for Credit Monitoring
Brigit is a money borrowing app that runs on a unique borrowing model. While others like Earnin determine your eligibility for a cash advance or determine how much you can borrow based on paycheck or employment, Brigit pays more attention to your checking account. It must be at least 60 days old, have at least three recurring deposits from an employer, and have a balance above $0.
The app has an identity theft protection feature that reimburses you with the purchases made with your account if your identity gets stolen. It also has a credit monitoring and alerts feature that alerts you about activities that can affect your credit ratings. Brigit, unlike many others, doesn’t ask for a tip.
- The app doesn’t ask for a tip
- Has an identity theft protection feature
- Gives user access to credit report
- Has budgeting tools to help users make smart financial decisions
- Does not report payments to the major credit bureaus
MoneyLion: Best for Multiple Financial Products
MoneyLion is the best option for you if you run multiple financial products. Like Chime, its users get a mobile bank. It also provides users with finance tracking and cash advances, up to $250. You become eligible for a $25 cash advance on setting up a MoneyLion account with InstaCash, which can grow to $250 as you get more direct deposits or move.
Asides from cash advances, users also enjoy credit-building loans, rewards, automated investing, and budgeting and financial tracking tools.
- Budgeting and financial tracking feature
- Provides credit-building loans
- Digital banking app
- Requires bank account access
Albert: Best for Zero Membership Fees
Albert is one zero-membership money borrowing app you just have to try your hands on. It’s truly special. Using this app, you can request paycheck advances up to $250. The app is simple to operate and navigate. The app needs no credit check to qualify you for a loan.
It helps you stay on top of your finances by giving you access to automatic savings tools and a custom investment portfolio. You can even bank through the app, which banking services are provided by Sutton Bank.
- An external bank account can be linked
- No monthly membership fee
- Zero interest is charged on the loan
- You can reach customer support only via email
Even: Best for Savings
Even provides employees with up to 50% of their earned paycheck before the usual payday. The app does more than provide cash advances. It also has budgeting tools to help people track their spending and monitor their financial health.
You can save using its automatic savings feature. With this feature toggled on, a percentage of your paycheck is automatically remitted to the app’s savings.
- Offers automated savings
- Cash can be picked up at Walmart
- Comes with budgeting tools to help you track your spending
- To enjoy the app’s benefits, your employer must be a partner
Cleo: Best for Small Loan Amounts
Many borrowers who need small loan amounts trust Cleo to come through for them. This money borrowing app provides its users with small loan amounts, up to $100. First-time users can qualify for up to $70. Its users also enjoy cashback rewards.
- Generally charges no interest on loans
- Cashback rewards
- Automatic savings
- Users must pay a monthly membership fee of $5.99 to access its features
How Are Loan Apps Different From Payday Loans?
You’re probably wondering how loan apps measure up against payday loans and if they are any different from each other. The short answer is yes. Many loan apps do not charge interest on loans. Even when we factor in membership fees and other fees, loan app APRs still amount to somewhere between 6%-60%. Payday loans, in contrast, have a high APR, typically 400% and higher.
Although payday loans have high-interest rates than loans from apps, they are still a highly sought-after alternative because:
- You may get higher loan amounts when you apply for a payday loan.
- The eligibility requirements of payday loans are less strict than those of many loan apps.
- Payday loan funding is processed within a day or two as opposed to cash from loan apps which may take one to five business days. Loan apps allow you fast-track funding but at a cost.
- Payday loan lenders do not charge monthly membership fees.
What Are the Advantages of Borrowing Money with US Installment Loans?
Payday loans and other online loan products are good options to consider if you don’t qualify for extra cash on your loan app. However, since your borrowing experience depends on how good or otherwise your lender is, it’s important to approach only reliable lenders.
For best results, use a loan broker like US Installment Loans. This broker should connect you to lenders with the best loan deals available. These are some of the advantages of borrowing money with US Installment Loans:
- The easy and quick application process
- No subscription fees
- Rich, extensive network of lenders
- Zero origination or processing fees
- Bad credit borrowers are considered
- The platform is safe and secure
- Monthly payments are reported to the three major credit bureaus
How Does US Installment Loans Compare?
|How much do I qualify for?||Up to $35000||Competitive rates|
|What's the max loan length?||Up to 36 months||Fast decisions|
|Do lenders check my credit?||Yes||Soft credit checks|
|All credit levels accepted?||Yes||Bad credit doesn't matter|
|Chances of approval||Good||High approval rates|
|When am I allowed to apply?||24/7 online||Easy application|
Is it possible to borrow money from mobile apps?
Yes, it is. One can get some short-term loans or cash advances from mobile apps. The maximum loan amount depends on the loan app or provider. What makes mobile apps a convenient loan option for many individuals is the ability to use them on the go.
How much can I borrow with loan apps?
Usually, you can get anything between $5 and $300 from a loan app, payable when your next paycheck comes in. These loans are mostly used to cover short-term expenses, nothing more. They may also be used to finance small purchases and settle little bills.
How safe to use are loan apps?
Loan apps are pretty safe to use. However, you need to be wary of a few scam loan apps. Here is a checklist to go through when separating the bad from the good ones - customer reviews, fees, and if their partner banks are FDIC-insured. Why not go with one on our list to save yourself the stress of separating the ‘wheat from the chaff.’
Do loan apps charge any fees?
Most loan apps do not charge interest on the borrowed cash. However, you may have to pay a monthly subscription fee. Funding is usually processed within one to five business days. But, you can fast-track payment; for a token. Loan apps may also charge a late payment fee for late payments.