What Is Dave? What Are Its Disadvantages?
Dave is a cash advance app that provides borrowers with small cash advances on their next paycheck when they’re at risk of overdrawing their bank account. The company, Dave, was founded to help people avoid bank overdraft fees. There’s no interest or fees on the cash it provides its users.
The service only accepts tips and a membership fee of $1. Also, it doesn’t run a credit check to see if the borrower qualifies for a cash advance. But it still has some disadvantages, some of which have been worked on in designing its alternatives like Earnin, Brigit, Ingo Money, and MoneyLion. Here are some of its notable disadvantages:
- It requires access to the user’s personal bank account details.
- Because of how incredibly easy it is to access credit and at no interest, it’s encouraged people to take out more than they have.
- It’s had serious data breaches in times past.
Are There Any Other Cash Advance Apps Like Dave?
Thankfully, Dave isn't the only option you can explore. There are 6 other cash advance apps that you can take advantage of with confidence. They're;
Chime
Chime is a good option for people tired of paying exorbitant bank fees. Perhaps, its most underrated features are its checking account and alert system. Chime users have a checking account through which they can directly receive deposited paychecks.
Also, the app sends alerts to users whenever any unauthorized expenses are detected. You can immediately disable your card from the app should you lose your card or get a suspicious transaction alert.
Chime’s SpotMe, an overdraft protection feature allows its old account holders to overdraw their accounts up to $200, and for its new users, $20. Finally, it is completely free to use!
Earnin
Earnin is the ideal cash advance plug for you if you are paid on an hourly basis. It allows you to borrow money based on how long you’ve worked, then auto-debits the borrowed sum on your next payday.
The app tracks how many hours you’ve worked by using your phone’s GPS to track how long you’ve been at your workplace. You may also connect the app to your company’s online timesheet system for a more accurate capture.
Expecting a catch? Sorry to burst your bubble. There’s hardly any. While banks charge you some fee for transfer transactions, Earning charges you nothing.
MoneyLion
Ask around. Only a few cash advance apps have more financial products than MoneyLion. Some of its most common products are RoarMoney, Investment Account, Credit Builder Plus, MoneyLion Crypto, and Instacash Advance.
With MoneyLion you get financial tracking, mobile bank, and investment accounts, a cashback rewards program, managed investing, cash advances up to $250, and credit-builder loans.
On opening the mobile app, you are greeted by a well-designed visual representation of a beating heart that changes color to reflect your financial health in real-time. Its mobile bank and investment accounts (RoarMoney) are offered in partnership with Mastercard and MetaBank. You qualify for a RoarMoney virtual card as soon as you open a MoneyLion account.
Brigit
If you have a hard time managing cash advances, then you should request cash advances only through Brigit. Its budgeting tools and financial insights can help you better manage your money. It analyzes your spending and offers financial advice on how to better manage it.
That’s not all it does. It provides its account holders small cash advances of up to $250 at no interest whatsoever. Like Chime, it also alerts its users when they’re in danger of overdrawing their account and automatically transfers money to the account to avoid any possible overdraft fees.
Even
Even is the best cash advance app for tracking your finances. Culminated in one app is a good financial tool and cash advance resource. Even monitors your finances to help predict future expenses. It also offers interest-free cash advances and can provide you loans up to 50% of your paycheck. Unlike some cash advance apps out there, you are not obligated to tip.
Let’s get to the juiciest part. It has a same-day turnaround time. They get you an advance in less than 24 hours. That’s as quick as quick gets!
Ingo Money
Do you need money to fill your gas tank, buy groceries or give yourself a nice treat? Ingo Money can provide you with an advance on your next paycheck in the most stress-free way possible. If you want to cash a check and are not particularly fascinated by those fees most checking cashing places charge, consider using Ingo Money.
From the app, you can take a picture of the check, then deposit the check amount when you’re free. The deposit can be made directly into your bank account, prepaid card, or payment service like PayPal.
What Are Some Pros and Cons of Cash Advance Apps?
Things can go south really quick if you’ve got so many bills to settle, no emergency fund in sight, and your next payday a week or two away. But with cash advance apps, you can get some credit from your next paycheck to settle bills that can’t wait.
As attractive as they are as a credit option, cash advance apps still have some cons of their own.
Here are some of the pros and cons of cash advance apps to note.
Pros of cash advance apps
- The total cost of loans from cash advance apps is significantly lower than payday loans. There is no interest on the cash advance. In most cases, you are paying only subscription fees.
- Users can conveniently get cash to cover unplanned expenses ahead of their next wages or salary.
- Some cash advance apps come with helpful finance, budgeting, and side gig search tools. For instance, Brigit’s EarnExtra feature helps you find gigs you can make money from on the side.
- Many cash advance apps automatically protect you from overdrafts. An example is Dave.
- Cash advance apps like Chime provide users with checking and savings accounts they can easily receive deposited paychecks through.
Cons of cash advance apps
- Can lead to a debt trap. This happens when the user can’t pay off their debt from the next paycheck.
- By signing up, users share a lot of their personal data with these third-party apps.
What Are the Differences Between Cash Advance And Loan APPs?
Although cash advance and loan apps do one thing in common, provide their users with temporary financial support, there are still standout differences between the two.
Chief among these differences is the charging of interest rates. Loan apps and payday lenders express the interest on loans in annual percentage rate (APR). These interest rates can get really high depending on the loan term and the borrower’s credit history. Cash advance apps do not charge an interest. They charge subscription or membership fees and suggest you tip them.
Another telling difference between both apps is that, unlike loan apps, cash advance apps do not report payments to major credit bureaus. This implies that your activities on cash advance apps neither hurt nor help your credit ratings.
Can I Apply for Cash Advance Loans Online?
You can apply for a loan online these days. Simply approach a loan broker like iPaydayLoans, and you can be sure to get access to some of the best loan offers available. Here’s how to get started on your credit journey with iPaydayLoans:
- Visit the loan application page and answer all the questions asked about your name, phone number, email address, and contact information. Then, submit your answers.
- You will be connected with different lenders who will run soft credit and affordability checks on your profile. The latter is done to be sure you can afford the loan and that obtaining the credit doesn’t lead you to a vicious cycle of debts. You will be approved for the loan if you pass these checks. Most of our partner lenders have an approval rate of 97% and greater so you have nothing to worry about.
- Each lender that approves you for a loan will send you a quote containing their offers.
- Read through the offers from different lenders and stick with the one that’s best for you.
- Close the loan by signing the quote.
- Then, sit back and relax. The money should be deposited in your account as soon as the next business day.
 | Why Us | |
|---|---|---|
| How much can I borrow? | $50-$35,000 | No hidden fees or charges |
| I have bad credit. Can I apply? | Yes | Bad credit is considered |
| Over how long can I spread the repayments? | 1-36 months | Fast decisions |
| Are credit checks involved? | Yes | Soft credit checks only |
| Chances of getting approvals | Good | 256-bit encryption protocol |
| How to apply? | Apply online | Easy application |
Are There Any Alternatives to Cash Advance Apps?
Cash advance apps as easy as they are to use and quickly access credit, have a few cons of their own. One of them is they can eat far too deep into your next paycheck depending on how much you need. If you want a loan and not an advance on your next paycheck, you may consider the following alternatives instead:
Personal Loans
Personal loans are loans borrowed from banks, credit unions, and direct lenders for nearly any purpose. Typically, these loans have a fixed interest rate and term. The borrower is also required to make fixed monthly payments till the debt is paid off. Their interest rates are comparatively lower than alternatives like payday loans. They can also be accessed by people with bad credit.
Bad Credit Loans
Bad credit loans are funds lent out to people with bad credit. Traditional institutions hardly consider people with bad credit for loans because of how much of a lending risk they are thought to be. But they can get some loans from bad credit lenders who circumvent the credit requirement by looking at how affordable the loan is for them or otherwise.
Short Term Loans
Do you need some money for a temporary need or obligation? If yes, a short-term loan is one attractive option you should be looking at. They have shorter repayments periods than personal or traditional loans. They are a good option if you are temporarily strapped for cash.