8 Loan Apps in 2023: Cash Advances and Overdraft Protection

Cash advance apps like EarnIn, Dave and Brigit let you borrow a small amount from your next paycheck before you receive it. This quick fix may help if you need cash in an emergency, but it’s smart to consider cheaper options before you borrow through a cash advance app.

» JUMP TO SUMMARY OF CASH ADVANCE APPS

Here are eight apps that let you borrow against future earnings, and some less expensive options to consider.

Summary of cash advance apps

What to know about cash advance apps

Unlike with other borrowing options such as credit cards or personal loans, the cost of borrowing with a loan app isn't expressed as an interest rate. Instead, apps may charge subscription or fast-funding fees, and many suggest you tip them.

Lenders and credit card issuers describe the cost of using their products as an annual percentage rate, which accounts for interest and other fees they may charge. Loan app companies argue that APR isn’t a fair way to represent the cost of their products, but we’ve included an example of what the equivalent APR would be for each app based on the fees charged for a sample loan amount.

1. Brigit: Best for budgeting tools

Brigit is a budgeting app that can get you up to $250 whenever you need it. Unlike most other cash advance apps, Brigit doesn’t ask users to provide a tip. The app’s free plan offers financial advice and budgeting help.

To get the cash advance, you have to use one of the app’s paid plans. The Plus plan ($9.99 per month) includes all the features of the free plan, plus cash advances, overdraft coverage and credit monitoring. The Premium plan ($14.99) includes all the features of the free and Plus plans, but also a credit builder loan and free express delivery (the feature costs $0.99 to $3.99 per advance on the Plus plan).

» MORE: NerdWallet’s Brigit app review

APR example: If you get a $9.99 Brigit membership and use the app to get a one-time, $100 advance that you’ll repay in seven days, your loan has an APR of 520.9%.

2. EarnIn: Best for large advances

EarnIn is a paycheck advance app that lets you borrow money you’ve earned by tracking your work hours or location. The app also has a feature that notifies you when your bank account balance is low and a feature that automatically tops off your balance.

» MORE: NerdWallet’s EarnIn app review

APR example: If you borrow $100 seven days before payday, tip $2 and pay the $3.99 fast-funding fee, your advance’s APR is 312.3%.

3. Empower: Best for fast cash

Empower offers cash advances, budgeting tools and bank accounts. Typical funding time for an Empower advance is one day — faster than most competitors — and users can pay an instant delivery fee to get the funds within an hour.

The app includes an automatic savings feature that allows you to select an amount from each paycheck to transfer from your checking to savings account; or you can have the app use artificial intelligence to save money for you by moving funds from your checking to savings based on weekly savings goals you set.

» MORE: NerdWallet’s Empower app review

APR example: If you pay $8 to subscribe to Empower, get a one-time, $150 advance that you’ll repay in seven days and pay the $6 instant delivery fee, your loan has an APR of 486.7%.

4. Dave: Best for repayment flexibility

The Dave app lets you borrow a small amount of money to cover expenses while you wait for your next paycheck or to avoid overdrawing your bank account. To be eligible for an advance, Dave users must open an ExtraCash account. The app also has a savings account and a “Side Hustle” feature that helps users find jobs to earn more money.

» MORE: NerdWallet’s Dave app review

APR example: If you borrow $100 seven days before you get your next paycheck, pay a $6.99 express fee, the monthly $1 subscription fee and a tip of $1, it’ll cost $8.99 to borrow the $100. The APR on that loan would be 468.8%.

5. MoneyLion: Best for existing customers

The MoneyLion app offers mobile bank and investment accounts, financial tracking, a credit-builder loan, and cash advances up to $500. The Instacash advance is available to anyone with a qualifying checking account. MoneyLion members have access to larger advances and the fastest funding times.

» MORE: NerdWallet's MoneyLion Instacash review

APR example: If you get a $100 advance deposited instantly into an external account for $8.99, add a tip of $1 and repay the loan in seven days, the APR is 520.9%.

6. SoLo Funds: Best for peer-to-peer cash advances

SoLo funds provides peer-to-peer cash advances. Users send loan requests through the app’s marketplace and lenders (other consumers) choose which users to lend to. The app has low fees that are mostly optional and lets users choose their repayment dates. However, it can take up to three days to know whether your requested loan will be funded, which is longer than some apps take to approve and send advances.

» MORE: NerdWallet's SoLo Funds review

APR example: A $250 advance with a 5% tip and a 5% donation to SoLo funds repaid in 25 days would have a 146% APR.

7. Klover: Best for no-fee advances

Klover offers one $100 advance based on bank account eligibility and another $100 advance based on participation in its points program. The points program requires users to upload receipts, take quizzes and watch videos in exchange for points, which translate to dollars users can get as advances or to cover fees.

Klover makes money by collecting aggregate user data and sharing insights with its partners, so if you’re concerned about data privacy, Klover may not be for you.

» MORE: Read NerdWallet's Klover review

APR example: If you get a $100 advance deposited instantly into an external account for $8.49, add a tip of $1 and repay the loan in seven days, you’ll be charged an APR of 494.8%.

8. Chime: Best for overdraft protection

Chime, a mobile company that offers checking and savings accounts as well as credit-builder loans, lets customers overdraw their checking account by a small, predetermined amount without fees via its SpotMe feature. SpotMe is more of an overdraft protection feature than a cash advance, but it still asks whether you want to tip for the service.

Chime says your account can go negative up to your approved amount, and purchases that put you below that extra cushion will be declined. You need at least $200 in qualifying direct deposits to your Chime account every month to qualify for SpotMe.

APR example: If Chime gives you $50 to overdraw and you repay the balance in seven days and add a $1 tip, you’re basically getting a $50 loan with a 104.3% APR.

Pros and cons of loan apps

Small app fees can add up quickly, and NerdWallet doesn’t recommend paying for early access to money you’ve earned. These apps can help in emergencies, like when you need to cover a car repair or unexpected travel expenses, but financial experts say they aren’t sustainable, long-term solutions.

Consider the pros and cons before using a cash advance app.

Pros

• Fast cash in an emergency: Some apps can immediately deposit money into your checking account — but they often charge an extra fee for that service.

• May be cheaper than an overdraft fee: If your choice is between a paycheck advance and paying an overdraft fee, the advance is likely cheaper. Most app fees can be under $10 (without a tip), while bank overdraft fees can be up to $35.

• No credit check: Cash advance apps don't check users’ credit, so a low score won’t keep you from qualifying for an advance. And cash advance apps don’t report repayment history to the credit bureaus, so there are no credit consequences if you don’t pay the advance back.

Cons

• May cause an overdraft fee: Most apps require access to your bank account to withdraw money when it’s due. Some companies say they try to avoid triggering an overdraft but don’t guarantee it. The exception is Empower, which will refund, upon request, overdraft fees it causes.

• Fees add up: Though cash app advances are generally cheaper than payday loans, subscription fees, fast-funding fees and optional tips can add up.

• May lead to repeat borrowing: Because apps make borrowing from your next paycheck easy, they could lead to a cycle of debt if you rely on advances to cover regular expenses.

» MORE: Loan app pros and cons

Are cash advance apps payday lenders?

Cash advance apps are not considered payday lenders, and payday lending regulations don’t apply to them.

But some consumer advocates consider them thinly veiled payday lenders, since both offer small-dollar loans due on your next payday with potentially high fees.

» MORE: Cash advance apps vs. payday loans: Which is better?

Are apps like DailyPay and Payactiv cash advance apps?

Not exactly. DailyPay and Payactiv are part of the earned wage access industry, meaning they work with your employer to make part of your paycheck available before payday. Cash advance apps like the ones listed here don’t work with your employer — they essentially lend you money themselves before you get paid.

Employer-based advances may charge fees, but they tend to be lower than cash advance app fees and employers may cover those fees. Earned wage access companies take one to a few days to provide funds, which is on par with cash advance apps.

Though it can be useful to cash some of your paycheck early, research from the Financial Health Network shows that many earned wage access users form a habit of dipping into their paychecks early, which could make it more difficult to stick to a budget.

Alternatives to cash advance apps

Compare all your options before you go with a loan from an app. You may have cheaper alternatives that can help you improve your finances, credit or both.

Small personal loans: You may qualify for a small personal loan from an online lender. These loans can be as small as $1,000, and APRs are below 36%, which many financial experts say is the highest rate an affordable loan can have. Some online lenders tailor their loans to bad-credit borrowers.

» MORE: Find a small personal loan

Credit union loans: If you’re a member of a credit union, you may qualify for a small personal loan with a rate of 18% or lower. Some credit unions offer personal loans of $500, and though they review your credit score to qualify you, they’ll consider your standing as a credit union member in a loan decision. Some credit unions offer payday alternative loans, which are small-dollar loans with low interest rates that you repay over a few months to a year.

» MORE: Learn about credit union loans

Buy now, pay later: “Buy now, pay later” apps like Affirm and Afterpay split a large purchase, like a mattress or laptop, into smaller payments. The most common structure is the pay-in-four plan, where you pay 25% of the expense upfront and then make three more biweekly payments.

» MORE: What is buy now, pay later?

Other ways to make money: Instead of borrowing, you may find a way to earn extra money. You can become a rideshare driver, take online surveys or babysit. You can choose a temporary side gig to cover an emergency expense or find one you enjoy enough to keep as an extra income stream.

» MORE: NerdWallet’s tips for making extra money

Friend and family loans: It can be difficult to ask for money, but it may be your best option if you’re in a bind. Borrowing from someone you trust, like a friend or family member, can get you the money you need without red tape or risk to your finances. You can even draw up a contract that details repayment terms and interest.

» MORE: Learn about family loans