You may have heard about or used different payday apps, but do you know their benefits? Also, which states prohibit the use of these apps?
Read on to learn why payday apps are great to use and what things you will need to apply for a loan. Let’s discuss further.
Benefits of Payday Loan App
These apps have a fast loan processing mechanism. A person can easily complete the loan application process in a few minutes. Additionally, you will receive the funds in your account in less than 24 hours.
You will get immediate access to the loan after going through a straightforward and easy application process online.
Loan is Unsecure
The best part is that payday loans don’t scrutinize your physical assets. This is because you are taking a loan against your paycheck.
Rebuild your Credit
Some apps providers can help you rebuild or build your credit score by sending your loan payment information to the credit reporting agencies. As this report contains information about your quick loan repayment ability, it can improve your score.
Increase in Loan Limits
Some apps offer you a feature that the more you borrow, and sooner you return the loan, the more chances you have to unlock the higher amount of loans.
Cost of a Payday Advance App
The charges that you have to pay greatly vary depending on the payday app you have chosen to apply. Some payday advance app providers don’t charge any interest. They also want to provide customers maximum fund amounts in addition to the amount of their loan, which is a method to pay it forward. However, some apps like Earnin are extremely beneficial in terms of loans but don’t facilitate people as much as other apps do.
Some other payday lenders, such as Dave or Bright, charge a membership fee. They may also ask for additional fees for some other features and services, such as instant transfer of funds. Not to mention, membership fees, tips, and other charges are not disclosed in the forms of an APR with customary loan disclosures. This is only because of the gray areas and current loopholes of laws. For instance, according to the American Banker, the suggested tips on the Earnin application can equate to an APR rate of 730%. This is higher than the online payday loans and significantly higher than the loan providers like Possible, around 150-20% APR.
This is one of the primary reasons why the New York government has concerns about the payday apps like Earnin. On the other hand, payday loan apps ask for finance charges or interest rates when giving the quick funds that are around $15 to $20 on each $100 range. Getting loans from different payday lenders’ app gives you similar or cheaper fee rates. They also provide you multiple pay periods so that you can easily repay, giving maximum flexibility and a chance to build a good credit history.
Best Payday Loan Apps
Earnin allows you to access your pay whenever you do the work. You need to give information about where you work and bank account details to Earnin. They will track your working hours so that you can cash the funds when you need them.
Additionally, when you get a paycheck, this app will deduct the money that you have already taken from your salary. However, they will not charge fees or interest.
How to Borrow Money from Earnin?
- Upload the Earnin app to your phone;
- Create the Earning account;
- Create all your information about payday (you need to describe where you work and how many hours you work, to prove work hours you need to upload a timesheet to your Earnin account);
- Fill in your checking bank account and connect with the app (you can borrow money if just your bank is on the list of banks that Earnin supports);
- You need to prove your employment (it means you must connect the app and your employer);
- If everything is ok, you need to wait for verification (it can take up to 2 days).
How Much You Can Get from Earnin?
If you are a new client you can get commonly $100, further amounts can go up to $500.
How Much does it Cost to Borrow Money with Earnin
Earnin does not have fees or any other charges. You can just leave tips for using app and that’s all.
This app helps you plan your expense. Dave will identify bills, analyze your spendings, and notify you when you have upcoming costs. In addition to it, you can get a 0% APR for a loan of more than $75.
Similar to Earnin, Dave puts the funds in your account and deducts it once you get the salary. This app also costs you $1 every month as a membership fee. But it also saves you from spending money on overdraft fees and interest rates.
How to Borrow Money from Dave?
- Upload the Earnin app to your phone;
- Create an account;
- Connect your bank account with the Dave app.
How Much You Can Get from Dave?
Up to $100 that clients can obtain with the Dave app. Also, you can qualify for a $200 cash advance, for that you need to activate Dave debit card and connect direct deposits to your account.
Dave Fees / Charges
No fees and interests, clients pay only $1/monthly for membership.
This is another amazing app that keeps track of your budget as well as offers cash advances. To enjoy the benefits of this app, you will need an active account that is working for at least 60 days. Plus, this account should also have a positive balance and a record of at least three direct deposits from your company.
Based on your income, you can qualify for loans of more than $250. The best feature of Birgit is that this app will automatically transfer a short-term loan to your given account in case they notice that you are facing trouble while overdrawing your account. Additionally, the basic features of this app are free, but if you need high-level features, you need to upgrade it, which costs $9.99 each month.
How to Borrow Money from Brigit?
- Upload Brigit app;
- Create an account;
- Add your checking account to the app. Brigit will try to determine how much you earn and spend money. For example, you need to be a client for at least 60 days to have the possibility to borrow and your bank account balance must be > $0.
How Much You Can Get from Brigit?
Usually, the amount is $50-$70. But the amount can reach $250.
Brigit Fees / Charges
Brigit has 2 plans: Basic and Plus. Basic is free, it helps to count and plan your expenses. Plus plan costs $9.99/monthly and will help you to borrow instant cash.
Like all the other apps, FlexWage helps the employees to access their wages before they get transferred. This helps them to fulfill their expenses without any problem.
This app also offers you reloadable payroll debit cards for workers who mostly get paper checks. This feature makes it perfect for people who can’t accept direct deposits. But you need to pay some fees, including an on-demand wage transfer fee of $5.
How to Borrow Money from FlexWage?
- Upload the app or create an account through the website;
- Connect your employer and bank account to the App;
- To borrow the money you need to get a FlexWage Debit Card.
How Much You Can Get from FlexWage?
It depends on your payroll data.