When you need money quickly, it can be tempting to turn to payday loans. But these loans come with high fees and interest rates, making them a costly option. Fortunately, there are now apps that offer cash loans as an alternative to payday loans. These apps provide access to your paycheck before payday, allowing you to borrow against your next paycheck without any fees or interest payments.
Earnin is one such app that allows you to access the money you've already earned from work. With Earnin, you can have the money sent instantly to your external bank account for a small fee or to the Empower Card for free. The app also has a platform designed to be more than just a payday loan alternative, allowing users to pay their bills and get discounts on prescription drugs. MoneyLion is another app that offers cash loans as an alternative to payday loans.
With MoneyLion, users can access their paycheck up to two days before their official payday, depending on their payroll provider. They can also invest in cryptocurrencies, access automatic investment accounts, apply for a credit-building loan, and earn rewards with debit cards. Wealthfront Cash is another app that allows users to access their paycheck before payday. When you set up direct deposit to your Wealthfront Cash account, the money can enter your account up to two days before your official payday.
Although the fees for these lending applications seem small, they can add up quickly and NerdWallet doesn't recommend paying for early access to the money you've earned. Unfortunately, there are unscrupulous people who take advantage of people when faced with desperate circumstances. So it's important to be on the lookout for scams that promise you quick money when times are tough. When you need money quickly, apps that offer cash loans can be a cost-effective way to avoid overdraft fees or payday loans. Unlike other lending options, such as credit cards or personal loans, the cost of borrowing from an application is not expressed as an interest rate.