Have you ever been stuck in a situation where you’re a little tight on funds before your paycheck comes in? Don’t worry, we’ve all been there. And that’s why in today’s world, personal finance apps are making it more accessible for people to streamline their budgeting, savings, and investments.
MoneyLion is one such mobile app with an impressive suite of financial tools, but if you’re looking for something that’s more unique, customisable, and budget-friendly, you’ve come to the right place. Let’s look at some of the best alternative apps for MoneyLion.
What are Cash Advance Apps?
Cash advance apps, also known as payday advance apps or early wage access apps, are financial tools that allow people to access their earned wages or borrow small amounts before their next payday. If you need quick access to funds to cover an unexpected expense or bridge the gap between paychecks, these apps help you do just that.
MoneyLion is a giant in this particular niche of mobile apps, and it comes with a comprehensive list of features, like cash advance, credit monitoring, financial tracking and management, financial advice, etc., but it also has a lot of cons. At the top of the list is the high membership fee, followed by other issues like the potential for overdraft fees, limited investment options, customer service challenges, and high interest rates on credit builder loans.
So, if you’re looking for more user-friendly cash advance apps that have more features than MoneyLion, read ahead!
Features of Cash Advance Apps
Early Wage Access
Cash advance apps allow its users to access a part of their wages before their payday. This feature helps people manage their cash flow and meet urgent financial demands without having to resort to using credit cards or taking out high-interest loans.
Instant Transfers
They facilitate quick transfer of funds directly to their bank account within minutes of requesting the advance. This can be useful when you are crunched for time.
No Credit Checks
Traditional loans or credit lines perform stringent credit checks, which is not present in cash advance apps. Instead, they use employment verification and income details to determine eligibility for advances.
Fee Structure
For users to get early access to funds, cash advance apps may charge a nominal amount for this convenience. These fees vary widely among apps and are usually deducted from the user’s next paycheck or debited from their linked bank account.
Integration with Payroll Systems
Some cash advance apps partner up with employers so they can integrate directly with the user’s payroll systems. This integration allows for a seamless verification of earnings. Moreover, it also helps facilitate automatic repayment of advances.
Limits and Restrictions
Cash advance apps do not allow for unlimited advance requests. There are limits as to how much a user can request, depending on their earnings history and the app’s policies. Some apps may increase the advance limit over time as users demonstrate responsible usage and build trust.
Best Cash Advance Apps in the US
10. AfterPay
This Buy Now Pay Later fintech app is used to make online or in-store purchases. What sets this cash advance app apart is that, as long as you pay your bills on time, there are no interest or finance penalties. That being said, this isn’t the ideal app to use if you’re looking to improve your credit score.
Pros
- Interest-free repayment model
- Does not affect credit score
- Good customer service
Cons
- Not a very user-friendly interface
- Payout must be done within 3 business days
9. Affirm
This is another app that uses the Buy Now Pay Later model where people can make purchases without a direct payment upfront. A unique feature of this app is its “pay in 4 instant loans” model, where users can take up to 2 months to repay their loan, which can be settled in 4 installments. However, this can affect your credit score rating, especially if you are someone looking to improve their score. It can also be a dangerous gateway for impulse purchases if you have a penchant for those.
Pros
- No fees on late payments
- “Pay in 4 instant loans” feature
- Only simple interest is charged
Cons
- Credit check is required
- High interest rates
8. Branch
By paying a nominal service fee that ranges between $2.99 and $4.99, users can avail immediate cash for any financial emergency. However, if you wish to waive the service fee, you can request for financial assistance which will be accepted only within 3 business days. So, if you’re in a time-sensitive payment emergency, this might not be the app for you.
Pros
- No late fee charges
- Instant cash advance is available for a fee
- Supports contactless payments
Cons
- Remote-working employees are not eligible
- There is a limit on the Cash Advance Amount
7. Klover
Apps like Klover allow cash advances of up to $200. Users can increase their eligibility for getting higher advances by using a point system, which begins the moment one signs up on the platform. This cash advance app takes a membership fee of $2.49. Like Branch, if you wish to waive the fees on your advance, you will have to wait for up to 3 days to get the payment processed.
Pros
- Cash Advance up to 2 weeks prior
- The least expensive transfers only cost a fee of $1.99
Cons
- You need a checking account to get started
- Cash Advance Limit is low
6. Possible Finance
This cash advance app provides short-term investment loans up to $500. Depending on which state the user is from, the user will have to pay $15 to $20 for every $100 borrowed. Each loan has a fixed two-month term, like Affirm. It can help you improve your credit score too.
Pros
- Less turnaround time
- Helps build credit score
- Good customer service
Cons
- App faces lots of technical glitches
- Checking account is required to sign up
5. Dave
This app describes itself as “Human Banking”, as it helps users avoid overdraft costs. You can avail this feature by adding Dave to your banking account, after which the app will notify you once it prevents the fees. You can also get a $100 advance, which must be paid by your next paycheck.
Pros
- High advance limit of $500
- No interest or late fees
- Allows $25 advance
Cons
- There is a subscription fee
- Checks spending patterns and payment history
4. Cleo
This cash advance app appears to take a human approach in its user interface. Users have reported that it is almost like talking to a friend than inputting on an app. It even ridicules your consumption patterns! At only $5.99 per month as a subscription fee, Cleo does not collect interest or check credit ratings.
Pros
- Keeps overspending tendencies in check
- Advice on how to improve credit score
- Several cashbacks and deals are available
Cons
- Costly premium plan
- Not insured under FDIC
3. Earnin
A good alternative to MoneyLion, Earnin was the first to offer Balance Shield Cash Outs and Alerts. Users who activate the latter feature will get an alert when their bank balance drops below a certain point. When activating the Balance Shield Cash Out, users can get up to $100 of their earnings if their balance drops below that amount.
Pros
- Balance Shield feature
- Up to $750 per pay period
Cons
- Requires bank details and work timesheets
2. Chime
Chime sets itself apart as a fintech platform that actively goes against normative traditional bank rules. It offers free up to $200 overdraft protection, and if a charge becomes an overdraft, Chime will pay the remaining amount. This is only if you are eligible for Chime’s SpotMe program.
Pros
- Immediate spotting up to $200
- No monthly fees or credit check
Cons
- Chime debit card is required
- Qualifying deposit is high ($200)
1. Brigit
Like the name suggests, this cash advance app helps you “bridge” the gap between your paychecks. It is one of the top alternatives to MoneyLion, as it has a plethora of features ranging from monitoring your banking activities to helping prevent overdrafts. If the app detects that your account will go into an overdraft, it will spot you up to $250.
Pros
- Flexible repayment dates
- Credit background verification is not required
- Auto-advance feature
Cons
- Subscription fee starts at $9.99
Benefits of Cash Advance Apps
Convenience
They allow users to access funds quickly and effortlessly without the hassles of traditional loan applications.
Flexibility
Users can access funds on-demand, making emergencies and unexpected expenses easier to handle.
Avoidance of Debt Traps
By offering access to earned wages, cash advance apps help users avoid high-interest debt cycles.
Frequently Asked Questions
- What app will give me $200 instantly?
Apps like Brigit and Chime offer advances up to $250 instantly.
- What is the cash advance for MoneyLion?
Users can avail up to $500 as cash advance on MoneyLion. This option can be found on the InstaCash section on the Home screen of the app.
Conclusion
There are many tools out there with unique features and functionalities that align with different kinds of financial goals and lifestyles. While MoneyLion may be a good option, there are several other alternatives with better features and user interfaces. Whether you’re looking for fee-free banking, automated investing, financial planning or budgeting, the personal finance field is growing and adapting to cater to everyone’s needs. By leveraging these alternatives, you can take proactive steps towards achieving financial wellness and building a secure future.
