Key learning points
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Money lending apps allow you to borrow a small amount of money to tide you over until your next payday.
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These apps provide quick access to cash and can sometimes transfer money instantly for a fee.
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However, a possible trade-off is that some companies charge high fees.
A money lending app can be a handy way to get some quick cash until your next payday arrives. There are several to choose from, and most are easily accessible to borrowers from different financial backgrounds. Even better, you’ll get the money you need pretty quickly. But there are downsides, too, including the borrowing costs you can expect and the risk of relying too heavily on this source of quick cash to solve a more serious financial problem.
Compare your options, calculate how much it will cost, and weigh the pros and cons of money-lending apps to decide if they’re best for you.
Top apps for borrowing money of 2024
These cash advance and personal loan apps give you quick access to cash to cover unexpected expenses.
| App | Maximum loan amount | Time for financing | Cost | Google Play review | App Store Rating |
|---|---|---|---|---|---|
| Albert | Up to $250 | Immediately against payment; 3-6 days free | Direct advance costs | 4.1/5 | 4.6/5 |
| Brigit | $50-$250 | Immediately against payment; 2-3 days free | No late fees or penalties | 4.6/5 | 4.8/5 |
| Call | $20-$200 | At the point of sale | Not applicable | 4.7/5 | 4.8/5 |
| Daaf | Up to $500 | Straight away | Membership fee: $1; express fee: $3-$15; external transfer fee: $5-$25 | 4.4/5 | 4.8/5 |
| MoneyLion | Up to $500 | Immediately against payment; Free for up to 5 working days | Turbo Cost: $0.49-$6.99 to RoarMoney account; $1.99-$8.99 to third party payment card | 4.5/5 | 4.7/5 |
| Possible finances | Up to $500 | Straight away | The maximum advertised loan amount varies by state | 4.1/5 | 4.8/5 |
Albert
Albert will lend you up to $250 until your next paycheck. This prepayment app does not require a credit check and you will not pay interest on the money you borrow. In fact, Albert does not suffer from payment arrears, even if you cannot repay the loan on time.
Plus points
- No hard or soft credit check.
- No interest or late fees.
Cons
- There are fees to receive money directly.
- Payout period of three to six days.
Brigit
Brigit is another money lending app that allows you to borrow up to $250 without going through a hard credit check. You also pay no interest or hidden costs on the amount you borrow. Brigit customers also get access to identity theft protection and other financial tools to improve their financial health.
Plus points
- No minimum credit score requirement.
- Access to a range of financial resources.
Cons
- Early cut-off time for same-day financing applications.
- Instant Cash is only available for a monthly membership fee.
Call
Chime is an innovative mobile app that offers paycheck advances, free banking and other valuable financial tools. The SpotMe feature allows you to get paid up to two days early or spend up to $200 more than is available in your account without incurring overdraft fees. To use either feature, you must receive direct deposits into a Chime Checking account.
Plus points
- No impact on your credit score.
- Access your salary earlier or use SpotMe to avoid overdraft fees.
Cons
- Direct deposit is required.
- Must receive $200 in direct deposits into a Chime checking account each month.
Daaf
With Dave you have access to much more than with many other money lending apps. Borrowers can qualify for up to $500 with the ExtraCash feature that deposits funds directly to the Dave Debit Mastercard. It is quick and easy to apply and you do not pay interest on the loan. Furthermore, with Dave there are no late fees.
Plus points
- No credit check.
- Low advance costs.
Cons
- Express and remote transfer fees apply.
- Monthly contribution.
MoneyLion
MoneyLion prides itself on offering an all-in-one mobile banking experience, including access to interest-free fast cash advances up to $500. Applying will not affect your credit score as there is no credit check. And if approved, you can receive money in minutes.
Plus points
- No minimum credit score requirement.
- No interest or mandatory fees.
Cons
- Borrowers must provide access to their bank account.
- Charges apply for immediate delivery.
Possible finances
Possible Financing offers an alternative to a payday loan that allows you to borrow up to $500 and pay it back in four equal installments over eight weeks. You pay interest on the loan, but there are no late fees.
Plus points
- Reports to Experian and TransUnion.
- Possibility of direct financing.
- Extensive grace period for late payments.
Cons
- High interest rates.
Pros and cons of money lending apps
Before applying for financing through a money lending app, consider the pros and cons to determine whether it makes sense to proceed.
Plus points
- Easily accessible: The application process is seamless and you generally don’t need good credit to qualify for financing.
- Fast financing times: Once approved, some lenders will immediately deposit the money into your checking account (for a fee) or within one business day.
- Less expensive than overdraft fees: By taking out a loan, you can avoid expensive overdraft fees that would accrue if you don’t have the money.
Cons
- High financing costs: Lender fees and the interest you may pay on these loans can make them an expensive source of financing.
- Potentially addictive: The easy access and fast funding times mean you run the risk of having to repeatedly rely on money lending apps when cash flow problems arise.
- Fails to address serious budgetary problems: A money lending app can temporarily solve a more serious problem with your budget and spending habits.
How to compare money lending apps
Once you have a shortlist of the best money lending apps, here’s how to compare them to find the best solution:
- How much does each lender charge to borrow? Are the fees similar across the board, or are some steeper than others?
- What is the interest rate? What about the APR?
- How much time does the lender give you to pay back the money you borrowed? Can you schedule the payments, or are they automatically debited from your account on specific dates?
- What do former and current customers say about the app? Do the reviews indicate overall satisfaction, or is there cause for concern?
Alternatives to money lending apps
After comparing apps, you may find that they don’t quite work for you. In this case, it may be worth considering an alternative to access the funds you need. Some other options to explore include:
- Credit union loans: You may qualify for a small personal loan if you are a member of a credit union. They often come with competitive interest rates and repayment periods of up to one year. It is not uncommon for credit unions to check your credit. Still, a lower score doesn’t automatically mean a denial, as the credit union can approve you based on the strength of your solid banking history.
- Small personal loans: View small personal loans from online lenders. If you’re concerned that your credit score is too low, some have credit products that suit borrowers with less-than-perfect credit. You pay more interest, but this is limited to 36 percent.
- Loans from a family member or friend: Ask a trusted family member or friend to borrow the money you need. Make sure you put the agreement in writing to avoid confusion. It is equally important to pay back what you borrow on time to avoid damage to the relationship.
- Earn extra money: take a side job or work overtime to earn extra money. If the latter isn’t an option, you can try ride-hailing, meal delivery, babysitting, or other side gigs with little to no start-up costs.
Frequently Asked Questions
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Not exactly, although some advertise their offerings as cash advances or alternatives to payday loans. You may also find that the loan costs are similar to what you would get from a lender, so proceed with caution.
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Some lenders allow borrowers to receive money in minutes or hours. However, this luxury may come at a cost unless you opt for the standard financing time.
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When you use a money lending app, you will be asked to provide identifying information and answer questions about your finances. It is also common for money lending apps to ask for banking information or access to your bank account. Most money lending apps have an extra layer of security to protect your data from fraudsters. Still, you should research and read reviews from past and current customers to identify potential security risks (if applicable). Also consider the dangers that money lending apps can pose to your financial health. Assess your financial situation and make adjustments to ensure that reliance on money lending apps does not occur repeatedly.
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It depends on your financial situation. A money lending app can make financial sense if your credit score is lower and you only need to borrow a small amount in the short term. However, a personal loan can be ideal if you have good or excellent credit and can qualify for a loan product with competitive conditions. Plus, you may get access to more cash and more time to pay back what you borrow.
