Acquiring a loan can be a hassle, especially if you have a complex financial history or are seeking a large sum. Banks require you to provide extensive documentation, undergo rigorous credit checks, and often require collateral to secure the loan. By the time you get everything in order, you might feel like you’ve run a marathon. Now, one wouldn’t mind going through all the trouble of securing a loan, but there is one thing that might compel you to look for other means of instant funding. Time crunch.

How would you acquire instant cash without knocking at the doors of banks and investors? Well, there is a quick way to do that: the Dave app! What’s even better is that several apps like Dave could potentially provide you with quick loans. That will be the focus of this blog.

Cash Advance App – A Quick Overview

Before we delve into apps like Dave, let’s discuss what they are called. Yes, they are called cash advance apps. But how do they work? Let’s discuss that first.

Typical cash advance apps like Dave follow a standard procedure. They provide you with a short-term loan or advance on your upcoming paycheck. Here’s how it works:

1. Application: You download the app and provide the necessary information, such as your details, employment information, and banking details.
2. Verification: The app then verifies your information, often by asking you to connect your bank account to assess your income and employment status.
3. Approval: Once that is approved, you can request an advance. However, the amount you can borrow is usually based on your current income and the app’s policies.
4. Funds Transfer: If your request is approved, the app transfers the funds directly to your bank account. This transaction can be done almost instantly. However, it can take up to a day or two as well, depending on the app.
5. Repayment: Now, on the agreed-upon day and time, the app will automatically withdraw the amount you borrowed. Some apps also allow for early repayment if you have acquired the amount before the due date.
6. Fees and Interest: Now, there is the matter of fees and interest. Cash advance apps like Dave would charge some amount for providing instant loans. These charges can vary widely, so it’s important to understand the terms before using the app so that you don’t end up regretting your decision.

Cash Advance Apps Like Dave Worth Checking Out

• Chime

If you are looking for quick funds, then Chime should be your go-to application that has topped our list for apps like Dave, where you can acquire up to a $200 fee-free overdraft on debit purchases and cash withdrawals. Let’s look at its pros and cons. Additionally, Chime offers a unique feature for reverse video search, enhancing its utility beyond financial management.

Pros:

1. Fee-Free Banking: As mentioned above, Chime offers fee-free overdrafts up to $200 with no monthly fees and no minimum balance requirements. Also, there is no foreign transaction fee.
2. Early Direct Deposit: Most of the time, but not always, Chime allows users to receive their direct deposits up to two days early.
3. Automatic Savings: Chime’s automatic savings features are like a saving grace for users who are looking to save money effortlessly.
4. Simple, User-Friendly App: The Chime app is user-friendly and designed in such a way that it is easy to navigate, making it convenient for managing your finances on the go.
5. Wide ATM Access: Chime provides fee-free access to over 38,000 MoneyPass® and Visa® Plus Alliance ATMs nationwide. Now, that is something.
6. Security: Chime uses encryption and other security measures to protect your account information from hackers.
7. Customer Service: Chime offers customer support that can be accessed via email, phone, or even live chat.

Cons:

1. Limited Account Types: Every rose has its thorn. Chime primarily offers a spending account (checking) and a savings account. Unfortunately, it does not offer other types of accounts, like CDs or IRAs.
2. No Physical Branches: Chime doesn’t have a brick-and-mortar setup. It is an online-only bank, so there are no physical branch locations. Some users prefer having the option to visit a branch for in-person assistance, but that won’t be possible with Chime.
3. Deposit Limitations: While Chime offers early direct deposit, the amount you can deposit early may be limited based on your account history and other factors.
4. Outages: Like any online service, Chime may experience occasional outages or technical issues that can temporarily limit access to your account. Nobody’s perfect.

2) Brigit

Brigit is one of the apps like Dave that offers instant cash. However, it is a bit more complicated than Chime. It is designed to help users manage their finances, particularly those living paycheck to paycheck. Brigit offers easy access to cash advances of up to $250, providing a convenient solution for unexpected expenses. Let’s look at its pros and cons, similar to how gamers review features in games like Runescape. 

Pros:

1. Interest-Free Advances:

Brigit provides cash advances up to $250 without charging interest. This makes it a cost-effective alternative to payday loans. No loan sharks at your door!

1. No Credit Check:

The app does not require a credit check. So it is accessible for users with poor or no credit history. What more could one want?

1. Overdraft Prevention:

Brigit helps users avoid overdraft fees. It predicts low balances and provides advances to cover shortfalls​. Practically holding your hand throughout the process.

1. Credit Building:

It has a credit-building feature that reports payment activities to credit bureaus, which can help improve users’ credit scores over time​. Now, that is something.

1. Budgeting Tools:

The app includes tools for budgeting and analyzing spending patterns. This way, users can get personalized financial advice​.

1. User-Friendly Interface:

Brigit is designed to be easy to use, with a straightforward navigation system that makes financial management accessible to all users.

1. Identity Theft Protection:

Brigit offers up to $1 million in identity theft protection, enhancing users’ financial security. That is a lot of coverage.

1. Employment Opportunities:

The app connects users with job opportunities and side gigs to help improve their income streams. Getting employment and the loan. Just like hitting two birds with one stone.

Cons:

1. Subscription Fee:

Here comes the trouble. Brigit requires a monthly subscription fee of $9.99, which can add up over time. There is also an express fee for faster funding.

1. Low Maximum Loan Amount:

The maximum cash advance is $250, which may not be sufficient for all users’ needs. Bummer.

1. Not Suitable for Gig Workers:

Brigit’s eligibility requirements exclude gig workers, freelancers, and those without a regular paycheck from an employer. This sadly limits its accessibility. 

1. Average Funding Speed:

While Brigit offers express funding, the standard funding speed is 1-3 business days, which is not as fast as some competitors. So unless you are willing to pay some money to get money (faster), you have to wait.

1. Potentially High Effective Fees:

For users who do not frequently use the cash advance feature, the subscription fee can represent a high effective cost relative to the amount borrowed. So it might be better for you to get a loan from a friend.

3) MoneyLion

MoneyLion is another one of the apps like Dave that offers instant funds. But that is just one of the services it offers. One edge it has over cash advance apps like Dave is that it offers advances up to $500! Here are its pros and cons.

Pros:

1. Convenience: MoneyLion offers quick and easy access to cash advances through its app, which can be more convenient than traditional methods like visiting a bank or ATM. Legs-free banking!
2. Accessibility: The app is available to use 24/7. This allows users to request cash advances at any time of day or night.
3. No Credit Check: MoneyLion does not require a credit check for cash advances, which is a great advantage because it makes it accessible to people with less-than-perfect credit.
4. Rewards Program: MoneyLion promotes a rewards program that encourages users to earn points for responsible financial behavior. These points can be redeemed for cash back or other rewards.

Cons:

1. High Fees: Here’s the bad news:. Like other cash advance services, MoneyLion charges fees for cash advances, which can be high compared to other forms of credit.
2. Potential for Debt: Cash advances can lead to a cycle of debt if not used responsibly. You need to be extra careful, as they are designed for short-term use and carry high interest rates.
3. Limited Availability: MoneyLion’s cash advance feature may not be available in all states. So, some users may not be able to access this service. Bummer.
4. Impact on Credit Score: While MoneyLion does not require a credit check for cash advances, using this service could still impact your credit score if you are unable to repay the advance on time. Tread lightly. 

Conclusion

To sum up, acquiring a loan is not a far-fetched dream anymore. By using the above-mentioned cash advance apps like Dave, you can get your hands on instant cash whenever you find yourself in financial trouble. Although these might require something in return, the gain usually outweighs the loss, unlike dealing with a bank. If you are seeking to develop your cash advance app and have outsourced on-demand app development in the past, we suggest taking that approach again. Partner with Binate Digital, where we offer state-of-the-art mobile app solutions to help you in your next venture.