Is the Day Advance Application Legit? A Comprehensive Guide

Cash advance apps are becoming increasingly popular as an alternative to payday loans due to their lower costs and fees. Learn about cash advance apps such as Earnin and Dave and how they can help you get quick cash in an emergency.

Is the Day Advance Application Legit? A Comprehensive Guide

The days between paychecks can seem like a major obstacle, especially for low-income populations. Cash advance applications can help provide additional assistance to cover emergency costs, but are best combined with the creation of an emergency savings fund. That way, you'll have short-term coverage from the app if necessary, and at the same time you'll practice better saving habits. When it comes to getting quick cash in an emergency, many people turn to payday loans.

Unfortunately, these loans often come with high interest rates and fees that can make them difficult to pay off. Fortunately, there are now cash advance applications that offer a more affordable alternative to payday loans. Cash advance apps are a more recent development that similarly provide quick cash before your next paycheck, but tend to charge much lower rates than payday loan lenders or none at all. App makers make money from voluntary “tip” payments or membership fees, rather than interest.

Lower costs, coupled with stagnant wages and financial hardship caused by the coronavirus pandemic, may be why cash advance applications are becoming increasingly popular. Earnin is an application that allows you to borrow against your next paycheck quickly without any fees or interest payments. Earnin allows you to withdraw wages that have not yet been paid by employers. When the next paycheck arrives in your bank account, Earnin will automatically debit your account for the amount that was borrowed.

There is no charge for the service. Earnin makes money from voluntary tips from its users. The Dave app allows you to borrow a small amount of money to cover expenses while you wait for your next paycheck or to avoid overdrawing your bank account. Users who have a Dave expense account have access to larger loan amounts than those who don't.

The app also has a “Side Hustle” feature that helps users find side jobs to earn more money and an optional gratuity of up to 20% of the amount borrowed. Alternative Payday Loans (PALs) are provided through federal credit unions rather than predatory lenders, making them much more affordable. We looked at different applications and payday advance accounts that allow early access to direct deposit of paychecks. So, instead of giving you a small loan, you can receive a payroll advance through the app and the money is deducted from your checking account the next payday.

Unfortunately, there are unscrupulous people who take advantage of people when faced with desperate circumstances. While there are legitimate ways to get money, you should be on the lookout for scams that promise you quick money when times are tough. Some of the scams that arise in the wake of the COVID-19 pandemic are designed to take advantage of those suffering economically due to the new coronavirus. Therefore, we recommend that you stay away from payday loans and only consider cash advance applications for financing.

Traditional payday advance loans often charge ridiculously high interest rates that can go as high as 790% annually in some states. By tipping the balance, interest-free advances are much more affordable than payday loans, and memberships often include other benefits that help justify fees. Some payday advance apps also offer budgeting tools to help you track and manage your spending, or automated savings tools to help you build up your emergency fund.

Ebony Sandoe
Ebony Sandoe

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