7 Loan Apps That Let You Borrow Money Fast

Although not the optimal choice for dealing with a financial emergency, these may be your only choice in a pinch.
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If you ever find yourself in a financial bind and need instant access to cash to cover an unexpected expense, there’s an app for that. Whether you call them loan apps, borrow-money apps, cash advance apps or payday advance apps, these online lenders can provide financial lifelines to people in a penny pinch.

They’re not ideal. There’s always a cost to borrowing money – even if that cost is just in the form of continuing bad financial habits – but loan apps might be useful in an emergency. Learn more about how loan apps work, the pros and cons, and our top picks for when you find yourself coming up short.

Are There Really Apps That Let You Borrow Money?

Different from online personal loans, loan apps are meant to offer a short-term solution for those in need of a quick money fix – and there are more of them popping up everyday. “There’s always been online financial stuff but this growth in online apps in lending has been remarkable,” said Michael Sullivan, personal financial consultant with Take Charge America, a nonprofit credit counseling and debt management agency.

How Do Loan Apps Work?

In general, loan apps work similarly to payday loans in that they offer borrowers an advance on their future income. Typically, you download the borrow money app, provide access to an external bank account that has direct deposit set up, and within minutes – or sometimes a few hours, depending on the app – you can request a sum of cash.

There is usually some sort of cost for this convenience. Depending on the loan app, you may pay a fee on the amount you borrow, and/or a monthly subscription fee to the lender. Once you take a cash advance, you will usually have to repay the money within a short time frame. This may happen automatically with the loan app taking the borrowed amount plus its fee from you on your next payday. Some apps may let you choose the repayment date.

Pros and Cons of Borrow Money Apps

Pros

• You can get cash fast. “Most traditional lending sources can take two to three days to get a loan approved,” said Sullivan. “If you’re in a hurry – and a lot of people who need loan apps are in a hurry – you can probably find something that will provide cash the same day.”
• Apps are easy to use. Start by simply downloading the app, and you’ll be prompted to enter some basic information and your bank account login information. “It usually takes around 10 to 15 minutes, and that can be both a blessing and a curse,” said Vincent Birardi, certified financial planner and wealth advisor at Halbert Hargrove.
• You’ll have anonymity. For people who find themselves short of funds because of poor planning, there could be a level of embarrassment to have to walk into a bank or ask someone in person to lend them money. “Some people simply don’t want to see someone face-to-face,” said Sullivan.
• You can comparison shop. When you borrow using online apps, you get a chance to compare offers, and that’s something Sullivan suggests people should take advantage of in order to find the most favorable terms.

Cons

Repayment period windows are short. In most cases, the loan apps will take their repayment directly from your bank account on your next payday or within a couple of weeks.

The cost is generally high. “Many loan apps seem to have optional tips, donations and all sorts of ways of getting money out of you. Plus interest rates are still very often 150% to 300%,” said Sullivan.

You have to provide access to your bank account. “You have to be comfortable sharing personal financial details with one of these apps,” said Birardi. He recommended having a direct conversation with customer support first to get a level of reassurance that the lender is legit.

The loan amount is typically low. Loan apps usually cap the lending amount to a couple hundred dollars. If you’re in need of higher amounts, you’ll need to look into a personal loan.

7 Loan Apps to Consider

With dozens of loan apps available online, it can be tough to navigate which one is best for you. To help get you started, here’s a look at seven loan apps that can provide a cash advance.

• Chime.
• Dave.
• Brigit.
• Albert.
• EarnIn.
• MoneyLion.
• Possible Finance.

Chime: Best For No-Fee Cash Access

Chime is an online banking app that lets you access cash – even when funds are low – if you have a checking account that’s set up with a direct deposit. It offers a fee-free overdraft service (rather than a loan) called SpotMe, which lets you take out up to $200 more after your balance hits zero. When payday rolls around, Chime will take back the amount you borrowed with no interest and no fees. Chime also lets you withdraw paycheck funds up to two days before your direct deposit hits.

Cost: Free.