You know the feeling. You’re all set to glide to payday. And then you find yourself with a broken down car.
While you’re frantically googling “I need $100,” here’s what you’re not gonna do: take out a loan with wild APR rates, and get caught in a debt spiral. Or, face ridiculous overdraft fees.
Interest rates on payday loans have gotten particularly bad ever since the Consumer Financial Protection Bureau loosened restrictions on payday loans back in 2020. This made it easier for payday lenders to give short-term, high-interest loans to customers who probably aren’t able to pay them back.
How do payday loans work?
According to the Center for Responsible Lending, a typical payday loan in Texas comes with 661% interest. Four states have no interest-rate caps, and one allows a 1,950% APR for a $100, 14-day loan. Ahem, Missouri.
So you if you borrow $100, it’s almost definitely gonna end up being more by the time you pay it back.
This is where Cleo’s cash advance* comes in.
What is Cleo's Cash Advance?
When you’re low on funds, have a bill you need to pay and wanna avoid going into your overdraft or taking out a loan with huge APR, a cash advance can help you keep going until payday.
Cleo’s cash advance can spot you up to $100, with no interest, and no credit checks required. (We see you, gig workers) 💖
Depending on a few things, first-timers usually qualify for $20-$70. But there are some things you can do to increase the amount you’re eligible for.
How to get the most out of a Cleo cash advance
When you first download Cleo (for free), you’ll need to connect to a bank account. At this point, you’re only giving us permission to see your transaction history. Not actually move your funds. This is one of the ways Cleo determines your eligibility.
📍 Tip #1: Connect the bank account you’re paid into. This way, the algorithm robots can see money coming into your account.
At this point, you’ll want to type “spot me” into the chat. Since you’ve already connected your bank account, Cleo can use this to show you how much you’re eligible for.
If you’re happy with the amount, it’s time to decide if signing up for Cleo plus is right for you.
With Cleo Plus you get:
✨Access to your credit scoring
✨Personalized saving goals and round ups
✨Cashback at some of your favorite stores
✨Up to $100 cash advance (if you’re eligible)
This leads us on to the next tip…
📍 Tip #2: Pay your Plus Subscription on time
It’s a little thing that will affect your eligibility.
📍 Tip #3: Try again when you’ve been paid
If it doesn’t work out before your payday, try again afterwards. It’s all about building a picture of your financial situation. Trying again once your paycheck has come in helps make this picture include large sums of money coming in 💅
In the meantime, you still get access to all of Cleo’s free features.
With a regular, free Cleo subscription, you can:
💙 Learn how to make a budget
💙 Track your money
💙 Get speedy support (replies take 6 minutes on average)
Enjoy this post? Give it a share or send it along to a friend. You never know, it could make a big difference.
Big love. Cleo 💙
*Eligibility requirements apply.