Cash Advance

Is a Cash Advance Right for You?

How to determine if a cash advance is a viable option for your financial needs 💡

Text that says 'Is a Cash Advance Right for You'
(If you’re looking for a cash advance, we’ll just mention Cleo can spot you up to $250**. No credit checks and no interest.)

If you’re short on cash but have bills you need to pay, you may have considered a cash advance as an option.

In this blog, we’ll explain what a cash advance and as whether it might be right for you and your finances 💡

What's a Cash Advance?

A cash advance gets you small amounts of money It’s often used as a way to cover unexpected expenses or to bridge the gap between paychecks.

It’s good practice to only request a cash advance when you need help covering important bills.

It’s typically issued by a bank, credit card issuer, or other financial institutions like a money app (Cleo💅, Dave, Chime etc).

A few different types of cash advances:

💸 Credit card cash advance: This is a type of cash advance that is obtained by withdrawing cash from an ATM or bank using a credit card. It typically comes with a high-interest rate and may also have a cash advance fee.

💸 Cash advance from an employer: Some employers may offer cash advances to employees, which are typically deducted from your next paycheck.

💸 Cash advance apps: A cash advance app helps cover you until payday. The maximum amount you can borrow is usually around $500 depending on eligibility. The majority of apps don’t run credit checks or charge interest. There’s usually just a monthly subscription fee or if you’d like a cash advance on the day, you’d pay an express fee.

And because we want you to save as much money as possible and avoid high interest rates and fees, we’ll be chatting about cash advance apps ✨ in this blog.

Is a Cash Advance Right for You?

If you’re looking for a payday cash advance to help cover you until your next paycheck comes through, a cash advance from an app might be the right route for you instead of other (costly) financial products.

For example: If you’ve ever considered a payday loan or have taken one out previously, you’ll know how much APR the lenders charge. On average the APR is 400% 🙃

A truly ridiculous amount.

And if you’re unable to pay this back on time, it can become very tricky. You could end up getting trapped in a cycle of debt which could be incredibly difficult to get out of.

Cash advances are totally different. They’re an alternative to payday loans.

With a cash advance from an app, you’d pay for the subscription fee (which the majority of cash advance apps charge) and there’s typically no interest or late fees.

But to avoid poor financial habits, it’s always best to try and pay your cash advance back on time.

You’ll usually receive the funds within three working days but if you’re looking for a cash advance on the day, you can pay an express fee.

If eligible, the amount you can get depends on your personal circumstances including whether you’re in part-time or full-time work. However, we’ll just mention that Cleo doesn’t require any proof of income.

We see you gig workers 💕

PSA: Cash advance apps could actually work wonders for your credit. Many apps offer other features like automatic savings and budget plans which could potentially help you make better money decisions.

Cash advance apps you could try

1) Cleo 💙 The Gig Worker Cash Advance App 💙

We’ve put Cleo first because she’s the ultimate gig worker cash advance app.

Other cash advance apps may require a specific income, but not Cleo 💖

Everyone should be able to apply for a cash advance, whether you’re in part-time or full-time employment.

Cleo’s cash advance* is interest free and there’s no credit checks.

💸 Maximum amount: $250**
🪙 Fees: $5.99 monthly subscription and no late fees‍
🏦 Repayment: It’s up to you when you want to repay‍
🔎 Credit check: No‍
📈 Interest: Absolutely not

2) Dave

If eligible, Dave’s cash advance ‘ExtraCash’ can get you up to $500 with no interest, credit checks, or late fees. From looking at the small print on Dave’s site, the average approved advance is $120.

You’ll also get access to Dave’s Automatic budgeting feature which will help you figure out your debt-to-income ratio to see how much you can spend whilst setting aside money for your bills.

💸 Maximum amount: $500‍
🪙 Fees: $1 monthly membership and no late fees‍
🏦 Repayment: Your next payday
🔎 Credit check: No‍
📈 Interest: No

3) Klover

If eligible, you could get a cash advance of up to $200 to help you with bills until your next payday.

And unlike other financial institutions (you know who you are), if you find yourself struggling to make the payment back on time, you won't be charged any interest or late fees.

💸 Maximum amount: $200‍
🪙 Fees: $3.99‍
🏦 Repayment: Your next payday
🔎 Credit check: No‍
📈 Interest: No

And if you’re looking to start saving or would like to build an emergency pot for those unexpected expenses, we’ve got just the thing.

Making a budget that works for you is all about understanding your expenses each month and having the flexibility to adapt if circumstances change.

All you need to do is answer a few questions around your income and bills in the Cleo app and you’ll then be able to set a realistic spend limit and start saving.

Yeah, baby 🚀

For more on this, check out How to Make a Budget With Cleo.

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 💙

*The Cleo Plus subscription offers saving goals, hacks, challenges, APY on savings, credit score insights, and access to cash advances if eligible.

**Subject to eligibility. Amounts range from $20-$250, and $20-$100 for first-time users. Amounts subject to change. Same day transfers subject to express fees.

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