Best Money-Borrowing Apps of April 2024 (2024)

Money-borrowing apps typically work similarly to a personal loan, though they generally deal with smaller amounts of money. While you might use a personal loan – a fixed-rate loan paid back over a period of years – for debt consolidation, home improvement projects, vacations and emergencies, money-borrowing apps tend to be better for shorter-term needs.

While personal loans issued by banks and credit unions are often funded as soon as the next business day, you can receive funds as early as a few minutes with a money-borrowing app.

If you have bad credit, you may find it easier to get approved for a cash advance than a traditional personal loan since many loan apps don’t require a credit check. But note that a significant potential drawback is that some apps charge high fees.

Loan apps generally come with varying levels of credit requirements, loan terms and fees. Here’s what you can expect from the best money-borrowing apps right now:

• SoFi: Our top pick
• MoneyLion
• Brigit
• Chime
• EarnIn
• Dave
• Possible Finance

SoFi is a fintech company that offers various products through its website or app, including student loans and personal loans. Borrowers here can request $5,000 to $100,000 from both.

Pros and Cons of SoFi

Pros:

• Possible same-day funding: If approved, you can receive funds as early as the same business day.

• Flexible repayment terms: You can choose repayment terms from 24 to 84 months.
• Co-borrowers allowed: SoFi allows you to apply with a co-borrower — someone who agrees to be equally responsible for repaying the loan.

Cons:

• Good credit is required: SoFi’s minimum credit score requirement is 680.
• Higher starting loan amount: There are better options than this lender if you need funds to cover a small expense since its minimum loan amount is $5,000.
• Co-signers aren’t allowed: Although SoFi allows joint applications, you can’t apply with a co-signer — someone who agrees to repay the loan if you can’t make payments.

SoFi Eligibility Requirements

To qualify, you must have a credit score of at least 680, be employed and be an eligible permanent or non-permanent U.S. resident.

MoneyLion offers several financial products, including investment accounts, checking accounts and cash advances. With MoneyLion’s cash advance product, you can borrow up to $500.

Pros and Cons of MoneyLion

Pros:

• No credit check. MoneyLion doesn’t perform a hard or soft credit check when you apply.
• No monthly fees. Unlike some other money-borrowing apps, MoneyLion doesn’t charge monthly fees.
• No interest. MoneyLion doesn’t charge interest on its cash advances.

Cons:

• Fee for instant transfer: MoneyLion charges a Turbo fee, or transfer fee, that ranges from $0.49 to $8.99 for instant transfers.
• Up to five days for standard transfers: The regular cash advance funding speed to external accounts is up to five business days.
• Checking account is required: You need a checking account with a history of regular deposits to qualify.

MoneyLion Eligibility Requirements

You need a checking account that’s at least two months old with regular deposits and a positive balance to qualify. In addition, MoneyLion must be able to verify that you’re the owner of the account.

Brigit is an app that offers budgeting tools, software that can analyze your spending habits, credit-builder loans and cash advances of up to $250 without a late fee.

Pros and Cons of Brigit

Pros:

• Flexible repayment terms: If you need additional time to pay your advance, Brigit allows you to request a free extension.
• Brigit reports payments: Brigit reports your payment history to the three national credit bureaus — Equifax, Experian and TransUnion — which means on-time payments can help improve your credit score.
• No interest or tips: Brigit doesn’t accept tips or charge interest on its cash advances.

Cons:

• Monthly fee: Brigit requires users to pay a monthly subscription fee that ranges from $9.99 to $14.99.
• Express funding fee: If you want instant funding, it’ll cost you from $0.99 to $3.99.
• Relatively low advance amount: Brigit’s maximum cash advance amount of $250 is lower than competitors like MoneyLion or Dave.

Brigit Eligibility Requirements

To qualify, you must connect a checking account that is at least 60 days old and has been used daily for at least a few weeks. Your account must also have a balance greater than $0 and a minimum of three recurring deposits from the same employer.

Chime allows its members to overdraw their checking accounts by $200 without paying overdraft fees. Plus, members might receive direct deposits up to two days before your actual payday.

Pros and Cons of Chime

Pros:

• Possible early payment: You can get paid up to two days before your payday.
• Overdraft protection: Chime allows you to overdraft your checking account by up to $200 without paying a fee.
• SpotMe Boosts: You can receive a SpotMe Boost from someone, which temporarily increases the amount you can borrow by $5. Chime users can each send four “Boosts” a month.

Cons:

• Chime bank account needed: You must bank with Chime to qualify.
• Lower limits depending on eligibility: Some Chime members may only overdraft their checking account by up to $20 but may be offered a higher limit of up to $200 in the future based on various factors such as their spending behavior and how often they receive deposits.
• Some third-party fees apply: While Chime doesn’t charge fees on its cash advances, you may run into ATM fees or similar charges.

Chime Eligibility Requirements

To qualify for Chime’s SpotMe service, you must have a Chime account that has received at least $200 in qualifying direct deposits over the past 34 days.

EarnIn is a fintech company that offers credit monitoring and cash advance products that allow users to borrow up to $750 per pay period.

Pros and Cons of EarnIn

Pros:

• No credit inquiry: EarnIn doesn’t perform a credit check to review your credit history when you apply.
• No mandatory fees: Paying a fee with EarnIn is voluntary, provided you’re willing to accept a slower funding speed. You’ll usually get your money in one to two business days, but you can pay a fee to get the money within minutes.

Cons:

• Instant transfer fee: EarnIn charges an instant transfer fee that ranges from $1.99 to $4.99.
• Low borrowing limit: You can only borrow $100 per day during your pay period.
• Tips: Paying an optional tip can increase your borrowing costs.

EarnIn Eligibility Requirements

To use EarnIn, you must be employed and have consistent direct deposits, have a primary residence in the U.S., be at least 18 years old, have a bank account and have a valid cell phone number.

Dave offers cash advances up to $500. It doesn’t charge interest or late fees, but you have to pay a $1 monthly membership fee. In addition, the cost of instant transfers ranges from $1.99 to $13.99.

Pros and Cons of Dave

Pros:

• No credit check: Dave doesn’t check your credit score or credit history when you apply.
• No late fees: If your payment is late, you won’t have to worry about paying a late fee with Dave.
• Budgeting tool: You can control how much you spend once you transfer money from your bank account to a Dave spending account.

Cons:

• Fee for instant transfer: Dave charges an instant cash advance fee that ranges from $1.99 to $13.99.
• Monthly membership fee: You have to pay a $1 monthly membership fee.
• Must open a checking account: Applicants must open a Dave checking account.

Dave Eligibility Requirements

To qualify, you must open an Extra Cash spending account and pay a $1 monthly fee.

Possible offers personal loans up to $500, which it advertises as a payday alternative loan. The company doesn’t disclose any minimum credit score requirements but says that applicants with bad credit can qualify. Once approved, you can receive funds within minutes.

Pros and Cons of Possible Finance

Pros:

• Potential quick funding: Once approved, funds may be deposited into your account within a few minutes.
• Can help you build credit: Possible Finance reports payments to two of the three major credit agencies, which means repaying your loan on time can potentially boost your credit score.
• No late payments: If you make a late payment, Possible Finance won’t charge you a fee.

Cons:

• High APRs: Possible Finance’s APR range is higher than most personal loan lenders — 150% to 250%.
• Not available in all states: Loans are only available in 15 states.
• Possible slow funding speeds: Although loans can be funded in a few minutes, in some cases, it can take up to five days to receive your funds.

Possible Finance Eligibility Requirements

Possible Finance requires applicants to be at least 18 years old and have an active checking with three months of history. Plus, your checking account must receive at least $750 per month in deposits and have a balance above $0.

Before you borrow money from a loan app, consider the benefits and drawbacks.

Pros of Using Loan Apps for Borrowing Money

• Quick funding: Many cash advance apps offer instant or same-day funding.
• Less stringent credit requirements: Cash advance apps typically don’t require a credit check, so you won’t have any problems qualifying as a result of bad credit.
• May be cheaper than a payday loan: Even though cash advance apps come with high fees, those fees are generally more affordable than payday loans.

Cons of Using Loan Apps for Borrowing Money

• Fees: Although many loan apps don’t charge interest, they still can charge high fees that can significantly increase your overall borrowing costs.
• Debt: If you rely on these apps too much to cover expenses, it can lead to a cycle of debt.
• Risk of overdraft: Some apps automatically debit your loan payment from your bank account, which could increase the risk of overdrafting.

Here are some factors to keep in mind when comparing loan apps and how to apply.

Choosing the Right App

While comparing loan apps, consider the following factors.

• Fees: Compare fees from as many lenders as possible. Some cash advance apps charge membership fees and fees for instant transfers.
• Loan amounts: Select an application that offers your desired loan amount.
• Transfer speeds: If you need funds immediately, choose a company that can deposit funds into your account the same day.

Applying for a Loan

The application process varies depending on the cash advance app you use. Here are the typical steps to apply.

1. Sign up for an account: Open an account with the cash advance app you want to borrow money from.
2. Connect a bank account: Next, you’ll likely have to connect an external bank account. Some platforms may offer checking accounts if you don’t have one.
3. Apply: After you connect a bank account, submit an application. During this step, you generally provide personal information, such as your address and Social Security number.

Cash advance apps aren’t the only way to borrow money. If you don’t think they’re the best fit for you, here are some alternatives.

Traditional Bank Loans

Many banks offer personal loans that can be used for nearly any purpose. Unlike cash advance apps, banks are required to list the loan’s annual percentage rate (APR). APR represents the true cost of the loan, including the interest rate and any fees.

Approval times vary, but some large banks can decide whether to approve or deny your loan request as soon as the same business day.

Credit Union Offerings

Credit unions also offer personal loans. Since credit unions are member-owned, not-for-profit institutions, they may offer lower rates than traditional banks. If you’re looking for an alternative to a payday loan, a credit union might be a good fit since its payday loan alternative (PAL) loans have a maximum APR of 28%. However, each credit union will have requirements you must meet to become a member – such as living in a particular area or working for a certain set of companies.

0% APR Credit Card

You might qualify for a credit card with a 0% APR promotion if you have good to excellent credit. With this card, you can avoid paying interest if you pay off the balance in full before the introductory period ends. However, once the promo period ends, you must pay interest at the card’s standard APR on any remaining balance.

Financial Assistance

If you’re struggling to pay rent or buy groceries, you may qualify for government financial assistance, depending on your income. You can find rental and food assistance programs by dialing 211.

Loan From a Family Member or Friend

Although it may be difficult to ask a friend or family member to borrow money, they may be willing to loan you money at a low or 0% rate. If you find someone willing to loan you money, put the loan terms in writing. Also, repay the loan as promised to avoid a potential rift in your relationship.

Our team put together a comprehensive100-point rating systemto evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the US and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.

• Affordability(35%): How expensive each company’s loans are to pay back.
• Loan features(35%): The breadth of loan terms and features available to prospective customers.
• Customer experience(20%): Ease of application, prequalification and customer service interactions.
• Company reputation(10%): An exploration of lenders’ Better Business Bureau files, customer reviews and outstanding regulatory actions.

Our top-rated lenders may not be the best fit for all borrowers. To learn more,read ourfull personal loans methodology.