When life emergencies happen, you may have to borrow money until payday comes around. Instead of applying for a regular loan, you may opt for a money advance app. However, not all money advances are created equal. Choosing the wrong lender can cost you tons in fees, interest, and points on your credit score (if you default).
Learn more about money advance apps and how to find the best lender.
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Why would someone need a quick money advance loan?
Cash advances let you access the money from your paycheck sooner to cover bills and sudden expenses. You can use advances from money borrowing apps for several reasons, such as:
- Covering emergencies, rent or utility bills, or the week’s grocery bill
- Paying for time-sensitive purchases, such as buying an expensive item on sale
- Paying bills that come due before payday
- Avoiding (or paying) enormous overdraft fees
Plus, by using a cash advance, you can leave your savings, emergency fund, and retirement accounts alone, thus securing your future.
What is a money advance?
A money advance, or cash advance, is a short-term loan that lets you access your paycheck before payday. Essentially, a bank or creditor loans you a set amount of money. Then, when your paycheck comes in, you repay your lender.
This system lets you get funds sooner to cover bills, emergencies, and other expenses. You can also use money advance apps as an alternative to borrowing from friends, family and taking a smaller paycheck. (Which can be both embarrassing and comes with a risk of your family turning down your request).
6 things to consider when getting a cash advance
Cash advances can help you through a rough spot – but it’s important to choose the right cash loan app, lest you pay high fees and interest.
What you might need
Various cash advance apps set different requirements. But generally, you’ll need:
- A valid checking account with positive balances and recurring deposits
- Valid identification and contact information
- A Social Security Number or other paperwork showing U.S. resident status
Note that most apps for instant money don’t require credit checks. But many offset this risk by charging high interest rates or requiring collateral.
Find the right lender
Plenty of cash advance apps are run by legitimate lenders. But you’ll want to watch out for predatory apps that offer unfair terms, ultra-high interest rates, or collateral for cash.
For instance, title loans require you to hand over the title of your car to get money. Then, if you can’t repay your loan, the lender will either pile on fees or repossess your car. Others, notably those peddling “payday loans,” charge interest rates as high as 400-600% APR!
But unlike many money borrowing apps, MoneyLion doesn’t require collateral and charges 0% interest, always. Read on to find out more about InstacashSM advances!
Understand your loan terms before you sign anything
It’s crucial to understand the fine print of your loan before you sign anything. Among other points, you’ll want to know:
- How long you have to repay the money (the loan term)
- How much it will cost to repay the loan, including interest and fees
- Late or additional fees
- When you need to repay your loan in full
Expect fees and interest rates
Almost all traditional cash advances come with interest rates and fees. But how much they charge varies wildly.
And when it comes to predatory payday loans, you can pay anywhere from 300% to 600%, depending on your state.
Typically speaking, the less interest you pay, the more money you’ll keep in your pocket. Just watch out for other charges, such as application, late, and rollover fees.
Paying down your money advance
Paying down your cash advance in time is crucial to avoiding rollover fees, late fees, and other costs. And if you’ve taken out a secured loan, it’s the best way to ensure the lender doesn’t sell your collateral. Plus, the less you owe on your loan, the less interest you’ll pay!
Is a cash advance the way to go?
Cash loan apps can get you the funds you need now, so you don’t have to wait for payday. However, choosing the right lender is important.
That’s why MoneyLion offers Instacash advances as a premier lending option: to save your hard-earned money. Rather than handing over your car title or potentially hundreds of dollars in interest and fees, we make it simple and cheap to get the money you need.
Instacash: 0% APR money advance app
With Instacash, qualifying borrowers can get up to $250 anytime (or up to $1,000 as part of the MoneyLion Safety Net. Once the money is in your account, you can spend it however you like and repay it on your next payday with no hassle.
And unlocking Instacash is super easy. Just sign up for a MoneyLion account, link a valid checking account, or set up a direct deposit with a $1 per month RoarMoneySM account, and request the amount you need.
Best of all, there’s no interest, no monthly fee, and no hard credit check to worry about! By offering no hidden fee, 0% APR cash advances, MoneyLion can save you tons compared to traditional money borrowing apps.
MoneyLion makes cash advances cheap and easy!
Money advance apps are a great way to borrow money until payday – as long as you choose the right one. But with 0% APR, no fees, and flexible borrowing amounts, it’s hard to go wrong with a MoneyLion Instacash advance!
Plus, if you sign up for a RoarMoney account as well, you’ll also get tons of other perks, too, like:
- Direct deposits up to two days early
- Cashback rewards on everyday spending
- Weekly spend reports by category to help you budget
- No fees at over 55,000 ATMs nationwide
- And so much more!
Are cash advance apps safe?
Legitimate cash advance apps are usually safe, but you can never be too careful! For instance, MoneyLion offers full liability protection and FDIC coverage to make sure your money is well-protected.
How to get a cash advance online?
You can get a cash advance online by signing up for apps, lenders, and banks that offer them. One excellent option is MoneyLion’s own Instacash advance – all you need is a checking or RoarMoney account to get started!
How to get a cash advance on your paycheck?
If you need a cash advance on your paycheck, you can talk to your boss or take out a cash advance loan. Another option is MoneyLion’s RoarMoney checking account, which offers payday up to two days early with direct deposit.