The best apps that lend money

A money lending app can be a convenient way to get money quickly until your next payday comes. There are several to choose from, and most are easily accessible to borrowers of varying financial backgrounds. Better yet, get the resources you need quickly. However, there are downsides, including the expected borrowing costs and the risk of relying too heavily on this quick source of cash to solve a more serious financial problem.

Compare your options and weigh the pros and cons of moneylending apps to decide if they’re best for you.

2023’s most popular moneylender apps

With these cash advance and personal loan apps, you can quickly access cash for unexpected expenses.

Albert

Albert will lend you $250 for your next paycheck. This payday advance app requires no credit check and pays no interest on borrowed funds. Even better, Albert doesn’t have access to the late fee even if he can’t repay the loan on time.

Professionals

Disadvantages

Bridget

Brigit is another money lending app that lets you borrow up to $250 without going through a strict credit check. You don’t have to pay interest or hidden fees on the amount you borrow. Brigi customers also get access to free credit reports, identity theft protection and other financial tools to improve their financial situation.

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Professionals

Disadvantages

Carillon

Chime is an innovative mobile app that offers payday advances, fee-free banking and other valuable financial tools. With SpotMe, you can get paid up to two days earlier or spend up to $200 more than what’s available in your account without paying overdraft fees. To use both features, you must receive a direct deposit into a Chime Checking account.

Professionals

Disadvantages

Dave

You can achieve much more with Dave than with many other money lending apps. Borrowers can qualify for up to $500 with the ExtraCash feature, which deposits the amount directly onto the Dave Debit Mastercard. It can be applied for quickly and easily, and you don’t have to pay interest on the loan. Plus, Dave has no late fees. Credit builder loans are also available if you want to borrow even more money while improving your credit score.

Professionals

• No credit check.

• Low cash advance fee.

Disadvantages

MoneyLion

MoneyLion prides itself on providing an all-in-one mobile banking experience that includes access to interest-free cash advances of up to $500. Applying won’t hurt your credit since there’s no credit check. And if approved, you can get money within 12 hours.

Professionals

Disadvantages

Possible finances

Possible Finance offers a payday loan alternative that allows you to borrow up to $500 and pay it back in four equal installments over eight months. You have to pay interest on the loan, but there is no late payment penalty. Every on-time payment helps build your payment history and gives you access to the Possible Card.

Professionals

Disadvantages

Advantages and disadvantages of money lending applications

Before applying for financing through a money lending app, consider the pros and cons to determine if it makes sense to proceed.

Professionals

• Easily accessible: The application process is straightforward and you usually don’t need good credit to qualify for financing.

• Fast funding times: After approval, some lenders will deposit the amount into your checking account immediately (for a fee) or within one business day.

• Cheaper than the overdraft fee: By securing the loan, you can avoid costly overdraft fees that would arise if you did not have the funds available.

Disadvantages

• Huge borrowing costs: Lenders’ fees and the interest they pay can make them an expensive source of financing.

• Potentially addictive: Easy access and fast funding times reduce the risk of repeatedly relying on money lending apps in case of cash flow problems.

• Serious budget problems cannot be solved: A money lending app can be a temporary solution to a more serious problem related to budget and spending habits.

How to compare money lending apps

Once you have a list of the most popular money lending apps, here’s how you can compare them to find the one that’s right for you:

• How much do each lender ask for the loan? Are the fees comparable across the board or are some steeper than others?

• What is the interest rate? How about APR?

• How much time does the creditor give to repay the borrowed money? Can you schedule payments, or are they automatically deducted from your account at specific times?

• What are past and present customers saying about the app? Do the reviews show general satisfaction or are there reasons for concern?

Alternatives to money lending apps

After comparing apps, they might not really work for you. In this case, it may be worth considering an alternative to access the necessary resources. Some more options to explore:

• Credit Union Loans: If you are a credit union member, you may qualify for a small personal loan. They often have competitive interest rates and repayment terms of up to a year. It is not uncommon for credit unions to check your credit. However, a lower score does not automatically mean rejection, as the credit union may approve you based on your solid banking history.

• Small Personal Loans: Check out small personal loans from online lenders. If you’re worried your credit score is too low, they offer a few loan products that cater to borrowers with less-than-perfect credit. You will pay more interest, but the cap is 36 percent.

• Loans from a relative or friend: Ask a trusted family member or friend to lend you the money you need. Be sure to write the agreement to avoid misunderstandings. It is equally important to repay the loan on time to avoid damaging the relationship.

• Make Extra Money: Take on a side hustle or work overtime for extra cash. If the latter is not an option, you can try carpooling, food delivery, babysitting, or other side gigs with little start-up cost.

Frequently Asked Questions

• Are money lending apps payday lenders?

  Not quite, although some advertise their offers as cash advances or payday loans. You may also find that borrowing costs are similar to what you would get with a payday lender, so proceed with caution.

• Can you get money instantly with money lending apps?

  Some lenders allow borrowers to receive funds within minutes or hours. However, this luxury can come at a cost unless you opt for the standard financing term.

• Are money lending apps safe?

  If you use a money lending app, you’ll need to provide personal identification information and answer questions about your finances. It’s also common for moneylending apps to either ask for bank details or access your bank account. Most money lending apps have an additional layer of security to protect your information from fraudsters. That said, it’s a good idea to research and read reviews from past and current customers to identify potential security risks (if any). Also consider the danger that money lending apps can pose to your financial health. Assess your financial situation and make adjustments so that your reliance on money lending apps doesn’t happen again and again.

• Are money lending apps better than online personal loans?

  It depends on your financial situation. A money lending app can make financial sense if your credit score is lower and you only need to borrow a small amount in the short term. However, a personal loan can be ideal if you have good or excellent credit and qualify for a loan product with competitive terms. You will also have access to more cash and more time to repay the loan.

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