EarnIn vs. Dave and Other Cash Advance Apps — Pros and Cons
Rent’s due and you’re looking for a way to make ends meet — fast. In your research, you’ve probably come across financial solutions called cash advances. When you need money quickly, a cash advance seems like a good option — whether from a credit card, payday lender, or an app like Dave.
But is a cash advance really the answer to your money woes or could it just put you into deeper financial trouble? This article talks about the pros and cons of cash advance apps and how they compare to other options like Dave and EarnIn to help you decide what’s right for you.
What are cash advance apps and how do they compare to EarnIn and Dave?
A cash advance app lets you borrow money against your credit or future earnings. It’s one of several digital tools that aims to offer an alternative to traditional payday loans, which tend to have extremely high interest rates and come with the possibility of falling into a debt cycle.
Cash advance apps are mainly designed to aid in temporary gaps in cash flow, such as covering unexpected bills or avoiding overdraft fees. They often allow borrowing of smaller amounts (like $25-$500) and automatically withdraw what you owe from your bank account on your next payday. Unlike traditional payday loans, cash advance apps usually offer lower fees, no interest, and no credit checks.
How do you use a cash advance app?
Using a cash advance app is straightforward. Users typically:
- Download a cash advance app and set up an account
- Link a bank account for verification
- Get a custom advance amount based on income and account history
- Repay the cash advance automatically — with possible fees — from the borrower’s next paycheck
Potential advantages and risks of using a cash advance app
Pros:
- Fast access to cash
- Multiple options available (credit, employer, app, bank)
- May help cover emergencies
Cons:
- High fees and interest (especially with credit cards or payday loans)
- Can lead to debt cycles
- Usually not a long-term financial solution
How does Dave compare?
How does Dave compare to a cash advance app? It’s a little different. Dave’s ExtraCash™ tool is essentially a bank originated overdraft — so it’s usually used to avoid paycheck or cash advances and the fees associated. ExtraCash™ is also a two-way account. So customers can deposit and withdraw funds, including going into overdraft if there aren’t sufficient funds to cover unexpected expenses.
To access, download the app, link your bank account, and open an ExtraCash™ account. The app’s lending bank looks at your income history and spending patterns in order to determine whether you’re eligible for the account and how much you could qualify for. (Note that this number can change daily, especially if your income varies.)
Then, users authorize their checking accounts to be debited for the advances made on the app on their next payday (or the nearest Friday). There’s no fee unless you choose an instant transfer.
Potential advantages and risks of using Dave
Pros
- Provides cash advances up to $500 with no credit check
- Offers advances to part-time and temporary workers with inconsistent paychecks
- Never charges overdraft or late fees
Cons
- High fees (up to $25) for same-day funding
- Short repayment terms
- Cash advances require users to open a Dave Checking account
- Charges a monthly membership fee
Here’s a quick look at the app’s key features:
- ExtraCash™. Get a cash advance of up to $500/pay period deposited into your Dave Checking account with no interest, credit check, or late fees.
- Checking Account. Dave users get a Dave Checking account that includes a digital debit card. A physical card is available upon request.
- Side Hustle. The Dave app offers users the option to take instant-pay Surveys or apply for flexible side jobs.
- Goals Account. Dave users can create and fund customizable savings goals within the app.
How does EarnIn compare?
If taking a lot of money out of your next paycheck leaves you short on cash going forward, you’re probably better off looking at financial options that let you make payments over time, like a personal loan or credit card. You can also try a solution like EarnIn, which uses the earned wage access (EWA) model and gives workers access to funds before payday — without the risk.
What happens if you don’t have the money to pay back a cash advance app?
There can be possible consequences to not paying back a cash advance. Since most apps are automatically set to withdraw what you owe on your next payday, if there are not enough funds in the account the result can be overdraft fees from your bank. You could also experience suspension of the app’s services. Your debt could be sent to collections if your debt stays in arrears (this could indirectly affect your credit score).
In the case of the Dave app, when you accept ExtraCash™, the app gives you a settlement date — the predetermined date Dave will withdraw money from your bank account to settle your funds. The app won’t charge a late fee if you can’t pay the debt on time, and it won’t withdraw more funds than you have available.
What if you owe Dave $100 on your ExtraCash™ settlement day but only have $40 in your bank account? Dave will settle your balance using your connected bank account. If your connected accounts don't have enough funds, Dave will transfer partial settlements until your settlement is completed. (Your settlement date is typically your next payday — or the nearest Friday — so look to have funds available that day.)
But let’s say your car insurance is set to auto-withdraw the next day, so you deposit $50 to cover that. Since you still owe $60 from your cash advance, Dave may take that $50, bringing your checking account back to $0. If the $50 car insurance payment clears, you’ll be left with a balance of -$50 — and your bank will likely charge you an overdraft fee of around $35. You now have -$85 to your name, and you still owe Dave $10.
If you feel that you may have trouble with paying your cash back, contact the app’s customer service team right away. There are often options available, such as rescheduling payments or setting up a repayment plan.
Is a cash advance your only option?
Cash advances are short-term loans that give you quick access to cash, usually through a credit card, payday lender, or cash advance app like Dave. It’s a way to borrow against your credit limit or future earnings, and it’s usually a better option than a predatory payday loan.
While a cash advance or payday loan can be tempting when you need money fast, you may have alternatives that won’t saddle you with high fees. Before borrowing from Dave or another cash advance app, try:
- Negotiating with creditors. If you have a bill you can’t afford, try explaining your situation to the creditor. They might be willing to work out a payment plan.
- Borrow from friends or family. Mixing finances with personal relationships isn’t always ideal, but borrowing from someone you trust usually costs less than a cash advance.
- Consider a small personal loan. Credit unions or online lenders often offer small personal loans with lower interest rates than cash advances.
- Consider an earned wage access (EWA) app. EarnIn is a same-day pay app that lets you access your pay as you work, instead of taking out a cash advance.
- Dip into your emergency fund. If you don’t have an emergency fund, now’s the time to build one. (Hint: EarnIn’s Tip Yourself tool can help you put aside money for the future.)
Dave and EarnIn: What are the key takeaways?
EarnIn is an app that lets you access your pay as you work — which means that, unlike Dave, you can’t borrow money you haven’t earned yet. With Cash Out EarnIn's EWA tool, you can get up to $150/day with a max of $1,000/pay period, with no credit checks, no interest, and no mandatory fees. Here’s a breakdown of what each option offers:
Dave’s key features
- ExtraCash™. Get a cash advance of up to $500/pay period deposited into your linked checking account or Dave Checking account with no interest, credit check, or late fees.
- Checking Account. Dave users get a Dave Checking account that includes a digital debit card. A physical card is available upon request.
- Side Hustle. The Dave app offers users the option to take instant-pay Surveys or apply for flexible side jobs.
- Goals Account. Dave users can create and fund customizable savings goals within the app.
EarnIn’s key features
- EarnIn’s Lightning Speed tool allows you to receive your pay within minutes for just $3.99 per transfer (compared to up to $25 with Dave).
- EarnIn offers Balance Shield, a feature that alerts you when your bank account balance drops below an amount that you set to help protect you from overdrafts.
- There’s no need to set up a new account to use EarnIn. By just connecting your existing bank account you can use EarnIn’s Cash Out2 service, which allows you to get up to $150/day, with a max of $1,000 per pay period. Unlike Dave, EarnIn doesn’t charge a membership or subscription fee.
- EarnIn offers a free Credit Monitoring tool so you can see your Transunion® and Equifax® credit scores to stay on top of your financial health.
Here’s an easy-to-digest snapshot of how Dave and EarnIn compare.
Feature | EarnIn | Dave |
Advance amount | Up to $1,000/pay period | Up to $500 |
Fees | No mandatory fees; optional tipping6 | Monthly membership fee; optional tipping |
Speed | Instant transfers with Lightning Speed3 ($3.99-$5.99/transaction) | Instant transfer available (up to $25/transaction) |
Repayment | Deducted from next paycheck | Deducted on next payday or nearest Friday |
Eligibility | Must have consistent income and a linked bank account | Must have consistent income and a Dave Checking account |
Other features | Side Hustle, Goals Account | |
How it works | Access to already-earned wages | Cash advance based on future income |
EarnIn: The user-friendly alternative to a cash advance
While cash advances might help you in an emergency, they tend to be expensive and could lead to overdraft fees that put you into a cycle of debt.
With EarnIn, you’re not borrowing against the future — you’re simply accessing the pay you’ve already earned. There’s no interest, no credit check, and no mandatory fees, and you can access up to $150/day, with a max of $1,000 per pay period.2
Download EarnIn now to make every day payday.
Download EarnIn now to make every day payday.
EarnIn is a financial technology company, not a bank. The Cash Out product is provided exclusively by EarnIn. Certain bank products are provided by Evolve Bank & Trust and/or Lead Bank, Members FDIC. The FDIC insures deposits to protect your money in the event of a bank failure. More details about deposit insurance here. Additional services in the app are offered in partnership with trusted third parties.
1
Tip Yourself Account funds and Tip Jars are held with Evolve Bank & Trust, Member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service deposit account. For more information/details, visit Evolve Bank & Trust Customer Account Terms.The FDIC provides deposit insurance to protect your money in the event of a bank failure. More details about deposit insurance here.
2
EarnIn determines your daily and pay period limits (“Daily Max” and “Pay Period Max”) based on your income and financial risk factors as outlined in the Cash Out User Agreement. EarnIn reserves the right to adjust the Daily Max and Pay Period Max at its discretion. Your actual Daily Max will be displayed in your EarnIn account before each Cash Out. For additional information about your Daily Max and Pay Period Max, please refer to our FAQ. Service may not be available in all states. EarnIn does not charge interest on Cash Outs or mandatory fees for standard transfers, which usually take 1–2 business days. For faster transfers, you can choose the Lightning Speed option and pay a fee to receive funds within 30 minutes. Lightning Speed may not be available at all times and/or to all customers. See the Fee Table for details. Tips are optional and do not affect the quality or availability of services.
Lightning Speed is an optional service that allows you to expedite the transfer of funds for a fee. Depending on the product, the fee may be charged by EarnIn or its banking partner. Lightning Speed may not be available to all customers. Actual transfer speeds depend on your bank. See the Lightning Speed Fee Table for details.
4
Balance Shield provides free alerts when your bank account balance drops below the threshold you set in your EarnIn account. You can also enable automatic transfers ($100/day - subject to your available earnings - with a limit of $1,000/pay period), if your bank account balance falls below your set threshold. If your available earnings are insufficient to transfer the $100, the transfer will not be completed. You choose the speed of these automatic transfers. Standard speed is available at no cost and the transfer typically takes 1-2 business days. Lightning Speed is available for a fee [see Lightning Speed Fee Table] and the transfer typically takes less than 30 minutes. You will also have the option to set a tip for automatic transfers. Tips are optional and can be $0; however, if you choose to set a tip, it will be applied to each Balance Shield transfer. Whether you tip, how much, and how often you tip does not impact the quality and availability of services. You can cancel the alerts and/or transfers at any time in your EarnIn account settings. See the Cash Out User Agreement for more details. While Balance Shield can help you avoid overdrafts, it does not guarantee protection from third-party fees, and its effectiveness depends on your usage and bank activity.5
Your VantageScore 3.0 from Experian® indicates your credit risk level and is not used by all lenders, so don't be surprised if your lender uses a score that's different from your VantageScore 3.0. Learn more.6
Tips go to EarnIn and help us provide tools such as Credit Monitoring for free and keep Lightning Speed fees low. Your service quality and availability aren’t affected by whether you tip or not.7
Early Pay is an optional feature that allows you to access your paycheck up to two days early. To use Early Pay, you must: (i) Open a Deposit Account with one of our bank partners, Evolve Bank & Trust or Lead Bank, both Member FDIC. Funds held in the Deposit Account are held with our partner banks, and are insured up to $250,000 in the event the bank partner fails and if specific deposit insurance requirements are met. Learn more here; and
(ii) Update your direct deposit routing with your employer. This Deposit Account will receive your paycheck and will redirect it to the bank account linked to your EarnIn account. Before transferring, EarnIn will set aside the necessary funds from your paycheck to cover any tips, Lightning Speed fees, and Cash-Out balances from the previous pay period (the “Balances”). Any remaining funds will be transferred to your linked bank account. If your paycheck does not fully cover the Balances, EarnIn may debit the remaining amount from your linked external bank account, as allowed in the Transfer Out Payment Authorization.
Fees. If you opt for Lightning Speed transfers, our bank partner will charge you a $2.99 fee to transfer your paycheck to your linked bank account on the same day your employer processes payroll, which may be up to 2 days before your scheduled payday. If you do not opt for Lightning Speed transfers, our bank partner will automatically transfer your paycheck to your linked bank account for free, by your regular payday. Early Pay is available to eligible EarnIn members in select states. Additional restrictions may apply. For more information, please refer to our FAQ.
