Apps that lend you money work by connecting to your bank account and letting you borrow against your next paycheck
The main apps that lend money are Earnin, Dave, Brigit, MoneyLion, and Chime. Each one works slightly differently — some charge a flat fee, some ask for a tip, some charge interest like a traditional loan. They all connect to your checking account to verify your income and pull repayment directly from your next deposit.
These apps are not the same as payday loans from a storefront or online lender. They do not report to credit bureaus, they do not charge the same interest rates, and they do not require a credit check. But they do cost money, and the cost varies widely depending on which app you use and how you use it.
Key Takeaways
- Earnin, Dave, Brigit, MoneyLion, and Chime are the most common money-borrowing apps, and each charges differently — some use flat fees, some use tips, and some charge interest.
- All of these apps connect to your bank account to verify your income and set up automatic repayment from your next paycheck.
- Borrowing amounts are usually small — between $100 and $500 — and repayment happens automatically when you get paid.
- These apps do not report to credit bureaus, so borrowing does not affect your credit score, but missing a payment can overdraft your account.
How each app charges you
Earnin lets you borrow up to $500 per paycheck with no mandatory fee. Instead, it asks you to tip what you think is fair — the app suggests an amount based on how much you borrowed, but you can choose to tip nothing. Most users tip between $1 and $15. Earnin also offers a paid subscription called Earnin Max that costs $7.99 per week and includes faster transfers and other features.
Dave charges a $1 monthly membership fee to use the app, plus you can borrow up to $500. There is no interest charged on the loan itself. Dave also offers a paid tier called ExtraCash that costs $9.99 per month and raises your borrowing limit.
Brigit charges $9.99 per month for a subscription that includes borrowing up to $250 per paycheck. Without the subscription, you cannot borrow through the app, though you can use its other budgeting features for free.
MoneyLion offers a free tier that includes small loans, but charges $19.99 per month for a Premium membership that raises your borrowing limit to $500. The free version lets you borrow smaller amounts.
Chime is a checking account with built-in borrowing. If you have a Chime account, you can borrow up to $200 with no fee through a feature called SpotMe. If you want to borrow more, you pay a monthly subscription fee.
What happens when you borrow
When you request a loan through one of these apps, the app checks your bank account to confirm you have regular deposits — usually a paycheck. This is not a credit check. The app is simply verifying that money comes in regularly so it knows you will have funds to repay.
Once you are approved, the money usually arrives in your checking account within one business day, though some apps offer faster transfers for an extra fee. The app then automatically takes the repayment from your next deposit. If your next paycheck is smaller than expected or does not arrive on time, the repayment can overdraft your account, which triggers overdraft fees from your bank.
Because these apps pull money directly from your bank account, they do not need to report to credit bureaus. Borrowing through them does not build credit history and does not hurt your credit score if you repay on time. However, if you overdraft your account because the repayment could not go through, your bank may report that to ChexSystems, which is a checking account history system.
Borrowing limits and repayment timing
Most of these apps let you borrow between $100 and $500 per paycheck, depending on which app you use and whether you pay for a premium subscription. The limit is usually based on your income — the app looks at how much money typically deposits into your account and sets a maximum you can borrow.
Repayment happens automatically on your next payday. You do not choose when to repay — the app takes the money directly from your deposit. This means you need to make sure your next paycheck is large enough to cover both the loan repayment and your regular expenses. If it is not, you will overdraft.
Some apps let you borrow again immediately after repayment, while others make you wait a few days. Check the app's terms to see how quickly you can borrow again if you need to.
When these apps make sense and when they do not
These apps work best if you have a steady paycheck and a small, unexpected expense that you need to cover before payday. If you borrow $200 and tip $5, you are paying $5 for a few days of borrowing — which is much cheaper than a payday loan or credit card cash advance.
They do not work well if you are borrowing regularly or if your income is unpredictable. If you borrow every paycheck, you are paying fees or tips constantly, and you are relying on each paycheck to cover both your loan repayment and your living expenses. This can trap you in a cycle where you never have enough money left over after repayment.
They also do not work if your paycheck is irregular or if you are self-employed. These apps need to see regular deposits to approve you, and they need to know when your next paycheck is coming to schedule repayment. If your income varies week to week, the app may not be able to predict when you will have money to repay.
Alternatives if borrowing apps do not work for you
If you need money before payday but borrowing apps are not an option, you have other choices. A credit card cash advance lets you withdraw cash from your credit card at an ATM, though it charges interest and a fee. A personal loan from a bank or credit union takes longer to process but charges lower interest than a payday loan. A line of credit from your bank lets you borrow up to a set amount whenever you need it.
If you do not have access to credit, you can ask your employer for an advance on your paycheck, ask a friend or family member to lend you money, or look for local nonprofits or community organizations that offer emergency assistance. Some employers also offer paycheck advance programs as an employee benefit.
What to watch out for
The biggest risk with these apps is overdrafting your account. If your next paycheck is late or smaller than expected, the app cannot take its repayment, and your bank charges you an overdraft fee. You then owe both the original loan and the overdraft fee.
The second risk is borrowing more than you can repay. Just because an app lets you borrow $500 does not mean you should. Borrow only what you know you can repay from your next paycheck without overdrafting.
The third risk is using these apps as a substitute for a budget. If you are borrowing every paycheck because you do not have enough money to cover your expenses, the problem is not that you need a loan — it is that your income does not match your spending. A borrowing app will not fix that.
Frequently Asked Questions
Do these apps hurt my credit score?
No. These apps do not report to credit bureaus, so borrowing through them does not affect your credit score. However, if you overdraft your account because the repayment could not go through, your bank may report that to ChexSystems, which can make it harder to open a checking account in the future.
What happens if I cannot repay on my next payday?
The app will try to take the repayment from your next deposit. If there is not enough money, your bank will charge you an overdraft fee. You still owe the app the original loan amount. Some apps let you extend the repayment date, but this usually costs extra.
Can I borrow from multiple apps at the same time?
Technically yes, but it is risky. If you borrow from two apps and both try to repay from the same paycheck, you could overdraft your account. Only borrow what you can repay from a single paycheck.
How fast does the money arrive?
Most apps deposit money within one business day. Some offer faster transfers — sometimes within a few hours — but charge an extra fee for this service. Check the app's terms to see how long it takes for your specific request.
Do I need a credit card to use these apps?
No. These apps only need access to your checking account. You do not need a credit card or a credit history to use them. You do need a bank account with regular deposits from an employer or other source of income.