There is a famous saying, “When the going gets tough, the tough gets going”. It is not just as saying but a reality with people who often find a lot of month left at the end of their salaries. Money lending applications that offer cash in advance, in case you run out of your salary and have lurking expenses before the salary day. Going to the bank, writing an application, waiting for manager’s approval, waiting in the queue to collect your cash, or waiting for it to get credited into your bank account, and then repaying it back to the bank with a fee, can be burdensome.
Mobile app development companies build Cash advance apps to help people borrow some money beyond their credit limit. Such cash advances are often higher than interest rates and are quite different from typical credit card purchase, as some additional fee may or may not be applicable. Examples of Money Advance apps include: EarnIn, Dave and Brigit.
How do Cash Advance Apps help?
Cash advance is a loan for short term that allows you to quickly access funds from a bank or any other financial institution. Such apps lets you borrow some money from your credit card, you may or may not have exhausted your credit limit, and you usually pay a fee for the service. There can be more than one way to retrieve money via cash advance apps – banks, ATM’s, or by special checks.
Cash advance gives unsecured working capital in 2 days. Approval process is often specific to the company. A Merchant Cash Advance is better than a business loan. It is fast, easy, and cost effective. It gives your business an up-front sum of cash in exchange for a fixed percentage of the daily revenues, called a retrieval rate. People pay this daily or weekly percentage until they repay the advance plus any fees. Their factor rate determines these fees.
Is there any limit to withdraw cash from cash advance apps?
The amount to be withdrawn may depend on your car issuer’s cash advance limits. You need to look out for card’s terms and keep checking your credit card statement, plus also contact your credit card company for further clarification.
Credit cards often have an interest rate or annual percentage rate (APR) which is in accordance to the Federal Deposit Insurance Corporation. APR can be double and credit cards may not allow a grace period to make the payment. So in case you miss the deadline to pay your credit card bill, the bank might incur a fine. Plus, ATM’s might charge some extra fees for their services.
Cash advance does not directly affect the credit score, but it will use more of the available credit. This affects the credit utilization ratio and often lowers your credit score, depending upon how much you borrow. But your credit score will not be impacted if you are prompt in repaying what you owe.
What is Money Lion?
Money Lion is a banking app that offers a $500 cash in advance. Some sample transactions that may be cash advances are Peer to Peer (P2P) money transfers through PayPal, Venmo, and MoneyGram, using credit card to pay a bill or debt, such as an auto loan, wire transfers, traveler’s checks, money orders, foreign currency exchanges, Gaming chips and other wagers, or lottery tickets. It works in the same was as most other Cash Advance Apps do, and terms and conditions are pretty much the same.
It can be your Go To Money Apps, helping you out with the money when you need it the most. It asks you to open a bank account and have a debit card to manage your banking online. It also lets you invest funds in companies, improve your credit with a credit builder loan, or get paid two days early.
Cash Advance Apps Like Money Lion is more or less a Credit Building App that also lets you monitor your credit score and key credit factors like your credit utilization, weekly updates, 0% APR Cash Advances, and access to Instacash advances of up to $300 per period.
Money Lion App Features/Benefits
- It allows you to access a loan, build a credit, get paid 2 days earlier, access fast cash with paycheck, and use Instacash to fetch extra money when you need.
- Money Lion also features its Debit MasterCard with contactless Pay, RoarMoney virtual card for online, phone, and mobile pay if the account is funded. Paychecks are deposited up to 2 days in advance with direct deposit.
- Rewards and discounts are there to help with the income.
- MasterCard Price Protection exists if people find a lower price within 90 days of an eligible purchase, they can ask for a refund for the difference of up to $250 per claim, 4 times a year.
- They do not charge any overdraft r minimum balance fees.
- The app tracks all transactions in real time.
- The app rolls out weekly report to check spending habits by category.
- There is an option to instantly lock/unlock the card for security.
Are cash advance apps legal?
Unfortunately they are not legal. According to the prevailing law, a lending company should be a bank or a non-banking financial company (NBFC) registered with Reserve Bank of India (RBI) to be able to lend and they should also hold a license as a money lender under the state Money Lenders Acts.
In a nutshell
Cash advance is a costly alternative to making a purchase using credit card or borrowing money from the bank, or using debit card to withdraw money, or withdrawing cash from the ATM. But is always considerable in case you run out of cash and no other legitimate option is available. Atleast you will be safe for a few days, and meanwhile you can figure out how to repay that money back.
Merchant Cash Advance Apps are like a marketplace for business loan products. Their loan specialists listen to customers and structure a solution that fits their needs in the budget. These days technology enables a fast and efficient business loan application process with full control on the repayment structure.