If you own a TV, you may have noticed that there has been a surge in cash advance apps advertising their services targeting young people and those living check to check. Companies like Dave, Varo, and Brigit claim that users can get cash instantly without a credit check and with no interest, late fees, or hidden charges. Yet is this another “if it sounds too good to be true it probably is” situation? Reviews are missed.

On a positive note, users of Dave have admitted the app has helped them avoid overdraft fees at their bank. One reviewer praised Dave’s generous cash advance limit of up to $500 but didn't care for their monthly subscription fee or the fee the app charges to expedite a cash advance. If they promise cash instantly, they should specify there is a charge to receive a cash advance instantly. 

Because Varo functions by accessing payroll information to send users a portion of their paycheck before payday, there is a required minimum monthly direct deposit of $800 to qualify for the service. The positive is, Varo is a “savers” app so you could, in theory, pay yourself first before payday, for free. Then save money with Varo earning 5% APY on balances of up to $5k. The app makes money off cash advances, lines of credit, and the processing fees each time someone uses their Varo Visa debit or Varo Believe credit card.

As for Brigit, users are limited to very low initial advances and required to pay back the advance from their next payday. The monthly subscription fees are steep, ranging from $8.99 to $15.00 depending on the plan chosen. Yet 82% of reviewers on Trust Pilot love the service. Many claim that their credit score has improved greatly since utilizing the Brigit Credit Builder. At Alloy Wealth, we’re passionate about helping people achieve their financial goals. With regards to these apps, our advice to you would be - choose an app wisely and read the fine print!