Thu. Jul 18th, 2024

Synopsis:

Dave and Earnin are both applications that assist individuals in acquiring extra cash in between traditional paychecks while offering a multitude of financial services and tools. 

Dave provides more banking solutions that help users track and manage their money in addition to the option of receiving small amounts of cash in advance of their next paycheck. 

Earnin provides a larger cash advance by comparison and can also be used to negotiate bills for medical services and established savings funds.

Despite the fact that there is no shortage of apps to choose from for personal banking, a staggering 7 million+ households in America have none set up in accordance with data issued by the Federal Deposit Insurance Corporation (FDIC). This figure does not even begin to include the number of Americans whose statements are in the negative. 

Many financial tools have attempted to bridge the divide by offering services and support to individuals that need their finances managed to make ends meet.

Instead of imposing lengthy fees to turn profits, apps like Earnin and Dave provide services to cover unexpected charges at 0% interest advances to avoid overdrafts and improve credit.

Payday loan is with a short-term, high-cost loan of $500 or less that is repaid on your next payday.

Dave

A digital banking service with no minimum balance or overdraft fees, Dave utilizes smart technology to help manage all expenses, get paid early, and build credit. The slogan of the business is “Banking For Humans”, as they provide real-time support for people along with practical solutions to resolve everyday obstacles in personal banking.

Dave includes budgeting features to track expenses and income. All paychecks can be directly deposited to Dave and subsequently connected to an external account. It also delivers alerts with predictions of cash flow to indicate when you have a low balance.

An additional benefit to direct deposit is that users can opt for an advance on future paychecks by as much as $100. This is very handy in the event a customer suddenly needs to pay extra bills or incur unforeseen expenses prior to getting paid by their company. With Dave, you are able to secure micro-loans of up to $75 with no interest.

The majority of individuals either need or at the very least desire to begin side hustles to cover expenses. Being a member with Dave allows connection to numerous network partners that offer flexible opportunities for gig-related work right from home. Simply sort through the list of opportunities and submit an application to begin earning with different remote jobs.

Per month, there is only a $1 fee to continue using Dave, and this figure is automatically deducted from accounts once your first paycheck is deposited. Donations and tips are also accepted. A percentage of all tips goes toward Trees.org, a charity organization that plants trees.

Yet, the downsides can be easily observed in the required monthly membership fee and a low cash advance in comparison to other platforms.

Earnin

A cash advance application that provides users access to the pay earned when they want it most. If unable to wait until the next paycheck, Earnin allows borrows up to $100 on a daily basis with a maximum of $500 for every pay period. There’s no catch or fee, so users are getting interest-free loans. Just provide a tip in the amount you are comfortable with, and when funds are deposited into the account, Earnin will automatically deduct the total plus tips.

Although Earnin is primarily known for its cash advances, they offer a tool referred to as Tip Yourself. Users can create a tip jar for their savings goals by rewarding themselves daily with wins, either big or small.

Earnin does not just want to dole out cash advances. Another feature, referred to as Balance Shield, notifies users when their bank account drops by a particular amount. In such a way, users can avoid overdraft expenses and set up automatic cashouts on early-payday in the event that balances falls too short.

One of the worst fees plaguing so many Americans includes Medical debt, which makes it extremely difficult to stay on top of bills and explore the idea of negotiating to small amounts. The Health Aid feature of Earnin solves this issue by allowing medical bills to be submitted such that Earnin negotiates and sets up affordable plans on behalf of the user.

This platform is entirely supported by tips and donations, so users can experience all features absolutely free. If you desire to tip the app after gaining a benefit from a particular functionality like Health Aid or Cash Out, you can select an amount that works best for you to help keep the service running. It’s a community-based application that lets you even cover another person’s tip or pay it forward.

The cash advance amounts are low, however, and there are several limitations that are based on how much you are paid in addition to where you work. 

Despite these setbacks, it’s better to choose Earnin in the event you appreciate the option of receiving greater interest-free cash advances that extend up to $500 per pay period. Furthermore, it’s the only app out of the two that allows for negotiation of medical expenses and allows tipping oneself for small and large money wins. 

On the other hand, you can still opt for Dave if you only need to borrow small amounts of money from your future self as needed and want to track your expenses and income. Dave helps to manage money better but fails to exclude emergencies and accidents. Only offering cash-advance loans of up to $100 interest-free only helps for minor unexpected costs. 

Carefully consider the added features you may receive, like account monitoring and money management, to prevent overdrafts. Then, weigh the pros and cons of both applications. The key, no matter your choice, should be to develop healthy financial habits over the long term and improve finances. Although borrowing may come in handy once in a while, the best thing to do is get ahead of finances by creating emergency funds and maintaining a set budget to cover costs.