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Key Summary:
- 44% of gig economy gross volume comes from customers in the U.S.
- Around 88% of the global gig economy comes from ride-sharing platforms like Uber and Lyft.
- Due to the cash flow problems with the gig economy, there’s a steep demand for cash advance apps for gig workers.
- Cash advance apps can help gig workers to find flexible and quick money solutions.
- Almost all gig workers, including DoorDash, Uber, Lyft, and Freelancer, can apply for cash advances.
What are cash advance apps for gig workers?
Cash advance apps provide short-term loans that allow borrowers like gig workers to access cash quickly. Generally, cash advances are meant to cover short-term and emergency expenses compared to bank loans or credit cards; cash advances are fast-approved and mostly accept all credit types. Keep in mind that cash advances come with higher interest rates and fees.
With the gig economy, you not only get instant access to money, but it also provides work flexibility that people love about it. However, the dark side of the gig economy is irregular payments and lack of essential benefits. What if your car needs urgent repairs, or you need funds to cover medical emergencies? At this time, you may need a cash advance.
Best cash advance apps for gig workers: Uber & Lyft drivers, independent contractors, freelancers, and self-employed
Dave
Basically, Dave is like a banking app that offers cash advances to almost all individuals, including gig workers, through their ExtraCash feature. They offer no interest, credit checks, or late fees for short-term loans to help people struggling financially in their next paycheck.
Founded: 2016
Pros:
- Savings round-ups and budgeting features
- Side hustle board and cash advance options
- $0 monthly fee for basics
Cons:
- No joint accounts
- Doesn’t accept wire transfers
- No physical branches
Earning
Similar to the Dave app, Earning is known for providing its users with easy, quick, and interest-free cash advances based on their monthly paycheck. If you’re stuck withing financial problems and your next paycheck is far away, you can use Earning to borrow instant cash up to $500.
Founded: 2014
Pros:
- No credit check
- No monthly fees or interest charged
- Lightning Speed works on weekends and holidays
Cons:
- Can only qualify with employment income
- Same-day transfers attract a fee starting at $2.99 per transfer
- Verification of earnings required
Brigit
Usually, Brigit is a multi-functional app, including credit monitoring, budgeting assistance, and cash advances. You can easily borrow between a minimum of $50 and a maximum of up to $250. If you are looking alternative to pricey overdraft fees or high-interest payday loans, Brigit could be a fantastic option for you.
Founded: 2019
Pros
- Overdraft predictions
- No interest or late fees
- Due date extensions available
Cons
- Customer support only through email
- Monthly fee for full app experience
GigsCheck
GigsCheck offers short-term loans from $100 to $5,000 dedicated to gig economy workers, including rideshares, freelancers, and self-employed. You can also find gig jobs with this app and apply. They accept bad credit individuals, and no credit check is applied.
Founded: 2022
Pros
- Quick approval and funding in minutes
- Low interest and no fees
- No credit checks and bad credit accepted
Cons
- Limited amount ranging between $100-$5,000
- Customer support only through email
MoneyLion
MoneyLion’s main mission is to financially help Americans who can’t access traditional loans and other banking opportunities. Typically, they offer low-cost financial services like cash advances with no credit checks, the main cause of rejection with conventional credit options.
Founded: 2013
Pros
- Bad credit accepted
- Low or No cost
- No credit check required
Cons
- Limited state availability
- Limited state availability
Chime
Chime is a popular banking app in the fintech market. They offer innovative banking and financial services like cash advances through its secure and fast mobile app. In addition, they offer extra as compared to banks, like no account or monthly fees and a unique feature to get paid early.
Founded: 2014
Pros
- No overdraft or foreign transaction fees
- Early direct deposits
- $0 opening deposit and no monthly fees
Cons
- No physical branches
- No wire transfers
- No joint accounts
DailyPay
DailyPay is an on-demand earned wage access app that lets employees, including gig workers, access their earned wages before their next paycheck. DailyPay is easy to integrate with payroll systems and allows employees to 100% access all of their unpaid wages by paying a small fee.
Founded: 2015
Pros
- Automates savings
- Doesn’t require Social Security number
- Receive 100% of your earned income
Cons
- Negative customer reviews
- Hard to reach customer service
- Must work for a Dailypay partner
Albert
Albert is a non-banking app that offers financial services to almost all types of individuals earning a regular income. Albert has no overdraft or monthly fees and offers many services like savings, budgeting and investing, and interest-free cash advances with cash-back rewards points.
Founded: 2015
Pros
- Up to two days early paycheck deposit
- Albert Instant overdraft service
- $0 plan option
Cons
- No physical branches
- No mobile check deposits
- Need paid membership to access most perks
PayActiv
PayActiv is an employed-based unique app that serves approx. 7.1 million unbanked households in the United States. It offers cash advances to employees up to 50% on their paychecks. Additionally, it includes free financial education and prepaid debit cards.
Pros
- Instant financing available
- Available to salaried and hourly employees
- No bank account required
Cons
- Instant funding requires Payactiv card
- Potential program fees of up to $5 per pay period
- Limited options if your employer isn’t enrolled in Payactiv
FlexWage
FlexWage allows employees to get paid daily if their employer integrates it. You can access funds anytime by using a reloadable card app that connects with your wages, making it possible to get cash advances when you need money fast.
Founded: 2010
Pros
- Provides access to earned wages before payday
- Seamless and secure transactions
- Offers extra financial wellness tools and resources
Cons
- Only available for enroll employers
- May include transaction fees
- Restricting universal access
Pros and cons of cash advance apps
Cash advances, like any other financial product or service, come with advantages and disadvantages. However, before applying, make sure to be aware of all the details and ensure it is suitable for you:
Pros
- Instant approval and funding in minutes
- Typically, low rates and no late fees
- Mostly no credit check and accept all credit types
- Online and paperless application
Cons
- May some charge monthly subscription fees
- Charges may be applied for same-day funding
- Some apps offer small amounts for newer users
Alternatives to cash advance apps for gig workers
- Build Emergency Fund: It is the best option to save some money for your rainy days. Keep aside a small portion of your monthly earnings and regularly save it.
- Credit Union Loans: Compared to payday loans, search and apply for credit union They are more affordable and come with lower interest rates.
- Peer-to-Peer Lending: Many peer-to-peer platforms offer personal loans at lower interest rates and accept all forms of income sources, including the gig economy.
- Credit Cards: Search for credit card companies that offer interest-free periods. Use such interest-free credit cards to cover your short-term and immediate financial problems and pay back within a set period.
- Microlending Programs: Many companies offer microlending programs that provide low-interest financial services, especially to small-business owners and low-income earners.
