Apps That Give Cash Advances

Discover apps that offer quick cash advances through zaving, making it easy to access funds in moments.

Last updated by Zaving Editorial Team, on May 10th, 2024

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What are cash advance apps and how do they work?

Cash advance apps are convenient platforms that allow users to access a cash advance – a short-term borrowing method extended by credit card issuers to allow borrowers to withdraw cash against their available credit limit. These apps typically connect to the user's bank account or employer's payroll system, assessing their earnings and determining a permissible amount for early withdrawal. Once approved, users can access these funds instantly through the app.

These services often charge a fee, either a flat rate or a percentage of the advanced amount. Some apps might also rely on voluntary tipping from users. Repayment terms vary, with many apps automatically deducting the advanced amount, along with any associated fees, from the user's next paycheck. Users may have the flexibility to repay earlier than scheduled.

Cash advance apps aim to offer financial flexibility and bridge the gap between paychecks, but users should exercise caution due to potential fees and their impact on future income. It's essential to review the terms and fees of these apps to ensure they align with your financial goals and responsibilities.”

How are cash advances different to payday loans?

Cash advances and payday loans differ in several ways:

  • Source of funding: Cash advances are associated with credit cards, allowing cardholders to withdraw cash against their credit limit. Payday loans, however, are standalone loans offered by specialized lenders and are typically based on the borrower's income.
  • Repayment structure: Cash advances are usually repaid monthly along with the credit card balance, subject to the card's terms and interest rates. In contrast, payday loans are typically repaid as a lump sum on the borrower's next payday, often accompanied by higher fees and interest rates.
  • Interest rates and fees: While cash advances tend to have higher interest rates compared to standard credit card purchases, typically ranging from 25% to 30% APR, payday loans carry even higher interest rates, often exceeding 400% APR, and may include additional fees.
  • Regulation: Cash advances fall under credit card regulations and agreements, whereas payday loans are governed by specific state and federal regulations, which can vary and are often less stringent than credit card regulations.
 

These distinctions can significantly impact the cost, repayment terms, and overall financial implications of using either option, making it essential for individuals to understand their financial needs and the associated terms before choosing between a cash advance or a payday loan.”

Can cash advances affect my credit score?

Cash advances from credit cards might not immediately impact your credit score because they are a form of borrowing against your credit limit, not a separate loan. 

However, they can indirectly affect your credit in a few ways:

  • Credit utilization ratio: Taking a cash advance increases the balance on your credit card, affecting your credit utilization ratio—the amount of credit you're using compared to your total credit limit. High utilization ratios can negatively impact your credit score.
  • Interest and fees: Cash advances often incur high fees and immediate interest charges. If these fees and interest increase your overall debt and you struggle with repayment, it could affect your creditworthiness.
  • Credit inquiries: Some lenders perform hard inquiries when you request a cash advance. While one inquiry might not drastically impact your score, multiple inquiries in a short period might signal financial stress, potentially lowering your score temporarily.
 

Remember, timely repayment and responsible management of your credit card balance, including cash advances, are crucial to maintaining a healthy credit score.”

More of your frequently asked questions about payday loans

Are there restrictions on how I can use a cash advance?

Yes, cash advances might come with restrictions imposed by the lender. Common limitations encompass capped withdrawal amounts, often a percentage of your credit limit or a fixed maximum. Some activities, such as gambling or investing, might also be restricted. It's advisable to use cash advances for immediate expenses or emergencies rather than non-essential purchases due to their high-interest rates.

Can I get a cash advance if I have bad credit?

Acquiring a cash advance with bad credit is feasible but might involve more scrutiny. Some lenders might still entertain individuals with poor credit, yet they could impose stricter terms, lower limits, or higher fees. Exploring options with alternative lenders or payday loans might offer possibilities, yet be mindful of the typically higher interest rates and fees.

Can I pay off a cash advance early without penalties?

Whether you can pay off a cash advance early without penalties hinges on your lender's policies. While some lenders permit early repayment without penalties, allowing you to save on interest by settling the advance sooner, others might impose prepayment fees. It's crucial to review your specific agreement or contact your lender to understand whether early repayment incurs additional charges.

What are the rates and fees associated with cash advances?

Opting for cash advances means facing increased fees and interest rates in contrast to regular credit card transactions. Typically, an initial fee of 3-5% of the withdrawal amount is combined with interest rates varying from 25-30% APR, contingent on your creditworthiness and the lending institution. These quickly accumulating charges render cash advances an expensive option.