New Research Reveals True Cost of Popular Cash Advance Apps

Rosemead, California, June 13, 2023 (GLOBE NEWSWIRE) —

A comprehensive study on the 15 most popular cash advance apps on the App Store and Google Play reveals the real costs behind borrowing $100. The findings show a broad range of fees, from as low as $6 to a steep $28, with an average cost of $15.35 – less than half the typical bank overdraft fee of $35 per transaction.  Furthermore, the majority of these apps do not charge interest or late fees, making them a far less costly option than traditional payday loans.

The study’s findings underscore the reality of financial strain experienced by many consumers, often living paycheck to paycheck. With cash advance apps, they can now access instant funds in a fast, convenient, and often affordable way, regardless of their credit score. These apps have exploded in popularity, becoming a crucial tool for consumers seeking financial breathing space.

Among the apps studied, Varo Bank, B9, Cleo, Klover, and Grid Money stood out by charging just $10 or less to borrow $100, making them attractive options for those seeking affordable, quick cash solutions.

Mitchel Harad, publisher of Overdraft Apps, emphasized the importance of these findings: “Cash advance apps have become a lifeline for those with limited savings by providing quick, affordable access to cash. But, like any financial decision, it’s crucial to shop around to understand the full terms and conditions and to find the best deal.”

The study also highlighted the various types of fees associated with these apps. While most cash advance apps don’t charge interest, they often include up to three types of fees: a monthly subscription fee, an express fee for instant money transfer, and an optional tip. However, with some careful planning, consumers can avoid express fees and tips, reducing the overall cost of the cash advance – even down to zero with some apps.

Furthermore, the study encouraged consumers to consider other factors apart from the cost when choosing a cash advance app. These factors include payback terms, which may range from a few days to 30 days, and additional features, such as credit monitoring and budgeting tools.   Many apps advertise cash advances for up to several hundred dollars, but few users initially qualify for the maximum amount and borrowing limits could be as low as $5.

“Knowledge is power,” Harad added. “Understanding the true costs and terms of cash advance apps empowers users to make informed decisions and avoid unwelcome surprises. Cash advance apps can provide a critical financial cushion for those living paycheck to paycheck. Still, it’s important to borrow responsibly and be mindful of the associated costs. Even with the relatively low costs, the fees can add up, especially for those who rely heavily on these services”

For more detailed insights on this cost study and comparisons of cash advance apps, visit https://overdraftapps.com/how-to-borrow-100-instantly/.

About Overdraft Apps

Overdraft Apps (https://overdraftapps.com) helps consumers avoid costly bank overdraft fees with detailed how-to guides and hands-on reviews of products that help consumers access extra cash, improve their credit score, and achieve their financial goals.

Source: https://thenewsfront.com/new-research-reveals-true-cost-of-popular-cash-advance-apps/