When you’re down to zero: How to get a free cash advance

Everyone needs to make their money stretch sometimes. When you’re short on funds, it’s possible to bridge the cash gap without spending any of those precious dollars that you need so badly. In many situations, an app could give you the option to access money for free.  

Let’s explore your options for rustling up some bucks between paydays.

What is a cash advance?

A cash advance is a type of short-term loan. It’s typically for a small amount of money, with a repayment time frame measured in days, not months. Being an advance implies that it’s different from traditional installment loans. You’re accessing money in advance of when you expect to have it.

In the past, the main option for cash advances against your next paycheck was a payday loan. Payday loans are very expensive and notorious for trapping borrowers in a cycle of debt. Now there are more options for making it through to your next payday.

A related option is a credit card cash advance. This is an expensive way to borrow cash against your credit card spending limit. Credit card cash advances almost always have a much higher interest rate than purchases. There is no interest grace period on a credit card cash advance, so you’ll pay interest from the day you access the cash. 

Cash advance apps

Cash advance apps allow you to access a small amount from an upcoming paycheck. Once you tie your bank account to one of these apps, you can request an advance be deposited directly into your account. Usually, you have to agree to let the app automatically deduct what you owe from your pay the next time you receive a direct deposit. In some cases, you can repay the advance over time. Many apps allow you to access your pay in this manner for free. In some situations, you could encounter a small fee (sometimes called a tip).

Here, we'll look at apps that offer free cash advances, and how to qualify.

How do free cash advances work?

In the context of free cash advance apps, the way they usually work is that the app gives you access to a small amount of the money you’re expecting on your next paycheck. Then the amount you borrowed is deducted from your pay the next time you get direct deposit. 

Cash advance apps typically require some advance planning and a positive bank account history. You may need: 

• An active bank account with a specific bank (which one depends on the app)

• A bank balance of at least $0 (in other words, no accounts in the negative)

• A minimum amount in direct deposits in the current or previous month

• A history of making all prior payments on time if you've ever borrowed money from the app before 

• To be able to wait a day or two for the money. 

When a cash advance app advertises its services as free, it means it's free to those who meet their conditions. For example, if you can’t wait a day or two for the money, you might be able to get a same day cash advance for a small fee.

Most cash advance apps allow you to borrow money with no credit check. Often, landing a cash advance is as easy as tapping through a basic application on your phone. As long as you meet the criteria, the cash—generally between $10 and $1,000—is deposited into your bank account. 

Can you really get a free cash advance?

Yes, you can get a free cash advance if you satisfy the requirements. You may have to set it up before you need it. Also, if you need the money instantly, you may have to pay a small fee (typically a few dollars). 

If you qualify for a free advance, choose not to tip, and repay the loan on the day it's due, your advance may be free. 

Cash advance apps that offer no fees

Your experience with a cash advance app may be nothing but positive as long as you know what you're getting into and plan to pay the amount borrowed off by its due date. If that's the case, here are some of the apps that truly can be free to use. Check out the conditions of free cash advance for each app.

App #1: MyPay (Chime)

• Chime checking account

• Qualifying direct deposit setup

• Must have received at least two paychecks of more than $200

• Live in a state where MyPay is offered

• Wait 24 hours for the check to be deposited

App #2: Payactiv

• Employed by a company that partners with Payactiv

App #3: Varo Bank

• Free if you're borrowing $20

• Active Varo bank account

• Not be overdrawn on any Varo account

• Must have received at least $800 in qualifying direct deposits in the current or previous month

• No outstanding cash advances

• Made all previous Varo advance cash payments on time

App #4: MoneyLion

• Active checking account with a positive balance

• History of income deposits

• Legal resident of the U.S.

App #5: Earnin

• Verifiable employment

• Regular pay schedule

• Direct deposit access

• Resident of the U.S.

• Valid U.S. phone number

• At least 18 

Risks to watch out for anytime you get a cash advance

The most significant risk you face when taking out a cash advance is not being able to repay it on time. With a free cash advance, if your advance is withdrawn from your account automatically on payday, you might have to take another cash advance against your next check. This situation could be hard to sustain.

If you ever find yourself in a borrowing-and-reborrowing cycle, don't panic. A trained debt expert could give you the advice you need to find your way back to solid financial footing. 

Alternatives to cash advances

When you’re in a pinch, try not to jump at the first cash option that lands in your lap. Emergency cash might not help you if it lands you in a deeper financial hole. Here are three other options to consider:

1. Family or a trusted friend

If you don't need to borrow much and are certain you can repay the loan, your least expensive option is always to check first with the people who care about you. 

2. Federal credit union payday alternative loan (PAL)

If you're a credit union member, talk to them about a PAL. Some credit unions can provide between $200 and $1,000 in an emergency situation and give you from one to six months to repay. 

3) Personal hardship loan

Even if your credit score is less than perfect, you may find that a personal hardship loan is the best way to cover an emergency expense. Commonly, these loans allow you to borrow between $5,000 and $50,000, although some lenders provide loans for smaller or larger amounts. Before settling on a lender, get a sense for what you’ll qualify for by inquiring with lenders who can prequalify you with a soft credit check.

4) Government assistance

If you need help getting food for your household, the Department of Health and Human Services offers the Supplemental Nutrition Assistance Program (SNAP), a government subsidy for food. To get started, find the SNAP office in your area. Since SNAP can take up to 30 days to kick in, look to area food pantries in your area for enough supplies to get you by. 

5) Debt resolution

A debt resolution program may be a good option if you're struggling to stretch money due to existing debt. When you enter a debt resolution program, an expert negotiator asks your creditors to accept less than the full amount you owe and forgive the rest. Resolving debts could help you get on better financial footing if you end up with fewer bills to pay.

What's next?

If you need cash right now and firmly believe you can pay off the borrowed amount with funds from your next paycheck, look at the apps we've mentioned here. While they're not the only free (or low-cost) apps on the market, they're a great place to start.