Which apps let you borrow money right now

The most common money-borrowing apps fall into a few categories: paycheck advance apps that lend against your next deposit, credit-builder apps that let you borrow small amounts to establish a credit history, and peer-to-peer lending platforms that connect you with individual lenders. The specific apps available to you depend on your state, your bank, and whether you have an existing relationship with the lender.

Paycheck advance apps like Earnin, Dave, and Brigit connect to your bank account and let you borrow a portion of your paycheck before payday. Credit-builder apps like Self and MoneyLion let you borrow money you've already set aside in a savings account, which builds your credit score as you repay. Peer-to-peer platforms like LendingClub and Prosper connect borrowers directly to investors, though approval can take longer and interest rates vary widely based on your credit score.

Some apps are tied to specific banks or employers. Chime, for example, offers early access to paychecks for account holders. Others, like Possible Finance, operate only in certain states. Before downloading any app, check whether it's available in your state and whether it reports to the credit bureaus—that determines whether borrowing through it will help or hurt your credit history.

Key Takeaways

  • Paycheck advance apps lend you money before your next deposit arrives, usually charging a flat fee rather than interest, though fees can range from $0 to $15 per advance depending on the app.
  • Credit-builder apps lend you money from your own savings account and report the repayment to credit bureaus, so they help build credit history even if you have no credit score yet.
  • Peer-to-peer lending platforms charge interest rates that vary by credit score and loan purpose, typically ranging from 6% to 36% annually, and approval takes days rather than minutes.
  • Many apps are available only in certain states or only to customers of specific banks, so you need to verify availability before you download.
  • Borrowing through an app that reports to credit bureaus can help your credit score if you repay on time, but borrowing through an app that doesn't report won't help or hurt your score.

How paycheck advance apps work and what they cost

Paycheck advance apps connect to your bank account and analyze your deposit history to determine how much of your next paycheck you can borrow. Earnin, for example, lets you borrow up to $500 per paycheck if you've been depositing regularly. Dave offers up to $500 and also includes overdraft protection. Brigit offers up to $250 and includes a savings feature.

These apps charge a flat fee rather than interest. Earnin asks for a "tip" of $0 to $14 per advance, which you set yourself. Dave charges $1 to $2.99 per advance for most users, though it can be higher if you use the overdraft feature. Brigit charges $3.99 per month for membership, which includes one advance per month plus overdraft protection. The total cost is much lower than a payday loan, but it adds up if you borrow frequently.

The money usually lands in your account within one business day. When your paycheck arrives, the app automatically deducts the borrowed amount plus the fee. If your paycheck is smaller than expected or doesn't arrive on time, you may face overdraft fees from your bank, so these apps work best if your income is predictable.

Credit-builder apps and how they help your credit score

Credit-builder apps like Self and MoneyLion work differently from paycheck advances. They lend you money that you've already saved, then report your on-time repayments to the credit bureaus. This builds your credit history even if you have no credit score yet or are rebuilding after past problems.

Self, for example, lets you open a savings account and borrow against it in monthly installments. You deposit money into the account, then borrow it back at an interest rate of around 10% to 20% annually. You repay the loan over 12 to 24 months, and Self reports each on-time payment to all three credit bureaus. After you finish repaying, you own the savings account and the money in it.

MoneyLion offers a similar structure but also includes investment features and financial coaching. The interest rate and loan terms vary depending on your membership level. Both apps charge monthly membership fees in addition to interest, so the total cost is higher than a paycheck advance app, but the credit-building benefit can be worth it if you're starting from zero credit or recovering from past damage.

Peer-to-peer lending platforms and their interest rates

Peer-to-peer lending platforms like LendingClub and Prosper connect individual borrowers with investors who fund the loans. These platforms typically offer larger loan amounts than paycheck advance apps—often $1,000 to $40,000—but the approval process takes longer and the interest rates depend on your credit score.

LendingClub charges interest rates between 6% and 36% annually, depending on your credit score, income, and loan purpose. Prosper charges between 5.99% and 35.99%. Both platforms charge origination fees of 1% to 6% of the loan amount, which they deduct from the money you receive. If you have a credit score above 700, you'll likely may have access to for a lower rate. If your score is below 600, you may not be approved at all.

The application process requires you to provide income verification, employment history, and a detailed explanation of why you need the money. Approval typically takes three to five business days. Once approved, the money is deposited into your bank account. You repay the loan in fixed monthly installments over three to five years. These platforms report to the credit bureaus, so on-time repayment helps your credit score.

Bank-connected borrowing and employer-based programs

Some borrowing options are tied directly to your bank or employer. Chime, a mobile banking app, offers early access to paychecks for account holders—you can receive your paycheck up to two days early at no cost. This isn't technically a loan, but it serves the same purpose as a paycheck advance app if you need money before payday.

Some employers offer earned wage access programs through apps like Instant, Salary Finance, or Guidepoint. These let you borrow against wages you've already earned but haven't been paid yet. The fees are typically $0 to $5 per withdrawal, and the money arrives within one business day. You need to check whether your employer offers this benefit—it's usually available through your HR or payroll system.

A few credit unions and community banks offer small-dollar loans through their own apps, with interest rates capped at 18% or lower by law. If you're a member of a credit union, check their website or call to ask whether they offer a mobile lending product. These are often cheaper than third-party apps, but availability is limited to members.

State restrictions and which apps work where you live

Not all borrowing apps operate in all states. Some states have strict lending laws that prevent certain apps from operating there. Possible Finance, for example, operates in only about 20 states. Brigit is available in most states but not all. Before you download an app, search "[app name] available states" to confirm it works where you live.

Peer-to-peer lending platforms like LendingClub and Prosper are available in most states but not all. Some states restrict the interest rates these platforms can charge, which makes lending unprofitable in those states, so the platforms don't operate there. Check the platform's website for a list of available states before you create an account.

If an app isn't available in your state, your options narrow to paycheck advance apps that are available nationwide (like Earnin and Dave) or credit-builder apps (like Self). You can also explore whether your bank or employer offers a borrowing product directly.

What happens if you can't repay the loan

If you can't repay a paycheck advance app on time, the app will attempt to withdraw the money from your bank account when your paycheck arrives. If your account doesn't have enough money, your bank may charge an overdraft fee. The app itself typically doesn't charge late fees, but repeated failed withdrawals can damage your relationship with the lender and may prevent you from borrowing again.

If you can't repay a credit-builder or peer-to-peer loan, the lender will report the missed payment to the credit bureaus, which damages your credit score. Late payments stay on your credit report for seven years. Some lenders offer hardship programs that let you pause payments or extend the loan term if you contact them before you miss a payment. If you're struggling to repay, reach out to the lender immediately rather than waiting for the payment to fail.

If you default on a peer-to-peer loan, the lender may pursue collection action or sell the debt to a collection agency. This can result in wage garnishment or a lawsuit, depending on the loan amount and your state's laws. Paycheck advance apps and credit-builder apps are less likely to pursue legal action for small unpaid amounts, but it's still possible.

Comparing borrowing apps to other short-term lending options

Borrowing apps are cheaper than payday loans but more expensive than a personal loan from a bank or credit union. A payday loan typically costs $15 to $20 per $100 borrowed, which equals 400% annual interest. A paycheck advance app costs $1 to $15 per advance, which is much lower. A peer-to-peer loan costs 6% to 36% annually, which is higher than a bank personal loan but lower than a payday loan.

If you have a credit score above 650, a personal loan from a bank or credit union is usually cheaper than any app-based option. Banks typically charge 6% to 18% interest for personal loans, and credit unions often charge less. The downside is that bank loans take longer to process—usually five to seven business days—and require more documentation.

If you need money today and have no credit history or a damaged credit score, a paycheck advance app is usually your fastest and cheapest option. If you have time to wait a few days and want to build credit, a credit-builder app is worth considering. If you need a larger amount and have a decent credit score, a peer-to-peer platform may offer better terms than a payday loan.

Frequently Asked Questions

Do borrowing apps report to credit bureaus?

It depends on the app. Paycheck advance apps like Earnin and Dave don't report to credit bureaus, so borrowing through them won't help or hurt your credit score. Credit-builder apps like Self and MoneyLion do report, so on-time repayment builds your credit history. Peer-to-peer platforms like LendingClub and Prosper report to all three bureaus.

Can I borrow from multiple apps at the same time?

Yes, but it's risky. Many people use multiple paycheck advance apps to borrow more money than they can repay from a single paycheck. When payday arrives, you may not have enough money to repay all the advances, which triggers overdraft fees and failed withdrawals. Stick to one app unless you're certain you can repay all of them from your next paycheck.

What's the difference between a paycheck advance app and a payday loan?

Paycheck advance apps charge a flat fee of $1 to $15 per advance and connect to your bank account automatically. Payday loans charge 15% to 20% of the borrowed amount, which equals 400% annual interest, and require you to visit a physical location or website to apply. Paycheck advance apps are significantly cheaper and faster.

Can I use a borrowing app if I have bad credit?

Paycheck advance apps don't check your credit score, so you can use them regardless of your credit history. Credit-builder apps are designed for people with no credit or bad credit. Peer-to-peer platforms usually require a credit score of at least 600, though some accept lower scores at higher interest rates. Check the app's requirements before you apply.

How much can I borrow from these apps?

Paycheck advance apps typically let you borrow $250 to $500 per paycheck. Credit-builder apps let you borrow against your own savings, so the amount depends on how much you've saved. Peer-to-peer platforms let you borrow $1,000 to $40,000 depending on your credit score and income. The larger the amount, the longer the approval process.