Is your paycheck coming up, but you still have some expenses that need paying? Do you not have enough money in your bank account to pay for these expenses? Are you thinking of overdrafting your bank account to make ends meet?
Overdrafting your bank account can be necessary to get cash to get yourself out of a financial jam. While overdrafting can be helpful, it can still be very costly, and there are other options than overdrafting. When you overdraft your bank account, you not only have to pay back the amount you spent over your limit, but you will likely have to pay an extremely high-interest rate. Further, you will likely have to pay an overdraft fee. These payments will have to be made much quicker than a loan from Possible, for example. Overdrafts can turn out to be very expensive for you. While overdrafting might seem like your only option for getting out of a jam, there are, thankfully, other financial services and cash advance apps that can be much better for you than overdrafting your bank account.
Dave and Earnin are two payday advance apps that can be a great alternative to overdrafts. They both offer a slightly different product, but they both are a way to access money without needing to go below zero on your bank account! Let’s take a look at both of these apps so you can learn what they are, how they work, and which one you should choose if you are worried about overdrafting your bank account!
Earnin is a payday advance app that allows you to access your paycheck before it ever hits your bank account on payday. How is this possible? Well, did you know that your paycheck can sit in limbo early in the week before you get paid? It’s true! Paychecks are often approved earlier in the week by your employer until Friday when you get paid.
Doesn’t it seem unfair that you can’t use your paycheck even if it’s processed? Earnin essentially allows you to have access to it before it ever hits your account. When you use Earnin, you are not exactly getting the money from your paycheck early. Instead, Earnin is “loaning” you money, and your paycheck is used as collateral for your small advance. Think of it like this: your next paycheck is supposed to be for $500, but you only have $10 in the bank account. Let’s say you need gas on Tuesday, but it’s going to be more expensive than $10. Instead of overdrafting your account and paying high interest and even more cash fees, you can use Earnin to advance money, in essence, borrow money. Once your paycheck comes, you simply pay back what you borrowed.
Earnin is a fantastic alternative to overdrafts. Just think, wouldn’t you rather use your paycheck early instead of making your bank account negative? Earnin is also much cheaper than overdrafting, so you can save yourself cash and avoid bad credit by using it.
Let’s take a look at some of the features and drawbacks of the Earnin app.
Dave is a popular app that is somewhat similar to Earnin but differs in some key categories. Dave’s main product is that it is a payday advance app. Dave is technically a digital bank backed by Shark Tank executive and Dallas Mavericks owner, Mark Cuban. Now valued at around $1.2 billion, Dave has around 7 million current users and attracts more and more customers every day that want to switch to online banking.
When we say Dave is an online bank, it is not necessarily a “bank” like Chime or Ally Bank. Like typical banks, Dave offers you a free checking account, along with many other financial services that can cover most of your financial needs. However, like in-person banks or some online banks, Dave will not offer you large personal loans or individual retirement accounts.
Like Earnin, Dave’s main product offers you a way to avoid overdrafting your bank account and having to pay overdraft fees or interest. Dave allows you to have access to your paycheck about 2 days before payday. You can access this payday advance feature and many other financial services within Dave for a small monthly fee of $1 a month. Great deal, right?
Let’s take a closer look at some of Dave’s main features and drawbacks so we can get the whole picture of Dave.
Earnin and Dave are undoubtedly innovative and helpful pay advance apps that can aid you in a financial jam. Likewise, they respectively contain great financial features that can help you control your personal finances. However, these two apps are not the whole picture. If the drawbacks we discussed for Earnin and Dave have convinced you to look elsewhere, look for Possible Finance as a superior alternative to both Earnin and Dave.
Possible’s loans combine many of the best aspects of Dave and Earnin’s payday advances. For example, Possible offers loans like installment loans that are better alternatives to traditional payday loans. These installment loans are paid back over long repayment periods, and if you are ever struggling with your payment, you can extend your payment up to 29 days right within our app. These loans can be up to $500, and you can have the money in your bank account within minutes and at no cost, which are both things Dave and Earnin cannot necessarily provide.
The main thing that separates us from these two companies is our transparency. Unlike Dave and Earnin, Possible is fully transparent with our fees and our interest and it is not disguised in the form of tips, disbursement fees, subscription fees, and so on. Possible clearly offers loans, and as a result we took the right approach of being completely transparent and legal. We are fully licensed in the states we operate in. Dave and Earnin on the other hand bury their costs under terms like “tips.” As a result, these two companies can operate in any state as they skirt around the laws. In reality, they work like traditional payday lenders and are even more expensive sometimes, yet they still avoid the law.
As a result of this lack of transparency and consideration for the law, Dave and Earnin are beginning to feel the consequences. On the other hand, Possible remains transparent with our customers and the law and we remain clean today.
Our APR is exceptionally competitive and can even beat the high APR that can be associated with Dave and Earnin’s advances. Our loans are comparatively more straightforward to pay off than traditional lenders. We offer these loans to customers with poor credit. If you successfully pay off your loan, we report your payments to the credit bureaus, and your score will rise!
At Possible, we want to go against the grain of traditional payday lenders as well as Dave and Earnin with their predatory practices. We want to provide our customers with financial fairness and add value for them by providing loans and building their credit the right way. We feel that we offer a superior product than apps like Dave and Earnin and we want to prove it to you. Download our app today and get started with your loan so you can be on your way to building your credit!