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Online Payday Loans & Cash Advance Apps Compared
What’s the Difference Between Payday Loans and Cash Advance Apps?
Payday loan lenders are located across the country. Many of which offer convenient online payday loans so that when the need comes up for a short-term loan you won’t even need to leave your home. There’s a new way to get fast cash from anywhere – cash advance apps. The two options differ regarding how they work, where they’re offered, loan amounts, and how they’re regulated. Both options are examples of unsecured loans, which means you don’t need to offer collateral to receive your funds. To understand their differences and decide what’s best for you, let’s first learn more about each option.
What are Payday Loans?
Payday loans offer a fast and convenient solution for people who are faced with unexpected financial emergencies or need some extra funds between paychecks. Payday loans are well known as an option to get fast cash. A good credit score (670 – 850) is an important factor in getting approved for most personal loans, but with a payday loan, you could be approved even with bad credit. It’s a great option for those who are burdened with poor credit or have an unfavorable financial history because they’re unable to access traditional credit, like credit cards or banking options. Many depend on payday loans to help cover urgent expenses like car repairs, medical bills, or utility payments. Some lenders like Check `n Go have your funds deposited no later than the following business day once an applicant is approved for this kind of short-term loan.* When used responsibly, payday loans can bridge the gap between paychecks and help maintain financial stability when faced with tough times.
What are Cash Advance Apps?
Some consider cash advance apps synonymous with payday loans, but that’s not entirely true. They’re both short-term loans but there are various kinds of cash advances. The confusion stems from the reality that payday loans can also be referred to as payday advances because this type of loan can give you an advance on your next paycheck. There’s also a credit card cash advance, which is a way to secure a short-term loan through your credit card’s line of credit. You can get a credit card cash advance at a bank, an ATM, or over the phone.
Cash advance apps are downloaded from Apple’s App Store or Google Play and installed on a smartphone. The apps connect to your bank account. Life is always throwing curveballs and we can’t always see them coming. Like payday loans, cash advance apps are used as a short-term solution for people living paycheck to paycheck or to cover unexpected expenses, which could be a dental emergency, the need for medication, an urgent need to travel, a car that won’t start, and more.
Yahoo Finance reports that in 2024 the fees for borrowing $100 from the various different cash advance apps range from $6 to $28, but that doesn’t account for all associated expenses like accrued interest, fees, monthly subscription, or tips – that’s right, some of these apps request tips! The cash advance apps that request tips include Empower, MoneyLion, Dave, Albert, and EarnIn. One controversy with cash advance apps is that they can be loose with security. Depending on the app you choose, they might sell your personal information to 3rd parties.
Comparing Payday Loans and Cash Advance Apps
| Payday Loans | Cash Advance Apps | |
| Quick Access to Cash | ✔ | ✔ |
| Loosely Regulated | ✔ | |
| Possible Fast Funding Fee | ✔ | |
| Potential High APR | ✔ | ✔ |
| Potential Upfront Fees | ✔ | ✔ |
| No Collateral Required | ✔ | ✔ |
| Tips Requested | ✔ | |
| Potential of Selling Data to 3rd Parties | ✔ | |
| Monthly Subscription Fee | ✔ |
How to Apply for a Payday Loan
Applying for a payday loan can differ company to company. To apply for a payday loan from Check `n Go, you can apply online or in-store. The process is quick, simple, and secure. Before applying, gather up the following items:
- Valid and working phone number
- Proof of most recent income information
- Valid US. Government issued photo ID or driver's license
- Proof of routing and account number from an open and active check account, must be active for at least 30 days.
- If you’re in AL, IN, or OK, you’ll also need official documentation of Social Security Number.
After applying and if approved, you’ll simply eSign to finalize your loan. Funds are deposited no later than the following business day.* You can use Pocket360 to manage and repay your loan. For more information about Check `n Go’s payday loans, visit our FAQ.
How to Request Money from a Cash Advance App
Your first step is to choose an app. There are many to choose from with individual pros and cons. You can begin your research by searching through Apple’s App Store, or Google Play depending on your device. Reviews will be a great asset during your research. Save time by only reading through the 5-star and 1-star reviews. Fortune also has this guide that breaks down fees and cash advance limits. Next, make sure you’re fully aware of the terms and costs of the cash advance app you’re using to avoid any potential confusion or future hardship.
Once you’ve chosen an app, you’ll need to download it, install it, and create a user. Registering on the app will require you to share some of your personal information like name, address, phone number, and email address. If you’re ready to request funds, you’ll need to connect the app to your bank account. Most apps connect to your bank account to monitor your transactions, decide if you’ll be able to repay your advance, deposit your advance, and automatically withdraw payment when it’s time. Remember some apps require a subscription fee, so it might be advantageous to choose one that doesn’t.
Like with most things, it’s important to do your research to decide what kind of short-term loan is right for you.
Editorial Policy: The information contained in Check `n Go’s Finance Academy Learning Center is for educational purposes only and is not legal advice. You should consult your own attorney or seek specific advice from a legal professional regarding any legal issues. Check `n Go does not act as a credit counseling, repair service, or debt consolidation service in providing this content. Please understand that Check `n Go policies change over time. Blog posts reflect Check `n Go policy at the time of writing. While maintained for your information, archived posts may not reflect current Check `n Go policy.
The information contained in our blog posts are the author’s own opinions, not those of Check `n Go or any other company. Any pros and cons are developed by our editorial team based on independent research. Some of the products, services, and offers on this page may not be available from Check `n Go. In Texas only: Check `n Go does not act as a credit services organization in providing this content.
Loans Rates and Terms by State
Select your state below to view important rates, terms, and disclosures unique to the state.
Online Disclosures
Customer Notice: Payday Loans are typically for two- to four-week terms. Some borrowers, however, use Payday Loans for several months, which can be expensive. Payday Loans (also referred to as Payday Advances, Cash Advances, Deferred Deposit Transactions/Loans) and high-interest loans should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction. See State Center for specific information and requirements.
California operations licensed by the California Department of Financial Protection and Innovation pursuant to the California Deferred Deposit Transaction Law. Texas loans originated by a third-party lender, restrictions apply. Eastern Specialty Finance, Inc., D/B/A Check ‘n Go is licensed by the Delaware State Bank Commissioner pursuant to 5 Del. C. sec. 2201 et. al.
Check `n Go Online is not a direct lender in Texas, where instead it acts in the capacity as a Credit Services Organization in conjunction with third-party lenders.
*Active checking account open for at least 30 days.
*Approval depends upon meeting legal, regulatory and underwriting requirements. If approved and originated by 8:00 pm ET on a business day, online loans are typically funded no later than the following business day. All times and dates are based on Eastern Time (ET). Check `n Go and third-party lenders may, at their discretion, verify application information by using national databases that may provide information from one or more national credit bureaus, and Check `n Go or third-party lenders may take that into consideration in the approval process.
**Transunion CreditView Dashboard is a third party provided service. The material has not been modified or validated by Check `n Go.
Payday Loans in Indiana are available for a maximum of $825 for online loans
We do not report credit in Texas.
Products or services offered to customers may vary based on customer eligibility and applicable state or federal law. All available products subject to applicable lender’s terms and conditions. Actual loan amounts vary. See State Center for specific information and requirements.
Check `n Go currently operates online in: Alabama, California, Delaware, Florida, Idaho, Indiana, Kansas,, Michigan, Missouri, South Carolina, Texas, Utah, and Wisconsin.
Check `n Go currently operates in store locations in: Alabama, Delaware, Idaho, Michigan, Missouri, Oklahoma, South Carolina, Texas, Utah, and Wisconsin.
The Company, individually or through its affiliates, is licensed as a Debt Collector by the California Department of Financial Protection and Innovation (DFPI), License Number 10435-99.
Notice to California consumers: Information on your privacy rights under the California Consumer Privacy Act can be found by reviewing the California Consumer Privacy Act (CCPA) Policy.