The best loan apps of April 2024 for small-amount borrowing
Updated 11:55 AM EDT, Tue March 26, 2024
If you’re short on cash before your next payday, a loan app might be a helpful solution. These mobile apps offer short-term loans that are easier to obtain and more convenient to repay than personal loans — and generally safer than more predatory payday loans.
Loan apps may be particularly helpful if you have less-than-stellar credit (most lenders won’t check your credit) or recurring direct deposits (they generally work by grabbing repayment from your bank account). Just be mindful that some loan apps charge fees that can easily equate to triple-digit APRs (more below) if you don’t repay the debt.
We’ve rounded up a list of the eight best loan apps of 2024 after analyzing and comparing loan amounts, funding timelines, fees, repayment terms and many other factors. This list can help you narrow down the best loan app for your situation.
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Methodology
CNN Underscored Money editors determined the best loan apps by judging more than a dozen of the most widely available lenders across 22 factors. These factors fell into four broader categories: cost of borrowing, loan details, eligibility and repayment experience. View our full methodology below.
- Number of companies reviewed: 15
- Number of data points analyzed: 330
- Number of features we considered: 22
- Number of primary data sources used: 17
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Varo
: Best loan app
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Possible Finance
: Best for longer repayment terms
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Chime®
: Best for fast, no-fee funding
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Earnin
: Best for high borrowing amounts
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Brigit
: Best for flexible repayment support
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SoLo Funds
: Best for peer-to-peer loans
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Payactiv
: Best for employment benefit option
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Dave
: Best for a connected spending account
Varo
Best loan app
Varo is a financial services company (or neobank) that offers among the best deposit accounts, credit building, tax filing and more. It also offers cash advances to existing Varo members. You can start with an initial loan amount of up to $250, and once you’ve shown you’ll repay your debt, you can borrow up to $500.
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Everything happens within your Varo account, so when you qualify for a cash advance, it will appear in your Varo bank account instantly (and unlike some competitors, Varo doesn’t charge an instant funding fee). You’ll pay a flat fee between $1.60 and $40, depending on your loan amount, and have up to 30 days to repay the balance. (Many loan apps, including some on this list, require repayment on your next payday.)
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Source: Varo
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The biggest downside of Varo’s cash advance feature is that only existing customers are eligible. If you don’t have (or create) a current Varo account, this app won’t be an option. Additionally, Varo’s fees are higher than some competitors, especially for large loan amounts. (For example, a $40 fee on a $500 loan roughly equates to 97% APR.)
- Instant loan funding
- Repayment term up to 30 days
- Access to many other financial services
- Four ways to contact customer service
- Payments are reported to credit bureaus
- Only available to Varo members
- High fees for some loan amounts
- Small initial loan limit
Existing Varo customers who want an advance on their next paycheck or potential borrowers who are willing to open a Varo account
Possible Finance
Best for longer repayment terms
Possible Finance specializes in credit repair, offering its Possible Loan in 21 states as a payday loan alternative. You can borrow up to $500 and repay it over eight weeks — the longest term of any of the best loan apps on our list.
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Fun fact: Possible Finance told CNN Underscored Money that 95% of its loans are funded in fewer than eight minutes, and 50% are disbursed within three seconds.
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A major benefit of the Possible Loan is that it reports your payments to the credit bureaus, meaning your timely payments will help boost your credit score. Half of the loan apps on our list don’t participate in credit reporting.
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Unfortunately, Possible Finance charges high fees on its loans. Depending on where you live, you could pay up to $25 in fees for every $100 you borrow. For example, on a $500 loan, you’d pay $125 in fees.
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States where Possible Loans are available: AL, CA, DE, FL, IA, ID, IN, KS, KY, LA, MI, MO, MS, OH, OK, RI, SC, TN, TX, UT and WA.
- Instant loan funding sans fees
- Payments are reported to credit bureaus
- Up to 8 weeks to repay your loan
- Flexible repayment options
- High loan fees
- Only available in 21 states
Borrowers who need more time to repay their debt than the average loan app offers
Chime®
Best for fast, no-fee funding
Chime is a financial services company that’s known for its online checking and savings accounts. Among its other financial services, it also offers “SpotMe® Fee-Free Overdraft,” which offers up to $200* to help you avoid overdrawing your account. This service is only available on Chime® Checking Accounts for eligible members.
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When you think you’re at risk of overdrafting, you can enroll in SpotMe® and request up to $200 to avoid it. Once you receive your next deposit into your checking account, Chime will automatically apply it to your negative account balance.
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The only real downside of Chime’s SpotMe program is that it’s only available to existing Chime members. Additionally, if you don’t have at least $200 or more in qualifying direct deposits, you may not be eligible.
Chime’s “Get Paid Early” program can also act as “early direct deposit” if you need to access your paycheck before it lands in your Chime account.
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Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
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Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
- No loan fees
- Overdraft protection automatically applies once you’re enrolled
- Increase your SpotMe limit with “Boosts” from Chime member friends
- Only available to Chime members
- Requires $200 in qualifying direct deposits
- Low maximum loan amount
- Asks for optional tips
New or existing Chime members needing overdraft protection or partial or full paycheck advances
Earnin
Best for high borrowing amounts
Earnin offers cash advances, allowing you to access your paycheck as you earn it rather than waiting for the full amount to land in your account. You can borrow up to $100 per day and $750 per pay period without interest or mandatory fees. Then, when your next paycheck hits your bank account, Earnin will automatically withdraw your loan balance.
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The biggest hurdle to qualifying for Earnin is that you must have verifiable earnings of at least $320 per pay period. Additionally, while some loan apps allow weeks or months to repay your loan, Earnin requires that you pay it with your next paycheck.
- High borrowing amount
- No mandatory fees
- Same-day funding available at an additional cost
- $100 per day maximum loan amount
- Requires earnings of $320 per pay period to qualify
- Asks for optional tips
- Not available in Connecticut
- Doesn’t report payments to credit bureaus
Borrowers who want larger loan amounts with no fees but can repay the funds quickly
Brigit
Best for flexible repayment support
Brigit differs from many of its competitors by offering a subscription model for loans. You’ll pay a monthly subscription fee ranging from $9.99 to $14.99. In return, you’ll connect Brigit to your bank account and can request an advance at any time. Additionally, Brigit offers automatic overdraft protection. It will alert you when you’re at risk of overdrafting your bank account and can automatically transfer funds to keep your balance in the black.
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The key benefit of Brigit is its repayment flexibility. When you’re approved for an advance, you can choose your own repayment date, though it’s typically set as your next payday. However, you can also request an extension on your repayment with no additional fee. Brigit told CNN Underscored Money that it never charges late fees.
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Unfortunately, Brigit’s subscription model can be pricey. While the monthly fee may be worth it if you’re regularly close to overdrafting, you might not use the service enough to merit the recurring fee. On top of that, there are instant funding fees if you want cash within 20 minutes.
- No loan fees, interest or optional tips
- Alerts you when you’re at risk of overdraft
- Access to many other financial tools
- Reports payments to credit bureaus
- Expensive subscription fees
- Instant loan funding fee
- Low borrowing limits
- Express delivery requires an additional fee
- Instant funding isn’t available in all states
Borrowers who worry about overdrafting and want the certainty of Brigit’s overdraft alerts and automatic advances — despite the subscription costs
SoLo Funds
Best for peer-to-peer loans
SoLo takes a unique approach to lending: Rather than borrowing from a finance company, you’re borrowing from individual investors. People can join SoLo to lend money, earn a small return and know they’re helping someone who needs cash. Meanwhile, you could borrow from these members of the SoLo community. SoLo doesn’t charge any common loan fees, only optional tips, and features a longer-than-average repayment term (35 days).
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The downside of peer-to-peer lending (also called P2P loans) is that there’s no guarantee that your loan will find an investor. Also, even if your loan’s funded, your payments won’t be reported to the credit bureaus, meaning that borrowing from SoLo won’t help you improve your credit scores. On top of that, SoLo has faced legal challenges in three states that say its APRs are payday loan-like, according to the National Consumer Law Center.
- No overdraft fees — only optional tips
- Same-day funding available at an additional cost
- Longer repayment terms
- No guarantee your loan will be funded
- Low loan limits for new borrowers
- Doesn’t report payments to credit bureaus
- 10% late payment fee
- Not available in California, Connecticut or the District of Columbia
Borrowers who may not qualify to borrow from typical loan app lenders or who desire a longer repayment period
Payactiv
Best for employment benefit option
If your employer partners with Payactiv, this loan app allows you to access your wages before you’re officially paid. Each day, you can borrow up to 50% of your net earnings and transfer them to your bank account, add them to a prepaid card or use your Payactiv Visa card, among other options. You can use the money for whatever you need, and when you get your next paycheck, you’ll repay the loan. You can borrow up to $500 if you don’t have direct deposit set up and up to $1,000 if you do.
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A key downside of Payactiv is that, as an earned wage access program, it requires your employer’s participation. If your employer doesn’t have a relationship with Payactiv, you won’t be able to use it. To determine whether your employer partners with Payactiv, download the app and use the employer search feature. Additionally, your loan funds are deducted directly from your paycheck, meaning they’re prioritized over all of your other financial responsibilities.
- High maximum loan amount
- No loan interest or fees in most cases
- Requires employer participation
- Fees for some funding methods
- Loan funds are deducted from your paycheck
- Doesn’t offer chance to build credit
Borrowers seeking fast cash who work for a company associated with Payactiv
Dave
Best for a connected spending account
Dave offers an ExtraCash account, which allows you to borrow up to $500 in five minutes or less. Rather than sending the money to your normal bank account, Dave sends the money to your Dave Spending account. From there, funds can be spent via a virtual Mastercard, Apple Pay or Google Pay, or you can request a physical Dave debit card. You’ll then repay the loan on an agreed-upon date.
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Dave doesn’t charge loan fees, but it requires a $1 monthly membership fee. Additionally, with same-day transfer fees ranging from $3 to $25 (depending on loan amount and transfer type), this can be among the costlier loan apps.
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- $3 to $15 for transfers to a Dave Spending account
- $5 to $25 for transfers to external bank accounts
- Spending account includes high APY and round-ups
- Doesn’t charge late fees
- Same day funding available at an additional cost
- Access to other useful tools
- Requires a $1 monthly membership fee
- Expensive same-day transfer fees
- Asks for optional tips
Borrowers who want to take advantage of Dave’s feature-rich spending account
Our picks at a glance
| Lender | Rating | Loan amounts | Instant funding fee | Repayment term |
|---|---|---|---|---|
Varo
| 5 | $20 to $500
| $0
| 30 days
|
Possible Finance
| 4.6 | $50 to $1,000
| $0
| 8 weeks
|
Chime
| 3.9 | $20 and up
| $1.99
| Next payday
|
Earnin
| 3.7 | Up to $750
| $3.99 to $4.99
| Next payday
|
Brigit
| 3.6 | $50 to $250
| $0.99 to $3.99
| Next payday
|
SoLo Funds
| 3.6 | $20 to $575
| 1.75%
| 35 days
|
Payactiv
| 3.4 | Up to $1,000
| $1.99
| Next payday
|
Dave
| 3 | Up to $500
| $3 to $25
| Next payday
|
Why use a loan app?
- Access money quickly in an emergency. A loan app may be faster and more affordable than a personal loan, especially if you only need a small amount. Just keep in mind that even some of the best loan apps charge “express” or “instant” funding fees.
- Avoid overdraft fees. A loan app can help you avoid the penalties you might accrue for outspending your bank account balance. Though loan apps also charge fees, they’re often lower than those you’d pay your bank for an overdraft.
- Get a paycheck advance. A loan app can serve as a cash advance when you’re running low on money and need help making it to payday. Some lenders allow you to tap a portion or all of your paycheck before it arrives — assuming you’ll agree to repay the loan when it does.
- Avoid riskier short-term loans. Loan apps are a more affordable and less predatory alternative to payday loans. They accomplish the same goal of getting you money quickly when needed, but they don’t charge the same predatory interest rates and fees.
- Access other financial tools. Some loan apps offer other financial tools, including credit monitoring, deposit accounts, budgeting features and more. You can prioritize the lenders that offer the perks you most desire.
What are loan apps, and how do they work?
Loan apps, also known as cash advance apps, describe fintech companies that offer small-dollar loans — usually up to $500 — as an advance on your next paycheck. In return, you pay interest or fees on the loan.
These typically online companies often advertise themselves as payday loan alternatives, cash advances, overdraft protection or something else. But no matter the terminology they use, they all work similarly.
Loan apps generally require you to connect your bank account (or open one of their checking or savings accounts). This is how you’ll initially receive money from the app, but also how your loan will be automatically repaid. You’re generally required to repay your loan after a certain number of days, weeks or when you get your next paycheck (or other direct deposit).
Example: Let’s say you’re still a week from your next paycheck, but your car breaks down and requires an immediate, substantial fix (perhaps you need it to get to work). Assuming you meet a loan app’s eligibility requirements (particularly around direct deposit), you can qualify quickly and have the money deposited into your account on the same day. A week later, when your paycheck hits your bank account, the loan app will see the money come in and automatically withdraw the amount you borrowed plus any fees.
Are loan apps safe?
Loan apps have security measures in place to keep your money safe, but that doesn’t mean they’re risk-free. These apps generally require you to connect your bank account (or open one of theirs). Additionally, they may require personal information, including your Social Security number.
If you don’t practice strong digital safety habits, like choosing a strong password and using two-factor authentication, you risk someone accessing your account and your money and/or financial information.
It’s also worth considering whether borrowing money is a safe choice for your personal finances. Even if the app itself doesn’t pose a risk, going further into debt could damage your financial health, especially if you’re in a cycle of borrowing to make ends meet.
Pros and cons of using loan apps
| Pros | Cons |
|---|---|
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Loan and cash advance apps can be a valuable tool when you’re still days or weeks away from your next payday but need money quickly. These loans can be deposited into your bank account within hours, in some cases. And if you’re at risk of overdrafting your bank account, you’ll find that the fees on these loans are cheaper.
Additionally, loan apps usually don’t run a credit check, meaning bad credit won’t be a hurdle to qualifying. Finally, many loan apps have other features, including credit monitoring, educational resources and bank accounts.
While these loans have relatively low fees, when you calculate them as a percentage, they actually have quite high APRs, similar to payday loans. Additionally, these loans tend to have low maximum loan amounts and short payment terms, meaning they aren’t a good long-term solution, especially if you need a lot of money.
Payments are generally withdrawn directly from your bank account, forcing you to prioritize these loan payments over other financial responsibilities. Finally, because of the short repayment terms, you may need to take out another loan to cover the first one, leading to an endless cycle of borrowing.
The bottom line: The best loan apps can be a helpful bridge to get you to payday — once in a while. But if you find yourself relying on them to make ends meet, take a closer look at your budget to identify a less expensive strategy.
How to choose the best loan app
There are plenty of loan apps to choose from, and it’s important to find the one that best fits your situation. First, determine how much you need to borrow. Because each loan app has its own maximum loan amount, that information alone could narrow down your search.
It’s also important to pay attention to loan costs. Some loan apps offer fee-free loans, while others don’t. Those that charge fees may have other features that make those fees worth it, but you’ll have to decide for yourself.
Tip: To accurately compare the costs of loan apps, you can calculate their APRs using this formula: APR = (Fees / Loan amount / Days in loan term) x 365 days x 100. For example, if you borrow $500 on a 14-day term and are charged $25 in fees, your APR would be over 130% — that’s extremely high compared to personal loans and credit cards that can have APRs well below 36%.
Finally, consider the repayment term each loan app requires. Most of these loan apps require that you repay your loan when you get your next paycheck. If you need more time to repay your loan, consider a lender with longer repayment terms.
If you still aren’t sure which loan app is best for you, consider reading reviews from current and past customers. These reviews can give you insight into how a lender treats its borrowers, from customer support to transparency, helping you to further narrow down your decision.
5 alternatives to loan apps for quick cash
1. Small personal loans
Best for: When you have good credit
If you need a larger sum of money or need more than mere weeks to repay it, consider a small personal loan. These loans are an especially good alternative for borrowers with good credit (or a creditworthy co-applicant) who may qualify for a low interest rate and no origination fees. You can pay your loan off over months or years instead of weeks, which will help lower your payments and leave room in your budget for other priorities.
Related >> The best small personal loans of 2024
2. Credit union loans
Best for: When you’re already a credit union member
Credit unions can be an excellent source of small, low-interest loans — plus, credit requirements tend to be more relaxed than they are at banks. However, credit unions require membership. If you already have a membership at your local credit union, consider speaking with a loan officer about your options.
Related >> Credit union vs. bank: Which is best for you?
3. Credit cards
Best for: When you can repay the debt by the end of your statement period
Credit cards only charge interest if you don’t repay your full balance by the due date. Considering loan apps require you to pay them back within just a few weeks, a credit card could offer just as much breathing room, while also having no loan fees and the potential to earn rewards (particularly if you have a cash back credit card).
Related >> The best credit cards of 2024
4. Buy now, pay later apps
Best for: When you’re making a big retail purchase
Plenty of online retailers allow you to check out with a buy now, pay later app. These apps spread your purchase into four installments paid over six weeks so you don’t have to pay the full amount at once. These apps generally don’t charge interest if you repay the full amount within the normal payment term.
5. Friend or family loans
Best for: When you have a loved one with the ability or willingness to help
Though not everyone has the privilege of having friends or family with the means to provide financial help, consider this option if it’s available to you. You can avoid paying interest and some of the pressure of such a short repayment term. Just be sure you have a repayment plan in place (and stick to it) to avoid damaging your personal relationship.
Methodology
To determine the best loan apps of 2024, CNN Underscored Money editors judged 15 widely available lenders across four categories of loan features. Research analysts then scored these financial institutions to create an out-of-five rating.
Cost of borrowing (35%)
This is the category of fees. We rewarded lenders for having no or low fees and transparency about what’s charged and when. Common fees under consideration include those for subscription or membership, express funding, overdrafts and late payments.
Loan details (30%)
Here, we reviewed the nuts and bolts of each loan app’s product. The list of criteria included time to funding (with and without fees), minimum and maximum loan amounts and repayment terms. Lenders scored highest for delivering small and large loans quickly and offering longer-than-average repayment schedules.
Eligibility (10%)
Though credit scores and history isn’t usually a requirement to borrow from loan apps, there are other eligibility criteria, such as maintaining direct deposits. We evaluated competing companies on their nationwide availability and whether employer participation is required, among other factors.
Repayment experience (25%)
Even for small-dollar loans, a safety net is important. That’s why we probed loan apps to learn about their hardship options, grace periods and credit reporting. We also considered the ratings, reviews and availability of their mobile apps and customer service.
What didn’t make the cut
Many loan apps that you might see elsewhere online failed to measure up. Here are examples of lenders that didn’t make our list.
- Albert and Empower Finance limit loan amounts to $250.
- CashApp may check your credit before approval.
- Current has multiple fees that are either high or lacking transparency.
- Even requires employer participation.
- Klover’s express funding fees are twice that of our top-rated loan app company.
- MoneyLion’s Better Business Bureau profile contains red flags, including an “F” rating.
Frequently asked questions (FAQs)
Most loan apps don’t require a credit check, meaning you can access money even if you have poor credit. However, the tradeoff is that these apps generally require you to share your banking information so they can automatically withdraw your loan payments.
Depending on the loan app you use, you could receive your funds anywhere from immediately to within a few days. Some loan apps pay you more quickly when you have a checking account with their financial institution. Additionally, some allow you to pay an additional “express” or “instant” funding fee to get your money faster.
Most loan apps have relatively low borrowing amounts under $1,000. Some offer a flat loan amount, while others offer loan amounts based on your earnings.
Not all loan apps report your payments to credit bureaus, so not all of these loans will help improve your credit scores. If you’re hoping to improve your credit, prioritize loan apps that report on-time payments to at least one (but ideally, all three) consumer credit bureaus.
Many loan app companies offer credit monitoring services. You could improve your credit scores by analyzing your credit reports and making positive changes. Additionally, some loan apps offer other products and services that could help with your credit, including credit builder loans and credit cards.
Editorial Disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines, hotel chain, or other commercial entity and have not been reviewed, approved or otherwise endorsed by any of such entities.
This content is for educational purposes only and is not intended and should not be understood to constitute financial, investment, insurance or legal advice. All individuals are encouraged to seek advice from a qualified financial professional before making any financial, insurance or investment decisions.
Note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed or may no longer be available.
