Apps That Let You Borrow Money Until Payday

Apps that let you borrow money until payday usually provide a small cash advance to help cover expenses before your next paycheque arrives.

These apps are commonly used for unexpected expenses, bills or groceries. Before borrowing, check the fees, repayment date and whether the provider performs a credit check.

KOHO

With KOHO Cover, you can:

• Get up to $250 as an instant cash advance (amount depends on eligibility)

• Pay no interest on the advance

• Avoid a credit check

• Repay automatically once you add money or get paid

You subscribe to the Cover bundle for a low monthly fee, and in return you get the advance feature plus extras like a credit report, financial coaching, and priority support.

How Do Payday Advance Apps Work?

Payday advance apps provide money before your next scheduled paycheque. You usually create an account, verify your identity and provide information about your income or account activity.

Once approved, the advance is deposited into your account or made available through the app. Repayment may be collected automatically when your paycheque arrives or when you add money to the account.

Can You Borrow Until Payday Without a Credit Check?

Some cash advance apps do not require a traditional credit check. Instead, they may use your account activity, income or repayment history to determine how much you can access.

What Should You Check Before Borrowing?

Before using an app to borrow money until payday, review:

• The total amount you must repay

• Interest, subscription or transfer fees

• When repayment will be collected

• Whether repayment is automatic

• Whether late or insufficient-funds fees apply

• Whether the provider checks your credit

Traditional payday loans can be expensive. In regulated Canadian provinces, the maximum cost of borrowing is generally $14 for every $100 borrowed.

Is a Payday Advance App Right for You?

A payday advance app may help when you have a small, temporary gap between an expense and your next paycheque.

It is usually best for costs you know you can repay once your income arrives.