Dave App 2021 Review: Paycheck Advance Tool
Financial Planning Options
- Get up to $200 right when you need it most
- Ditch overdraft fees and get a paycheck advance for free
- App sends notifications to alert low balance and prevent potential overdraft
- It may not be enough to cover unexpected emergency costs
- You still need to keep track of when extra bills come in to make sure your advance from Dave is adequate to cover them
- You need to receive direct deposits in your Dave account or link a bank account to get approved for an advance
About the Dave App
Unexpected bills and misaligned paycheck deposits happen to the best of us. Once upon a time, you may have faced a hefty overdraft fee or a bounced check, but fintech apps like Dave make it possible to get a paycheck advance without extra costs and avoid overdraft fees.
As a cash advance, you are expected to pay it back. Though you pay nothing to access the money, you do not get to keep it indefinitely.
Dave keeps track of your spending habits and predicts what your balance likely will be before payday. It also sends you an alert notification if you are in danger of an overdraft on your account.
The Dave app has several banking features that you can use to improve your overall financial stability all at once. The popularity of these features is evident in Dave’s popularity — the app boasts over 10 million users.
The paycheck advance option is the most attractive feature on the Dave app, offering up to $200 free to users to cover a gap in income while waiting for their paycheck. You can qualify for $200 if you get your direct deposits straight to your Dave account, or $100 when you link an external bank account.
To help prevent the need for a paycheck advance, balance warnings are also built into the Dave app. These help users guesstimate how long their remaining funds will last so that they do not overspend before payday.
It can be hard to build your credit if you are limited to debit cards. That’s why Dave works with LevelCredit to report your rent and utility payments to credit bureaus. This can help improve your credit score.
Tipping Instead of Fees
You never have to pay a single fee to make use of the Dave app’s paycheck advance tool. Instead, tipping options are built into the app so that users can pay what they feel services are worth.
The Small Print of Using the Dave App
Dave is not just handing out crisp Benjamins, though. As a cash advance on an expected paycheck, your account will be debited the amount once you reach your set payback date. This date is typically your upcoming payday. Alternatively, you can pay back the fee sooner if you have the funds.
Adjusting tipping is possible in the app, though users should be aware that 10% is the default tip. You can change the tip as needed when requesting an advance.
Dave App Costs
You can use the Dave app for completely free advances, but you’ll have to be strategic. You can opt not to tip to receive your advance completely free. Plan ahead and transfer the money to your account a few days ahead of when you will need it to avoid instant transfer fees.
It takes up to three business days to receive your paycheck advance for free. If you need it faster, there is a fee.
A $1 per month subscription fee is associated with your Dave account. However, you can waive this for some months when you use the Dave debit card to buy things at partner businesses like GNC.
Good To Know
Doing the math on the Dave app is important. If you qualify for credit cards, you may find better coverage between bill due dates and payday by using your cards even if you end up paying interest. Credit card interest rates average around 16% annual percentage rating, but calculating the APR of using the tip function on Dave shows it could bring costs up to over 300% APR which is not dissimilar from payday loans.
Who Should Use the Dave App?
In the exact right circumstances, the Dave app can be the difference between getting slapped with fees and bridging the days between bills being due and your paycheck clearing. But for any significant financial issues, Dave will barely act as a bandaid.
If you miscalculated your payment schedules this month and need $200 or less to mend a gap of several days between your bill due dates and your pay arriving, Dave can make sure you’ve got cash in your pocket. Otherwise, turn to some substantial budget and credit options.
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- Business Insider. "Review of Dave, Mark Cuban's Overdraft-Killing App."
- VICE. 2021. "he Dave App Promises Low-Cost Cash Advances."
- Credit Cards. 2021. "Average Credit Card Interest Rates: Oct. 20, 2021."