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What is the difference between a cash advance app and a loan?

However, the premise is similar as they both are small loans that require repayment by your next payday. The largest difference is cash advance apps don’t charge interest, and many don’t even charge late fees.

Are cash advance apps considered payday lenders?

Cash advance apps are not considered payday lenders, and payday lending regulations don’t apply to them. But some consumer advocates consider them thinly veiled payday lenders, since both offer small-dollar loans due on your next payday. » MORE: Cash advance apps vs. payday loans: Which is better?

What is a cash advance app?

It’s a paycheck advance, or cash advance to help cover you until your next payday. In other words, it’s a way to get paid a little early for the work you’ve already performed, usually without a credit check. Cash advance apps pay you for some of the work you’ve already done this week, even if your paycheck is still several days away.

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