Unexpected expenses are an unfortunate reality of life that can leave you strapped for cash.
While Venmo doesn’t directly offer loans, several cash advance apps have integrated with this popular peer-to-peer platform to provide instant access to funds when you need it most. These apps act as a financial lifeline.
Let’s dive into the top cash advance apps that work with Venmo.
Can you borrow money on Venmo?
Venmo does not offer loans. However, it offers credit cards, debit cards, and peer-to-peer payments. Additionally, several third-party cash advance apps integrate with Venmo, allowing you to access short-term funds, typically ranging from $25 to $1,000
Popular Apps that Offer Cash Advances with Venmo Integration
- Dave: Known for its speed and flexibility.
- Klover: This app provides fee-free cash advances.
- MoneyLion: Offers higher advance limits and additional financial tools.
The key benefits of using an app that works with Venmo are convenience (since you likely already use Venmo) and quick access to financial assistance. However, always borrow responsibly and explore interest-free options first, as short-term loans can quickly become costly if you cannot repay on time.
Here’s how it works:
- Connect Your Venmo Account: Start by linking your Venmo account to your chosen cash advance app. This usually involves a simple verification process to ensure secure transactions.
- Request an Advance: Within the app, specify the desired advance amount, keeping in mind the specific limits and any associated fees.
- Receive Funds: Once your request is approved, you can access funds. Standard delivery typically takes 1-5 business days depending on the app. For faster access, most apps offer express delivery options (with fees), which can provide funds within minutes to hours.
- Repay Automatically: The app will automatically deduct the advance amount plus any applicable fees from your linked bank account on your next payday.
1. Fast cash with Dave
Imagine this: Your car breaks down, and the repair will cost $150 that you just don’t have until next week’s paycheck. Enter Dave, the popular cash advance app with millions of users and a strong reputation that gets you paid quickly.
- Dave charges express transfer fees: $1.99–$13.99
- Dave has mandatory overdraft service fee capped at $15
- FTC lawsuit for undisclosed fees (NOT mentioned)
- Get up to $500 in Extra Cash funds directly sent to your Venmo or linked bank account.
- Your repayment date automatically aligns with your next paycheck, offering flexibility and peace of mind.
- Stay on top of your finances and track your spending with Dave’s budgeting features.
- Improve your credit score by reporting your rent payments to credit bureaus.
Important Disclosure: In November 2024, the Federal Trade Commission (FTC) sued Dave for allegedly misleading consumers about advance amounts and charging undisclosed fees without clear customer consent. Dave has since restructured its business practices in response.
Dave Pros and Cons
| Pros | Cons |
|---|---|
| No interest | $3-$5 monthly subscription fee |
| Venmo integration | Limited advance amounts |
| Budgeting tools and building credit | Instant transfer fees ($1.99–$13.99) |
Dave Eligibility and Requirements
To qualify for a cash advance with Dave, you’ll need to connect your bank account, demonstrate a regular income history, and have a positive account balance.
2. Fee-Free Cash Advance: Klover
Looking for a cash advance app that works with Venmo and doesn’t charge monthly fees? Klover could be your solution. This app stands out for its straightforward approach and lack of membership costs.
- Get a Klover advance up to $200-$400 depending on eligibility with no credit check directly to your Venmo or linked debit card.
- Enjoy interest-free advances. Standard delivery (3 business days) is free, but instant transfer fees range from $1.49–$19.99. There’s also a flat $1.99 charge per cash out for some services.
- Klover Repayments are timed with your pay schedule to avoid missed payments and late fees.
- Klover reports your payments to all three major credit bureaus, helping you improve your credit score.
Klover Pros and Cons
| Pros | Cons |
|---|---|
| No monthly fees | Advance amounts based on income and employer |
| Venmo integration | Subscription fees for faster access to funds |
| No interest | Limited availability based on employer partnerships |
Klover Eligibility and Requirements
To qualify for a cash advance with Klover, simply connect your bank account that shows regular income, maintain consistent account activity, and ensure a positive balance. Klover utilizes a soft credit pull to help determine eligibility.
3. Interest-Free Cash: MoneyLion
MoneyLion is more than just a cash advance app; it’s a comprehensive financial platform offering banking, investing, and interest-free cash advances through its Instacash feature. Connect your Venmo account and access funds to cover unexpected expenses or bridge the gap until payday.
MoneyLion offers multiple optional products to enhance your Instacash experience:
- Basic Instacash (FREE): Access up to $500 in interest-free cash advances with no membership required. Standard delivery takes 2-5 business days.
- RoarMoney ($1/month): A FDIC-insured checking account that increases your Instacash limit up to $1,000 with recurring direct deposits. Funds arrive in 1-2 business days.
- Credit Builder Plus ($19.99/month): Includes credit-building loans (5.99%-29.99% APR), credit monitoring, and access to Instacash advances up to $700-$1,000.
- WOW Membership ($9.99/month): Provides cashback rewards, purchase protection, and exclusive features. Access to interest-free Instacash advances included.
All Instacash advances are interest-free and require no credit check. Optional “Turbo” instant delivery fees ($0.49-$8.99) apply if you need funds within minutes instead of waiting 2-5 business days.
MoneyLion Pros and Cons
| Pros | Cons |
|---|---|
| Larger cash advances | Membership fees |
| Venmo integration | Potential for a high APR on certain credit products |
| Credit-building features | Additional fees for some features |
MoneyLion Eligibility and Requirements
To qualify for Insta Cash advances, connect your active checking account with regular income deposits and maintain a positive balance. MoneyLion performs soft credit checks for eligibility.
Cash Advance Apps Comparison
| App | Advance Limit | Advance Fee | Membership Tiers | Additional Features | Customer Ratings |
|---|---|---|---|---|---|
| Dave | Up to $500 | $1.99–$13.99 (express transfers) + $3–$5 monthly subscription | Free, Paid | Budgeting tools, side gig finder, credit building | 4.7/5 stars |
| Klover | $200–$400 | $1.99 flat fee | Free | Credit building | 4.2/5 stars |
| MoneyLion | Standard: up to $500 With RoarMoney: up to $1,000 With Credit Builder Plus membership: up to $700-$1,000 | No mandatory fees (Standard: Free, Turbo delivery: $0.49-$8.99) | Basic (Free), RoarMoney ($1/mo), WOW ($9.99/mo), Credit Builder Plus ($19.99/mo) | Investing tools, credit monitoring, and rewards programs | 4.5/5 stars |
Alternatives to Money Borrowing Apps
For those looking for substantial loans with defined terms and repayment plans, traditional lenders present a more conventional option. Let’s delve into some alternative borrowing options:
1. Personal Loans
Personal loans, offered by banks, credit unions, and online lenders, provide a lump sum of money with a structured repayment schedule, typically spread over several months or even years.
These loans often boast lower interest rates compared to cash advances, making them a more attractive option for individuals seeking larger loan amounts and longer repayment terms. Those with good credit scores are particularly likely to secure favorable interest rates on personal loans.
2. Credit Unions
Credit unions are member-owned financial institutions that often prioritize personalized service and community involvement. They may offer competitive interest rates on loans, potentially lower than those found at traditional banks.
Additionally, credit unions often emphasize financial education and provide resources to help members improve their creditworthiness.
3. Community Assistance Programs
Many local communities offer financial assistance or support services through non-profit organizations or government agencies. These programs can provide temporary relief during challenging times by assisting with essential needs such as rent, utilities, and food.
4. Credit card cash advances
While easily accessible, credit card cash advances should be approached with caution. They often come with high interest rates and additional fees, making them a more expensive borrowing option. If you must resort to a credit card cash advance, prioritize repaying the balance promptly to minimize costs and avoid accumulating debt.
Smart Borrowing Choices
Remember, the best borrowing option depends on your individual circumstances. Consider factors like the amount you need, your credit score, and the repayment terms you can afford.
Take time to compare interest rates, fees, and eligibility requirements before making a decision. Responsible financial planning and exploring alternatives can empower you to make informed choices and achieve long-term financial well-being.
How Does Venmo Make Money?
Since we’ve established that Venmo doesn’t directly offer loans or cash advances, you may wonder how this payment platform generates revenue. According to their statistics, Venmo has over 90 million users conducting $230+ billion in yearly payment volume.
Their primary income sources include:
- A 1.9% fee is charged to business/merchant transactions to accept credit cards.
- An additional 3% fee for using a credit card to fund a personal payment
- Interest earned from users’ cash stored in the Venmo system
- Potential future revenue from offering financial services like loans or credit cards
So while Venmo itself doesn’t profit from your cash advance apps, those integration partners give users more flexibility in accessing funds quickly via Venmo’s popular platform.
Additionally, unlike some financial platforms, Venmo does not charge overdraft fees, further enhancing its appeal to users seeking convenient and cost-effective financial solutions.
Venmo Perks & Rewards
While Venmo doesn’t provide direct lending or cash advances, it does offer several money-related perks to users through its offers. These Venmo offers include features like linking a Venmo credit card for added flexibility in financial transactions and cash back rewards at select merchants when using your Venmo debit card or Venmo QR codes in-store.
These tools are designed to enhance your financial interactions, emphasizing that, despite misconceptions, Venmo explicitly states it does not provide loans to users.
Cash Advance Apps and Venmo Compatibility
Venmo excels in facilitating peer-to-peer transactions, making it a leading platform for quickly and easily splitting bills, settling debts, and transferring funds between individuals. Most major cash advance apps like Dave, Klover, MoneyLion, and others do work with Venmo to transfer funds.
However, it’s important to note that while Venmo supports these transactions, it is not directly involved in the process of borrowing money. Users should be cautious about borrowing and clear about repayment terms, as Venmo’s primary function is peer-to-peer transactions.
It’s always wise to confirm Venmo compatibility listed on the app’s website or with customer support to avoid issues.
The Bottom Line
Navigating unexpected expenses can be stressful, but as we’ve seen, cash advance apps that work with Venmo offer a convenient solution. Whether you choose the flexibility of Dave, the fee-free approach of Klover, or the comprehensive features of MoneyLion, there’s an option to fit your needs.
