If you typically run out of money before your actual payday, instead of taking out a payday loan or racking up serious overdraft fees, consider using the Earnin app.
The app enables you to access money from your next check – up to $100 each day and $500 per pay period – without fees or interest.
Keep reading to get the details on how you can get a free advance on the money you’ve already worked for.
How does Earnin work?
Earnin calculates the amount of money you can get by determining how often you work and what your salary is.
According to the website, the company believes that “paychecks should be instant, and financial systems should focus on people, not profits.”
You’re probably wondering how Earnin manages to provide this service for free.
Once you get your advance, you “tip” what you think is fair for the service – and if you can’t tip, you simply don’t.
There is a $14 tip limit per withdrawal, but you can give whatever you can afford.
If you’re flush one week and want to pay it forward to the community you can send $14, or if you’re feeling somewhat squeezed for cash you can skip the tip and make it up the next time.
To use the service, you must have a job and get your paycheck automatically deposited into your bank account.
When you request money, Earnin checks how much you’ve worked during that week.
If you’re paid hourly you can upload time sheet pictures for the company to verify, and if you’re salaried, Earnin asks that you allow it to track your commute to your place of work.
Once you get paid, Earnin deducts the amount you requested – and any tip you added – from your check.
So, say you received $100 from Earnin and tipped the maximum of $14 – you would have $114 deducted from your paycheck when it hits your bank account.
But Ted Rossman, industry analyst for CreditCards.com, is skeptical about using Earnin.
“Because these loans are so short term, in a few days, you could easily find yourself right back where you started, and if you add the suggested tip, that’s probably money you could ill afford to lose,” Rossman said…Read more>>