Dave vs EarnIn: Which Money App Is More Legit?

Cash advances are forms of debt that banks will charge interest on if you don't pay them off quickly. Apps like Dave and EarnIn don't technically offer such cash advances. Instead, they let you overdraft a sizeable amount of money from your account, but you won't face any late fees or overdraft charges.

How does it work? First, they have you set up direct deposits into your checking account and ask for your employment details. Their innovative apps take this info and calculate out an amount that you can safely overdraw before your payday comes around. They base this on your guaranteed paycheck, which they use to offset the negative balance.

The advantage here is that you can spread your cash flow more evenly throughout the month rather than waiting until payday. And by helping you respond to emergencies without delay, these apps can give you some financial security too.

In this guide, we'll compare Dave versus EarnIn, how these two apps work, their core features, and discuss which one we think is best fit for your needs.

How Does Dave Work?

Dave is a mobile app that connects to your bank account to provide you with 4.00% APY and helps you set up savings goals. The app has a marketplace to choose from gigs to make yourself a side hustle too.

Dave also offers a paycheck advance feature called ExtraCash™, allowing you to borrow up to $500 from your next paycheck without undergoing a credit check as long as you set up a direct deposit to Dave. You can also get paid up to two days early when you set the direct deposit up with your employer.

Is Dave Legit?

Yes, Dave is a legitimate financial tool designed to help you manage your cash flow and avoid overdraft fees. It partners with Evolve Bank & Trust (Member FDIC) to provide all banking services and issues the Dave Debit Card, pursuant to a license from Mastercard®.

Dave Eligibility

Your eligibility for ExtraCash is determined by analyzing several key factors:

• Recurring Deposits: You need at least three recurring deposits to qualify.
• Income and Spending: Your income history and spending patterns are considered in the evaluation.
• Monthly Deposit: A total monthly deposit of $1,000 or more increases your eligibility for a higher advance amount.
• Bank Linking Requirements: If you link your bank, your account must have a minimum 60-day history and maintain a positive balance.
• Outstanding Balances: You cannot take an advance if you have any outstanding balances.

Based on these criteria, your ExtraCash advance eligibility is recalculated daily, and your limit may change accordingly.

Dave Overview of Features

In addition to the ExtraCash™ feature, which lets you overdraft up to $500 before your upcoming paycheck, Dave comes with many other personal finance tools:

• Find Your Side Hustle: Within the app, Dave connects members to a network of partners offering flexible gig work opportunities, all accessible from the comfort of your home. Dave members can explore various legitimate remote job openings, providing an additional avenue to supplement your income.
• 4.00% APY on Savings: As of 08/01/2023, Dave offers a competitive Annual Percentage Yield (APY) of 4.00% on savings. This rate is variable and subject to change at any time, both before and after the account is opened, without prior notice. There are no minimum deposit or balance requirements.
• Budgeting Assistance: You can set savings goals and funnel money into those budgets. You can also withdraw funds from your Goals account up to six times a month.

Pros and Cons of Dave

Overall, we recommend Dave over EarnIn because it offers a wide range of tools, from high-yield APY to gig work to getting paid early. Its fee-free $500 ExtraCash™ feature is also among the highest in the money app industry.

Dave Pros:

• 4.00% APY: Dave offers a competitive Annual Percentage Yield, providing a great opportunity for savings.
• Side Hustle Marketplace: Connect with flexible gig work opportunities conveniently through the app.
• Get Paid Early: Access your earnings up to two days before your scheduled payday when you set up direct deposit.

Dave Cons:

• Small Monthly Fee: Dave charges a $1 monthly membership fee.
• Processing Time: Standard processing of ExtraCash™ takes 2-3 banking days.
• Instant Transfer Fee: An instant feature is available for a fee of $0.99-$3.99, depending on the size of the ExtraCash™.
• Optional Tips: You have the option to include tips for Dave, adding a variable cost.
• No Credit Monitor: Unlike EarnIn, Dave lacks a credit-monitoring feature.

How Does EarnIn Work?

EarnIn is a smartphone app that you sync up with your main bank account to monitor your credit health. Within the app, you'll be able to keep track of your credit score without having to pull a hard credit check.

EarnIn also offers their Cash Out feature, which lets you overdraft up to $750 per pay period before payday, as long as you set up direct deposit from your employer to your EarnIn account.

You can add your earnings info in three ways:

• Electronic or Printed Timesheet: Submit your earnings through an electronic or printed timesheet.
• Employer-Provided Work Email Address: Provide your earnings using your work email address provided by your employer.
• GPS Earnings Feature: If you work from a fixed location, your earnings can be added automatically through the app's GPS earnings feature.

Is EarnIn Legit?

EarnIn, like Dave, is a legit and well-liked financial tool designed to provide you with access to your earned wages throughout the month before payday. EarnIn is not a bank, instead partnering with Evolve Bank & Trust (Member FDIC) to provide banking services. The EarnIn Card is issued pursuant to a license from Visa USA Inc.

EarnIn Eligibility

To be eligible for EarnIn Cash Out, you need to be employed and meet the following criteria:

• Consistent Direct Deposit Pay Schedule: Your pay schedule should be regular, whether it's weekly, biweekly, semi-monthly, or monthly.
• Fixed Work Location or Employer-Provided Email Address: Additionally, you must have either a fixed work location or an email address provided by your employer.

EarnIn Overview of Features

Along with the Cash Out feature, which lets you overdraft up to $750 fee-free throughout the month before your upcoming paycheck, EarnIn offers these products too:

• Alerts: Balance Shield is a tool that sends email and push notifications when your bank balance drops below a set amount ($0-$400). It's always on but can be disabled anytime.
• Automatic Transfers: Balance Shield can automatically move $100 of your earnings (plus an optional tip) if your bank balance falls below $100. Transfers repeat automatically, but can be turned off at any time.
• Boosts: You can request a temporary $50 boost from a community member one time per pay period.
• Credit Monitoring: Credit monitoring is a free service for EarnIn members to check and monitor your credit score within the app. You can keep a close eye on your financial health, avoid penalties, and report suspicious activity. It is not a credit builder.
• Tip Yourself: Basically a savings pot, you can set aside any amount between $1 to $50 daily to Tip Jars. You get a maximum of 5 Tip Jars, total of $2,000, to help you keep track of savings. It's not an interest-bearing account though.

Pros and Cons of EarnIn

EarnIn's $750 Cash Out feature certainly offers the largest amount in the money app industry. While it does not offer as many financial tools as Dave, it is an excellent way for those with strong employment history to spread out your cash flow across the month prior to payday.

EarnIn Pros:

• No Monthly Fees: EarnIn stands out above Dave by not charging any monthly membership fees.
• Shorter Processing Time: Processing typically takes 1-2 banking days, ensuring quicker access to funds.

EarnIn Cons:

• "Lightning Speed" Feature Cost: Expediting the process with the "Lightning Speed" feature incurs a fee of $0.99-$3.99, depending on the size of the Cash Out.
• No Interest-Bearing APY: Unlike Dave, EarnIn does not offer an interest-bearing Annual Percentage Yield.
• No Side Hustle Marketplace: Unlike Dave, EarnIn lacks a dedicated side hustle marketplace, limiting additional income opportunities.
• Optional Tips: Similar to Dave, EarnIn asks you to include optional tips during the advance request process.

Dave vs EarnIn: Our Verdict

While both Dave and EarnIn have their merits, our recommendation ultimately leans towards Dave.

EarnIn boasts a larger $750 Cash Out feature and quicker processing times, making it ideal for employed customers who just want to free up their cash flow throughout the month. However, EarnIn's lack of an interest-bearing APY and a dedicated side hustle marketplace may limit its appeal.

Although Dave does have a $1 monthly membership fee and a longer processing time for ExtraCash™, these are outweighed by its wide range of personal finance tools. This includes Dave's competitive 4.00% APY, a side hustle marketplace, and the ability to access your paycheck early. Along with the $500 ExtraCash™ feature, one of the highest in the industry, Dave is ideal for full-time workers, students working part-time, gig workers, and those constantly getting hit with overdraft fees from their main bank.