Find out what pay advance apps are and how they work right here with Savvy.
Fact checked
Fact checked
In Australia, pay advance apps are emerging as a potential solution for bridging temporary financial shortfalls. These apps essentially allow you to access a portion of your expected salary early, offering a quick alternative to traditional loans.
However, before tapping into your app, it's crucial to understand how they work, the potential benefits and drawbacks and how they compare to other financial options. Dive into Savvy's comprehensive guide to pay advance apps right here today!
Pay advance apps, also known as pay on demand apps, offer a novel way to access a portion of your expected wages early. Unlike traditional loans, they don't involve credit checks or high interest rates. Instead, they connect to your bank account and analyse your income and spending patterns to estimate the amount you can safely borrow without impacting your future payslip.
Typically, you can advance a percentage of your upcoming salary (often around 20% to 50%, capped at a maximum amount) for a small fee, which is usually a flat charge. Once your next payslip arrives, the advanced amount is automatically deducted, along with the fee.
Here's how the process typically works:
It’s important to understand the pros and cons of pay advance apps before you dive into them. Some of the main areas to consider are:
Pros of using pay advance apps:
Cons of using pay advance apps:
If you’re looking for an alternative option for borrowing upwards of $2,000 for emergency purposes, you may be able to apply for a small loan, which you can do through Savvy. With a loan, you can borrow up to $5,000 and take as long as two years (or as few as 16 days) to repay your debt, with instant outcomes when you apply through us and the potential for formal approval and funding as soon as the same day. These can be used however you like, from buying a new phone to covering emergency bills.
Unlike pay on demand apps, wage advances through small loans aren’t automatically deducted from your payslip, meaning you can space them out over as much time as you need to repay them comfortably. However, it’s important to note that these loans come with interest and fees which also add up.
Some of the other available alternatives you may look to if you need cash fast include:
Disclaimer:
The information on this website is of general nature and does not take into consideration your objectives, financial situation or needs.
For loans between $2,050 and $5,000, the APR is between 21.24% (minimum) and 48% (maximum) per annum. Comparison rate of 65.4962%. Minimum term is 16 days and maximum term is 24 months. The cost of the loan is a $400 establishment fee and monthly interest charged on the amount borrowed. For example, a loan of $3,000 over 3 months with an APR of 48%, (comparison rate of 65.4962%), will have an establishment fee of $400, monthly repayments of $1,225.20. Total repayments of $3,675.60 and total interest payment of $275.60.
Warning: A comparison rate indicates the true cost of a loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
