Is Dave Cash Advance Legit or Just a Money Trap

Dave Cash Advance has been making waves with its promise of quick and easy access to cash, but is it really legit? The truth is, Dave's fees can add up quickly, with a typical fee of $45 per loan.

Dave Cash Advance is a service that offers short-term loans to employees of select companies, but it's essential to understand the fine print. According to the article, Dave's fees can range from $45 to $90 per loan, depending on the state and the loan amount.

The convenience of Dave Cash Advance can be tempting, but it's crucial to consider the potential consequences of taking out a loan. With a typical interest rate of 125% to 160% APR, it's easy to get caught in a cycle of debt.

Dave's website claims to offer a free service, but the article reveals that the company makes money by charging fees on the loans.

Dave's mobile banking app is rated 4.4 out of 5 stars in the Google Play store and 4.8 out of 5 stars in the Apple store. This suggests that users are generally satisfied with the app's performance.

The app offers a cash advance feature, known as Dave Cash Advance, which allows you to request a cash advance of up to $500 with no interest and no credit check required. This can be a lifesaver in emergency situations.

Dave also has a feature called Dave Side Hustle, which lets you find remote work opportunities. You can set up a profile through the app and search for fully remote or local side hustles available.

The app's budgeting feature, Dave Budgeting, helps you organize your expenses to keep track of how much you spend in a category. It also notifies you of upcoming expenses and whether you might have a low account balance.

One of the standout features of Dave is its low-cost, fee-free $500 ExtraCash feature, which is among the highest in the money app industry. This feature is available to users who meet certain requirements, such as being 18 years of age or older and having a social security number.

Dave's ExtraCash feature has a maximum amount of $500 and a loan term that varies, usually being repaid on your next payday. The turnaround time for this feature is up to 3 business days or instant for a fee.

Here are the requirements to use Dave's ExtraCash feature:

Dave's monthly membership fee is low, and optional tips on advances are available. No credit check is required, and no interest is charged on the cash advance.

To be eligible for a Dave cash advance, you must meet the basic requirements, which include being a US resident, at least 18 years old, and having a valid Social Security number. You'll also need an active US bank account with at least 60 days of banking history.

Dave checks for several factors to determine your eligibility for a cash advance, including recurring deposits, income and spending patterns, and total monthly deposits. You'll need at least three recurring deposits to qualify.

Your income history and spending patterns are also considered in the evaluation. If you have a total monthly deposit of $1,000 or more, you'll be eligible for a higher advance amount. Your bank account must have a minimum 60-day history and maintain a positive balance.

To apply for a Dave cash advance, you'll need to download the Dave app and sign up. You'll then need to link your bank account and open an ExtraCash account. Dave will determine your eligibility and available advance amount.

Here are the basic requirements to qualify for a Dave cash advance:

Once you've applied, you can request a cash advance and choose a transfer method to receive the funds. You can get the funds instantly for a fee or within one to three business days at no extra cost.

Dave charges users an express funding fee between $1.99 and $13.99, which is debited from your bank account when you repay the advance. This fee is based on how much you borrow.

You can avoid express fees altogether if you can wait a few days for your funds, as cash advances through Dave are free in this case. However, you'll still need to pay a $1 monthly subscription fee.

The express fee can be as high as 5% of the borrowed money, with a $5 minimum and a $25 cap, if you get the money deposited directly into your bank account. This fee is significantly higher than the $1.99 to $13.99 fee for instant funding.

Here's a breakdown of the fees you might incur:

Dave also asks for tips, which can significantly increase the cost of your advance. A $10 tip for a $100 advance, for example, would require you to pay $110 plus express fees.

Dave has a mixed bag of reviews, with the vast majority of ratings on Google Play and the App Store being either four or five stars. Customers praise the app for helping them manage their finances and improve their credit scores.

However, the Better Business Bureau (BBB) paints a different picture, with most reviews being negative. Customers complain about Dave debiting more than what was owed, continuing to charge membership fees after cancellation, and issues connecting Dave to their bank.

Here's a comparison of Dave with some of its competitors:

It's worth noting that Dave charges the highest potential fast funding fees among its competitors, but also offers a higher maximum loan amount of $500.

Reviews can be a mixed bag for Dave, with some customers raving about the app's ability to help them manage their finances and improve their credit scores. However, others have had a very different experience.

The App Store and Google Play ratings paint a picture of a mostly satisfied customer base, with 4.8 and 4.4 out of 5 stars respectively. But dig deeper and you'll find that some customers have complained about low cash advance amounts and extra fees charged on cash advances.

On the Better Business Bureau (BBB), the story is quite different. With a rating of 1.12 out of 5 stars based on 409 customer reviews, it's clear that many customers have had issues with Dave. The BBB has also received 1,384 customer complaints, which is a significant number.

To cancel your membership, you can follow these steps:

It's worth noting that there is a two-month cool-off period before you can reactivate your account and get another advance.

Reddit opinions on Dave are mixed, with some users complaining about the changing cash advance amounts offered by the app.

Many commenters explained that the amount Dave is willing to lend depends on your banking history.

Some users agree that optional tips should be avoided, with one commenter pointing out that asking for tips to "feed the hungry" seems ironic since cash advances are often used by people in financial need.

Here are some common themes mentioned on Reddit:

Overall, Reddit users share a nuanced view of Dave, highlighting both the benefits and drawbacks of using the app.

Dave is a top contender in the fintech industry, but how does it stack up against other companies? Let's take a look at the facts.

Dave offers a maximum loan amount of up to $500, which is matched only by MoneyLion. However, Dave charges the highest potential fast funding fees, depending on the account you want to fund and the size of the advance.

When comparing Dave to EarnIn, we see that both apps have their strengths and weaknesses. EarnIn boasts a larger $750 Cash Out feature and quicker processing times, making it ideal for employed customers. However, EarnIn lacks an interest-bearing APY and a dedicated side hustle marketplace.

Dave, on the other hand, has a wide range of personal finance tools, including a competitive 4.00% APY, a side hustle marketplace, and the ability to access your paycheck early. These features make Dave ideal for full-time workers, students working part-time, gig workers, and those constantly getting hit with overdraft fees from their main bank.

Here's a comparison of Dave and EarnIn's features:

Ultimately, our recommendation leans towards Dave due to its wide range of personal finance tools and competitive features.

Dave is a legitimate app that offers cash advances with no credit checks or interest, but it's not perfect.

Dave protects users through industry-standard encryption, FDIC insurance, and 24/7 fraud monitoring.

However, there have been some issues with the app, including data theft on 7.5 million users in 2020, and a complaint filed by the Federal Trade Commission (FTC) in 2024 for misleading advertising, hidden fees, and unclear practices.

Dave's customer service reviews are mixed, with a 4.8/5 rating on the Apple App Store and 4.4/5 rating on Google Play Store, but a lower rating of 1.14/5 on the Better Business Bureau website.

Some users have reported unauthorized charges, difficulty with repayment, and slow response times from customer support.

Dave has been used to commit frauds through identity theft, but it's not the app's fault - it's the users' responsibility to protect their sensitive information.

To compare Dave's legitimacy with other cash advance apps, consider the following:

Dave's ExtraCash feature can help you get by until your next payday, but be aware of optional tips and express fees that may cost more than expected.

Dave is not a scam, but it's essential to be cautious and review terms carefully before signing up or taking out a cash advance.