Earnin app review — a new payday loan alternative?

Our take on Earnin

Earnin is best for people who receive hourly wages looking for a low-cost cash advance — especially those struggling to cover bills due to a biweekly pay schedule. With Earnin Cash Out, you can receive an advance as high as to $750 per pay period on the hours you’ve already worked — but you can’t withdraw more than you’re scheduled to earn.When you request money, Earnin verifies the hours you worked that week. It does this through a process that varies by how you’re paid. Hourly workers submit photos of their timesheets, while salaried workers allow access to mobile location tracking to confirm commuting to and from their job location.
While this may feel intrusive, Earnin has other benefits that may appeal to users, including no-cost paycheck advances, no monthly fees and no tipping required. Many other cash apps charge monthly fees and have more restrictive limits on what you can borrow. For example, Brigit charges a $9.99 monthly membership fee to use the app.
Normal turnaround time is two to three business days but can be faster if using Earnin’s Lightning Speed service. Additionally, eligible Earnin users may be able to increase the amount of their cash advances to 80% of their paychecks, up to a maximum of $1,000 per pay period, by signing up for Earnin Express.
Check out our short video where we give you a rundown on how to use the app!

Earnin overview

To use Earnin, start with the brief signup process. Earnin takes a few days to verify your bank account, sending two small test transactions to confirm ownership of your account. To take advantage of its services, you need direct deposit of your paycheck into a checking account and a regular place of employment or electronic timesheet.
After you take out an advance, Earnin automatically deducts your loan and tip from your next paycheck.

Features

• Maximum advance: Up to $500 per pay period or $100 per day.
• Cost: Optional tip of $0 to $14.
• Turnaround: Two to three business days without Lightning Speed, instant with Lightning Speed.

While Lightning Speed may speed up your loan, you may have to pay an additional fee. All Earnin users can borrow $100 per pay period, potentially increasing your maximum amount to $500. In comparison, many pay advance apps don’t offer advances higher than $20 to $50 to new users.
However, you can’t receive more than $100 at once. Consider another app if you typically need a larger advance.

Requirements

To sign up for Earnin, you must meet the following requirements:

• Verified source of income
• Bank account
• Over 18, or age of majority in your state
• US resident — or resident of a US territory
• Phone number or email address

To qualify for a cash advance, you may need to meet additional requirements. For example, you must provide your debit card information to use this service. But like most cash advance apps, Earnin doesn’t consider your credit score when you apply for an advance.

Other Earnin services

In addition to the Cash Out advance, Earnin has several programs to help its users make the most of their finances:

• Balance Shield. With Balance Shield, as long as you’re adding regular timesheets, Earnin automatically deposits up to $100 to your bank account each time your balance slips under an amount that you set, from $0 to $400, to help you prevent overdraft fees.
• Lightning Speed. Lightning Speed allows you to withdraw your pending earnings in minutes, meaning you can use the money you’ve already earned sooner than it would take to get a payday loan or personal loan. But to use it, your bank must be part of Earnin’s Lightning Speed program.
• Earnin Express. Earnin Express allows Cash Out users to up their advance limit to 80% of their paycheck or $1,000 per pay period, whichever is less. You can also receive your full paycheck up to two days ahead of time.
• Max Boost. Earnin offers some Cash Out the chance to bring on another Earnin member as a guarantor for your advance. This temporarily increases your advance limit by $50 per pay period.
• Tip Yourself. This “microsavings” tool makes building up an emergency fund easier by setting up one-time or recurring transfers from your account to a Tip Yourself Account. While it doesn’t earn rewards like a traditional savings account, it can help incentivize you to start saving in small increments.
• Financial calendar. Earnin uses your bank account to keep track of your regular bills, advances, due dates and daily income so you can plan ahead and take control of your budget.

Earnin reviews and complaints

BBB accredited	Yes
BBB rating	A-
BBB customer reviews	4.02 out of 5 stars, based on 659 customer reviews
BBB customer complaints	510 customer complaints
Trustpilot Score	2.8 out of 5 stars, based on 6 customer reviews
App Store Score	4.7 out of 5 stars, based on 210,100 customer reviews
Google Play Score	4.4 out of 5 stars, based on 178,655 customer reviews
Customer reviews verified as of	27 April 2022

The Earnin app earns high ratings on Google Play and the App Store, but many recent reviews have been negative. Users report problems with Earnin not crediting their account, withdrawing funds too soon or not registering uploaded timesheets.
Several hundred complaints have also been registered on the Better Business Bureau (BBB) website, but Earnin’s customer service team took the time to read the complaints and respond to each user, offering to rectify the problems.
Unlike some other cash advance platforms, Earnin has a favorable BBB customer rating, with satisfied customers mentioning helpful Earnin team members by name and reporting that problems were resolved quickly and professionally.

Earnin cash advance vs. payday loans

Though it may sound like your typical cash advance, Earnin is not a payday loan. Rather, it’s an app that allows you to borrow small amounts from your pending wages with no fees or penalties. But they share some similarities: Both rely on a one-time tip or fee instead of charging interest rates.

	Earnin cash advance	Payday loans
Amount	Up to $100 daily and up to $750 per pay period	Typically up to $1,000, and most states allow only one at a time
Turnaround time	One to two business days or immediately with Lightning Speed	Typically next business day
Application process	Simple mobile app signup that requires connection to bank account	Simple online application, typically requires Social Security number and bank account numbers
Costs	Optional tip of up to $14	Fee of $15 to $25 per $100 borrowed
Availability	Anywhere in the US	Prohibited in some states

Is Earnin safe to use?

In general, yes — though no app can guarantee your information stays 100% safe. While it does require you to sign in to your bank account, it never stores your login information.
The app also uses 256-bit encryption to protect your information, and Earnin states that it regularly performs audits to prevent security issues. Its privacy policy covers the standard ways it collects and uses your information, including how that information is shared.

Earnin lawsuit

Earning settled a class-action lawsuit in March 2021 after users sued the app over unexpected fees. While Earnin doesn’t charge fees itself, some users faced insufficient funds fees or overdraft fees after Earnin deducted their repayments. Earnin’s terms and conditions now clearly state that you may be subject to third-party fees when you take out an advance.
Anyone charged an overdraft or nonsufficient funds fee due to an Earnin withdrawal between September 3, 2015, and May 28, 2020, is eligible for a settlement. You can learn more information about the settlement payment by visiting the lawsuit’s website or calling the court-appointed settlement administrator by calling 855-786-0901.

More about Earnin

Founded in 2014 under the name Activehours, Earnin was one of the first financial services companies to offer tip-based cash advances as an alternative to payday loans and overdraft fees. Since then, it’s grown to serve over a million iOS and Android users. According to internal data, many Earnin users can more effectively budget, cover an emergency expense or pay bills on time with the app’s help.
It’s previously offered several other services to help users manage their finances. For example, Earnin Health Aid was a free program that helped users negotiate medical bills. At the beginning of the COVID-19 pandemic, Earnin also temporarily opened up the app to unemployed users — though you currently need to be employed to qualify.

Should I use the Earnin app?

Earnin can be a solution to unexpected expenses. But be careful — it’s no replacement for an emergency fund. And if you’re stuck with a low pay period max, consider other pay advance apps similar to Earnin or read our guide on pay advance apps.

Compare pay advance apps options

Earnin might not be the right app for everyone. Use our table to quickly compare how this app compares to the alternatives.

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