Waiting for payday as utility bills, groceries, and gas expenses pile up can feel like forever. And it can feel even longer when those “life happens” emergencies occur — like car breakdowns or medical bills.
If you’ve been struggling to keep up with your bills and sometimes find yourself needing financial assistance, you’re not alone. With 57% of Americans living paycheck to paycheck, a single unexpected cost or payment delay can throw everything off balance. The good news is that there are a few solutions to help you manage.
In this post, we look at some ways to get your paycheck early so you’re not stuck in financial limbo.
Living paycheck to paycheck can be a constant source of stress. When funds are tight, you can’t help but be worried about the unexpected. A higher-than-usual utility bill, a sudden medical bill, or a car problem can overwhelm your budget. What’s more, the financial stress can affect your mental health, resulting in issues like anxiety and insomnia.
Waiting for payday often adds to the stress. You might feel like your only options are to borrow from family or friends, apply for payday loans, or use high-interest credit cards, which could jeopardize your relationships and trap you in a debt cycle.
But you can improve your cash flow without risking your relationships or long-term financial health: early paycheck access.
Whether you need money to cover an emergency or pay an urgent bill before your next paycheck, you have several options: cash advance apps, early direct deposits, employer-based early payday programs, and payday loans. Here’s a look at each one:
Cash apps are a quick means to get a portion of your paycheck early. Many only need you to:
Most cash advance apps don’t check credit scores. This makes them one of the most accessible solutions. That said, they require you to link your bank account so they can assess your income or spending. From this, they determine how much you can comfortably pay and, therefore, how much to advance.
Beyond being quick and accessible, cash advance apps are affordable. Some, like Klover, have no credit checks, interest charges or late fees, so you don’t have to worry about loan costs and overdraft fees.
Want to get a cash advance but don’t know which app to use? Here are some of the best cash advance apps:
Download Klover here to get started.
These cash advance apps work with online banking solutions like Chime, allowing for direct deposits into your checking account.
Early direct deposits are a courtesy offered by some banks, allowing you to get your paycheck a couple of days before your official payday. Banks release customers’ funds as soon as employers send their payment instructions. Here’s a quick breakdown of how it works:
This option is great because it has minimal to no fees and doesn’t require you to download additional apps.
But only some banks offer this option. And it’s not guaranteed — banks decide who to offer this feature to.
Employer-led early pay programs, also known as on-demand pay, involve partnerships with financial service providers. Employers share payroll data with these providers, who then advance a portion of your earned wages to be repaid when payroll is processed.
On-demand pay is growing in popularity because it’s convenient and can provide larger limits than cash advance apps, depending on the size of your paycheck.
The catch is that not all employers and financial providers offer early pay programs. And these programs sometimes come with fees that your employer could pass on to you.
Payday loans are short-term loans popular for their availability and accessibility — you can access them almost immediately, regardless of your credit score.
While quick and convenient, these loans can be a risky option. They have high annual percentage rates (APRs), ranging from 300% to 500%, which can increase your overall costs and trap you in a cycle of debt. Some may also have predatory late fees that cause long-term financial harm.
So, while they can help pay bills and unexpected expenses, it’s best to consider other options first.
While the four options discussed above are the most popular ways to get your paycheck early, they’re not the only ones. Other options include:
Early direct deposits, employer-led advance programs, and cash advance apps like Klover are often preferable because they’re faster and less likely to affect your personal relationships. They’re also better alternatives to payday loans because they’re more affordable.
Early paycheck access is not a bonus or free money. Here are some ways to use it responsibly:
No one wants to feel trapped waiting for payday. Luckily, with early paycheck access options like cash advance apps and earned wage access, you don’t have to.
Consider factors like your financial needs, your bank, and your employer’s early pay options to find the most suitable choice. Also, compare costs, such as interest charges and mandatory fees, to find the most affordable option.
With Klover, you have access to quick, interest-rate-free, and late-fee-free advances to help you meet your needs before the next payday. We also provide built-in financial empowerment features, like spending insights and personalized financial recommendations, so you can make the most of your advances and overall earned wages. And with Klover, there are no credit checks — so you can rest assured that your credit won’t take a hit.
Download Klover for free and get early access to earned wages, along with personal finance empowerment tools.
