Over 60% of Americans live paycheck to paycheck and may become financially strained if they have to cover a small emergency expense. Some of these people make enough money to cover their bills, but a delayed payment can be the difference between using your cash and taking out a loan. Earnin aims to address this problem and has helped over 15 million people who need extra cash.
Earnin helps people access their paydays right away instead of waiting over a week to receive their payout. This Earnin review will highlight how the company works and what to consider before getting started.
What is Earnin?
Earnin is an earned wage access company that lets employees access their paychecks sooner. You can access your cash immediately instead of waiting for a paycheck to process under the traditional timeframe.
How Does the Earnin App Work?
The Earnin app lets you request an early payout of up to $750 per pay period. You don’t have to worry about interest or mandatory fees. Earnin can keep you away from loans that come with high interest rates, fees, and lengthy processes. Earnin does not run hard or soft credit checks.
What Products Does Earnin Offer?
Earnin offers several financial products that can strengthen your money management and give you more flexibility when you need extra cash. These are the highlights.
Cash Out
Cash Out is Earnin’s core offer that over 3.8 million consumers have used to access over $15 billion in earnings. You don’t have to wait every week or every other week to access the money you have earned.
Earnin will request some basic information to verify your paycheck and then adjust the limit of how much you can borrow. Individuals can borrow up to $750 per pay period and send the funds to a linked bank account. You can only borrow up to $100 per day. Earnin does not charge interest or mandatory fees for this service, but the app has a tipping system. You can offer a tip based on what you think is a fair price.
Earnin will use your next paycheck to pay off the balance. For instance, if you borrow $300 from Earnin and your $1,000 paycheck clears one week later, you will only receive $700. You will only have to pay a fee if you opt for an instant transfer. Instant transfers appear in your bank account within minutes. Regular transfers take 1-3 business days to appear in your bank account at no additional cost.
Consumers must earn at least $320 per pay period to use Earnin. The app also works for freelancers and self-employed workers. You do not have to be a full-time employee, but you must demonstrate that you receive consistent payments. Earnin is only for U.S. residents. U.S. residents can use the app internationally except in restricted jurisdictions.
Credit Monitoring
Earnin helps you keep track of your credit score for free. You can see your Vantage Score 3.0 at any point and view your credit usage. Earnin lists your open accounts and payment history so you can optimize your performance.
Payment history makes up 35% of your credit score, and having an app that helps you monitor your history can lead to more points on your score. Credit Monitoring can also help you stay on top of the other critical categories: credit utilization, credit age, credit mix, and new credit. You will also receive alerts from the Earnin app that can make it easier to detect fraud.
Earnin lets you see the same information your lenders and landlords may see when reviewing your credit. Knowing what they see can remove some of the uncertainties and help you plan ahead. Checking your credit score with Earnin does not prompt a hard credit check or a soft credit check. Earnin does not use your credit score to determine how much you can access.
Earnin For Business
Earnin isn’t just for employees. Small, medium, and large businesses use Earnin to retain employees and increase productivity. Giving your workers early access to their paydays can reduce financial stress and give them an extra reason to stay with your company. By retaining talented workers, your company will spend less money on looking for replacements and onboarding new workers.
Walgreens, Valet Living, Assisting Hands, ThredUp, and Big Y are some of the companies that use Earnin to support earned wage access for their workers. Earnin offers several money-saving tools that can help businesses achieve their goals. Earnin also has a Balance Shield that monitors a company’s account balance. Earnin doesn’t cost employers anything extra, and it’s a big hit among Fortune 500 companies. 92% of Fortune 500 companies have employees who use Earnin to obtain early wages.
Does Earnin Charge Any Fees?
Earnin does not have any mandatory fees. Employers and employees can use the company without making any payments. The two optional payments are the instant transfer fee and a tip. The instant transfer fee applies for people who want their cash within a few minutes and cannot wait 1-3 business days to receive their payment. Consumers can decide to give Earnin an optional tip for the app’s services each time they get early wage access.
Pros of Earnin
Earnin presents several advantages for employees and businesses. These are some of the perks to keep in mind.
- No interest or mandatory fees: You can access your earnings early without paying interest or fees. Most options for borrowing money involve high costs and can be stressful to pay off.
- Quick access to cash: You don’t have to apply for a loan and go through that process to receive the money you have earned. You can get cash instantly through an instant transfer or wait 1-3 business days for a traditional transfer.
- No credit checks: Earnin does not conduct hard or soft credit checks. You can receive money from Earnin even if you have a bad credit score. A low credit score will not result in higher costs.
- Customer support: Earnin has 24/7 customer service that can address your questions. You don’t have to navigate the app alone.
- Retain employees: An early wage access app like Earnin can help companies keep their top workers.
- Money management tools: Earnin has tools that help business owners stay on top of their finances. Consumers can also use the credit monitoring feature to track their credit scores.
Cons of Earnin
Although Earnin has several advantages, it is important to assess these disadvantages before using the earned wage access app.
- Relying too much on the app: Some people may default to using Earnin to cash out their checks right away. While Earnin can help with emergency expenses, you may become reliant on the app’s service if you use it too often.
- The impact on long-term financial goals: Spending more of your money before you receive each paycheck can hamper your progress toward long-term financial goals. Some people may be tempted to spend their money on unnecessary items since they are more readily accessible. The delay of a traditional paycheck gives you more time to assess if a purchase makes sense. Earned-wage access apps can leave consumers vulnerable to impulsive purchases.
- Low limits: You can only access up to $100 per day and up to $750 per pay cycle. These limits are not sufficient for everyone. Some earned-wage access apps let you access well over $1,000 per pay period.
What Makes Earnin Stand Out?
Earnin stands out for giving employees easy access to their wages without any fees or credit score requirements. Lenders may turn you down if you do not have the best credit score. The lenders who accept consumers with low credit often charge high interest rates and fees. Earnin lets you avoid the tedious loan application process and all of the expenses involved.
Earnin also provides resources for business owners and employees who want to strengthen their finances. Business owners receive money management tools to monitor their finances, while individuals can use credit monitoring tools. Credit monitoring can help you raise your credit score and discover areas of improvement.
You only pay for Earnin if you want to leave a tip or opt for an instant money transfer. Millions of employees use the app to receive quick payouts. The company’s experience in the early wage access industry gives it an edge over some of the newer companies in the field.
Is the Earnin App Right for You?
The Earnin app is optimal for people who need early access to their wages. Some people have large financial buffers and emergency funds. These individuals can wait a bit before tapping into their next payday.
However, some people cannot wait to use their funds. These people may have narrow budgets and have difficulty with navigating a $400 emergency expense. Many Americans live paycheck to paycheck, and having early access to their paychecks can make a difference for these people. Earlier access can keep these people away from payday loans and other financial products that have high interest rates and fees.
The Earnin app is a useful resource as a “just-in-case” reserve. It’s better to avoid relying on the app because it can impact your ability to invest toward long-term goals. However, if you need money in a hurry and don’t want to get into more debt, it may be a good idea to tap into wages that you have already earned.
How to Get Started with Earnin
Millions of people use Earnin to get their paychecks a little early, and it’s easy to join them. Earnin has a simple signup process that involves answering a few questions. You will then have the opportunity to create an account and verify your paychecks. Then, you can start receiving early money transfers instead of waiting until the next payday to use your cash. You can get started with Earnin by heading over to the app’s website.
