What is FloatMe?
FloatMe isn’t just another loan app — it’s a way to borrow money without having to worry about how you’re going to pay it back. And while there are plenty of apps out there like this, FloatMe stands out because it doesn’t require a credit check, and it offers small, manageable amounts of cash.
FloatMe was founded in 2017 by Christopher Brown, Joshua Sanchez and Ryane Cleary. They wanted to make it easy to borrow money without having to go through a traditional financial institution. After researching how consumers borrowed money and their transaction patterns, they realized that many borrowers had no idea how much they could actually afford to borrow and, in some cases, are overborrowing. So, they built FloatMe to provide an instant, free estimate on what you can borrow and help them avoid that vicious cycle by providing a cap.
Since its launch, FloatMe has grown to over 50 employees and now serves thousands of customers across the U.S. Their goal is to help everyone save money, whether it’s paying off student debt or covering unexpected costs.
How Does FloatMe Work?
FloatMe emphasizes that they aren’t just a lender or a provider of loans. Instead, it offers people cash advances on their paychecks. The idea is simple: you borrow some money against what you’re about to earn, and you don’t have to worry about paying interest because the company covers it.
Instead of offering users a couple of hundred dollars in one go, Float Me capping the advance at $50 makes sense. If you’re offered $100 in one go, there’s little incentive to put off paying it back. But if your paycheck is only worth $50, you might find yourself tempted to spend some of that extra cash on something else.
That makes sense, considering that the average person spends around $1,500 per month on personal expenses. So, $50 isn’t much in comparison. But it’s still enough to cover gas, food and maybe even a movie or two.
How Much Does FloatMe Cost?
You can try the app for free for 30 days; after that, you will need to pay a monthly membership fee of $1.99 per month. After that, you can cancel your membership anytime, but you will also lose the ability to apply for instant cash advances through the app.
What is a Cash Advance App?
A cash advance app is an application that allows you to borrow money against your future paychecks. You can use it to cover emergencies like car repairs, medical bills, or even holiday expenses.
The amount you advance is automatically withdrawn from your next direct deposit into your bank account and sent to the app within 24 hours. After that, you repay the loan plus interest over the following weeks or months, just like a regular payday loan.
They work similarly to traditional payday loans, but because they don’t require collateral, they’re much easier to qualify for. In fact, many lenders won’t even ask about credit scores. Plus, you don’t have to pay the high-interest rates that payday loans have.
Why is FloatMe Better Than Payday Loans?
Payday loans are short-term loans with high-interest rates. These loans usually last between 2 and 4 weeks, depending on state laws. The APR (Annual Percentage Rate) of these loans ranges from 400% to 1,000%. This means that you could end up paying more than double the original cost of your loan when all is said and done. In addition, most payday loans are illegal in some states. For example, California has banned them altogether.
But, unlike other types of loans, cash advances aren’t subject to the same restrictions. Because of this, they’re often the best option for borrowers who need emergency funds. And instead of a payday loan, FloatMe lets you get to keep 100% of your earnings.
Another reason is convenience. With a cash advance app like FloatMe, you only need to fill out a few simple forms online. Then, you can start withdrawing your money immediately.
You can also apply for multiple cash advances at once. This way, you can cover unexpected costs throughout the year. And, since there are no hidden fees, you know exactly how much you’ll be charged before you sign any paperwork.
What To Look for in a Cash Advance App Like FloatMe
If you want to find the best cash advance apps available, here are some things to consider:
Borrowing Limits
Some companies impose strict limitations on how much money you can borrow. Be aware of these rules before applying for a loan.
For example, many companies cap the maximum amount you can borrow at $1,000 per week. So, if you take out a $500 loan every Monday, Thursday, and Friday, you won’t be able to borrow any more money until the following weekend.
This means you could end up paying extra fees just because you didn’t use all of your available credit.
With a cash advance app like FloatMe, you won’t have to worry about repaying your debt since they cap it at $50.
Turnaround Time
Most cash advances are processed within 24 hours, but it depends on your location. In most cases, you should expect to get approval within minutes.
Eligibility Requirements
There are times when you might not qualify for a cash advance. For instance, you may not meet the minimum age requirement, or you may already owe a lot of money to other lenders. You should also keep in mind that you may not be eligible for a cash advance if you’re unemployed or receiving public assistance.
Repayment Terms
When choosing a cash advance app, look for one that charges low monthly payments. It’s better to pay back your loan early than it is to pay too much interest.
Also, make sure you understand what kind of interest rate you’ll be charged. Some companies charge higher rates for longer-term loans. If possible, try to avoid taking out a loan that will last more than two years.
Costs
It’s important to compare the total cost of borrowing against the benefits of getting an advance. You may be able to borrow less money using another type of loan, such as a personal loan. However, some people prefer the simplicity of having access to a large sum of money right away.
A good cash advance app will provide clear information about its costs upfront. Look for details about how much you’ll have to pay in interest and fees. Don’t forget to factor in the amount of money you plan to withdraw from your account. Make sure you don’t exceed your limit or risk incurring additional fees.
Features
Look for a cash advance app that offers flexible repayment options. Some companies offer installment plans where you pay off the entire balance each month. Others let you set up automatic withdrawals, so you never miss a payment again.
Some apps allow you to choose which debts you’d rather pay off first, while others prioritize certain types of debt based on their severity.
FloatMe offers additional features in their app where you get to know what you’re spending your money on. Their app will give you an easy-to-understand snapshot so you get helpful insights about your finances.
Safety & Security
Be careful when signing up for a cash advance app. Never share your bank login credentials or financial information with anyone. And always remember to cancel your account if you ever suspect identity theft.
What are the Advantages of Using FloatMe?
FloatMe isn’t just another payday loan shop; there are a few differences worth noting.
For starters, the company says it won’t charge you fees. And if you repay your cash advances, you’ll never owe them anything.
In addition, unlike many traditional lenders, FloatMe doesn’t require collateral. If you’re approved, you can use the money immediately.
Plus, FloatMe doesn’t charge interest on the money you borrow because it wants to help people avoid debt. And since the cash you borrowed is taken out of your next paycheck, FloatMe typically doesn’t charge. Since the cash you owe is taken out of your next paycheck, FloatMe typically doesn’t charge late fees or penalties or late fees. If in case you’re short on cash to pay back what you owe, FloatMe will only deduct a partial payment to help you avoid over drafting your bank account.
But wait, there’s more. The company says it aims to make sure you actually repay the money you borrowed. To do that, FloatMe takes out a small insurance policy against you defaulting on your payments. If you fail to pay up within 45 days, the company will cover the full amount due.
Who is a FloatMe Loan Food for?
FloatMe is good for anyone who needs an emergency cash infusion. It’s especially helpful if you don’t want to deal with payday lenders. However, the company doesn’t provide long-term financing solutions. Instead, it focuses on short-term cash advances. That said, you can use the app as a way to improve your credit score. By using the service regularly, you’ll establish a positive payment history.
How to Get Started with FloatMe
Getting a cash advance through FloatMe is easy and straightforward. To get started with FloatMe, all you have to do is download the app from their website. Then, all you do is set up a profile and answer some questions about yourself and what you want to use the money for; the whole process takes just minutes.
After opening your account, you can select “Cash Advances” at any point to get a cash advance. Then, follow the prompts to apply for a loan. Once approved, you’ll receive instructions on how to withdraw funds from your checking account.
