Did you know that thousands of Americans paid almost $11 billion in overdraft fees alone in 2021? This is according to the Dave App on their official website. Were you part of that statistic? Me too, but now there are options like this app that will lend you money without charging you more than $30 in transaction fees.
Plus, it’s a great option in the market, as it allows you to set the payment date, and add your main account, as well as other services that will help you solve any situation if you need at least $500. Anyway, if you want to know about apps like Daveas well, there are others with more advantages.
Dave App: how to create your account to enjoy fee-free loans
Like any app, it is easy to create an account within it. Obviously, you must download it from either the Google Play Store or the Apple Store, depending on your case.
It is important that your device has Apple iOS 10.3 or Android 4.1 or higher operating systems. Once it is installed, you must create an account with a username and password, the latter containing between 8 and 20 characters, and other requirements such as:
- 1 uppercase
- 1 lowercase
- 1 number
- 1 special character
You must also enter an email address and a valid U.S. phone number. Once you generate your username, you will be accepting that all the information you provide is correct, and, therefore, Dave will be able to perform a method to corroborate the information.
In addition, the app will ask you for your security number to make sure it is you who is enjoying it and you will also have to associate a bank account. In this case, the app suggests that it is your main account, but it is up to you.
Does Dave really loan money?
Okay, you already have your user and added the bank account, now you may be wondering “How do they make the loan?”, or “Will I really get the money?” Both have simple answers. First, the loan the app makes you will depend on whether you are eligible to enjoy the ExtraCash Advance service, so Dave App considers:
- At least three recurring deposits
- Your financial history, i.e., it will study your income and consumption patterns
- If you add a bank account, it is important that your history for the last 2 months is positive
All this will influence your eligibility for the maximum amount. In addition, if you make deposits equal to or greater than $1000, you will have access to a higher loan amount. So, answering your questions, Dave makes the loan if you meet the eligibility criteria, so you will get the money according to what the app shows.
What services does this app offer?
In addition to the ExtraCash loan, a service that has allowed it to gain national fame, Dave App also has an Account Management, Dave Spending account and Debit card, Grow and Round-Up, which allows you to enjoy various transactions.
ExtraCash Account
This account allows you to have a “reserve fund” of $500 in case of emergencies or if you think your paycheck is too far away. This is like an overdraft, but without the annoying fees that are a headache for some.
Well, there are fees, but only if you apply for the Express Fee so you can use the money quickly. However, if you use an Automated Clearing House (ACH) to send the payment to your bank, it will take a while, but you won’t have to pay a fee. Remember that to take advantage of this service the app must tell you that you are eligible.
Dave Spending account and Debit card
In this case, you will only need to complete a few security steps and be eligible to enjoy the Dave Spending account. Although if you have used the previous service, it is necessary that you have settled before opening the account, even so, you will not have to deposit any amount to open it.
In addition, you will have an Annual Percentage Yield (APY) of 4.00%, which is calculated daily and added to your account the following month. You will also be able to enjoy a Dave Debit Mastercard, with which you will be able to shop wherever you want and withdraw money in more than 37,000 ATMs.
Grow
One way to avoid unnecessary fees and expenses is to keep track of your income and expenses, so make friends with the Grow option, as it will help you to have stable and healthy personal finances. This service allows you to set goals and monitor your financial status.
Round Up
This is a service that you can use with a Dave Debit card and it is simple. If you make a purchase and the amount is in cents, Dave App will round it up to the nearest dollar and it will be deposited in the Goal of your choice, but only up to six times per month, although you can round up as many times as you want, because it has no limits.
It is better to give an example, right? Suppose you go to a bakery to buy a croissant and the total bill is $4.67. You decide to pay with the Dave Debit Card and instead of paying that amount, you pay $5 thanks to the Round-Up. Then, those 0.33 cents can be sent to any of the Goals you have set up in your Grow account.
What is the catch with the Dave app?
The catch is that you have to make a monthly subscription of $1 or give a tip that helps certain social initiatives and also serves as a profit for the app.
[wpdatatable id=470]In addition, according to the data recorded by the bank account you associated, the app will set the date on which you should repay the loan, either your next payday or the nearest Friday.
Therefore, it is elementary that you know that receiving the loan is not as easy as opening the account and that’s it, since, in the early years of the app, many people committed fraud until the system was improved. So it is not an option if you need the money now.
On the other hand, keep in mind that it does charge fast funding fees and, according to Nerdwallet.com, it is one of the highest fees among the different loan apps; so if you are in trouble and need money, but your payday is not close, consider this information.
Finally, it also charges fees for the type of transaction you make, so you may see a negative balance for Express Fee from 99 cents to $6.99.
References
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“About ExtraCashTM.” Dave Support, https://support.dave.com/hc/en-us/articles/5328169718669-About-ExtraCash-
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“About Goals.” Dave Support, https://support.dave.com/hc/en-us/articles/360061910012-About-Goals
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“About Round Up.” Dave, https://support.dave.com/hc/en-us/articles/13085312708621-About-Round-Up
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“Dave with Interest.” Dave Support, https://support.dave.com/hc/en-us/articles/17195979139085-Dave-with-Interest
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Kumok, Zina. “Dave App Review 2024 – Forbes Advisor.” Forbes Advisor, Forbes, https://www.forbes.com/advisor/personal-loans/dave-app-review/
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Millerbernd, Annie. “Dave App 2024 Review: Cash Advances.” NerdWallet, NerdWallet, https://www.nerdwallet.com/reviews/loans/personal-loans/dave-app
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Music, Evan Davis’ Add Some. DAVE App Review 2022 (Does Meet Dave Money App WORK?). YouTube, https://www.youtube.com/watch?v=3RzNCDJv248
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“Qualifying for a Dave Spending Account.” Dave Support, https://support.dave.com/hc/en-us/articles/360061325252-Qualifying-for-a-Dave-Spending-account