(InvestigateTV) — New research from the finance guide company Overdraft Apps reports fees to borrow money from some cash advance apps have increased by 24%.
Mitchel Harad, publisher of Overdraftapps.com has been tracking the fee increases.
“We’ve been tracking the cost of these apps for the past year,” Harad said. “We took a reading early in 2023 and then in late 2023 and we did find the average fees increased by a pretty healthy amount during the year for two reasons: increased regulation and two a lot of the new apps and less popular ones so far are charging much higher fees.”
Harad said they found borrowing $100 ranges anywhere from $6 in fees, all the way up to $35 in fees.
“There’s certainly some great value up there for people who need to access quick cash,” Harad noted. “But it’s really important that you both shop around and understand the fees that you’re going to pay.”
He said many of these apps promise a little more than a new customer is going to find. Consumers may see a lot of promises that they can borrow up to $500 dollars and in a few cases $1,000.
Harad said while that can be true, new customers don’t necessarily qualify for that amount right out of the gate. He said more often loans for new customers range between $50 and $100.
He said to get to a higher amount users need to use the apps regularly and establish a track record of paying back the loans.
Harad also said it’s really important to understand the fees that you will be paid, and while they may not charge interest or late fees, these cash advance apps often do charge an express fee, and many have a monthly subscription fee.
Copyright 2024 Gray Media Group, Inc. All rights reserved.
(InvestigateTV) — New research from the finance guide company Overdraft Apps reports fees to borrow money from some cash advance apps have increased by 24%.
Mitchel Harad, publisher of Overdraftapps.com has been tracking the fee increases.
“We’ve been tracking the cost of these apps for the past year,” Harad said. “We took a reading early in 2023 and then in late 2023 and we did find the average fees increased by a pretty healthy amount during the year for two reasons: increased regulation and two a lot of the new apps and less popular ones so far are charging much higher fees.”
Harad said they found borrowing $100 ranges anywhere from $6 in fees, all the way up to $35 in fees.
“There’s certainly some great value up there for people who need to access quick cash,” Harad noted. “But it’s really important that you both shop around and understand the fees that you’re going to pay.”
He said many of these apps promise a little more than a new customer is going to find. Consumers may see a lot of promises that they can borrow up to $500 dollars and in a few cases $1,000.
Harad said while that can be true, new customers don’t necessarily qualify for that amount right out of the gate. He said more often loans for new customers range between $50 and $100.
He said to get to a higher amount users need to use the apps regularly and establish a track record of paying back the loans.
Harad also said it’s really important to understand the fees that you will be paid, and while they may not charge interest or late fees, these cash advance apps often do charge an express fee, and many have a monthly subscription fee.
Copyright 2024 Gray Media Group, Inc. All rights reserved.
