Do you sometimes find it tricky to pay your bills between paychecks? The Earnin app is designed to bridge the gap between paydays, helping you to make your finances more manageable if you’re in a tight spot with money. Any day can be your payday, as long as you’ve already earned money. So how does Earnin work? Find out in this article below.
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The idea of the Earnin app is simple. Via Earnin, you can access your money, as soon as you earn it, as opposed to waiting for your paycheck to come through. By getting your money when you need it, you should theoretically be able to manage your cash flow better each month.
To set up Earnin, you’ll connect your bank account and enter your employment information (expect the setup process to take up to 72 hours). Once up and running, Earnin uses your location to log when you’re at work and how long for.
When you need to “Cash Out”, you’ll choose what portion of your paycheck you want to deposit into your checking account. On your regular payday, you’ll get paid by your employer, and Earnin will deduct (as a separate debit) the advance you received through the app. That’s it!
Earnin has a handy feature called “Balance Shield”. When you enroll in this feature, Earnin will send $100 from your paycheck to your bank account automatically whenever the app notices that your balance has fallen below $100.
There are no fees to use the app. Instead, you’ll be asked to contribute a tip for using the service to keep the app up and running. Tipping is optional but encouraged. Bear in mind that if you regularly make withdrawals using Earnin, tips can soon add up!
Earnin is perhaps best suited to those who work on demand, for example, Uber drivers. However, providing you receive direct deposits from your employer into a checking account and you have a regular pay schedule, you should be able to use the app. Additionally, you’ll need to have a fixed work location or an online timekeeping system at work.
Yes, Earnin is a legitimate app. It operates in 50 states nationwide. Customers from more than 50K companies currently use the app – some of these companies include Apple, Chase, Bank of America, Starbucks and Walmart. Earnin has been featured on Forbes, Lifehacker, and Wired.
The app itself has received thousands of downloads so far. In the App Store, Earnin has received 30.4K ratings and scores (4.7 / 5). On Google Play, the app scores (4.5 / 5) and has been rated by almost 40K users.
If you decide to use Earnin, you’ll have to input your bank details into the app. This is so that you can get deposits paid into your account and also so that Earnin can verify your employment and calculate your earnings.
Handing over sensitive personal information can be a bit disconcerting, and you should always think twice before doing so (with any app). However, Earnin uses the latest encryption technology to keep your personal information secure. If you’re worried about whether or not you can trust this app, read our article on Is Earnin Safe?
Earnin takes the money that you’ve borrowed back on the day that your paycheck appears in your bank account. Very rarely, you may find that Earnin deducts the money you’ve borrowed before your paycheck clears. If you get landed with an overdraft charge because of this situation, take a screenshot of it and send it to Earnin’s support team. They’ll refund you asap.
Earnin was built for people who require an advance on their paycheck – and the last thing that someone in this position needs is fees, hence the reason Earnin doesn’t charge for its service. With that said, you might be wondering how the app makes money.
Well, Earnin earns money purely from voluntary customer tips – the app is 100% community funded. When you make a withdrawal, you can tip between $0 and $14; whatever you think is fair.
If you get paid by direct deposit into your checking account but sometimes find yourself broke before payday, Earnin could be a useful app to take advantage of. Using the app could help you avoid overdraft fees (which are usually around $34 for each overdraft item), and it’s a better alternative to a payday loan.
However, there is a disadvantage to accessing your wages before your regular payday. In doing so, your salary will seem on the short side when you finally get paid from your employer, and it’s easy to fall into the habit then of regularly paying to access your money early. Using Earnin frequently could mean that you end up spending quite a lot on tips.
*We hope you find this article useful. Please note it shouldn’t be taken as professional financial advice.