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    Paycheck advance apps provide small advances of a few hundred dollars or less and take repayment directly from users’ bank accounts on their next payday.

    Instead of a credit check, the apps typically review borrowers’ connected bank accounts to determine their advance limit and repayment date.

    Though the apps review users’ transactions, there don’t appear to be safeguards that prevent borrowing from multiple apps at once, says Andrew Kushner, senior policy counsel with the Center for Responsible Lending.

    The apps often ask for tips and optional express fees that reduce funding time from a few business days to a few hours or less — a significant difference for cash-strapped borrowers.
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    When Conner Smith saw an Instagram ad in early 2021 from the mobile app EarnIn offering to let him access up to $100 from his paycheck before payday, he thought it would be a convenient way to pay for a night out.

    About a year and a half later, the Georgia resident says, he was in a “vicious cycle” of borrowing from several similar apps to cover bills and other regular expenses. The apps took the majority of each paycheck for repayment before he even saw it, Smith says.

    Recent research from consumer and government organizations suggests the debt cycle Smith fell into may be common for users of cash advance apps, also known as paycheck advance apps. As inflation keeps everyday costs like groceries high, consumer advocates and financial experts warn against relying on services that promise fast cash advances and recommend seeking other ways to cover your expenses.