A New Way to Spend Your Paycheck Before You Get It

What's Hot


The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

This Free Software Brings Old Laptops Back to LifeMore

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Report: Walmart to Begin Selling CarsCars

Where to Sell Your Stuff for Top DollarAround The House

Is Your TV Tracking You? Here’s How to Tell — and Prevent ItAround The House

11 Staging Tips to Help You Get Top Dollar When Selling Your HomeAround The House

21 Restaurants Offering Free Food Right NowSaving Money

20 Simple Hacks to Make Your Stuff Last LongerAround The House

4 Car Insurers That Might Raise Rates Even When the Accident Wasn’t Your FaultCars

How to Invest If Trump Kills the ‘Fiduciary Rule’Grow

12 Surprising Ways to Wreck Your Credit ScoreBorrow

9 Secret Ways to Use Toothpaste That Will Make You SmileAround The House

The 2 Types of Music That Most Improve Dog BehaviorFamily

Activehours is a new app-based service that provides interest-free loans against your next paycheck.

Two weeks can be a long wait for payday when you need $50 to buy a textbook for school or pay a utility bill.

But the wait for your paycheck could go away with Activehours, an app-based service that gives you a loan against your next paycheck, then deducts the amount from your checking account once your pay is direct-deposited there.

A company news release says:

Activehours is putting an end to the antiquated two-week pay cycle that is responsible for holding up over $1 trillion of pay each year while workers wait for payday. With the Activehours mobile app, hourly workers are able to unlock their unpaid wages right from their smartphones anytime they need it.

Activehours works on Android and iOS smartphones. It’s available to workers who are paid hourly, use an electronic timecard system and are paid via direct deposit. Users just have to provide their bank account information, Herb Weisbaum of NBC said.

When you need money, you send Activehours a screenshot of your time sheet, request a sum of money, then decide if you want to tip the app, and you’re done. If you request funds by 3 p.m. PT, you should receive the money the next business day. Then on payday, the amount you’ve advanced yourself through Activehours is withdrawn from your account, Weisbaum wrote. You can withdraw up to $100 per day.

Your employer doesn’t know anything about the transactions. The service is free, unless you choose to leave a tip. Weisbaum wrote:

“You decide what you want to pay, what you think is fair, and you could decide you don’t want to pay anything,” said Activehours founder Ram Palaniappan. “We have some people who tip consistently and we have some people who tip us every third, fourth or fifth transaction. So, we’re seeing some very interesting tipping patterns.”

This sounds like a much cheaper alternative to expensive payday loans. But, like any quick cash option, Activehours certainly has the potential to be abused.

Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling, told NBC that overuse of Activehours could become a dangerous habit.

“Ten bucks feels cheap, and the person is so relieved to have the money that they are happy to be a big tipper,” she said. “It all sounds great — no fees, no interest charged, no mandatory payment on top of what’s borrowed — but this could snowball downhill quickly if the well-intended person, the one who thinks they’ll utilize it ‘just this once,’ continues to rely on this pay advance instead of probing to see what the real problem is and resolving it.”

Wouldn’t it be better to save up a little money each week until you have nice emergency fund?

What do you think of the Activehours app? Share your thoughts below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 2 Key Credit Card Trends That Will Affect You in 2017

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,791 more deals!