Empower App Review: A Financial Tech Solution for Versatile Cash Advances and Financial Oversight
The Empower app has become well-known in the financial technology arena as a user-friendly fiscal resource, particularly favored by gig economy workers and those with fluctuating earnings. It offers prompt, easily accessible cash advances with fewer limitations compared to conventional banks — positioning itself as an excellent substitute for payday lenders and analogous services.
In this analysis, we will delve into the primary features, the mechanics of Empower cash advances, related fees, and how it stacks up against other similar applications available in the market.
What Is the Empower App?
Empower is a mobile financial application crafted to assist users in covering cash shortages, managing expenditures, enhancing savings, and tracking credit. Its standout feature is small cash advances — typically up to $250 — made available without a credit inquiry. Unlike payday loans, Empower imposes no interest on these advances if repaid on schedule.
Beyond cash advances, Empower equips users with automated savings features, budgeting tools, and credit-building options. Although it does not function as a bank itself, Empower collaborates with NBKC Bank and FinWise Bank to deliver banking services and credit products.
How It Functions: Empower App Key Features
Empower offers three essential services:
1. Cash Advances:
– Secure up to $250 without interest or a credit inquiry.
– Funds are transferred to your linked bank account or Empower debit card.
– Repayment is automatically organized for your subsequent payday.
2. Empower Thrive (Credit Line):
– Aimed at assisting users in establishing or restoring their credit.
– Begins with a $250 credit line, which can rise to $1,000.
– No minimum credit score is necessary, and payments are reported to Equifax and Experian.
– Performs optimally with consistent, timely payments.
3. Empower Debit Card:
– Facilitates quicker access to cash advances.
– Receive payment up to two days in advance with direct deposit.
– Includes up to 10% cash back on eligible purchases.
Fees, Interest, and Repayment Terms
Empower offers a 14-day complimentary trial for new customers. After that period, a fee of $8 per month will be charged for access to the complete range of features. For users utilizing the Thrive credit line:
– If the full balance is settled by your subsequent paycheck: 0% APR.
– If not repaid by then: 35.99% APR, subject to state regulations.
– Late payments may incur additional fees.
Cash Advance Instant Delivery Fees:
Users can select a complimentary standard ACH transfer (which may take up to 5 business days) or opt for a fee-based instant transfer. The fee structure is as follows:
– $0–$10: $1 fee
– $10.01–$49.99: $2
– $50–$74.99: $3
– $75–$99.99: $4
– $100–$149.99: $5
– $150–$199.99: $6
– $200–$249.99: $7
– $250+: $8
For Thrive transactions up to $300, fees vary from $1 to $8. For amounts exceeding $300, the fee is either 3% or $20, depending on which is lower.
Eligibility Criteria
Empower does not mandate a credit check for cash advances; however, it does evaluate your linked bank account. Factors include:
– Steady direct deposit history
– Recent spending and income patterns
Users must also meet the following criteria:
– Be at least 18 years of age
– Possess a valid Social Security number
– Have a checking account that is at least 30 days old
Additional Empower App Features
Credit Monitoring:
Stay informed about your credit score with monthly updates and personalized suggestions to enhance your rating.
Budgeting Tools:
Keep track of expenditures, oversee deposits, and receive notifications regarding bills. Set and adhere to budget goals for specific categories effortlessly.
Automatic Savings:
Empower’s autosave functionality assists in enhancing your savings without needing effort. Choose between:
– Manual mode, where you determine the amount to save each payday
– AI mode, where the app calculates safe, manageable savings sums based on your income and expenses
Getting Started with Empower
Follow these steps to start using the Empower app:
1. Download the Empower app from the Apple App Store or Google Play (developer: Empower Finance).
2. Create your account using your phone number, name, email, and other basic details.
3. Link the checking account where you receive your salary.
4. Request a cash advance to see how much you can obtain.
5. Opt for your delivery method (standard or instant).
The system might ask for additional documentation (e.g., photo ID) to verify identity.
Empower App Competitors
If you are evaluating alternatives, here are three popular apps with comparable features:
1. Dave:
– Provides up to $500 in cash advances
– $1 monthly membership fee
– Same-day delivery costs between $3 and $25
2. Earnin:
– Cash advance of up to $750 per pay period