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Like most payday loans, a cash or paycheck advance app lets you borrow money with no credit check. You’re also required to repay the advance, plus any fees you agreed to, on your next payday.

A single pay cycle is usually not enough time for borrowers to repay a payday loan, so many people fall into a pattern of getting another loan to pay the previous one, says Alex Horowitz, project director of the housing policy initiative at The Pew Charitable Trusts.

App users may find themselves in a similar cycle. A 2021 study from the Financial Health Network found that more than 70% of app users get advances consecutively. The study doesn’t say why users reborrow, but Horowitz says the behavior is notably similar to payday loans.

“Direct-to-consumer wage advances share DNA with payday loans,” he says. “They’re structured alike, they have repeat borrowing and they’re timed to the borrower’s payday, giving the lender a strong ability to collect.”