What is Earned Wage Access? The Complete Guide

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Earned Wage Access

Earned wage access (EWA) allows employees to access a portion of their earned but unpaid wages before their official payday. Instead of waiting for the next paycheck, workers can get the money they’ve already earned when they need it most, without diving into debt or racking up credit card interest. 💰

💸 Think of it as a financial lifeline that bridges the gap between paychecks, giving you more control over your money. Let’s go over what is earned wage access and how it works.


See EWA offers (and others) from our network of financial partners.


What is earned wage access?

Earned wage access (EWA) or early wage access is a financial service that lets employees access their earned but unpaid wages before their scheduled payday. Unlike traditional loans or even payday loans, an EWA payment provides access to money you’ve already earned, making it a safer alternative for managing short-term cash needs.

How does earned wage access work? 

Earned wage access typically works through a partnership between an employer and an earned wage access provider, or directly through a third-party app. Here’s a breakdown of the typical process:

Earned wages calculation: The EWA provider calculates how much you’ve earned up to that point in the pay period based on hours worked or a set salary.

Requesting funds: You’ll request an advance on your earned wages through an app or platform provided by the EWA payment provider.

Instant access: Once you qualify, the requested amount is transferred directly to your bank account or a connected card within a few business days. You may be able to qualify for a more immediate earned wage access within minutes for a fee. 

Repayment: The amount advanced is automatically deducted from your next paycheck.

Earned wage access benefits and potential drawbacks

While EWA can be incredibly helpful, it’s not without its drawbacks. Here’s what you need to know.

Earned wage access benefits

  • Financial flexibility: EWA helps employees cover unexpected expenses or avoid late fees on bills.
  • Improved cash flow: Accessing funds when needed allows for better financial management.
  • Reduced stress: Knowing available funds can alleviate financial stress and improve well-being.
  • No credit check: EWA is based on earned pay, not your credit score.
  • Covering unexpected expenses: If you have a sudden bill or emergency expense, EWA can provide quick relief.
  • Avoiding overdraft fees: Accessing your wages early can prevent overdraft fees or late payments.

Cons of earned wage access

  • Potential for overspending: EWA can lead to overspending and financial difficulties if not used responsibly.
  • Reduced payday: Accessing funds early means less money available on payday, making it difficult to cover bills.Fees: Some EWA providers may charge fees for accessing funds, which can reduce the overall benefit.

Can you get earned wage access without an employer?

Yes, although accessing earned wages through an employer is a popular option, you may still qualify for early wage access through a third-party provider. Some will even accept income that isn’t strictly “employment income”, including supplemental security income (SSI) or child support. 

3 cash advance apps

If you’re considering a cash advance, here are three apps to help you access your wages before payday.

1. Instacash®

Instacash by MoneyLion allows users to access up to $500 of their earned wages with no interest and no credit check. It’s a straightforward way to bridge the gap between paychecks without raising debt.

  • Best for: Access to cash with no fee delivery options.
  • Pros: No interest, no credit check, easy to use.
  • Cons: There may be limits to how much you can access, and your advance is available in minutes for a Turbo fee.

Don’t rack up debt when hit with unexpected expenses. Bridge the gap between paychecks with Instacash®


2. Earnin

Earnin lets you access up to $100 per day (or $750 per pay period) of your earned wages with no fees. It uses your work hours tracked by GPS or timesheets to determine eligibility.

  • Best for: Workers who track hours or use direct deposit.
  • Pros: No fees, flexible tip model, integrates with work schedules.
  • Cons: Limited to $100 per day, requires consistent income.

3. Empower

Empower offers up to $300 in advances with no fees or interest. They have several other financial tools to help you save more money, budget and track your spend, and monitor your credit score, all for only $8 a month.

  • Best for: Budgeting support along with wage access.
  • Pros: No interest, helpful financial tools (for a monthly fee), and an easy-to-use app.
  • Cons: Small subscription fee for premium features.

How to qualify for earned wage access

To qualify for earned wage access, there are a few common requirements:

1. Select an earned wage access provider 

Work with an earned wage access provider directly or check if your employer offers this benefit through existing partnerships. It can also be helpful to compare different providers. MoneyLion makes it easy to do so all in one place. 

2. Income verification

Your EWA provider will verify your employment and payroll information to ensure eligibility. In some cases, other income sources like SSI may qualify.

3. Set up direct deposit 

You’ll have to link up your bank account to your EWA provider’s system to receive funds. This can typically be done as you’re requesting your earned wage advance, typically online or through the app. 

4. Other eligibility criteria

Each EWA provider may have additional eligibility requirements, such as a minimum employment duration. Additionally, you’ll need to be at least 18 years old with a valid government-issued ID to access earned wages. 

Earned wage access vs payday loans

Think of earned wage access as accessing money you’ve already earned, while payday loans are high-interest debt against your future paycheck. EWA typically charges minimal fees (often $2-5 per withdrawal), while payday loans can have APRs over 400% and trap borrowers in debt cycles. 

Learn More: What is a Payday Loan?

Is earned wage access right for you?

Earned wage access can offer much-needed financial flexibility in the face of unexpected expenses, but it’s essential to use it wisely. Understanding how earned wage access works and its pros and cons can help you make an informed decision.

Whether using an app like Instacash or another EWA service, make sure it fits your financial situation and helps you manage your money more effectively.

FAQ

What is the downside of earned wage access?

The downsides include the potential for overspending, reduced funds on payday, and possible fees from some providers.

Is earned wage access a loan?

No, earned wage access is not a loan. It’s an advance on wages you’ve already earned, with no interest or credit checks typically involved.

How much money can I get through an earned wage access app?

The amount available through EWA services depends on the earned wages an employee has accrued during their payroll cycle. It is not a loan but a portion of the paycheck they have already earned. For cash advances from payday lenders, the amounts can be higher but come with the caveat of fees and interest.

How much money can I get?

The amount available through EWA services depends on the earned wages an employee has accrued during their payroll cycle. It is not a loan but a portion of the paycheck they have already earned. For cash advances from payday lenders, the amounts can be higher but come with the caveat of fees and interest.

How long do I have for EWA repayment?

Repayment for an advance through EWA services is typically aligned with the next payday, where the advanced amount is automatically deducted from the paycheck deposited into the employee’s bank account.

How long does it take to get money from an earned wage advance?

Earned wage access typically takes 1-5 business days for standard transfers, but most providers offer same-day delivery options for an additional fee (usually $5-10 per expedited transfer).

What happens if I don’t repay?

For EWA, the repayment is usually taken out of your next paycheck, minimizing the risk of non-payment. 

Will using earned wage access affect my credit score?

Utilizing EWA services generally does not impact your credit score because it’s not considered a loan and therefore is not reported to credit bureaus.

Can I access my full paycheck early?

Access to a full paycheck early is typically not available with EWA services to prevent financial mismanagement and maintain regular payroll cycles.

Are there any limits to how often I can use earned wage access?

Your access to earned wages may be limited by frequency (such as once per pay period) or amount (like a percentage of earned wages). These limits help ensure you maintain a balanced paycheck while still having flexibility when needed.

Can I use the money for non-essential expenses?

While there are no restrictions on how you can use the funds obtained through EWA, it’s recommended to prioritize essential expenses to avoid potential financial shortfalls in the future.

Is earned wage access available for self-employed individuals?

EWA services are typically tailored for individuals employed by a company with a regular pay cycle and are not generally available for self-employed individuals.

What are the interest rates on early wage access?

Cash advances through EWA services typically do not involve interest rates since they’re not considered loans but advances on earned wages. However, if opting for a payday loan, interest rates can vary and are often substantially higher than traditional loan products.

What are the biggest fees with earned wage access?

Fees associated with EWA vary, but common charges include a transfer fee for accessing wages in a faster way or a subscription fee for the service. Unlike payday loans or cash advance fees from credit cards, EWA services aim to offer a more affordable alternative for accessing earned wages ahead of the standard pay cycle.

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