Financial Apps for Gig Workers

There are many advantages to being a gig worker, such as making your own hours and being your own boss. But go-it-alone gigs—such as driving for Uber, penning a freelance story for a magazine or delivering groceries with Instacart—can come with a financial dark side.

In the more traditional corners of the financial industries, there’s a drawback to having an unpredictable income stream. Without a regular pay stub handy to verify your income, some banks, mortgage lenders and credit card companies may not want to do business with you. And no matter how hard you work or how much money you make, there’s a chance you’ll be rejected for even basic, must-have financial services like an auto loan, home mortgage or apartment lease. 

Financial Roadblocks for Gig Workers

Unfortunately, money-related bummers are often simply part of life for gig workers. Nearly half of non-employees such as gig workers, freelancers and independent contractors who receive a 1099 form at tax time said they were rejected for a loan or credit application they knew they could repay, according to a survey by Argyle, a platform that provides verified pay and employment data to businesses. Old lending models “are leaving gig workers behind,” the report concluded.

This isn’t the only financial roadblock faced by gig workers: many deal with inconsistent or poorly timed income streams that can make paying rent or car loans difficult. “One of the biggest challenges for gig workers is not knowing how much they’re getting paid and when,” says Mary Wisniewski, senior editor at Bankrate.

Gig workers are also on their own when it comes to benefits, such as health insurance and retirement savings plans. And when they face a cash crunch, they’re often gouged by last-resort payday lenders who charge exorbitant interest rates for short-term cash advances.

Despite these challenges, the gig economy is expanding rapidly, projected to grow to $455 billion by the end of 2023—a 123% increase from the $204 billion in 2018, according to a study by Brodmin, a company that helps late invoices get paid promptly. And with projections that gig workers will make up half of the U.S. workforce by 2028, according to research and analytics site PYMNTS, the aforementioned issues present huge stumbling blocks to their financial freedom. 

What Can Gig Workers Do?

The good news is that upstart fintech firms are breaking down these financial barriers by providing gig workers with new money-related services that are better suited to the nontraditional way they earn a living and get paid. Here are just a few apps that address the challenges gig workers face.

Moves: This app offers a no-fee spending account supported by more than a dozen gig companies. It’s good for emergencies, too, as it comes with a cash advance feature that allows you to tap as much as $1,000 for a one-time fee of 3.5% if your income unexpectedly dips. They will soon roll out an instant deposit feature for daily earnings and will have a beta feature that gives you a chance to earn shares of stock in gig companies that you work for, such as Uber.       

Best for: A bit of everything.

Earnin: The days of getting gouged by payday lenders during a cash crunch are over. This app has a “Cash Out” feature that lets you get paid for work you’ve already completed before payday. With the app and a linked account, you can cash out $100 a day or $500 a pay period early; Earnin will deduct the amount on or after payday. “It’s a riff on the overdraft fee,” says Wisniewski. “And it’s way better than a payday loan.” They also have an “Earnin Express” feature that’s akin to its Cash Out feature on steroids, as you can get 80% of your paycheck or $1,000 per pay period (whichever is less) before payday. Both services are free, but there’s an option to “tip” if you want.

Best for: Affordable short-term funding.

Argyle: Say you need to prove your income and job details to a potential landlord but don’t have pay stubs to show or a supervisor or human resources rep for someone to call. Argyle Verify is a free service in which workers can give their permission to share verified employment information to whoever is requesting it.

Best for: Verifying gig income. 

Catch: Most gig workers don’t get benefit packages like people who work for traditional companies. Catch, a free benefits app, helps fill the gaps. It lets you stash savings for sick days, enroll in a health care plan or open an IRA. 

Best for: Accessing key benefits coverage.

Harlow: Auto-generate invoices with this all-in-one freelancing tool that also helps you manage your clients and draft contracts. Harlow can keep you organized, integrates with Google Workspace and comes with predesigned templates to help you streamline.

Best for: Automation.

 

Adam Shell is a freelance journalist. He’s worked as a financial markets reporter at USA Today and an associate editor at Kiplinger’s Personal Finance magazine. 

Illustration: Gizem Vural

 

LEARN MORE: How Taxes Are Different for Gig Workers