Can a Cartoon Bear Help You Pay Rent?

It’s possible — but there are some strings attached

Email solicitation from Dave App

The Dave App is everywhere.

It’s the friendly cartoon bear with some extra cash to help you in a tight spot.

The latest campaign focuses on helping you catch up if you can’t quite pay your rent.

It all seems so easy.

Just get a cash advance right from your phone, pay your rent in full, and go on about your day.

Of course, it’s not free money.

Some Dude Who Hasn’t Shaved in Two Days Wants to Give You a Loan on Your Phone

A story from the L.A. Times digs deeper, explaining just how bad the fees associated with friendly, cartoon bear apps can be.

Here’s how the Times broke down the fees associated with a loan from Dave:

Given that the money had to be repaid in 12 days, the $5.99 fee and $2 tip, if considered as interest, cost Goad 122% on an annual percentage rate basis — a metric that helps compare the relative cost of loans. If he tipped $6.93, the company’s average in the first quarter, it would amount to an…