Cash App has gone beyond being just a payment service—it now offers eligible customers the possibility to get a short-term loan on the app, through a feature called Borrow.
This borrow feature allows any qualifying user to borrow an amount ranging from $20 to 200 from the platform—and it is very easy to get started with it.
In this guide, I'll show you the steps you need to take to borrow money from Cash App.
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Can I Borrow Money From Cash App?
Yes, you can borrow money from Cash App but it isn't always guaranteed.
Why?
Well because Cash App does not officially mention the steps you need to take to unlock the borrow feature on Cash App. Nevertheless, there are a few things you can do to get this feature.
How to Become Eligible to Borrow Money from Cash App?
While not officially mentioned, it is strongly believed that you can become eligible to borrow money from Cash App if you meet the following requirements:
- Be at least 18 years of age.
- Be a verified Cash App user.
- Be a frequent Cash App user who has set up direct deposit.
- Must have ordered and activated your Cash App card.
- Have a good credit history.
- Be located in an eligible state.
Once you meet these requirements you should have a good stand on your side to borrow money from Cash App.
How to Borrow Money From Cash App
To borrow money from Cash App, you'll first need to unlock borrow on Cash App and then select the amount you are allowed to borrow from the platform.
To do so:
- Open your Cash App mobile app.
- Tap the Banking icon in the lower-left corner.
- Scroll until you find Borrow.
- Tap Unlock to view how much you can borrow.
- Select the amount to borrow (paying attention to your borrowing limit), and confirm your selection.
- Accept the TOS.
- Follow the on-screen instructions to borrow up to that amount.
How Much Can You Borrow From Cash App
Cash App Borrow ranges from $20 to $200 and only Cash App alone makes the decision to decide how much you the user can borrow from the app.
Those who borrow up to $200 are those with good credit scores and have a positive record with using Cash App—so you better get started with making positive vibes on the app.
Cash App Borrow Fees and Details
- Maximum withdrawal: $200
- Terms: 4 weeks
- Cost: 5% flat fee
- Other fees: 1.25% late fee — charged per week after a 1-week grace period
Why Can't I Borrow Money From Cash App?
You may be unable to borrow money on Cash App if you are in an area where Cash App borrow is not yet available if you have an outstanding negative balance on your Cash App wallet, if you have not verified your Cash App account, if your account has violated the Terms of Service, or if your Cash App mobile app is not up to date.
However, many experts believe the above, even though there is no major reason why you can't borrow money from Cash App.
Cash App Borrow States
Cash App Borrow is not available in all states and you need to reside in one of the following states to borrow money from the platform.
- Iowa
- Massachusetts
- Kansas
- New Jersey
- Ohio
- Vermont
- Rhode Island
- Washington
- Missouri
- Utah
- California
- New York
- Wisconsin
- Pennsylvania
Has Cash App Borrow Ended?
No, Cash App borrow hasn't ended yet, but its rollout is limited only to eligible users.
If you are unable to use Cash App Borrow, Cash App offers an even cooler feature than Borrow. This feature is called Pay Over Time and it allows users to leverage the convenience of Buy Now Pay Later when shopping.
When to use Cash App Borrow
Cash App Borrow is best used in emergency situations, such as car repairs, unexpected doctor or vet visits, and so on.
If your credit isn't good enough — or if you need to borrow less than $1,000 — it's a viable option for personal loans because of the tiny cash amounts. It's also less expensive than a traditional payday loan, however, some options, such as Payday Alternative Loans (PALs) from a local credit union, come close.
Cash advance apps like Chime SpotMe and Dave, on the other hand, are even better than Cash App Borrow, as they frequently offer free, quick loans with no credit check. Some apps, however, charge a monthly membership fee. And you won't be able to get a loan beyond $50 unless you've been using the app for a few months.
Is Cash App Borrow Feature Safe?
Cash App is owned by Block (previously Square), a renowned financial services and payment company that takes several precautions to keep your account safe:
- Its app is PCI Data Security Standard Level 1 compliant — the highest level offered in the payment industry.
- It encrypts all your financial transactions.
- Users can set up two-factor authentication, security locks, and biometrics for added safety.
So in general, Cash App Borrow is safe to use.
Frequently Asked Questions
Does Cash App let you borrow money?
Cash App allows eligible users the ability to borrow up to $200 through the app, which must be paid back within four weeks along with a flat 5% fee. Failure to repay the loan will incur a 1.25% late fee each week until the amount is repaid.
How do I activate borrow on Cash App?
You can't activate the "borrow feature" on your own. You'll automatically see the feature once you're eligible to borrow money from the platform.
Final Thoughts
Cash App is a P2P payment app that allows users to quickly send, receive and invest money.
Eligible users can get loan from the platform through the Cash App borrow feature.
If you're interested in using the Cash App borrow feature or taking out a payday loan, don't forget to read the terms and conditions, disclaimer, recommendations, safety and security, and your data and privacy, among other things. It may come back to bother you later.
When compared to most Payday online lenders that claim to provide cheaper loans, Cash App's loans are still quite expensive, and if you don't pay the sum off quickly, along with the interest if required, things can go really rough.
You can't borrow money on Cash App yet if you aren't one among the 1,000 users Square is currently testing short-term loans with.
Cash App has been eerily quiet about its new short-term loan program, leaving many customers perplexed as to why they are unable to borrow funds from the app.
While you waiting to be eligible for Cash App borrow, you can consider looking into other cash advance apps.
References:
https://techcrunch.com/2020/08/12/square-cash-app-borrowing/
https://www.finder.com/cash-app-borrow
https://reallyneedcash.com/how-to-get-the-borrow-feature-on-cash-app/