Getting a loan through the web has become very easy and convenient thanks to fintech lenders
In fact, according to the Federal Reserve Board, 14 percent of personal loans were issued by FinTech lenders and for sure, Cash App is definitely one of these fintech lending platforms.
The borrow feature on Cash App isn't available for all users—you'll have to unlock it before you can use it and if you're wondering how to do this, keep reading.
To help you out, I've compiled all the steps you need to unlock the borrow feature on Cash App and get a loan from Cash App in no time.
Table of Contents
How Does the Cash App Borrow Work
Cash App Borrow was initially launched for testing with 1,000 eligible Cash App users and since then it has rolled out to more and more users over the years.
Cash App borrow works similarly to other fintech loans. There's a range of the amount you can borrow for the platform and the amount you can borrow will not be the same as what others can borrow. The range is typically from $20 to $200.
Cash App determines how much you can borrow based on how you use your account and manage your credit.
When you borrow, you'll get a short-term loan ranging from $20 to $200 which you'll have to repay within a given period (typically four weeks).
How to Become Eligible to Borrow from Cash App
Just like traditional and other loans, there are a set of requirements to be met before you can borrow money from Cash App.
These requirements include:
- You must be at least 18 years old to qualify for the Borrow feature.
- You must be a frequent user who makes regular deposits and transactions.
- You need to have an activated Cash Card, you can get yours here— it is free.
- You need a good credit history, especially with the app.
- Last but not least, you must be located in an eligible state.
While Cash App does not officially mention these requirements, it is strongly believed that these are the most important steps to take before being eligible.
How To Unlock The Borrow Feature On Cash App
Before hoping to get the borrow feature on Cash App, you need to first make sure that your account is free from any limitations, that your account is verified, and that you don't have any negative balance on your account or have not violated any TOS.
If your account is free from the aforementioned facts and meets the requirements mentioned earlier, then you should hope to be among the eligible customers who can unlock and borrow on Cash App.
So to unlock borrow on Cash App:
- Open your Cash App mobile app.
- Tap the "Banking" icon in the lower-left corner.
- Scroll until you find "Borrow."
- Tap "Unlock" to get the borrow feature on Cash App and also to see how much you can borrow.
- Follow the on-screen instructions to borrow up to that amount.
How to Unlock Borrow on Cash App Without Card
The Cash App card is a mandatory requirement for borrowing money from Cash App. If you want to borrow money from Cash App but don't have the card, I recommend going in for alternative options, such as asking another Cash App user (it can be a friend or relative) to borrow you money through Cash App.
Alternatively, you can still use cash advance apps that work with Cash App.
Cash App Borrow States
Cash App Borrow isn't available in all states, and only residents of the following states can borrow money from Cash App:
- Iowa
- Massachusetts
- Kansas
- New Jersey
- Ohio
- Vermont
- Rhode Island
- Washington
- Missouri
- Utah
- California
- New York
- Wisconsin
- Pennsylvania
Why Can't I Borrow Money From Cash App?
There are many reasons why you might not be eligible to borrow money from Cash App, including:
- Negative Cash App balance.
- You're an unverified Cash App user.
- You're using an outdated version of the app.
- You've violated Cash App's TOS.
That said, you need to make sure you meet all the eligibility requirements mentioned earlier to stand a chance to get a short-term loan from the app.
Nevertheless, if you aren't still able to borrow from Cash App, you can still get a fintech loan from cash advance apps that work with Cash App.
How Much Can I Apply With Cash App Borrow Feature?
Cash App borrow amount is typically between $20 to $200 and only Cash App can determine how much you can borrow from them and they do this based on your account activity.
Should You Borrow From Cash App?
Whether or not borrowing money from Cash App is an ideal solution for you depends on your personal needs and why exactly you need this short-term loan.
With that said, before even borrowing money from Cash App, ask yourself these questions:
- Do you think you'll be able to pay back the loan?
- What is the current rate of interest?
- What are the costs involved?
- Is there a limit to how much you can borrow?.
Moreover, it is worth mentioning that Cash App reports accounts to credit bureaus so making a late payment will hurt your credit history. I think you have your answer on whether Cash App affects credit or not.
So should you borrow money from Cash App? That is a question that only you can answer.
In most cases, however, many users will prefer cash advance apps that work with Cash App.
How Do I Repay Cash App Loan Payments?
- Automatic Payment: During the loan request procedure, enable automatic payment for either the amount due date or the optional repayments.
- Manual Electronic Payment: Use your debit card to make a one-time payment by approving it to debit for a specific amount each time you pay.
- Payment by Mail: You may also pay by cheque made payable to "Square Capital c/o Cash Borrow" and mailed to the address listed on your official statement. To be credited to your account the same day, your check must be physically delivered to the provided address before 4:00 p.m. CT on a Business Day.
Has Cash App Borrow Ended?
There's a rumor going through the web saying Cash App has ended. Well, if you dig well into the rumor, you'll notice that most people saying this are those who were unable to borrow money from Cash App—and this makes sense.
I mean, why will they roll out a feature like this one only to a few customers? One thing that's sure is that this borrow feature hasn't ended, just yet since most users are still getting loans through it.
If you are fed up of this borrow feature, I recommended going in for a cooler feature that lets you spend your loan on purchases. This feature is Cash App Pay Over Time and it is the leading way for most Cash App users looking to leverage the flexibility of Buy Now Pay Later.
Frequently Asked Questions
Should I Get a Loan From Square's Cash App?
Of course, if you so want, you are free to do so. However, we encourage that you follow all of the conditions and pay back the loan on time. You will not be able to secure another loan if you default on the first one.
Do I have to pay any fee if I borrow money from Cash App?
Yes, the Cash App offers a four-week short-term loan to eligible consumers. You will be required to pay a 5% flat fee ( non-compounding interest).
Why am I not getting the Cash App Borrow option?
This feature may not be available to you because it is a beta version that is only offered to 1,000 eligible Cash App users.
Final Thoughts
Cash App is a well-known P2P payment platform that lets users send, receive, and invest money.
Cash App also offers financial aid to its eligible customers through its borrow feature present in the Cash App.
You'll need to meet eligibility requirements before qualifying for this borrow feature. Once you have the feature enabled on your account, you should be able to get anything from $20 to $200.
If you're looking for short-term financing for your purchases, you can always tryout Cash App Pay Over Time which is the leading BNPL feature of the app.