Would you like to make instant payments or pay off some loans but don’t have sufficient funds? Worry not. You can borrow money from Cash App and fund your payments. The Cash App Burrow is available to some US users. Eligible individuals can get short-term loans of $200 maximum for a 5% flat fee. Repayment is within four weeks, failure of which attracts an additional 1.25% finance fee.
Before you borrow money from Cash App, it’s good to know the ins and outs. Remember, the feature isn’t free, so you must evaluate every aspect carefully. Just in case you’re wondering whether your qualify. You aren’t eligible to borrow money from Cash App if you can’t see the Borrow option in your Banking tab.
So, how can you qualify to borrow money from Cash App? What are the limitations involved? Let’s find out the answers below. We will also show you the easiest way to pay off your loan. So, let’s get started!
Can Anyone Borrow Money From Cash App?
No, not every person can benefit from Cash App Borrow, even when residing in the US. Cash App says this feature is only available to a limited number of users.
If you can’t see the “Borrow” option in the app, you can’t unlock and use it. Cash App is still testing this feature, so we don’t know much about its eligibility requirements. The company hasn’t said who can and can’t borrow money from Cash App. Here are four critical factors that may determine your qualification for Cash App Borrow:
Although Cash App is available all over the US, it’s only limited to a few states. The company doesn’t explain the reason or indicate which states are included or excluded. However, Cash App’s Agreement includes rules for loans in specific states, which shows that the “Borrow” feature will be accessible in:
- New Jersey
- Rhode Island
- New York
Active Cash Card
At this moment, Cash App hasn’t communicated whether Cash Card will make you eligible for Cash App Burrow. However, you may add extra points to your profile by activating and purchasing from your Cash Card.
Your Credit Score
We don’t have any specific criteria for credit scores. However, poor credit history may hinder you from borrowing money from Cash App. So, keep your credit score high or be in good books with lenders.
Your Cash App Usage
Last but not least, your Cash App usage can be crucial to determining your loan eligibility. Simply put, it’s the frequency of deposits or transfers you make from your Cash App Balance. Again, the company hasn’t specified anything for the usage.
Many other factors determine your eligibility for Cash App Borrow. For instance, a few users on Reddit say the feature became available on their app when they made a direct deposit. Moreover, some people reported they could request loans on Cash App after linking their debit or credit card to their account.
If you still can’t access Cash App Borrow in your account, you can’t enable it any other way. The best solution is to contact Cash App Support and ask for further guidance from the representative.
What To Know About Cash App’s Borrow Feature
As one of those lucky people who can borrow money from Cash App, there are a couple of things to know about Cash App Borrow before requesting a loan. Let’s go over them below:
Cash App sets the loan range between $20 to $200. We are unsure whether Cash App increased or decreased this limit, but some users on Reddit say they’ve borrowed a maximum of $450 from the app.
Fees and Pay Back Duration
A 5% flat fee applies when borrowing money, and you repay the money within four weeks in installments. However, this limit can stretch to a week more if you can’t repay the loan in 4 weeks. If your balance is insufficient, Cash App will add a 1.25% finance fee weekly until you pay off the loan.
Cash App allows users to repay their loans in three ways. You can either pay in cash from your Cash App account in the form of 10% of every deposit. Alternatively, you can pay weekly for the next four weeks or repay the loan once.
So, what happens when you borrow money from Cash App but can’t repay within the schedule? Cash App will deduct the amount from your balance if it’s sufficient. However, if funds are insufficient, the company will deduct the amount from your bank account or debit card you linked to your Cash App account.
How To Borrow Money From Cash App
Now that you know the basics of Cash App Borrow, it’s time to learn how to loan money from the app. Simply follow the below steps to get started:
Step 1: Launch Cash App
Launch the Cash App on your device if you’ve already installed it. If not, download it from Google Play Store on your Android phone and App Store on your iPad or iPhone. The icon is green with a white “$” sign.
Step 2: Open the Banking Tab
Open the app and find the “Bank” icon located on the extreme left of the bottom menu. Tap on it to
Step 3: Select Borrow
If you can borrow money from Cash App, you will see the “Borrow” option on the next screen at the end of a list. If you can’t find it, you’re unfortunately not qualified to use this feature.
Step 4: Choose Get Started
Now, tap “Get Started” to move forward. Cash App will then notify you about the amount you can borrow on the screen’s top. At this step, you should know that many factors affect your borrowing limits, such as your ability to repay loans on time, your credit history or score, and your Cash App usage.
Step 5: Enter the Amount You Want To Borrow From Cash App
The next screen will ask you to choose your loan amount from the already displayed numbers or by typing in your custom amount. If you opt for the latter option, tap on the three dots. Once you’ve entered the amount, tap “Next.”
Step 6: Double-Check Your Borrow Details
Now, review your loan details on the next screen. It will break down the charges applicable on your requested loan and other information, such as a 5% flat fee, your repayment date, and the total repayment amount. Go through everything thoroughly and press “Next” to proceed.
Step 7: Select a Loan Repayment Method
Cash App will now give you three repayment options, including:
- 4 Weekly Payments. You will be obliged to pay the amount every week on a predetermined date for four weeks.
- As You Get Cash. Cash App will deduct 10% of your deposit from your account as loan repayment.
- All At Once. You’ll have to repay the entire loan in a lump sum on or before the predetermined date. If you don’t pay the amount on time, the total loan will be deducted from your account balance. What if you don’t have enough Cash App Balance? The company will take money from your linked bank account or debit card.
So, choose your repayment method wisely and tap “Next” to reach the final step.
Step 8: Tap Borrow Instantly
Lastly, go through the repayment details carefully, including every term and condition, to avoid any surprises in the future. Once satisfied, select “Borrow Instantly” to transfer the loan to your Cash App Balance. You can access this amount easily and spend it quickly without any additional procedure.
Cash App may display a summary of your loan details. Tap “Done” to complete the process.
Here is a step-by-step video for further reference:
How Can You Pay Back Your Loan on Cash App?
Cash App automatically deducts your borrowed amount from your account balance or bank account when the repayment date arrives. However, it’s a good practice to do it manually on or before the designated date. Making loan repayments is as easy as borrowing money from Cash App. Here is how to do it:
- Start by launching Cash App on your phone and tapping the “Bank” icon from the left side of the bottom menu. It will open the “Balance” or “Banking” tab.
- Choose “Borrow” on the next screen. It will be located at the end of the list. As you tap the button, Cash App will display all your pending loan payments.
- Select the payment you want to repay. Tap the first scheduled payment if you chose the “4 Weekly Payments” option. But if you opted for the “All at Once” method, you’ll just have to choose “Repay Early” to repay the entire loan at once.
- Now, follow the on-screen prompts to complete your loan repayment.
- You can now repay your loan by initiating an instant payment from your debit card or bank account.
Cash App Borrow makes our life easier and more convenient. You can use it to get instant money, whether it’s a medical emergency or you want to buy your favorite product before it runs out of stock. But unfortunately, this feature isn’t available to every user. If you see the “Borrow” option in Cash App’s “Banking” tab, this means you’re one of the lucky ones!
Just tap on Borrow and Get Started buttons. Then, choose the loan amount, tap Next, and review the information. Then, select the repayment method and hit “Borrow Instantly” to complete the process. You can also repay your loans from Cash App!
The image featured at the top of this post is ©viewimage/Shutterstock.com.