How To Borrow Money from Cash App: Your Step-by-Step Guide

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When considering any online lending options, evaluate the cost of borrowing money and the lender’s terms for repayment. Be sure to fully understand what you’re signing up for and whether you can afford to borrow. If you’re considering using Cash App Borrow, you should fully understand how it works and what it will cost you. 

Quick Take: How To Borrow Money From Cash App

Not everyone is an eligible user for this feature and may not be able to borrow money from Cash App. Whether or not you can use Cash App Borrow depends on several things, including your credit history and score, the state where you reside, how often you use Cash App and whether you have an activated Cash Card*. Once you check if this feature is available to you it’s a pretty straightforward process.

Here are some steps you can take if you’re curious how to borrow money on Cash App:

1. Open Cash App and check your eligibility to make sure you’re eligible for the Cash App Borrow feature, which will depend on such factors as your Cash App and Cash Card usage, credit score, credit history and where you live.
2. If necessary, tap on the home screen icon to navigate to the “Banking” header.
3. Check for the word “Borrow.” If you see the “Borrow” option in the “Banking” section this means you can take out a Cash App loan.
4. Tap on “Borrow.” Once you hit this option, you’ll be prompted to proceed with the loan application process.
5. Tap “Unlock.” Once unlocked, you can activate the Cash App Borrow feature.
6. Cash App will tell you how much you’ll be able to borrow. Select an amount that makes sense for your finances and that you’ll be able to repay.
7. Select your repayment plan. You’ll have different options to choose from, which is helpful depending on how much you intend to borrow.
8. Read the user agreement. Always be diligent in understanding the terms and conditions of any loan agreement. This will ensure you won’t have any sneaky expenses that surprise you later.
9. Accept your Cash App Borrow loan when and if the use agreement makes sense and you feel you have an effective repayment plan working for you.

Cash App Fees and Interest Rates

When getting a loan through Cash App Borrow note that this feature provides you with a short-term loan of up to $200. This money can come through quickly, but Cash App charges a flat 5% fee for the loan that must be paid back over four weeks to avoid a 1.25% finance charge. 

Cash App Peer-to-Peer Fees and Interest Rates

For regular Cash App transactions, outside of borrowing money, you may also incur fees. Standard deposits are typically free and you should see them posted to your account within three business days. However, instant deposits will come with fee ranging from 0.5% to 1.75%, but you will see these show up instantly to your debit card or account. 

Cash App Borrow: Loan Limits and Repayment Terms

How Cash App Borrow works is you can borrow a maximum of $200. You have up to four weeks plus a grace period of one week to repay the loan plus a 5% flat fee.

If you have not repaid the loan in full by the grace period, you will be charged a 1.25% finance charge per week on the outstanding balance. If you are enrolled in automatic payments and do not pay off the Cash App Borrow loan by your due date, the Cash App borrow feature may deduct the loan balance from your Cash App balance or debit card. Cash App may also suspend you from the platform until the loan and any finance charges are paid in full.

Here are some key takeaways to know about loan limits and repayment terms:

• Loan amounts range from as little as $20 to $200.
• You will have four weeks to pay off your loan.
• A one-week grace period will apply if you cannot pay the money back in that four-week timeframe.
• If you miss the grace period, there will be a 1.25% finance charge.
• Be aware that delayed payments may eventually affect your credit score.

Why Can’t You Borrow Money From Cash App?

Cash App Borrow is not currently available in all states. You also might not be eligible to borrow if you have poor credit or do not meet other Cash App requirements — Cash App notes how often you deposit money into your account and transfer money to other users. It also takes into account your credit history and whether you have a Cash Card, among other things.

Other Ways You Can Borrow Money if You’re Not Eligible for Cash App

If Cash App Borrow is not currently available to you, and you do not have an emergency fund from which to borrow or a family member who can make a quick loan to you, consider the following alternatives.

Cash Advances

You can get a cash advance on a credit card. Many cards have a 3% to 5% cash advance fee and a higher annual percentage rate for cash advances than purchases.

You might also consider using a cash advance app. Cash advance apps allow you to get a small advance on your next paycheck, much like a payday loan, without excessive fees. However, cash advance apps often have fees, so compare apps before getting an advance to determine your best option.

Personal Loans

Some personal loan providers have a quick approval process and can have funds to you in just a few business days or even the same business day if you are eligible. Those with poor credit might be eligible for a bad credit loan. Before borrowing, be aware of the loan APR and any origination or other fees.

Final Take To GO

A Cash App Borrow loan is only a good deal if you have no cheaper alternative borrowing options and you need the money for an emergency. Just be sure to pay off the loan before the grace period ends.

Cash App Borrow is better than getting a payday loan, which can have up to a 400% APR, or even a bad credit personal loan with high APRs and origination fees. But you may be able to get a credit card cash advance for a 3% fee rather than Cash App’s 5% fee or use a cash advance app with a lower fee.

Andrea Norris, Cynthia Bowman, Cynthia Measom and Daria Uhlig contributed to the reporting for this article.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

The article above was refined via automated technology and then fine-tuned and verified for accuracy by a member of our editorial team.

*Prepaid debit cards issued by Sutton Bank.

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