Knowing how to borrow money from Cash App can come in handy for those times when you are in a pinch and need money quickly.
Cash App (review) is a peer-to-peer (P2P) mobile payment service that’s owned by Block, Inc. (formerly Square Inc.) The company is incredibly popular with more than 40 million users, and it’s not hard to see why.
With Cash App, you can send money and receive money quickly and easily, get a debit card you can use anywhere that VISA is accepted, invest in stocks and Bitcoin for as little as $1, and get access to free ATM withdrawals (if you have at least $300 coming in each month). It even acts as a Paycheck advance app that allows you to get your paycheck up to two days early.
But does Cash App let you borrow money?
There are many times when we need some extra money fast, whether you’ve had an unexpected expense come up, like your car needed repairs or your pet needed an expensive trip to the vet, or you have just found yourself a little short on cash between paychecks.
Cash App actually does lend money to people, but this option is only available to certain people.
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Here’s what you need to know about borrowing money from Cash App.
What will I learn?
Can You Borrow Money from Cash App?
Yes, you can borrow money from Cash App!
Cash App offers loans of between $20 and $200. The company’s loans will cost you 5% of the loan balance immediately, and then 1.25% per week after the grace period. You have four weeks to pay off the loan, and then a one-week grace period before the 1.25% interest rate starts. This interest is added to the amount you need to pay the company each week.
Please note that the Cash App borrow feature is only available to select customers. So, it may not be available to you.
There are lots of factors that determine which customers can use the borrow feature, such as:
- The state you reside in.
- Whether you have an activated cash card.
- Your Cash App usage history.
- Your credit history.
How to Borrow Money from Cash App: A Step-by-Step Guide
Like I said earlier, the Cash App borrow feature isn’t available to everyone. So, you will need to check if you have access to it.
Here’s how you can find out if you can borrow money from Cash App, and, if so, how to do it:
- Open Cash App
- In the lower left, tap on your Cash App balance. If you don’t have a balance, it looks like a house.
- This should take you to the Banking section.
- Check for the word borrow. If you see “Borrow” then you are eligible to borrow money from Cash App. If you can’t find the word borrow, then you do not have access to this feature.
- If you see the word borrow, you can borrow money from Cash App. Tap on “Borrow.”
- Tap on “Unlock.”
- Cash App will tell you how much you can borrow. Choose an amount.
- Select your repayment plan.
- Read the User Agreement.
- Accept the Cash App Borrow loan.
By the way, whether you are trying to borrow money from Cash App on an Android or iPhone device, the process is identical.
Is Cash App Safe?
Cash App is a mobile payment service developed by Block, Inc.
Block Inc, formerly Square, Inc., is a legit American financial service and digital payments company. It is based in San Francisco, California, and has been traded as a public company on the New York Stock Exchange since November 2015.
So, Block, Inc., which owns Cash App is indeed a legit company.
Cash App is safe to use in that it offers a lot of different security features.
You can enable the securing lock setting on your account so that a PIN or Touch ID is required to make payments from your Cash App.
The Cash App mobile app is also really well-reviewed online.
On the Google Play Store, it has 4.6 out of 5 stars and more than 1.5 million ratings from users.
On the App Store, Cash App has 4.7 stars and more than 2.1 million ratings.
If you have a Cash Card, the money in your Cash App account balance is covered by the FDIC through the company’s partner banks (FDIC “pass-through” insurance) in the event of bank failure.
The FDIC covers eligible accounts up to $250,000 per Cash App customer. It’s important to note that Bitcoin and investing balances aren’t covered by FDIC insurance.
Overall, Cash App is a safe and secure platform.
That being said, one of the biggest issues with Cash App is scams.
Sadly, there are now a ton of Cash App scams out there. This includes Cash App flips where people are promised a larger amount of money back if they just send a small amount first. For example, the scammer tells you that if you send them $100, they’ll flip it for you and send $800 back.
Other scams include people pretending that you have won a giveaway, but that you need to pay a fee in order to claim the prize. Another Cash app scam is the Social Security scam, where the scammer tries to get your Social Security Number from you, or pretend to be from a government agency and ask for payment through Cash App in exchange for Social Security benefits and services.
Some scammers might say that your benefits are going to be canceled, or that your card needs to be updated. They may use threatening language to get you to confirm your SSN, and then they’ll ask for payment through Cash App for the “service.”
Sadly, Cash App is prone to scams. So, never give out your sign-in code or PIN to anyone. Also, do not share sensitive information such as your full banking details, or Social Security Number. And, only send money to people that you know and trust.
Borrowing Money from Cash App: Closing Thoughts
If you’ve been wondering how to borrow money from Cash App, then follow our step-by-step guide above. As I mentioned earlier, Cash App loans are not available to everyone, so you may not have access to this option on your account.
If you do have the option to borrow money from Cash App, then you may want to give it a try.
The Cash App borrow loan is meant to be more of a short-term solution because it only offers a pretty low limit of $200, and you have to pay it back over a short timeframe too.
It works best for times when you just need a little extra money fast, like for small emergencies that pop up before your next paycheck. If you need a larger amount of money, or to borrow for a longer period, then you might want to consider a personal loan instead, because you can borrow more and, sometimes, at lower rates.
If it’s available to you though, a Cash App borrow loan could be useful if you’re short on cash and just need a small loan to tide you over.