Suppose you just decided to install Cash App and try out all of its features. You might have already introduced yourself to some main options it has and what it can do for you. Can I borrow from Cash App – you might be wondering. This article will explain to you whether this option is possible.
Borrowing money through Cash App is possible, but not for all users in the United States. Users who are eligible can borrow $20 to $200 with a 5% flat fee and can individually choose how they want to repay the loan to the app company.
Cash App Borrowing Is Not Available to All Users in the US
If you have just downloaded your Cash App, you are probably just getting familiar with using credit cards on the app or perhaps withdrawing money from the app, and now you want to know whether you can perhaps borrow cash. If you wish to borrow some money from the app and place it in your personal account, you should know that such a thing is not possible.
You might have heard that Cash App has a borrowing feature – and that is true. However, the Cash App borrow is still in the testing phase and is not available to most people using the app. Through the next few paragraphs, we will try to explain in more detail how this feature works and who is eligible to use it.
There Are No Strict Rules About Who Can Use the Borrow Feature
On the official website of Cash App, you can find some information about the loan agreement from 2021. Since then, the feature has been in the testing phase, and no strict regulations have been set. There are still no specifics about which users can use the feature for borrowing, but some factors that affect eligibility are known.
Four Main Factors Can Affect Your Eligibility to Use the Borrow Feature
If you wish to know more about who can use the borrow feature on the app and whether you could become one of those who get money for free, you should read more about which factors are considered crucial. Four main factors that are taken into account by the app when choosing which users can use the feature are:
- Being active on the app – it is said that people who use Cash App often and are active users are more likely to earn the borrow feature.
- State of residence – we know that the borrowing feature is not available in all US states, even though Cash App hasn’t stated which states are eligible. The agreement states that borrowing may be available in the following states: California, Kansas, Missouri, Iowa, Massachusetts, New Jersey, Rhode Island, New York, Ohio, Vermont, Wisconsin, Washington, and Utah.
- Your usage of the app – this factor is still very unclear. The majority think that usage will affect your eligibility for a loan, but it is not known in which exact way.
- Credit history – this does not mean your actual credit score because it is believed that Cash App will not list a target credit score. However, having a poor credit history may prevent you from getting the borrowing feature.
- Having an active debit card – this opinion comes from people who are currently eligible for using the borrowing feature. However, such a thing is not confirmed by the officials from the Cash App.
How Do I Know if I Am Eligible for Borrowing Money on the Cash App?
You may think – what if I am eligible for the borrow feature, but I haven’t realized it yet? Well, checking out whether you can borrow money is pretty simple, and you can do it immediately on your phone. You first need to open your mobile phone and click on your Banking page, where you have options for recurring deposits, direct deposits, and bank account transfers.
You might be able to spot the option that says “Borrow immediately,” and you probably got the notification on the app for the update. If you do not have the option, go to the “Support” page and read more about the proper explanation of Cash Apps’ eligibility requirements.
If You Got the Notification Outside the App – It Is Probably a Scam
Some people stated that they had received notifications about becoming eligible for the borrowing feature on their social media accounts or email. However, once they enter the Cash App on their phone, they cannot find the borrowing option.
If you are experiencing such a problem, you should be very careful. There are big chances that you are getting scammed. In this case, do not enter any links sent to you, and don’t answer the email or send any private information.
If You Are Eligible for the Borrowing – The Process of Getting Loan Is Super Simple
If you are one of those lucky users who got the opportunity to try out this new feature, borrowing money should be a piece of cake for you. The process itself is quite simple and only takes a couple of minutes. Once you enter your application and go to the Banking or Balance page, you will immediately spot the borrow feature. After the “Borrow” button, tap on the “Get Started” button, and you will see how much money you are eligible to borrow.
You can be offered the range of $20 to $200, but that can vary depending on which feature you got. After you select the amount, you will get the details of your borrowing that look similar to the table below.
|Amount of money||$100|
|5% flat fee||$5|
|Deposit location||Cash App|
|Total to repay||$105|
You Will Be Able to Choose How You Are Going to Repay
Once you select how much money you wish to borrow, you will get the information about the loan and also a chance to choose how you are going to be repaying your loan. You will be offered three options:
- Each time you get cash, 10% of the deposit will be set aside to pay your loan.
- In four weekly payments through installations. You will get the list of dates on which you will have to return the money.
- All at once, when you decide that you have the right money to pay back the loan. If you choose to repay earlier, you can just tap the “Repay Early” button.
Is It a Good Idea to Borrow Money From the Cash App?
Now that you know everything about borrowing money from Cash App, it is time to give the final verdict. Is Cash App a good platform for borrowing money? The fact that a Cash App only offers loans up to $200 is not an amount you can count on for some bigger investments. However, it would help if you kept in mind that the 5% flat fee is not so high on a dollar basis. It can be a beneficial tool if you are in a jam and need quick money without too much hustle.