What is Cash App Borrow?

Cash App Borrow is a short-term loan available to select Cash App users.

How do I activate Borrow on Cash App?

From the Cash App home screen, look for the word "Borrow." If it doesn't appear on your screen, you're not eligible for Borrow. If you do see "Borrow," tap on it and then tap "Unlock" to activate the Borrow feature.

Why can't I borrow money from Cash App?

Cash App doesn't give specific reasons why Borrow is unavailable to a particular user. However, the app Support section lists the factors that influence a customer's access to Cash App Borrow. They include the state of residence, having an activated Cash Card, Cash App usage and credit history.

How do you qualify for Cash App Borrow?

Cash App doesn't disclose specific criteria. However, it does note that you must live in a state where Cash App Borrow is offered. Cash App also considers your credit and factors related to your Cash App usage in its decision to make the feature available.

Does Cash App Borrow help your credit?

Cash App Borrow might help your credit , but if you miss payments, it's more likely to hurt your credit score. According to the Cash App Borrow Loan Agreement, Cash App may report your account information to the credit bureaus, but it does not explicitly state that it reports on-time payments. However, it may report late or missed payments.

What is the borrow limit on Cash App?

The borrow limit Cash App offers depends on how you meet eligibility criteria such as activity on Cash App and history of repaying past Cash App Borrow loans. You may be offered higher limits the more you use the feature and pay back the money on time.

What states allow Cash App Borrow?

The Cash App Borrow Loan Agreement indicates that loans are not available in all states, but it does not specify in which states a borrower must reside to be eligible for a loan. You can find out if you're eligible in the app.

Cash App uses fraud detection technology and encryption to secure your data and money and is PCI Data Security Standard Level 1 compliant. The app integrates with your smartphone's screen lock, where PIN entry, Touch ID, passcode or facial recognition add an extra layer of protection if your phone is lost or stolen.

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

October 10, 2024

6 min Read

Written by Caitlyn Moorhead

Edited by Emily Gadd

Close up of woman hands holding mobile phone with application to receive money.

Ridofranz / Getty Images/iStockphoto

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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 eligible 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
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:

Open Cash App and check your eligibility to make sure you’re eligible for the Cash App Borrow feature. This will depend on such factors as your Cash App and Cash Card usage, credit score, credit history and where you live.
If necessary, tap on the home screen icon to navigate to the “Banking” header.
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.
Tap on “Borrow.” Once you hit this option, you’ll be prompted to proceed with the loan application process.
Tap “Unlock.” Once unlocked, you can activate the Cash App Borrow feature.
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.
Select your repayment plan. You’ll have different options to choose from, which is helpful depending on how much you intend to borrow.
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.
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. 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

Cash App will let you know how much money you are approved to borrow. The amount is determined based on your use of Cash App and your Borrow repayment history. It may get higher overtime. You will typically get four weeks to repay the loan plus the 5% flat fee.

If you have not repaid the loan in full by the due date, 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:

Pay attention to the due date Cash App sets for the loan.
If you miss the due date, 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 and they do not accept applications. 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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