Cash App is one of today’s most popular apps for sending and receiving money, but you may not know that this app has a new feature for borrowing money. Cash App Borrow allows users to take out small loans utilizing the app. Our article gives you more information about Cash App Borrow and how to get a loan from Cash App.
What Is Cash App?
Cash App was founded in 2013 by Block, Inc, which was formerly known as Square, Inc. The app allows users to send and receive money without fees and transfer funds to their personal bank accounts for minimal fees. This makes it an easy and convenient way to make payments between friends or family.
In the years since its creation, Cash App has expanded its functions and now offers services such as banking, stock purchasing, or the purchase of bitcoin. Cash App can be used for commercial purposes, and many businesses have adopted the app as part of their digital payment services. The app recently launched a ‘borrow’ feature for taking out loans around 2020.
How Cash App Loans Work
Cash App loans obtained through the ‘borrow’ feature are very similar to payday loans.
Individuals who are eligible for Cash App Borrow will be able to withdraw loans between $20 and $200. They will have four weeks to repay these loans, as per the Cash App Borrow Repayment Agreement. Cash App does provide an initial grace week, giving the users five weeks to repay their loan before interest kicks in.
Many individuals choose to use Cash App Borrow for the ease of withdrawing the loans, the minimal screening before loans are given, and the ability to withdraw loans in small numbers.
However, the lack of background checks and hard credit screening does make these loans a little riskier, as they are often associated with very high interest rates and short repayment periods. There is also a flat fee of 5 percent that you will need to pay when taking out your loan.
Am I Eligible for Cash App Borrow?
Cash App Borrow is only available to certain accounts, and your account must meet some basic criteria before you are able to take out loans via this feature.
To be eligible for Cash App Borrow, you must:
- Live in one of the states where Cash App Borrow is available
- Have a Cash Card with Cash App
- Frequently use Cash App, often depositing money and taking money out of your Cash App account
- Be at least eighteen years old
- Have a good credit history
If you have any concerns or questions about these eligibility rules, you will need to contact Cash App directly for guidance. And if you aren’t sure if your credit history is good enough, you can run a background check on yourself to see what shows up in your report.
States Where You Can Access Cash App Borrow
The following states are areas where Cash App Borrow is available once your account meets all of the basic eligibility criteria.
- North Carolina
More states may become available over time, and you should check with Cash App Borrow directly if you are wondering whether or not you can use this service in your current state.
How to Use Cash App Borrow
Review these steps below to get a general overview of how to take out a loan with Cash App borrow.
- Open Cash App and sign in, if you aren’t already signed into your account.
- Tap on your account balance.
- Tap the area that says ‘borrow.’
- Tap on ‘unlock’ to access the Cash App Borrow feature; if you are eligible, the app will show you how much you can borrow.
- Accept your loan amount and choose a repayment option for your loan.
- Review the repayment terms and loan agreement, then tap ‘agree’ and accept the loan terms.
- Enjoy your loan, and make sure to make repayment according to the agreed-upon schedule.
Keep in mind that if you don’t repay your Cash App loan according to the repayment schedule, you risk high interest rates. If you default completely, your loan may show up on your credit report and negatively affect your credit history.
If you have any concerns or questions about your Cash App loan, contact support for Cash App directly. Cash App does make it easy for users to request support and look through FAQ pages on their official website.
Make Informed Financial Choices
Taking out a loan, even if it’s a smaller loan via Cash App Borrow, is an important financial decision, and it’s essential that you understand the financial obligation you are undertaking.
Make sure you review all loan terms and repayment agreements and understand that you will need to repay your loan within the given period, or you may risk very high interest rates. Always make informed financial choices to ensure that the financial decisions you are considering are the best options for your personal situation.