How to use cash app to borrow money: a complete guide
Written by: Admin
Cash app allows users to borrow a small amount for a flat 5% fee. However, the cash app money borrow is not available for all the users in the US. Some users can borrow up to $20 or more and they need to pay back with a flat fee within the 4-week schedule or all at once. The app has made borrowing simple and helped users to skip emergency situations. In this post, you will learn about cash apps and how the users can unlock cash app borrow money features on your android, iPhone, or iPad devices.
How to use a cash app borrow money feature and does the app allow borrowing
Since the users are using the beta version of the cash app borrow money feature, the money borrowing is not available for all the users. The app provides a small loan to the qualified users and they need to pay back with a flat 5% fee. Further, the users need to pay additional charges for late payments.
The cash app users who don’t find an option to borrow in the app, they can’t unlock the cash app borrow money feature.
What are the eligibility requirements of the cash app borrow money?
Cash app has availed the beta version to borrow money from the app. So, the app has not provided much of the eligibility criteria. But,according to the app support area, these 4 factors may affect your eligibility criteria. These are:
- Activating cash card: Although, there is no indication that the users are required to have a cash card. However, activating cash cards may increase their chances to borrow loans easily.
- App money borrowing states: As mentioned above the app has availed cash app borrow money in its beta version and hence, the borrow money option is not available in all the US states, however, the app has also not specified the states where the money borrow option is not available. However, we can assume that states such as California, Iowa, Kansas, Massachusetts, Missouri, New Jersey, New York, Rhode Island, Vermont, Ohio, Washington, Wisconsin, and Utah do not have loan agreements which indicate that money borrowing is not available in these states.
- Credit history record: However, the cash app doesn;t specify a target credit score or any other criteria. It indicates that your chances of borrowing from the app go down if you maintain a poor credit history.
- Cash app usage: the cash app has not confirmed whether the app usage affects your loan eligibility or not however, they mentioned that it’s a factor.
Other ways to qualify for cash app borrow money
Not confirmed, however, there are some other ways to improve your chances to qualify for a cash app borrow money. These are:
- Setting up direct deposit: Most of the Reddit users claim that setting up direct deposit on the cash app made them eligible for the cash app loans.
- Having credit and debit cards: Many other users also claim that having credit and debit card contributed to loans.
Note: the above ways are just users claims but not confirmed by the cash app.
What are the cash app money borrow limits?
The cash app has published how much the users can borrow, however, when the cash app announced its borrow feature, the loan amount ranged from $20 to $200. However, some Reddit Forum users claim that they can borrow up to $450.
How to borrow money from the cash app instantly
If you have already installed the cash app in your phone, you can borrow money by following the steps mentioned below:
Open the cash app on your phone or computer
For the ‘cash app borrow money’, firstly, open the cash app available on the phone. Next, you look for the ‘Borrow’ option in the app to make sure that you are eligible for the loan. To know loan eligibility, tap on the green and white dollar sign on your android, iPhone, or iPad.
Tap bank icon or balance
On the bottom left corner, you find a bank icon, tap on it and it will show if you are eligible for the loan or not. When you tap the icon, you find a curved arrow, which indicates that you are eligible for the loan and you can proceed by tapping the “Get started” tab. WFurther, when you tap the “Get started” tab, you find the amount that you can borrow.
Note: As mentioned above, how much money you can borrow from the cash app depends on many factors such as:
- How much time you take to repay the amount.
- How much money you deposit or keep in your cash app.
- Your recent credit history.
Tap “Get started” to check how much money you can borrow
When you tap the ‘Get started’ tab, you can see how much money you can borrow from the cash app. Also, the loan amounts are available in pieces to choose from. For example if your maximum borrow amount is $100, then you will find lower loan amounts such as $20, $30, $40, $60, $80 and $100. So, you can easily tap the amount you want to borrow from the app by clicking on the ‘Next’ tab.
Review your borrowed and repay amount and date
When you tap the “Next’ tab, you see how much money you have borrowed and how much you have to repay after a flat 5% fee. Also, you can see the repayment date there. For your convenience, you can borrow the amount instantly. The app automatically calculates the amount you need to repay and the date of repayment.
Confirm weekly repayment schedule
The cash app automatically schedules your weekly repayment from the cash app balance or the debit card you have linked. For example, if you have borrowed $175 from the cash app, the repayment amount is $183.75 after adding 5% flat fee. The app schedules 4-week repayment.
Here the weekly repayment amount is $45.94 which is optional. If you skip the weekly instalments, you have to pay all at once in the fourth week. Three weeks do not include additional charges but the fourth week has some additional charges.
Finally, we conclude that the cash app has provided an instant small loan facility to the app users with a flat 5% fee and four week repayment schedule. The users not repaying in four weeks need to repay with some additional charges. The cash app borrow money depends on the credit history of the users. The credit history depends on many factors as mentioned above. According to many Reddit users, there are other factors that improve the chances of borrowing money such as activating cash cards, linking credit and debit cards in the app. The users borrowing from the app need to repay within the scheduled repayment or they need to pay additional charges apart from a flat 5% fee.