How to Borrow Money from Cash App and is It Safe?

Cash App allows you to borrow money for emergencies instantly. It is an excellent alternative to applying for a loan at a bank. But to find out how to borrow money from Cash App, you must have a good idea of how the Cash App Borrow feature works. Not everyone can access this feature. You can only do it if you fulfill a particular condition. This article will detail the Borrow functionality and how to use it to get money quickly.

Who Can Access Cash App Borrow?

The Cash App Borrow feature is open to users who regularly deposit money in their Cash App accounts. Frequent deposits make you eligible to unlock this feature. The highest short-term loan amount is $200. This amount is available if you deposit $1000 or above monthly into your Cash App account.

Besides, there are some other things to know about the Cash App Borrow feature.

• The borrower needs to be 18 years or above.

• The borrower must have a bank account.

• The maximum loan amount cannot go above $5000.

• The interest rate on your loan amount is 12%.

• The repayment date fits into your payday timeline.

• The borrower can make payments quarterly, bi-weekly, monthly, or weekly.

• If the borrower doesn’t make a payment, their account will incur penalties, beginning from 25% APR. It can go up to 500% APR.

Use Cash App Borrow and Receive Money Easily

Once you know that you are qualified to use the Borrow feature on Cash App, availing of a loan is easy. Here’s how to borrow money on Cash App on Android and iPhone.

• Firstly, click open the Cash App.

• Sign into your account using your credentials.

• Now, hit the ‘Account Balance’ option.

• If the ‘Borrow’ option appears, click on it.

• Tap ‘Unlock.’

• Select a repayment option or plan that you consider suitable.

• A loan agreement will show up on the screen.

• Read this agreement carefully and agree to it.

• That’s it; you can now wait for the loan amount to reach your account.

Is a Cash App Loan Expensive?

While talking about a loan, it is best to discuss its costs. You might already know that short-term loans ranging from $200 to $500 are expensive. When you avail of a loan from Cash App, it will cost you 5% of your loan balance. There will be 1.25% interest weekly from the time you avail of the loan.

This interest period will increase after a week’s grace period gets over. The amount will be added to the money you must pay weekly. If you compare this to a payday loan, you will find it cheaper.

The only drawback is that you can borrow up to $200. Not only that, but you also cannot apply for another loan if you have availed of one. Cash App does not need a monthly membership fee, unlike other apps. This also significantly cuts down the loan fee and costs.

When Is Borrowing from a Cash App Safe?

You can depend on the Cash App’s Borrow feature if you need a small amount of cash quickly. An amount up to $200 is easy to avail if you don’t have any other source, such as friends and relatives.

Moreover, borrowing this amount costs you at most $10. So, it is quite a handy, helpful method.

Summing up

Now you won’t ask how to borrow money from Cash App as you know the entire process quite well. Leverage this feature for meeting small financial emergencies. It will certainly prove useful.