How to Borrow Money From Cash App? [2024] | CoinCodex (2024)

Eligible users can borrow money from Cash App simply by navigating to the homepage and selecting the ‘Borrow’ function. However, the Cash App Borrow feature is not available to all users, as certain selection criteria determine whether or not a specific user can take out a loan.

Cash App has rapidly grown into one of the most-used e-money applications in the world today, supporting more than 55 million users by the end of 2023. Initially launched in 2013 by Block Inc. (SQ), the application is well-known for being founded by Twitter co-founder Jack Dorsey.

This article will explore Cash App Borrow, a relatively new feature that provides short-term loans to eligible users of the application.

What is Cash App Borrow?

Cash App, a popular e-money platform that allows its users to quickly and easily send peer-to-peer payments, offers a borrowing function that provides small cash loans with short-term repayment plans.

Cash App Borrow is only available to certain users of the application, and there is a relatively low limit to the amount that can be borrowed. However, Cash App Borrow provides great utility for covering cash flow over the short term and it has become a popular feature for eligible customers.

How to borrow money from Cash App

Borrowing money from Cash App is a simple process. Eligible customers can navigate to the Borrow tab from within the application, enter the amount that they’d like to borrow, and the amount will near-instantly be transferred to their account.

Here is a step-by-step breakdown for how to borrow money from Cash App:

1. Open Cash App
2. Navigate to the Home page
3. Select the Borrow option
4. Enter the amount that you’d like to borrow (between $20 and $200)
5. Choose a repayment plan
6. Review the terms of the loan
7. Your cash loan will be automatically transferred to your account

How to qualify for Cash App Borrow

As stated, Cash App Borrow is not available to all users. Cash App offers loans to select customers based on the frequency with which they use the application, their personal credit history, and their financial records with Cash App itself.

Cash App Borrow is also not available in all geographical locations. While most of the app’s functions are available to users across the United States and the United Kingdom, Cash App Borrow is specifically only available to users in 19 states (more on this below).

Another key qualifying factor is whether or not a Cash App user has an activated cash card, which is Cash App’s own brand debit card. On balance, Cash App considers several key factors when determining whether or not a user is eligible for loans:

• Cash App deposit history
• Geographical location
• Having a Cash Card
• Credit score

Which geographical locations support Cash App Borrow?

Cash App Borrow is only available to users in 19 states in the US. Unfortunately, the other 31 states are not eligible for Cash App Borrow, and the feature is also not available to users in the UK.

That said, here is the full list of states where users can access Cash App Borrow:

• Alabama
• California
• Georgia
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Louisiana
• Michigan
• Mississippi
• Missouri
• North Carolina
• Ohio
• Tennessee
• Texas
• Utah
• Virginia
• Wisconsin

Repayment structure and interest rates

Borrowing money from Cash App involves some fees, and the duration of the repayment plan is typically very short-term. Cash App’s flat fee for its borrowing feature performs the same function as traditional interest rates, and there is an additional fee that can be incurred as a late repayment penalty.

Cash App Borrow rate of interest

Eligible users who take advantage of the Cash App Borrow feature will be required to pay an additional 5% of the loan amount during the repayment period. This flat fee works like a traditional interest rate, representing Cash App’s profit margin in the process of lending out money.

Cash App Borrow repayment structure

Borrowing money through Cash App is typically a very short-term loan. Users will usually need to repay the amount in full (plus interest) after 4 weeks. The amount can be repaid in installments or paid off early, and Cash App Borrow also offers an automatic repayment system from within the application.

Late repayment fees

If, for any reason, a user fails to repay their loan as per the repayment structure outlined in the loan agreement, then Cash App will begin to charge an additional 1.25% every week that the loan is not repaid.

Let's demonstrate this with an example:

A Cash App user borrows $100 with a 4-week repayment period at 5% interest. This means that the user needs to repay $105 in total by the end of the 4 weeks. If the amount is not repaid in full, then $1.25 will be added onto the repayment amount every single week until the amount is paid. Not repaying the loan will also harm the user’s credit score.

FAQs

Can everyone borrow money from Cash App?

No, Cash App Borrow is not available to all users of the application. There are various limitations on who can borrow money from the app, including geographical location, credit history, and Cash App deposit history.

How much can I borrow through Cash App?

Cash App Borrow typically offers loans between $20 and $200 to eligible customers.

How much does it cost to borrow from Cash App?

Borrowing money through Cash App involves a 5% interest rate as standard, and users who fail to repay the loan amount within the designated time frame will also incur a 1.25% penalty every week. Therefore, it's important to pay off the loan on time to reduce your total loan cost.

Why can't I borrow from Cash App?

If there is no "Borrow" option in the "Banking" tag of your Cash App, your account is not qualified to use the Cash App Borrow feature. There are multiple reasons why you might not be able to borrow money from Cash App:

• The feature might not have been rolled out to your account yet
• You live in a state where the Cash App borrow feature is not supported yet
• Your credit score is too low

The bottom line

Cash App Borrow offers some useful functionality for eligible customers. For anyone who may need a quick boost to their cash flow to cover unexpected expenses, Cash App Borrow can be somewhat of a life-saver. The ease and simplicity of the process, and the speed at which a user can access a short-term loan, make it a great option in specific circ*mstances.

With that said, you should always borrow responsibly due to the fees that are involved when it comes to taking out a loan – it's important to understand all the factors that increase your total loan balance. For more information about Cash App and its various features, check our articles below:

• How to Find Cash App Routing Number
• How to Delete Cash App Account
• How to Cash Out Bitcoin on Cash App