If you use the Cash app and find yourself in financial trouble, there may be a short-term solution.
Cash App is something I recently discovered when I was researching various PayPal alternatives. It was fun to find out that in the early days you could get free money very easily on Cash App like PayPal.
Then I found out about all the fun boosts, contests and other interesting changes they added to a payment platform. I agree that a lot of them can just be a distraction, but if you use the app as your main payment platform, you're better off without these boosts and contests.
That said, one feature they introduced last year that caught my eye was the ability to borrow money. Sometimes your finances get a little messy, especially if you are paid bi-weekly, which is why so many fintech companies offer paychecks up to 2 days in advance.
Cash App leads the way by offering short term loans (not cheap but accessible) to eligible users:
Also Read :- What is Cash App Bank Name for Direct Deposit?
How Much Does a Cash App Loan Cost?
Before we talk about how to achieve this, we need to address the costs. Loans, especially short-term loans, are going to be very expensive. The companies that issue them know that their customers are in trouble.
With Cash App, a loan requires you to spend 5% of the loan balance immediately and then 1.25% per week after the loan and grace period. You have four weeks to pay off your loan, followed by a one-week grace period before the 1.25% interest rate begins. This interest is added to the amount you need to pay each week.
In terms of fees and cost, it is cheaper than a title loan or payday loan, but you are limited by how much you can borrow ($200). (More importantly, if you have an existing loan you cannot get another loan)
If you compare it with some of the popular cash advance apps, it's cheaper because many of them don't charge you for the loan, but do require a monthly subscription fee.
The Cash App is really meant as a great short-term fix for minor emergencies that come before your next paycheck. If you need more money or for a longer period, it is often better to go with a personal loan as you can borrow more and sometimes, at lower rates.
Read More :- How To Check Cash App Card Balance?
Need to borrow money quickly and cheaply?
Monvo is one such marketplace where you can get a low cost personal loan in just 60 seconds. Enter how much you need (as low as $1,000 and up to $100,000) along with your personal details and you'll get a reply within minutes.
How to Borrow Money from Cash App Borrow
Not everyone has access to Cash App Borrow, follow these instructions to see if you do:
- open cash app
- Click on your account balance in the bottom left (if you don't have a balance, it looks like a house)
- This should take you to the banking section, now look for "Borrow..." (it has a blue arrow icon)
- If you can't find it, you don't have access (more below). If you do, you can take out a loan.
Tap on "Unlock".
- Cash App will indicate how much you can borrow ($20 to $200 depending on your regular deposit)
- Read the agreement (borrowing loan agreement) carefully, then accept the loan if you want.
Also Read :- Cash App Fee Calculator
How to Get Access to Cash App Borrow
Cash App Lending is available for those who make regular deposits in their Cash App account. The more you deposit regularly, the more you are eligible to borrow through Cash App Lending.
The maximum loan amount available is $200 if you deposit at least $1,000 per month into your Cash App account.
Should You Borrow from Cash App?
If you need a little cash quickly, this is a great option. If you only need a few bucks, the cheapest option is to borrow money from friends and family.
But sometimes you can't ask to borrow money or you feel bad. Cash App only offers up to $200, so it's not an overwhelming amount, something you might be able to lend to you without much difficulty.
If you don't have that as an option, borrowing the full $200 from the Cash app only costs you $10. On a percentage basis, it is higher (5%), but not on a dollar basis. If you're in the jam, it's useful to know that you can get $200 for just $10 right now.
Also Read :- How To Delete Cash App History?
Anything else I should know?
If you already have a Cash App loan, you cannot get another loan. You have to repay the first loan before taking the second loan. Many short-term lenders prey on consumers who need to roll over their loans because they can charge them more. Cash App doesn't let you do that.
If you make a regular deposit but still don't have access, they decided not to give it based on your history. You can call customer service to see if they can share more about why you don't have access.
Cash App Lending Loan is not for long term solution. The low limit ($200 max) and short time frame (four weeks + a one-week grace period) mean it's best used when paychecks and bills time are a little out of sync.
It is good to have an option that is easier than going the route of a more traditional loan. To gain access though, you'll need to make sure you have a regular deposit of at least $1,000 to get the full $200.