Recently the cash app has introduced a new feature for taking loans. Customers can learn how to borrow money from Cash App and avail the perks once the feature becomes completely accessible to public.
How To Borrow Money From Cash App?
Following are the steps that will let you utilize the Cash App borrow feature once you have access to it. After completing the procedure, you should check Cash App balance to see if you have received the funds.
- Open the Cash app menu and tap on your balance at the bottom of the screen.
- Tap on the Banking button and you will see different options.
- Click on the Borrow option. (It might not be visible to you yet unless Cash App makes the feature public).
- Check out the amount that you can borrow from Cash App such as “Borrow up to $200”.
- You will see the unlock button, click on it.
- Fill out the details and take out the money from Cash App.
You have to make sure that you have read the agreement before borrowing money.
Cash App “Borrow Money” feature is in its beta version but the company has been transparent about its features and benefits. People who have more than $1000 in their Cash App can borrow using this feature. On the other hand, users who have less than $1000 can not avail this feature.
Cash App has a fixed 5% of the flat fee on one borrowed amount.
This amount may increase up to 60% after 12 months. According to the policies, the person who borrows the money has to pay it back within a month.In order to create further ease for the borrowers, the applications has also designed a grace period of 1 week.
What About The Eligibility Criteria?
If you want to borrow money from Cash App then you have to make regular deposits in your account. This will get you access to the feature.
For example, if you deposit an amount of $300 each month then you will be able to borrow $70 from Cash App. Moreover, it is not free to use. There are some limits as well that you need to keep in mind.
So to say, you can not borrow more money if you have not paid back the previous amount. You can access funds again after you reimburse the last loan. This is just Cash App’s way to protect you from getting into debts that are not manageable.
Can You Apply For Cash App Loan Right Now?
You cannot apply for the loan on the Cash App right now. This is because the idea is still in the testing phase. When you check the loan or borrow feature in Cash App you will not find it.
The feature will become accessible in the future. As for now, the company has reserved the usage to selective testing sample. Alternatively, you can look into other loan options like SpotMe from Chime and borrowing money from Venmo.
Is It Safe To Take a Loan From Cash App?
The company is owned by Square. Inc and it is an American financial service. In terms of security and safety, Cash App is safe and secure for its users.
However. the loan feature may prove to be dangerous for people who do not know how to manage their money. Some may end up borrowing extra and have difficulty paying it back on time. On the other hand, it is great for those people who want to take out a loan for a short period of time.
Nonetheless, you have to be careful when using mobile money apps so you don’t fall into scamming schemes. Safeguard Cash app account number and routing number for a safer experience.
Before You Go!
Borrowing from a Cash app is the same as borrowing from another app. However, it should be for short term use. Moreover, loan should be availed in dire circumstances only to avoid inconveniences in the future.
Although, this feature is not accessible yet, customers surely have high hopes from Cash App in the near future. Let’s see how this unfolds!
Miriam Caldwell is a dedicated & expert freelance writer to educate people about personal finance management and budgeting. She shared her knowledge and published the articles at TheBalance.com, GOBankingRates, and BlissfullyDomestic.com. Many financial institutes pick Caldwell as the brilliant source for educational personal finance content.