Fans of Cash App will be aware that it doesn’t offer an overdraft or credit facility on the accounts. However, the company is working on implementing a borrowing scheme that is only now starting to be available to some users.

To borrow money from Cash App, make sure you’re one of the users who is able to use this feature, and that you’re eligible according to Cash App. There are also certain states that don’t allow borrowing from Cash App. Then you can follow the prompts to borrow via Cash App.

While this new service on Cash App is not available to all users yet, some of the lucky ones are already able to access it. If you are one of them, or if you simply want to be prepared for when the service goes active for you, read on below to find out more about how you can borrow money from Cash App via your smartphone or other mobile device.

Check Out the Features

Before you opt for Cash App Borrow, you should research what it can offer you. This is to establish whether it suits your needs or not before you start a line of credit with this company.

As it stands, the Cash App Borrow option allows you to ask for up to $200 for up to four weeks. Cash App does grant a one-week grace period once that term ends, but after that, you can incur a late fee of 1.25% interest charge every week until you pay the loan off.

You will also be charged a 5% flat fee that you will pay immediately when you request to borrow the money. Like other short-term loans, you may find yourself paying a lot in APR. If you remain interested in this service after researching it, you should proceed to the next steps.

Make Sure You Are Eligible

Cash App Borrow is available to only a small selection of users so far. Of these, not all will actually be eligible to get money from the service. Here are the current eligibility criteria for Cash App Borrow:

  • You must reside in a state where the service is available: This list includes California, Alabama, Texas, Virginia, Wisconsin, Kansas, Missouri, and Ohio. With the service only getting rolled out in particular states, this is an essential part of the process.
  • You must be a verified user: While you can use Cash App without getting verified, there are various perks associated with going through this process. You can verify your account by entering personal information like the last four numbers of your social security number, your date of birth, and your full name.
  • You need to deposit enough a month to get the maximum borrowing option: If you’d like to get $200 from Cash App Borrow, you will only be able to request that amount if you deposit at least $1,000 a month into your Cash App balance.

Open the App and Tap on Borrow

Once you are sure this is the most suitable option for you, open the Cash App on your phone. You will see your balance in the bottom left corner. Tap on the balance, which will take you to the Banking menu.

If Cash App Borrow is available to you, a blue arrow will highlight where you can find this option. Tap on Borrow and then on Unlock. At this stage, you will be able to apply for your loan through Cash App.

Select the Amount and Repayment

After tapping on Unlock, you will be able to see your borrowing limit on Cash App. If you have deposited enough money per month into the account, the limit should be between $20 and $200. Choose your desired limit, then proceed.

At this point, you will be asked to confirm the repayment schedule. For now, the maximum length for the loan is four weeks. Cash App has created the borrowing system to be a short-term loaning process, a sort of bridge between payday loans and long-term bank loans.

This is why you will only be able to request a loan for a maximum of four weeks, at least at the moment. As mentioned above, once the four weeks have passed by, you will have one week’s worth of grace period. Once that passes too, you will be charged late fees every week.

At this stage, make sure to only request what you need. With short-term loans, it is essential to pay them back as soon as possible. You can also request to pay it sooner.

Confirm the Loan

After selecting the amount and the repayment schedule, you will be asked to read the user agreement. Until you read and agree with this document, you won’t be able to confirm your loan.

Once you have confirmed the request, you will have a loan agreement with Cash App. As an eligible user, your money should be in the account quickly after making the request. This is still a feature that is being tested, so it might take longer to process at times.

If the team at Cash App requires anything else for you or needs to get in touch about the loan, they will send you a message.

Conclusion

Cash App Borrow is still a limited feature available only to some users within the United States. If you are eligible to apply for it, make sure that it meets your needs and that repaying it is a sustainable prospect.