If you need a cash advance before your next paycheck, Cash App loan money could be a lifesaver. After all, using the peer-to-peer payment service to send and receive money is so straightforward. The good news is that Cash App has begun to roll out a Borrow option to a select group of users. Here’s all you need to know to see if you qualify for a Cash App loan.
Does Cash App Let You Borrow Money?
According to a 2020 TechCrunch story, Cash App does give loans ranging from $20 to $200. The Borrow feature was tried by Cash App with a restricted rollout to 1,000 customers. While the firm hasn’t said anything about the status of that testing, the app does state that Borrow is still not available to all clients.
The ability of a certain consumer to use the function is determined by:
- The state in which you reside
- Whether you have a Cash Card that is activated
- The history of your Cash App usage
- Your credit score
According to TechCrunch, loans were funded quickly and required repayment in four weeks or less. Carrying a balance for so long, though, can add up – according to the TechCrunch article, Cash App charged a 5% flat price to borrow, plus extra 1.25% per week after the grace period.
As long as you know that a Cash App Borrow loan is best for quick repayment, the new tool — if it’s available to you — could be useful when you’re running low on cash.
Borrow Money With Cash App Borrow
As previously stated, Cash App Borrow is not currently available to everyone. The only way to find out if it’s available to you is to inquire. To find out if you may borrow money from Cash App and how to do it, follow these steps:
How to Borrow Using Cash App
- Launch the Cash App.
- Tap on the Cash App balance in the lower left corner.
- Navigate to the “Banking” section.
- Look for the term “borrow” in the dictionary.
- If you see the word “Borrow,” you can apply for a Cash App loan.
- Select “Borrow.”
- Select “Unlock.”
- Cash App will tell you how much you can borrow. Choose an amount.
- Choose your payback strategy.
- Please read the user agreement.
- Accept your loan from Cash App Borrow.
Is Cash App Safe?
It is too early to determine how secure a Cash App loan application is, but the Cash App platform is secure. Cash App protects your personal information and money in several ways:
- If your phone is lost or stolen, the software combines with the screen lock on your smartphone, where PIN input, Touch ID, passcode, or facial recognition offer an extra degree of security.
- If you’ve misplaced your Cash App card or want to be extra safe, you can disable it.
- Set up email, SMS, or push notifications to help you monitor your activity and be notified of unexpected account usage.
What Other Online Loan Options Are There?
When you need money, having access to quick cash might make all the difference. The majority of people will use funds from an emergency savings account, borrow from family members, or charge the bill to their credit card.
Fast cash loans have downsides, such as piling up personal or credit card debt or charging exorbitant fees. While Block (previously Square) continues to offer Cash App loans, try the alternative lending solutions listed below to receive the money you need immediately.
Oportun bills itself as a “cheap alternative to payday loans,” and it may be best suited for customers with no or bad credit. For up to 48 months, you can borrow between $300 and $10,000. Oportun’s annual percentage rate is limited to 35.99%.
LendingClub offers loans ranging from $1,000 to $40,000. You can borrow as many loans as you like at once once you’ve established a track record with LendingClub, as long as they don’t total more than $50,000.
LendingClub charges an origination fee of 3% to 6% on each loan. You have up to five years to return the loan in full, but don’t put it off too long – the annual percentage rate ranges from 7.04% to 35.89%.
OppLoans is another negative credit loan firm that bases lending decisions on variables other than your credit score and credit history. Amounts ranging from $500 to $4,000 are available. State-specific repayment durations range from nine to 18 months.
Although having the opportunity to repay the loan over a longer length of time alleviates some of the stress, it is critical to exercise caution. In several states, the OppLoans APR on the amount borrowed is 160%.
It’s critical to keep an eye on the APR, as with any loan for people with bad credit or no credit. Otherwise, you risk paying significantly more in interest than the original loan amount.
A Money App Borrow loan appears to be a good option for a short-term loan for a few dollars — assuming you’re eligible. When weighing other online lending options, consider the cost of borrowing money as well as the lender’s repayment terms.
Most online lenders claim to offer loans that are less expensive than payday loans, however the loans are still rather expensive if the sum is not paid off immediately. Make sure you thoroughly comprehend what you’re agreeing to and whether you can actually afford to borrow.