Cash App users have a reason to rejoice. You can use it to get a short-term loan if you need cash for small household expenses. That’s right; knowing how to borrow money from Cash App becomes useful whenever you want a small amount of money quickly.
You can borrow up to $200 and pay it back within a month. However, if you don’t repay it, Cash App will charge a flat 5% fee. Learn more about borrowing money using this app below.
Borrowing money on Cash App is a straightforward process, provided you see the ‘Borrow’ option. Use these steps to get a loan.
1. Open the app, and from its home screen, go to the ‘Banking’ section.
2. Here, you must find the word ‘Borrow.’
3. If you see it, you are eligible to take out a loan.
4. Touch the ‘Borrow’ button when you see it.
5. after that, touch ‘Unlock.’
6. The Cash App will indicate the amount you can borrow.
7. Choose this amount.
8. After that, choose how you will repay.
9. Review the user agreement and then accept it.
How the Borrow Feature on Your Cash App Works
Cash App Borrow lets you take out an amount starting from $20. The maximum that the app will give you is $200. You must pay back whatever amount you borrow within a month or four-week period.
Also, you will need to pay a 5% interest on the amount borrowed. In case you cannot repay the loan timely, the app will charge you a late fee. This late fee amounts to 1.25% every week that you fail to repay the loan.
POINT TO NOTE- Cash App loans do not help you increase your credit score. Contrarily, if you fail to repay the amount, it will only reduce your credit score.
Ways to Repay the Borrowed Money
You have three significant methods to repay your loan to the Cash App. These are:
● Autopay or configuring automatic payments through the Cash App.
● Manual or making payments by yourself before the due date.
● Mail, wherein you send a check to the address on your statement by 4 PM CT.
Why Some Users Cannot Use the Borrow Feature?
This feature to avail of a loan from Cash App is not yet out in every American state. If it is not out in your state, there isn’t much that you can do. You just need to use another digital payment service app. But sometimes, various other reasons prevent people from using this feature. These include:
1. Your balance is negative.
2. You are under 18 or don’t have a verified Cash App account.
3. The app lacks the latest updates.
4. Your account has experienced suspicious activities.
5. You have violated the terms of the app.
Summing up
Now you know how to use the Borrow feature in your Cash App. If you are eligible for this feature, it is a great way to make short-term payments. However, ensure always to repay the loan in a timely manner to avoid incurring debt.
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