Before we talk about how to get it, we need to address costs. Loans, especially short-term loans, are going to be very expensive. The companies that issue them know their customers are in a tough spot.
With Cash App, a loan will cost you 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 kicks in. This interest is added to the amount you need to pay them each week.
In terms of fees and costs, it’s cheaper than a title loan or payday loan but you are limited to how much you can borrow from cash app ($200). (more importantly, you can’t get a second loan if you have an existing one)
If you compare it with some popular cash advance apps, it’s cheaper because many of them don’t charge you for the loan but require a monthly membership fee.
The Cash App is really meant as a very short-term fix, for small emergencies that pop up before your next paycheck. If you need more money or for a longer period, it is often better to go with a personal loan because you can borrow more and, sometimes, at lower rates.
How to Borrow Money from Cash App Borrow
Not everyone has access to Cash App Borrow, to see if you do, follow these instructions:
- Open the Cash App
- Click on your account balance in the lower left (if you don’t have a balance, it looks like a house)
- It should take you to the Banking section, now look for “Borrow up to …” (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 deposits)
- Read the agreement (Borrow Loan Agreement) carefully, then accept the loan if you want it.
How to Get Access to Cash App Borrow
Cash App Borrow is available to people who make regular deposits into their Cash App account. The more you deposit regularly, the more you’re eligible to borrow through Cash App borrow.
The maximum loan amount, $200, is available 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 bit of cash quickly, it’s a good option to have. If you only need a few bucks, the cheapest option is to borrow money from friends and family.
But sometimes you can’t or you feel bad asking to borrow money. The Cash App only offers up to $200 so it’s not a tremendous amount, something someone could conceivably be able to lend you without much difficulty.
If you don’t have that as an option, borrowing even the full $200 from Cash App only costs you $10. On a percentage basis, it’s high (5%) but not on a dollar basis. If you’re in a jam, knowing you can get $200 right now at a cost of only $10 is useful.
