Wouldn't it be easy if a solution landed on your lap whenever you were in a financial crunch?
Drum roll, please!
Now you can borrow money using your Cash app account. The application offers its limited users the option to take a $200 loan, no questions asked!
Even though the lending feature on the app is still under trial, you must know how you can receive your short-term loans with just a click.
How does borrowing from the Cash app work?
Borrowing on the platform is very easy.
Eligible users can take a loan of $20 to $200 from the Cash app. Since its short-term lending, they'll have to repay the sum within four weeks. Besides the principal amount, you will also have to pay back with a flat 5% fee.
On top of this, there's a provision of the late fee at 1.25% only. Don’t worry! You will be chargedonly after a 1-week grace period!
If you're wondering how this will translate as Annual Percentage Rate (APR) for you, it'll be 60% on 12 monthly payment schedule. Objectively speaking, it's one of the best deals you can get with short-term lending options. Even the payday loans approximate up to 400% for APRs.
How can you start borrowing from the Cash app?
Before you begin, you need to see if the app finds you eligible to receive the service.
The availability of borrowing features depends on your:
l State of residence
l Presence of activated Cash cards
l Your usage history on the Cash app
l Your credit records
Based on these criteria, if the Cash app finds your profile suitable, it'll add you to the list of limited borrowing members.
What is the procedure for applying for a Cash App Borrow loan?
Your trail for fulfilling your short-term financial requirement is pretty straightforward!
Here’s how you do it!
Step 1: Start with the Cash app sign in
Creating your account on the cash app is extremely easy. All you require to do is enter your number or email address. Once you've entered your details, the application will send you a secret code.
Upon entering the same, your Cash app journey begins! It's free to sign up, and you can even share it with your friends for referral balance.
If you already have a Cash app account, you can skip Step 1 and go straight to Step 2.
Step 2: Begin with the Cash app login
Use your login id and password to log into your Cash app account.
Step 3: Check the app balance
On the lower left side of the opened screen, you will see the available balance in your account. If there’s no money, you will see a house symbol in the same place.
Step 4: Head to Banking section
Once you've entered this section, it's time to look for the 'Borrow' option. Basically, if you can see the tag on your profile in the Cash app, you're eligible to take out your short-term fix. (Search for the blue arrow icon.)
Step 5: Tap on Unlock button
Upon clicking the icon, the Cash app will show the limit up to which you can borrow. The amount varies on the basis of your regular deposits and credit history with the app.
Step 6: Finalize your borrowing
Once you have accepted the amount and selected the repayment plan, bring attention to the user agreement terms. Only after you have complied with it, can you accept your loan.
Parting Thoughts
Cash app Borrow seems like a godsend to the people in need of a quick fix for financial lending. It's a fantastic option for an emergency fund before you receive your monthly paychecks like unexpected hospital visits, unexpected trips etc.
Although the credit offers an upper limit of $200, the repayment period with a 1-week grace duration helps with easy payback. The only consideration you need to keep in mind is your eligibility to use the limited feature.
