Cashapp is a mobile means of payment available in the United States of America (USA) and the United Kingdom (UK). It was formerly known and called Square Cash.
Before considering borrowing money from a cash app, there are a lot of things and criteria to consider.
Cash App Borrow: Cash app borrow is a feature that enables its legible user to borrow short-term loans. Depending on your credit score, you can get a loan up to $200 with a flat rate of 5% fee, and failure to repay within the stipulated time which is usually within the range of four weeks will attract a 1.25% finance charge.
Using a cash app for a very long time does not guarantee your eligibility to access their loan options. Various things determine your eligibility borrow money from a cash app which includes:
- Credit history/score: this is an analysis that explains the worthiness of your account. Your credit history shows how good or bad your transactions have been and your credit score shows an average of how much you usually spend and receive at a given point in time.
- State of residence: The cash app was designed mainly for the USA and UK. Being in any of the above countries gives you more advantages to being able to borrow from the app.
- Cash Card: also known as an ATM card, it is a plastic card issued by the bank that allows and enables the holder to withdraw funds from an ATM.
How to Check your Eligibility and How to Borrow from the Cash App
- Open your cash app from any device you are using and currently signed in to.
- Tap or click on your cash app balance, you can find this at the lower left corner of your mobile app.
- Locate and find the (banking) header.
- Look for the word “borrow”.
- If you were able to see the word “borrow” this signifies that you can take a loan, but if you did not, you are not eligible.
If you’ve reached this point, it means you saw the borrow option; then proceed to the next step to complete your loan application.
- Tap on the borrow option.
- Tap on unlock.
- Depending on your credit score, you will be given an amount option; select the amount option that best suits you.
- Select a suitable repayment plan.
- Make sure to read the terms and conditions and agree if it is suitable for you.
How Cash App Borrow Works
You are offered a loan of up to $200 and a minimum of $20 which you are expected to pay within a space of 4 weeks and a week. The due time is usually four weeks, then an extra week to pay your loan and the 5% finance charge. Failure to repay as at when due attract an additional charge of 1.25% which is added to your outstanding loan balance every week until you can pay it off. If you enable automatic repayment, the amount is likely to be deducted from your balance or debit card; additionally, you might be suspended from accessing and transacting with the app until your borrowed money is paid off.
How to borrow from the cash app
The process of how to borrow money from a cash app has been explained step by step above, let’s summarize the whole process here.
Before you can be able and eligible to borrow from a cash app, you must have a good credit record with the app and should be using the app for some time. Loans are not given to new users. This will convince them that you didn’t create the app for the loan only, but for transactions.