Cash App, known for its peer-to-peer payments, also offers short-term loan options for eligible users. If you find yourself needing a quick cash infusion, Cash App’s “Borrow” feature might be a solution. In this guide, we’ll break down how to borrow money from Cash App in 2024, along with vital things to know before you apply.
Steps:
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Check Eligibility: Not everyone qualifies for Cash App’s Borrow feature. To find out if you do:
- Open your Cash App and tap the “Banking” tab (usually a little house icon).
- Look for the “Borrow” option. If it’s present, you may be eligible.
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Unlock the Feature (If Necessary): If you don’t immediately see “Borrow,” follow these steps to potentially unlock it:
- Consistently use your Cash App Card for purchases.
- Receive direct deposits into your Cash App account regularly.
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Determine Your Limit: Tap “Borrow” and then “Unlock” to see how much Cash App lets you borrow. Typical limits start around $20 and may increase over time.
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Select Loan Amount and Repayment:
- Choose an amount within your approved limit.
- Select a repayment plan:
- One lump sum in four weeks.
- Four equal installments over four weeks.
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Review and Accept: Carefully read the loan terms – interest rate, repayment dates, and any fees. If everything looks good, accept the loan.
Important Notes:
- Not a Guaranteed Solution: Cash App’s Borrow feature isn’t available to everyone, and eligibility can change.
- Fees: Cash App charges a flat fee of 5% of the borrowed amount.
- Responsible Borrowing: Only borrow what you can comfortably repay on time. Late payments incur additional fees.
- Potential to Build Credit: While Cash App doesn’t typically report to credit bureaus, there’s a chance that they may do so in the future.
- Alternatives: If you don’t qualify, consider other short-term loan options or ways to make extra cash quickly.
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