How to Borrow Money Instantly From Cash App: A Step-by-Step Guide

Need a quick loan? There’s no need to turn to a payday lender. Cash App Borrow allows eligible Cash App users to borrow up to $200 — for a small fee.

But before you open Cash App to submit your loan request, you should understand a few things — including who is eligible, how it works and what it will cost.

Disclaimer: Credit Summit may be affiliated with some of the companies mentioned in this article. Credit Summit may make money from advertisements or when you contact a company through our platform.

Key Points

• Cash App’s loan option allows eligible users to borrow between $20 to $200 that must be paid back within four weeks
• You need to have several months of steady activity and deposits of at least $1,000 per month during that time in order to be eligible
• You’ll pay a flat 5% fee for the loan, plus a late fee if you don’t repay it on the due date
• Even if you’re a verified Cash App user, you may not be eligible to use Cash App Borrow
• This feature is not available in all 50 states
• The loans are pricey but considerably less expensive than payday loans

How to Borrow Money on Cash App in 9 Simple Steps

Borrowing from Cash App is simple:

• Open Cash App
• Sign in
• Click on the balance tab. (You can see your balance in the lower left corner)
• Turn on the Borrow feature (if you don’t see a Borrow option, you don’t yet have access to lending)
• Click “Unlock”
• Find out your borrowing limit (Cash App offers loan amounts from $20 to $200)
• Choose your repayment option
• Review the agreement
• Click “Accept”

Once the money is in your account, you can leave it in your Cash App account, transfer it to another person or send it to a linked bank account.

You can download Cash App here for iPhone and here for Android.

How Much Does It Cost to Use Cash App Borrow?

Anyone who opts to borrow from Cash App will be required to repay the loan within four weeks. It will cost a flat 5% fee. This means that if you borrow $20, you’ll pay a fee of $1. If you borrow $200, you’ll pay a $10 fee. If you fail to repay the loan on time, you’ll also have to pay a late fee.

Pro tip: This sounds pretty cheap, but if you do the math, the flat fee alone means you’re paying at least a 60% APR. That’s cheaper than most payday loans (which often have APRs above 300%), but far more expensive than most credit card cash advances, which average between 20% to 28% APR.

How to Repay Money Cash App Loans

Repaying your Cash App borrow loan is relatively simple. There are three main repayment options:

• Manual: You log in to Cash App and make your payment before the due date.
• Autopay: It’s easy to set up automatic payments. You can pay in recurring payments over four weeks or repay in one lump sum.
• By mail: Send a paper check to the address listed on your statement.

If you fail to repay your Cash App Borrow loan, the balance may be deducted from your account or debit card. Your Cash App account may also be suspended, and interest will accumulate.

There’s No Prepayment Penalty

Cash App will not charge a penalty if you repay your loan early. If you want, you can pay off the loan as soon as you have the money available.

How Cash App Borrow Works

Cash App Borrow is relatively simple if you’re a regular Cash App user. Here are some of the key things you should know before you borrow:

• Loan uses: Loans are designed as an alternative to payday loans and to help cover short-term personal expenses.
• Loan costs: Your total loan amount, plus 5% interest, will be paid back within four weeks. There is no penalty for repaying earlier.
• Repayment: You can set up autopay or manually pay through the app.
• What happens if you default: If you miss your payment deadline, you have a one-week grace period. After that, you’ll be charged a late fee of 1.25% per week until your balance is paid in full.
• Credit score impact: Cash App loans will not help you boost your credit score, but it could hurt your credit score significantly if you don’t repay the loan.

You can read the terms and conditions at cash.app/legal.

READ MORE: Why did my credit score drop?

Pro tip: Cash App is a popular service, but the Better Business Bureau page is filled with complaints from customers who say they can’t get adequate customer support if something goes wrong. This means it will also be difficult to reach someone if your loan funds don’t come through, are incorrect or you need any kind of payment extension.

Are you Eligible?

Cash App Borrow is a new feature that isn’t yet available to everyone who uses the app. If you get to step four as listed above and there is no option for “Borrow,” you don’t yet have access to this service.

How Long Does It Take to Become Eligible for Cash App Borrow?

To qualify, you must be a verified Cash App user. Verification requires several months of user history before you’ll be allowed to borrow money. You also must deposit at least $1,000 per month during that time to show that there is a steady flow of money into and out of your Cash App account.

Reasons You May Not Be Able to Use Cash App Borrow

Unfortunately, not everyone will be eligible to use Cash App Borrow. Here are some of the reasons why the option may be available:

• Your account has a negative balance, indicating that you already owe money to Cash App.
• You haven’t yet become a verified Cash App user
• You’re using an older version of the app (check for updates)
• You live in a state where Cash App Borrow isn’t yet offered
• Cash App has detected suspicious activity on your account
• You have already somehow violated Cash App’s terms and conditions

$200 is the maximum amount of money you can borrow, and only users who deposit at least $1,000 per month into their accounts are eligible to borrow the maximum.

Pro tip: Even if you meet the eligibility criteria, you should ask yourself whether this loan is something you really need. There are other ways to obtain funding — methods that won’t cost you 60% APR and have longer repayment periods. For example, those with Chime accounts can borrow $200 through Chime SpotMe, but there is no fee at all. However, if you live in a state where payday loans are unregulated, 60% APR can be a bargain compared to the 400%+ APR a payday lender might charge.

READ MORE: Facing a financial crisis? Here are your best options for emergency loans

The Cash App Borrow Feature is Only Available in the Following States (So Far)

Alabama, California, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Mississippi, Missouri, Ohio, Tennessee, Texas, Utah, Virginia and Wisconsin. If you live in any other state, you’ll have to wait for the program to be expanded.

Pro tip: Try Venmo if you can’t borrow money through Cash App. It also offers small-dollar cash advances.

READ MORE: How to make $500 fast

What Happens If You Don’t Repay Your Cash App Loan?

It’s no surprise that borrowers struggle to repay their Cash App loans. Cash App Borrow targets the same customers as payday lenders, and 80% of typical payday loan borrowers cannot repay their loans as scheduled.

Cash App has a plan for that.

If you’re in default, Square Capital (Cash App’s parent company) will allow you to repay your loan in four weekly payments based on a revised repayment schedule. The annual percentage rate does not change, and you cannot borrow any additional money until your current loan is repaid.

If You Pay Late, Interest Will Accrue

Interest will be charged if you still have a balance due after those five weeks are up. That interest fee will be charged to you every week until you have paid off your loan (and all accrued interest charges).

If you fail to make the payments on a revised repayment schedule, your repayment plan will be terminated and you will be considered in default, which means you’ll accrue interest, your credit score will likely fall and the debt could even be turned over to a debt collector.

You can read the policy here.

Is It a Good Idea to Borrow Money Through Cash App?

That will depend on your other options. If you can use a credit card or borrow money from a friend instead, those will be lower-cost options and you won’t have to worry about building several months’ worth of Cash App deposit history. However, if the alternative is visting a payday lender or getting a title loan, borrowing through Cash App will be the better choice.

Pro tip: Cash App borrow was designed to be a short-term solution. The repayment term is short and the maximum loan amount (if you even qualify for the maximum) is low. If you find you’re constantly borrowing and repaying the same $200, you should consider a longer-term solution, like strict budgeting, applying for a personal loan or starting a side gig.

Other Cash App Features

In addition to letting (some) users borrow money, Cash App also offers the following perks:

• Cash App card: A debit card that is connected to your Cash App balance. You can use it anywhere that Visa is accepted. You can also design it yourself.
• Direct deposit: Cash App assigns routing and account numbers to users’ accounts, which allows them to accept paycheck deposits, tax returns, etc. The company allows users to receive up to $25K per deposit and up to $50K within a 24-hour period. 
• Immediate access: As soon as a direct deposit is received, that money is available to Cash App users. 
• ATM access: If you have at least $300 directly deposited into your Cash App account every month, you can use your Cash Card to get money out of any ATM. However, a $2 fee is attached to each ATM withdrawal.
• Cash boost: A “cash back” service that allows you to save money when you use your Cash Card to pay for purchases at participating coffee shops, restaurants, retail stores, etc.

Originally, it was intended to compete with other P2P platforms like Venmo, PayPal, Zelle, etc. In addition to allowing users to transfer “cash” to each other, Cash App also allows users to buy Bitcoin and file their taxes via its Cash App Taxes service.

READ MORE: Struggling with debt? Debt settlement could be the solution

Pro tip: Cash App focuses on communities that are underbanked or even unbanked. It also targets borrowers who have bad credit. More than half of Cash App’s users have credit scores under 600.

Check out this video to learn more about Cash App Borrow.

More Quick Ways to Borrow Money

Cash App isn’t the only source you can use when you need funding. Some other options are available, particularly if you need help with debt consolidation.

• Peer-to-peer lending apps: These apps match borrowers with investors, or “peers,” who aren’t traditional lenders but are willing to issue loans. They can be an ideal option for borrowers with bad credit. P2P lending platforms include Lending Club, Peerform, Prosper, SoFi, Upstart, SoLo, Zirtue and LenMe

READ MORE: What is peer-to-peer lending and the best P2P loans for borrowers with bad credit

• Credit card cash advance: If you already have a credit card or good credit, you can try using a credit card cash advance.

READ MORE: Using credit cards to consolidate debt

• Personal loans: These lenders offer installment loans geared toward borrowers with less-than-perfect credit.

READ MORE: Interested in a personal loan? Here are the 14 best options

• Friends and family: Consider asking family and friends for help — you can even draw up a contract — or ask a stranger on Redditor a short-term loan. Reddit’s r:borrow subreddit matches borrowers with lenders who are willing to spot small loans for a set period of time at a predetermined interest rate.

READ MORE: How debt consolidation works

The Bottom Line

More than 25% of Americans already have a Cash App account. This means getting a quick loan through the platform could be faster than signing up for a new service. The 5% flat fee to borrow is high, but it is nowhere near the exorbitant rate charged for payday loans, title loans or by tribal lenders.

If a Cash App loan helps you avoid an unregulated payday loan, that’s a good reason to consider it. However, if you know you won’t have the money to repay the loan by the due date, you’ll be much better off choosing a longer-term option, like a credit card cash advance.

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