How To Borrow Money from Cash App: Your Step-by-Step Guide
Written by
Sophia Acevedo
Edited by
Melanie Grafil, M.A., CHFC™
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
When considering any online lending options, evaluate the cost of borrowing money and the lender’s terms for repayment. Be sure to fully understand what you’re signing up for and whether you can afford to borrow. If you’re considering using Cash App Borrow, you should fully understand how it works and what it will cost you.
Quick Take: How To Borrow Money From Cash App
Here are steps you can take if you’re curious about how to borrow money on Cash App:
1. Find Out if You’re Eligible.
Not everyone is eligible to borrow money from Cash App. You aren’t eligible for Cash App Borrow if you’re under 18 or a resident of Colorado or Iowa.
You can become eligible for Cash App Borrow if you do the following:
- Receive monthly paycheck deposits of $300 or more into Cash App or share information from an external account with $500 or more in monthly deposits.
- Have money in your Cash balance.
- Have a Cash App account that’s in good standing and verified through Cash App’s Customer Identity Verification (IDV) process.
- Have a Cash App Card* and use it frequently.
Cash App does not check credit scores for Borrow.
2. Apply for Borrow Through Cash App.
Find the “Money” tab. If you see the “Borrow” option in this section, you can take out a Cash App loan. Tap on “Borrow.” Once you hit this option, you’ll be prompted to proceed with the loan application process.
Cash App will tell you how much you can borrow. Select an amount that makes sense for your finances and that you can repay. The minimum Cash App borrow limit is $20.
3. Know the Repayment Options and Agreement
There are different repayment options, so choose the option that works best for you. You can repay the borrowed amount as you receive cash, make weekly installments or pay it all at once.
Read the agreement. Always be diligent in understanding the terms and conditions of any loan agreement. This will ensure you won’t have any sneaky expenses that surprise you later. Once you confirm the loan, you will receive the money the same day in your Cash balance.
Cash App Fees and Interest Rates
When getting a loan through Cash App Borrow, note this feature provides you with a short-term loan. This money can come through quickly, but Cash App charges a flat 5% fee for the loan that must be paid back by its due date to avoid a 1.25% finance charge.
Cash App Peer-to-Peer Fees and Interest Rates
For regular Cash App transactions, you may also incur fees outside of borrowing money. Standard deposits are typically free, and you should see them posted to your account within three business days. However, instant deposits will come with a fee ranging from 0.5% to 1.75%, but you will see these show up instantly to your debit card or account.
Cash App Borrow: Loan Limits and Repayment Terms
Cash App borrow limits range from $20 to $400. That said, the maximum amount you may be eligible for will be based on your personal limit. You can also borrow more than one loan at once.
You have to pay your loan by its due date. If you have not repaid the loan in full by the due date, you will be charged a 1.25% finance charge per week on the outstanding balance. If you are enrolled in automatic payments and do not pay off the Cash App Borrow loan by your due date, the Cash App Borrow feature may deduct the loan balance from your Cash App balance or debit card. Cash App may also suspend you from the platform until the loan and any finance charges are paid in full.
Why Can’t You Borrow Money From Cash App?
Cash App Borrow is not currently available in all states. Colorado or Iowa residents aren’t eligible. You might also not be eligible to borrow if you do not meet other Cash App requirements — Cash App notes how often you deposit money into your account and whether you have a Cash Card, among other things.
What To Do if You’re Not Eligible for Cash App
If Cash App Borrow is not currently available to you, and you do not have an emergency fund from which to borrow or a family member who can make a quick loan to you, consider the following alternatives.
Cash Advances
You can get a cash advance on a credit card. Many cards have a 5% cash advance fee and a higher annual percentage rate for cash advances than purchases.
You might also consider using a cash advance app. The best cash advance apps allow you to get a small advance on your next paycheck, much like a payday loan, without excessive fees. However, cash advance apps often have fees, so compare apps before getting an advance to determine your best option.
Personal Loans
Some personal loan providers have a quick approval process and can have funds to you in just a few business days, or even the same business day, if you’re eligible. Those with poor credit might be eligible for a bad credit loan. Before borrowing, be aware of the loan APR and any origination or other fees.
Final Take To GO
A Cash App Borrow loan is only a good deal if you have no cheaper alternative borrowing options and you need the money for an emergency. Just be sure to pay off the loan before the grace period ends.
Cash App Borrow is better than getting a payday loan, which can have up to a 400% APR, or even a bad credit personal loan with high APRs and origination fees. But you may be able to get a credit card cash advance for a 3% fee rather than Cash App’s 5% fee or use a cash advance app with a lower fee.
Cash App FAQ
Here are quick answers to popular questions about Cash App Borrow.- What is Cash App Borrow?
- Cash App Borrow is a short-term loan available to select Cash App users.
- How do I unlock Borrow on Cash App?
- You can unlock Borrow on Cash App if you have an active Cash Card and Cash App account. Your Cash balance should have money in it, and you should either receive monthly paycheck deposits of $300 or more or link an external account with $500 or more in monthly direct deposits. Your account also needs to be verified.
- Does Cash App Borrow help your credit?
- Cash App Borrow might help your credit, but if you miss payments, it's more likely to hurt your credit score.
- How do you increase your Cash App Borrow limit?
- Your maximum limit depends on your personal limit. Generally, to increase borrowing limits on a loan, you need to show that you can pay back what you borrow on time and are financially responsible.
- What states allow Cash App Borrow?
- In a disclosure on its website, Cash App notes that Borrow is not available in Colorado or Iowa.
- Is Cash App safe?
- Cash App uses fraud detection technology and encryption to secure your data and money and is PCI Data Security Standard Level 1 compliant. The app integrates with your smartphone's screen lock, where PIN entry, Touch ID, passcode or facial recognition adds extra protection if your phone is lost or stolen.
Caitlyn Moorhead, Andrea Norris, Cynthia Bowman, Cynthia Measom and Daria Uhlig contributed to the reporting for this article.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
The article above was refined via automated technology and then fine-tuned and verified for accuracy by a member of our editorial team.
*Prepaid debit cards issued by Sutton Bank.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- Consumer Financial Protection Bureau. 2022. "What is a payday loan?"
- Forbes Advisor. 2022. "Best Loans Apps For Cash Advances And Overdraft Protection Of 2022."
- Slickdeals. 2022. "Cash App Borrow: How to Use Cash App’s Loan Feature."
