Cash App allows its users to borrow money up to $200 but you might be wondering if that is the case then why can’t I borrow money from Cash App?
Cash App is a popular payment platform and it is famous for its user-friendliness and awesome services. Cash App gives you a free VISA-powered debit card that you can use to make online payments and withdraw money from ATMs.
In this article, I will explain why can’t you borrow money on Cash App? What to do if you don’t see the borrow option on Cash App and how to get a loan on Cash App using the borrow feature.
Let’s dive in…
Can You Borrow Money On Cash App?
Yes, it is possible to borrow money on Cash App using the newly introduced borrow feature. Cash App allows users to borrow up to $200 instantly. This is kinda short-term loan that you can use to pay emergency bills.
Cash App loans are interest-free but you will have to pay a 5% flat fee on each loan that you get. The money that you borrow from Cash App will automatically be deducted from your account once you get funds in your Cash App account.
Cash App borrow feature is currently in the testing phase and not every user has access to this feature. So, if you are wondering “Why can’t I borrow money from Cash App?” this could be one of the reasons.
Why Can’t I Borrow Money From Cash App?
If you are unable to use Cash App borrow feature, there could be multiple reasons to it. Following are the potential reasons which may affect your access to Cash App borrow feature.
1- Unverified Account
If you want to use Cash App borrow feature you must verify your Identity on Cash App. If you are not using a verified Cash App account you will bot able to borrow money from Cash App.
2- No Direct Deposit Account
Once you have verified your identity on Cash App, you can set up a direct deposit account with Cash App. This account is usually required to get access to Cash App borrow feature.
3- No Frequent Usage
You can’t borrow money from Cash App if it is not your primary payment platform, Cash App keeps the track of your cash flow if you are using the app a lot and you keep receiving the money to your Cash App account, you will be able to borrow money from Cash App.
If you have very low Cash flow, and you don’t use Cash App often you can’t borrow money from Cash App.
4- Bad Credit History
If you wan’t to borrow money from someone, whether it is a payday loan or a short term loan from Money lending apps, you should have a good credit history, same is the case with Cash App, if you have a poor credit history you can’t borrow money from Cash App.
5- Location
The cash App borrow feature is not rolled out to all states in the US. So if you are in a state in which the borrow feature is not rolled out you won’t be able to use it.
6- No Active Cash Card
Cash Card is a free debit card that you can get after creating a Cash App account, you should first verify your identity to apply for Cash App card. If you don’t have an active Cash Card you can’t borrow money from Cash App.
How To Know If You Can Borrow Money From Cash App?
Cash App has not rolled out this feature to every user, it is still in a testing phase, there are also other factors that affect the availability of borrow feature on Cash App.
You can check whether you can borrow money or not by simply following these steps:
- Launch Cash App
- Go to the “Banking” header.
- Check for the word “Borrow.”
- If you see “Borrow” you can take out a Cash App loan.
Cash App will also notify you if you are eligible to borrow money from Cash App. So you will get an automatic notification from Cash App that the borrow feature has now been activated on your account.
Who Can Borrow Money From Cash App?
If you want to borrow money from Cash App, you must meet the following eligibility criteria.
- Your Cash App account should be registered in the states in which Cash App borrow feature is available
- Make sure that Cash App direct deposit account is set up.
- You should have a good credit history
- Cash App should be your primary payment platform and you receive enough funds every month.
- You have a verified Cash App account
- You must be 18+ in order to borrow money from Cash App.
- You should have an activated Cash App card
If you meet the above criteria you will definitely get the borrow feature on Cash App, If you are still unable to borrow money from Cash App, you should contact Cash App support and they will help you.
How Much Can I Borrow From Cash App?
Cash App is not a lending company or bank, so you can’t borrow huge amounts like student loans, mortgage loans, or bad credit loans, however, you can pay some unexpected bills, or pay for your birthday party with Cash App loans.
It allows you to borrow money from anywhere between $20-$200.
What Are The Fees to Borrow Money From Cash App?
Cash App charges a 5% flat fee to borrow money, and in case you do not repay on time the amount you borrowed, it will charge another 1.25% fee per week after the grace period.
Verdict
So if you are thinking “Why can’t I borrow money from Cash App”, I hope you have got your answer. To end this discussion let me quote a statement from Cash App itself
“We are always testing new features in Cash App, and recently began testing the ability to borrow money with about 1,000 Cash App customers,” “We look forward to hearing their feedback and learning from this experiment.”
I hope this article was helpful, Cash App is a great way to make online payments, just be aware of Cash App scams, as people have lost thousands to these scams.
You can use Cash App to send money to your friends and family, you can also download your bank statement on Cash App and delete Cash App history.
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Cheers…