How to Borrow Money From Cash App (Detailed Guide)

How to Borrow Money From Cash App

Cash App Borrow is a Cash App feature that offers eligible users a quick, short-term loan of up to $200. To avoid a 1.25% finance charge, Cash App charges a flat 5% fee for the loan, which must be paid back over four weeks. So, suppose you’re thinking about using Cash App Borrow. In that case, you should know precisely how it works and how much it will cost you. Continue reading to learn what eligible Cash App users need to know about “Borrow” and how to use it if you decide it’s the best option to borrow money.

But, like always, let’s start with the basics…

What Exactly is Cash App?

Cash App is a mobile app that allows you to borrow money from others. You can borrow up to $200; repayment is simple with a 5% flat fee.

Borrowing money from friends and family can be helpful when you need it! Borrowing money with Cash App is simple and convenient – ideal for when you don’t have access to credit or need cash quickly.

How Cash App Borrow Works

You can borrow up to $200 with Cash App Borrow. The smallest loan amount is $20. You have up to four weeks to repay the loan, a one-week grace period, and a 5% flat fee.

If you do not repay the loan in full by the grace period, you will be charged a finance charge of 1.25% per week on the outstanding balance. If you set up automatic payments and do not pay off your Cash App Borrow loan by the due date, Cash App may deduct the loan balance from your Cash App balance or debit card. Cash App may also suspend your account until the loan and any finance charges are fully paid.

This summarizes the Cash App Borrow loan terms:

  • The loan amounts range from $20 to $200.
  • You have four weeks to repay your loan.
  • If you are unable to repay the money within the four-week period, you will be given a one-week grace period.
  • If you do not pay within the grace period, you will get a 1.25% finance charge.

How to Get Cash App Borrow

Cash App Borrow is available to people who regularly deposit money into their Cash App account. The more you deposit regularly, the more you are eligible to borrow through Cash App.

There is no way to “unlock” Cash App Borrow; you need to make regular deposits so that they notice a pattern of money coming into the account.

If you deposit at least $1,000 per month into your Cash App account, you will be eligible for the maximum loan amount of $200.

Can You Borrow Money Through the Cash App?

It depends — not everyone is eligible to borrow money from Cash App. Whether or not you can use the feature is determined by several factors, including your credit history and score, your state of residence, how frequently you use Cash App, and whether or not you have an activated Cash Card.

When Should You Use Cash App Borrow?

Cash App Borrow is best used for emergencies, such as car repairs or unexpected trips to the doctor or veterinarian.

Because of the small dollar amounts, it’s an excellent alternative to personal loans if your credit isn’t good enough — or if you need to borrow less than $1,000. It is also less expensive than a typical payday loan, though some alternatives, such as Payday Alternative Loans (PALs) from a local credit union, beat it.

Other cash advances apps like Chime SpotMe and Dave are even better than Cash App Borrow, frequently offering free, instant loans with no credit check. Some apps, however, charge a monthly membership fee. And you may only be able to qualify for a loan of more than $50 once you’ve used the app for a few months.

Meanwhile, if you require funds quickly and need help borrowing from Cash App, a credit card may be a viable option. You won’t have to pay any fees or interest, if you pay it off before your next bill.

How to Make Use of the Cash App Borrow

Cash App’s Borrow feature is simple to use for those with access to the loan feature.

  • Launch the Cash App.
  • Look for the term “Borrow” on either the home or Banking screens.
  • If the option “Borrow” is available, select it. If you don’t see this option in the menu, it means you do not have access to this feature.
  • To request a loan, click the “Unlock” button. Based on regular deposits made through the app, the app will determine how much you can borrow (between $20 and $200).
  • Request the amount required.
  • Read the loan agreement and sign it.

How to Repay Cash App Borrowed Money

Repaying your Cash App loan is simple and can be accomplished in three steps:

  • Autopay: Use the app to set up automatic payments. Users can choose to make recurring incremental payments over the four-week repayment period or make a single lump sum payment.
  • Manual: Manual payments must be made through the app before the due date.
  • By postal mail: Make a check and mail it to the address on your statement. To be credited the same day, the company must receive the payment by 4 p.m. CT.

If you need to catch up on your Cash App Borrow loan payments, the outstanding balance may be deducted from your Cash App balance or debit card. You can also keep accruing interest on your balance until it is paid off. Your access to Cash App may also be revoked.

What to Keep an Eye Out For

Before you decide to use the Cash App Borrow feature, keep the following information in mind:

  • Credit Check: When you sign up for Cash App, no credit check is performed; however, when you request a loan and accept the loan terms, the app performs a hard credit check, which may affect your credit score.
  • Email Scams: Even if you are not eligible for the Borrow feature, you may receive an email informing you that you are. Before clicking any links in the email, ensure the Borrow feature is enabled in your Cash App.
  • It Cannot Be Used to Pay off Student Loans: According to the Higher Education Opportunity Act, school loan lenders must give borrowers 30 days to accept or reject a loan offer. Because Cash App is not designed to provide that protection, you must agree that you will not use your Borrow funds for postsecondary educational expenses.
  • Military Personnel Are Eligible for an APR Reduction: The Military Lending Act requires the annual percentage rate on consumer credit not to exceed 36%. Because the current standard Borrow APR is 60%, military members and dependents should receive a reduced Borrow fee.

Why Aren’t You Able To Borrow Money Through Cash App?

Cash App Borrow is yet to be available in every state. You may also be ineligible to borrow if you have bad credit or do not meet other Cash App requirements — Cash App keeps track of how frequently you deposit funds into your account and transfer funds to other users. It also considers your credit history and whether you have a Cash Card, among other factors.

Other Options for Borrowing Money If You Are Not Eligible for Cash App

Consider the following alternatives 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.

Cash Advances

A cash advance on a credit card is possible. Many cards charge a 3% to 5% cash advance fee and have a higher APR for cash advances than purchases.

You could also consider using a cash advance app. Cash advance apps, similar to payday loans, allow you to get a small advance on your next paycheck without incurring high fees. However, cash advance apps frequently charge fees, so compare apps before taking out a loan to find the best deal.

Personal Loans

Some personal loan providers have a quick approval process and can have funds to you in a matter of days, if not the same day if you are eligible. Those with bad credit may be able to get a bad credit loan. Before borrowing, be aware of the loan APR and any origination or other fees.

Is Cash App Borrow Secure?

Cash App is owned by the reputable financial services and payment company Block (formerly Square), and it takes numerous precautions to protect your account:

  • Its app complies with the PCI Data Security Standard Level 1 — the highest level available in the payment industry.
  • All of your financial transactions are encrypted.
  • Users can enable two-factor authentication, security locks, and biometrics for added security.

However, on April 4, 2022, Cash App experienced a data breach that affected over 8 million Cash App Investing users. A former employee downloaded reports containing customer names, brokerage account numbers, and, in some cases, portfolio values and trading data, resulting in the data breach. It needs to be clarified how widely the information was spread or how much damage consumers suffered.

Alternatives to Cash App Borrowing

The Cash App is an excellent short-term option with low fees (5% of a maximum of $200 is $10), but there are other options if you need more money, have exhausted your Cash App options, or require more time.


Cleo is a quirky personal finance app that connects to your bank account and analyzes your transaction history to make recommendations on improving your finances. This option, unlike the others on the list, is free.

Cleo’s Credit Builder product can also help you build credit, which can improve your options in the future if you need to rely on your credit.

When you first use it, you will receive between $20 and $70, but after you pay back that first loan, you can receive up to $100 on subsequent loans.


Albert is a fintech company that provides banking services through Sutton Bank, an FDIC-insured bank. They have Cash (checking) and Save accounts that include an advance of up to $250 on your next paycheck if you direct deposit your paycheck. You must use their Genius account, which has a “pay what is fair” subscription fee (including paying nothing).

Possible Finance

Possible Finance is an option if you have bad credit but earn at least $750 in direct deposits each month. Open an account on the platform, and you will receive a $500 cash advance with interest rates ranging from 150% to 200% APR.

The advantage is that there are no fixed monthly fees, so you only pay when the loan is approved, making it more like a traditional lender. They don’t provide any banking accounts or debit cards, so you don’t get further into debt (you also have to enrol before you qualify for a loan).

Currently, Possible can only make loans in the following states: CA, ID, LA, OH, WA, UT, AL, DE, IA, FL, IN, KS, KT, MI, MS, MO, OK, RI, SC, TN, TX. (We will update this if the situation changes)


Brigit is a holistic personal finance app that seeks to help you earn more money through side hustles, analyze your accounts to provide limited financial plans, and a premium service ($9.99 per month) that includes a cash advance of up to $250. (For more information, see our Brigit Review.)


Empower is another finance app that offers Cash Advances up to $250*. There is also a $8 monthly subscription fee, but there are no fees for Cash Advances.

In Conclusion

A Cash App Borrow loan is only a good deal if you don’t have any other cheaper borrowing options and need the money immediately. Just make sure to repay the loan before the grace period expires.

Cash App Borrow is preferable to a payday loan, which can have an APR of up to 400% or a bad credit personal loan with high APRs and origination fees. However, you may obtain a credit card cash advance for a 3% fee rather than the 5% fee charged by Cash App, or you may be able to use a cash advance app with a lower price.

When considering online lending options, consider the cost of borrowing money and the lender’s repayment terms. Ensure you fully understand what you agree to and whether you can afford to borrow.

Cash App has been frustratingly quiet about its new short-term loan program, leaving many users needing clarification about why they cannot borrow money from it. If you haven't already, look into other cash advance apps while you wait.


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