Cash App Loans: How Does It Work?

Cash App, the digital wallet offered by the paytech company Block, offers short-term consumer loans through its Cash App Borrow program. The Cash App loan feature is currently only available to select customers. The amount a user can borrow ranges from $20 to $200 and is determined by their user history on the mobile app. The Cash App Borrow program is intended for short-term, small loans that can be repaid within a month. Cash App does not charge a penalty for early repayment.

Cash App's Borrow feature

To unlock the Cash App Borrow feature, open the Cash App and tap the balance or bank icon in the bottom-left corner. Tap "Get Started" to see your borrowing limit, then select your chosen amount and click "Next." Review your loan details and choose a repayment method and payment plan. Finally, review your repayment details and tap "Borrow Instantly."

It's important to note that Cash App's Borrow feature is intended for short-term, small loans, and the loan must be paid back within four weeks, along with a flat 5% fee. If you don't pay back the loan in full after four weeks, Cash App grants a one-week grace period. After this, you will be charged a 1.25% finance charge per week on the outstanding balance.

While Cash App does not charge a penalty for repaying your loan early, it's important to carefully read and understand the loan agreement before accepting any loan. This includes being aware of any potential fees, such as the Outstanding Balance Fee and Overdue Interest, as well as the consequences of defaulting on the loan.

Eligibility for Cash App loans

Cash App's loan feature is currently only available to select customers. Eligibility for Cash App loans depends on several factors, including consistent app usage, good payment history, residency in eligible states, and creditworthiness.

To increase your chances of becoming eligible for Cash App loans, you should deposit money into the app regularly and use the app frequently. The more money you deposit into the app per month, the higher your eligible loan amount. Some people deposit funds to cover regular utility bills and other recurring expenses, which helps them qualify for this service.

Cash App's borrowing feature is ideal for small, short-term loans ranging from $20 to $200, which must be paid back within four weeks, along with a flat 5% fee. It is a reasonable option for eligible users who need quick funds to cover small, urgent expenses while waiting for their next paycheck.

However, it is important to note that Cash App loans are not available in all states. If you move to a state where Cash App does not offer loans, you will be unable to take out subsequent loans.

Cash App loan repayment methods

Cash App's loan feature is currently only available to select customers. The amount you can borrow depends on your user history on the mobile app. To qualify for the maximum loan of $200, you may need to consistently deposit high sums of money, such as $1,000 per month.

To increase your chances of unlocking Cash App's loan feature, you can try to deposit money into the app more regularly and use the app more frequently. The more money you deposit into the app per month, the higher the amount you're eligible to borrow.

If you're eligible for a Cash App loan, you can borrow between $20 and $200. You must pay back the loan within four weeks, along with a flat 5% fee. Cash App does not charge a penalty for repaying your loan early. You can set up automatic payments through the app or make manual payments before the due date. You can also pay by writing a check and sending it by mail to the address listed on your statement.

If your Cash App balance has insufficient available funds, Cash App will initiate a second transaction for the remainder of the outstanding amount from a linked debit card. Multiple repayment attempts may be made from your Cash App balance and debit card if earlier attempts do not fully satisfy the amount.

Cash App loan fees and charges

Cash App, a financial services platform owned by Block, offers a loan feature called Cash App Borrow. This feature is currently only available to select customers. To be eligible for Cash App Borrow, users must make regular deposits to the app. The more money deposited into the app per month, the higher the loan amount a user can qualify for. Cash App Borrow is intended for short-term, small loans of between USD 20 and USD 200, which must be paid back within four weeks.

Cash App does not charge a penalty for repaying a loan early. There are no prepayment penalties, so users can pay off the loan as soon as they have the funds. However, users may be charged a late fee if they do not pay the Outstanding Balance by the due date. This Outstanding Balance Fee is a one-time fee. In addition, there is a 5% flat fee on the loan.

For users who receive at least USD 300 in monthly direct deposits, Cash App waives its ATM withdrawal fee for in-network ATMs for the following 31 days in the cycle. For customers who receive a minimum of USD 300 in monthly direct deposits, Cash App will reimburse ATM fees for both in-network and out-of-network ATM withdrawals per 31-day cycle.

Cash App charges a 3% processing fee when using a linked credit card as a payment method. There is also a 1.5% fee for instant cash-outs to transfer funds immediately to a bank account. However, there is no fee for a standard deposit to a user's linked bank account, which takes one to three business days.

Cash App loan agreement

Cash App's loan feature is only available to select customers. To be eligible for a Cash App loan, you must make regular deposits and transfer money between users. The amount you can borrow, which ranges from $20 to $200, depends on your user history on the mobile app.

To request a loan, open the Cash App and select "Borrow" on the home screen. Enter the amount you need, choose a repayment plan, and read and accept the loan agreement. Cash App loans must be paid back within four weeks, along with a flat 5% fee. You can set up automatic payments or make manual payments through the app, by mail, or from your Cash App balance or a linked debit card.

The Cash App Pay Over Time Loan Agreement is between you and Square Capital, LLC, the originator and issuer of your loan. By using this service, you agree to be bound by the Agreement and any loan documents and policies referenced, including the Privacy Notice and Cash App Acceptable Use Policy and Other Restrictions. You also agree to make payments, including any fees or charges, and accept all terms and conditions contained in the Agreement.

The Agreement includes provisions on payment plans, automatic payments, disputes with merchants, default, applicable law, and service providers and third-party beneficiaries. It is important to carefully review the Agreement, including sections that limit liability and those regarding individual arbitration.

Additionally, the Agreement outlines the definitions of key terms such as "Execution Date," "Finance Charge," "Outstanding Balance," and "Overdue Interest." It is worth noting that Cash App does not charge a penalty for early loan repayment.

Frequently asked questions