Have you ever been in a tight spot where you're carefully spending money, and then out of nowhere, life hits you with a surprise bill? Maybe it's an unexpected car repair or a sudden medical expense. These inevitable costs can really mess with your budget. During times like these, you might be looking for ways to ease the financial strain. That's where Cash App's borrowing feature comes in handy.
While borrowing isn't always a bad thing, it's important to be careful as it can end up costing more in the long run if not managed properly. If you've got no other money options, borrowing can provide a quick fix. So, if you're wondering how to borrow $200 from Cash App, I'm here to help you understand how it works and if it's worth it.
Getting to Know Cash App's Borrow Feature
Cash App, like Venmo and PayPal, is a popular money management tool. It lets users send and receive money for free, invest their money, earn cash Boosts, and get direct deposits. One unique service it offers is the ability to borrow up to $200.
Not everyone can access this Borrow feature. For example, I can't use this feature because I don't direct deposit a paycheck into the app. But if you do, you might be able to access this feature.
Users can ask to borrow any amount from $20 to $200. The more money you deposit into your Cash App account each month, the more you could potentially borrow.
Check Your Eligibility to Get a $200 Cash App Loan
To get a $200 loan on Cash App:
Before You Accept the Loan
Before you take the loan, make sure to read the terms carefully. If you can get by without the money or find a loan elsewhere, you might save yourself some money. But if you're in a bind, knowing that you can quickly access funds from Cash App could be a relief.
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Paying Back the Loan
There's a 5% fee for your Cash App loan. So, if you borrow $200, you'll end up repaying $210 within four weeks. If you can't repay by the due date, there's an additional 1.25% penalty per week after a one-week grace period.
Common Questions About Cash App Borrow
Can I borrow more than once from Cash App?
You can't borrow more money from Cash App while you still have a loan to pay off. You must first pay off your current loan. Then, Cash App will decide if you can get another loan.
What happens if I don’t repay the loan?
Cash App gives you a grace period after the due date. After that, an additional interest rate kicks in. For any unpaid loans with Cash App, interest builds up at 1.25% per week until the loan is fully paid off.
Does a Cash App loan affect my credit score?
According to Cash App's legal page, accepting a loan could lead to an inquiry appearing on your credit report.
Why can’t I borrow money from Cash App?
Not all Cash App account holders can use this feature. Currently, users who make direct deposits into their Cash App account can borrow. You might also be disqualified if your account balance is negative or if you're an unverified user.
Borrow Responsibly from Cash App
Borrowing $200 from Cash App can be a lifesaver in a pinch but remember, it's a band-aid solution. It needs to be paid back in full, plus interest.
Consider borrowing from Cash App only if you need money fast to pay rent or a pending bill, and have tried all other financing options, such as asking a friend for a loan or earning some extra cash by working a side hustle. The potential impact on your credit score and added interest could be a high price to pay for some.
