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Cash App Borrow is a short-term loan pilot program that lets Cash App users borrow up to $200 for emergencies. But because Borrow is still a pilot program, the feature isn’t available to every Cash App user. That said, understanding how Cash App loans work and who’s eligible can help you decide if it’s something you want to use. Details on the Borrow program aren’t readily available, but we sourced information from Reddit and reputable tech news sites for product details.
At the time of writing, the Cash App Borrow feature isn’t available to everyone and is still in testing. A Cash App specialist, CashAppAndi, commented on a Reddit thread in July 2022, “Cash App Borrow is currently a limited pilot and therefore is not available to all U.S. residents.” If you see the Borrow option in your account, it means you’re eligible. Beyond that, the Cash App specialist tells Redditors that these factors could be to blame:
State of residence — Cash App Borrow isn’t currently available to all US residents.
Credit history — Your current credit score may not be in the range to qualify.
Cash App use — The platform has most likely rolled out loans to its most active users.
Direct deposits — Likewise, Cash App may be letting those with direct deposits test out loans first.
How to increase your chances to get a Cash App loan
It appears that the most active users that make regular deposits may have a better shot at eligibility. If you deposit at least $1,000 per month into your Cash App account, the feature may become available to you, according to Wallet Hacks. However, the factors listed above are still likely to be in play despite an active account.
How to borrow money from Cash App in 5 steps
If you’re eligible, you can borrow money from Cash App in five steps:
Open or get the app.
Open your Cash App mobile app, or download and register for the app. Setup only takes a few minutes.
Select Money icon.
Tap the Money icon on the bottom-left corner (it looks like a bank).
Find Borrow option.
Scroll the page until you see the Borrow option. Other options on this tab include Paper Money, Bank Transfers, Direct Deposit, etc.
Select and proceed.
After selecting the Borrow option, follow the prompts to select the amount you want to borrow, how you want to repay, and then accept the terms.
Receive funds.
After selecting the Borrow option, follow the prompts to select the amount you want to borrow, how you want to repay, and then accept the terms.
This process may change as the service is more widely rolled out.
Not yet eligible? Get cash now with these other money borrowing apps:
Need cash before your next paycheck?
Check out these options for fast cash to help you in a pinch.
If you believe you meet the requirements and still can’t borrow money from Cash App, it could be that it’s not available in your area just yet. If you’re ineligible for a Cash App loan, consider the following options:
Cash App Borrow is a type of short-term loan offered through the platform Cash App. Eligible borrowers can take out a loan from $20 to $200. They have four weeks to pay it back, plus a 5% flat fee. This 5% fee for Cash App Borrow translates to a 60% APR overall: 5% monthly fee x 12 months = 60% APR This rate is a good deal compared to payday loans, which typically come with an average close to 400% APR. On the flip side, Cash App Borrow has a much higher APR compared to personal loans, which have an average 9% APR — and legally can’t top 36% in most states.
Fees and details
Maximum withdrawal: $200
Terms: 4 weeks
Cost: 5% flat fee
Other fees: 1.25% late fee — charged per week after 1-week grace period
Note: While screenshots of the app show on screen that the late fee doesn’t start until one full week after the loan’s due date, there is no grace period addressed in the official Borrow loan agreement.
What to look out for
Before you decide to use the Cash App Borrow feature, here are some details to keep in mind:
Hard credit check. Cash App doesn’t run a credit check when you sign up for the service, but when you request a loan and accept the terms of the loan, the app runs a hard credit check, which can affect your credit score.
Scam emails. You may receive an email to notify you that you’re eligible for the Borrow feature, even if you’re not. Before you click any links in the email, check your Cash App to make sure the Borrow feature is available to you.
Can’t be used for student loan expenses. The Higher Education Opportunity Act requires school loan lenders to offer the borrower 30 days to accept or reject a loan offer. Cash App isn’t set up for that protection, so you must agree that you won’t use your Borrow funds for postsecondary educational expenses.
Military members get an APR discount. The Military Lending Act requires that the APR on consumer credit can’t exceed 36%. Since the current standard Borrow APR is 60%, military members and their dependents should see a discounted Borrow fee.
When to use Cash App Borrow
Cash App Borrow works best for emergency situations — think a car repair, an unexpected trip to the doctor or vet and so on. Its small dollar amounts make it a good alternative to personal loans if your credit isn’t strong enough — or if you need to borrow less than $1,000. It also costs less than a typical payday loan, although some alternatives like Payday Alternative Loans (PALs) from a local credit union have it beat. Alternatively, other apps like Dave are even better than Cash App Borrow — often offering free, instant loans with no credit check. However, some apps have monthly membership fees. And you often can’t qualify for a loan over $50 until you’ve used the app for a few months. If you need funds quickly and you can’t borrow money from Cash App, a credit card could also be a good option. You won’t pay any fees or interest if you pay it back before your next bill.
Is it safe?
Cash App is owned by the reputable financial services and payment company Block (formerly Square), and it puts a lot of measures in place to keep your account secure:
Its app is PCI Data Security Standard Level 1 compliant — the highest level offered in the payment industry.
It encrypts all your financial transactions.
Users can set up two-factor authentication, security locks and biometrics for added safety.
That said, Cash App experienced a data breach on April 4, 2022, that affected more than 8 million users of Cash App Investing. The data breach came from a former employee who downloaded reports containing customer names, brokerage account numbers and, in some cases, portfolio values and trading data. It’s not yet clear how widely the information was shared or the damages faced by consumers. For more information on how Cash App works, check out our Cash App review.
Bottom line
Cash App has been frustratingly quiet about its new short-term loans program, leading many users to wonder why they can’t borrow money from the app. If you have yet to gain access, explore other cash advance apps while you wait. And, if you already have Cash App, you can use a cash advance app that works with Cash App to get an advance on your paycheck and then send the funds to your Cash App account and spend them as you like.
Cassidy Horton is a freelance personal finance copywriter and past contributing writer for Finder. Her writing and banking expertise have been featured in Forbes Advisor, Money, The Balance, Money Under 30, Insure.com, and other top digital publishers. She holds a BS in public relations and an MBA from Georgia Southern University. See full bio
If you need extra cash between paychecks, Earnin offers withdrawals on the money you’ve already earned — without charging a fee.
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