Well are you among the individuals that need money but do not have the borrow option on Cash App? then continue reading this guide to know why and how you can fix it.
Cash App is a helpful mobile payment service that allows you to send and receive money online conveniently. One of the best features of the App is the fact that it allows users to borrow money and repay later. But it is necessary you know that this option has several limitations and is not yet available for everyone.
Below are some of the main reasons why you might not have the Cash App borrow feature:
- The Cash App phone application is not updated.
- You have violated Cash App Terms and Services.
- You have a negative Balance.
- You are a non verified Cash App user.
Want to know Why your Cash App do not have the borrow feature? then stay glued to this article as I will give you more details and how to fix it.
Table of Contents
How Cash App Borrow Works
Cash App borrow is a sort of short term loan provided by the Cash App platform. According to Techcrunch, Cash App rolled out the feature to only 1,000 eligible users.
Cash App users that fits the requirements are able to get a loan that ranges from $20 to $200 and they are given 4 weeks to repay it, plus a fixed cost of 5%.
This 5% fee for Cash App borrow equates to a 60% annual percentage rate (APR);
5% monthly cost multiplied by 12 months is 60% APR (that is, 5% monthly fee *12 months = 60 % APR).
As compared to payday loans, which most at times have an APR of up to 400%, this rate is a great deal. On the other hand, Cash App borrow is far higher than personal loans, which an average APR of 9% and cannot legally exceed 36 percent in most states.
Cash App Borrow Fees and Details
- Maximum withdrawal: $200
- Terms: 4 Weeks
- Cost: 5% flat fee
- Other fees: 1.25% late fee - charged per week after 1-wek grace period.
Why Don't I Have the Borrow Option on Cash App?
First of all, it is good you know that the Cash App borrow feature is still being tested and this is actually the main reason why it is not yet available for all Cash App users.
Also you might not have the Cash App borrow option because it is limited to people who get direct deposits to their Cash App account. You also have to verify your identity on Cash App, update your Application and keenly follow the application Terms of Service.
How to Guarantee You Get the Borrow Option on Cash App
It is important that you use your Cash App for everyday purchases, so that you will increase your credibility on the payment service since the Application will make sure you use it frequently, therefore you will be more eligible to get a loan.
Additionally, you can send money to your family members and friends via Cash App and let them send you money. All extra activity on the mobile application will help you increase your chances of obtaining a successful loan.
Finally, you can set up direct deposit with your work so as to receive a fix amount of money each month.
It is necessary you have mind that there is nothing you can do that will guarantee you having the borrow option 100%, but the points mentioned above will help you increase your chances of getting a loan from Cash App.
Step-By-Step Guide on How to Unlock the Borrow Option on Cash App
Below are the steps involved if you want to borrow money from Cash App:
- Launch the Cash App
- Log in to your account
- Go to the left of your home screen and click on the “Banking” tab
- Look for the word “Borrow” on the list and click on it
- Click on “Unlock”
- Choose the amount of money you want to borrow from the menu in front of you
- Choose the payback plan and schedule it
- Check the user agreement
- Accept your Cash App borrow loan
If you do the above steps and the borrow option still doesn’t show up on your application, then you’re among the users who still haven’t gotten the new feature.
Cash App Loan Payments - 3 Different Ways
Once you have taken a loan from Cash App, it is necessary that you begin figuring out how to repay it. Well, below are the 3 different ways through which you can repay Cash App's money.
You can enable the automatic payment option when you request the loan from Cash App. This option is actually effective for both the money you should pay on the due date and the money you willingly want to pay via optional payments.
If you have already enabled the automatic payment and then later on change your mind, then do not worry cause you can actually cancel the option by opening your Cash App profile, tapping on "Support" and then following the prompts that appear in front of you.
Manual Electronic Payment
You will find this option only possible through your debit card and in order to enable it, you will first have to authorize the card to be debited for a specific amount of money every time you make a transaction or payment.
Here comes the last option, which is making payments through checks. You can se d the checks via email to the address you will find on your official statement and it must specify the borrowed amount, the borrowing date and your Cashtag.
Note that once you are ready to pay, you have to pay in American dollars from a valid source.
ALSO READ: What Cash Advance Apps work with Cash App.
Final Thoughts on Why Doesn't My Cash App Have the Borrow Option
Borrowing money is a fantastic new option added to Cash App for customers. But it has a lot of drawbacks.
To use the borrow option, you must avoid having a negative balance, keep your application updated, and make an effort to receive monthly direct transfers into your account.
You might be one of the customers who don't have the borrow option yet if you try all of this and still can't find it.
Frequently Asked Questions
Does Cash App Take Extra Fees From People Who Borrow Money?
Yes, it does. If you borrow money from Cash App, you’ll be charged a 2.5% fee. So, for example, if you borrow $200, you’ll pay extra fees of $5.
What Is the Maximum Amount I Can Borrow From Cash App?
Cash App lets you borrow a maximum of $250 at once. The average range is from $20 to $200.
What Is the Interest Rate of Borrowing From Cash App?
The annual interest rate that Cash App has on its borrowed money is 5%. For instance, if you borrow $200, you’ll repay $210 plus the 2.5% extra fees.