How to Borrow Money from Cash App

If you use the Cash App and find yourself in a financial pinch, there may be a short term solution.

The Cash App is something I only recently discovered when I was researching various PayPal alternatives. It was fun to discover that you could very easily get free money on the Cash App, kind of like PayPal in the early days.

Then I learned of all the fun boosts, contests, and other interesting tweaks they added to what’s ostensibly a payments platform. I recognize that a lot of them can be just a distraction but if you use the app as your main payments platform, you’re better off with these boosts and contests than without.

That said, one feature they rolled out last year that caught my eye was the ability to borrow money. Sometimes your finances get a bit out of sync, especially if you’re paid bi-weekly, which is why so many fintech companies offer paychecks 2 days early.

Cash App has upped the ante by offering a short term loan (not cheap but accessible) to qualified users:

Table of Contents
  1. How Much Does a Cash App Loan Cost?
  2. How to Borrow Money from Cash App Borrow
  3. How to Get Access to Cash App Borrow
  4. Should You Borrow from Cash App?
  5. Anything else I should know?

How Much Does a Cash App Loan Cost?

Before we talk about how to get it, we need to address costs. Loans, especially short term loans, are typically very costly. The companies that issue them are preying on customers who are in dire situations.

With Cash App, a loan will cost you 5% of the loan balance immediately and then 1.25% per week after the grace period. You have four weeks to pay off your loan followed by a one-week grace period before the 1.25% interest rate kicks in. This interest is added to the amount you need to pay them each week.

In terms of fees and costs, it’s better than a title loan or pay day loan but you are limited to how much you can borrow ($200). (more importantly, you can’t get a second loan if you have an existing one)

If you compare it with some popular cash advance apps, it’s cheaper in the sense that many of them don’t charge you for the loan but require a monthly membership fee.

It appears that the Cash App is really meant as a short term stop gap measure, for emergencies that may pop up before your next paycheck. If you need more money or for a longer time period, it is often better to go with a personal loan rather than this route.

How to Borrow Money from Cash App Borrow

Not everyone has access to Cash App Borrow, to see if you do, follow these instructions:

  1. Open the Cash App
  2. Click on your account balance in the lower left (if you don’t have a balance, it looks like a house)
  3. It should take you to the Banking section, now look for “Borrow up to …” (it has a blue arrow icon)
  4. If you can’t find it, you don’t have access (more below). If you do, you can take out a loan.
  5. Tap on “Unlock.”
  6. Cash App will indicate how much you can borrow ($20 to $200, depending on your regular deposits)
  7. Read the agreement (Borrow Loan Agreement) carefully, then accept the loan if you want it.

How to Get Access to Cash App Borrow

Cash App Borrow is available to people who make regular deposits into their Cash App account. The more you deposit on a regular basis, the more you’re eligible to borrow through Cash App borrow.

The maximum loan amount, $200, is available if you deposit at least $1,000 per month into your Cash App account.

Should You Borrow from Cash App?

If you need a little bit of cash quickly, it’s a good option to have. If you only need a few bucks, the cheapest option is to borrow money from friends and family.

But sometimes you can’t or you feel badly asking to borrow money. The Cash App only offers up to $200 so it’s not a tremendous amount, something someone could conceivably be able to lend you without much difficulty.

If you don’t have that as an option, borrowing even the full $200 from from Cash App only costs you $10. On a percentage basis, it’s high (5%) but not from a nominal basis.

Anything else I should know?

If you already have a Cash App loan, you can’t get another one. You have to pay back the first loan before you get another one. Many short term lenders prey on consumers who need to roll over their loans (and then charge them more fees).

If you make regular deposits but still don’t have access, it’s possible that your history (credit or otherwise) is such that they’ve decided not to extend it to you. You can call Customer Service to see if they can share more as to why you don’t have access.

The Cash App Borrow loan is not meant to be a long term solution. The low limit ($200 max) and short time frame (four weeks) indicates it’s best used for when the timing of paychecks and bills get a bit out of sync.

It’s a nice to have option that is simpler than going the route of a more traditional loan. To get access though, you’ll need to make sure you have those regular deposits of at least $1,000 to get the full $200.

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About Jim Wang

Jim Wang is a thirty-something father of four who is a frequent contributor to Forbes and Vanguard's Blog. He has also been fortunate to have appeared in the New York Times, Baltimore Sun, Entrepreneur, and Marketplace Money.

Jim has a B.S. in Computer Science and Economics from Carnegie Mellon University, an M.S. in Information Technology - Software Engineering from Carnegie Mellon University, as well as a Masters in Business Administration from Johns Hopkins University. His approach to personal finance is that of an engineer, breaking down complex subjects into bite-sized easily understood concepts that you can use in your daily life.

One of his favorite tools (here's my treasure chest of tools,, everything I use) is Personal Capital, which enables him to manage his finances in just 15-minutes each month. They also offer financial planning, such as a Retirement Planning Tool that can tell you if you're on track to retire when you want. It's free.

He is also diversifying his investment portfolio by adding a little bit of real estate. But not rental homes, because he doesn't want a second job, it's diversified small investments in a few commercial properties and farms in Illinois, Louisiana, and California through AcreTrader.

Recently, he's invested in a few pieces of art on Masterworks too.

Opinions expressed here are the author's alone, not those of any bank or financial institution. This content has not been reviewed, approved or otherwise endorsed by any of these entities.

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