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Cash App Borrow: How to Use Cash App’s Loan Feature

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Need some cash for household expenses while you wait for your next paycheck? Or maybe you have a personal expense but are short by less than $200.

Life is full of unexpected situations and sometimes we don’t have the money upfront to pay for those needs. If you’re in a pinch for some quick funds and are a Cash App user, you may qualify for a small short-term loan through the app.

Cash App allows eligible users the ability to borrow small amounts of money through the app, which must be paid back by the due date. Learn more about the Cash App Borrow feature and how it works.

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What is Cash App Borrow?

Cash App screenshots
Cash App

Cash App is a mobile app that allows users the ability to send money to other users, pay regular bills using direct deposit, or invest in stocks and bitcoin. It works similarly to PayPal or Venmo as popular peer-to-peer payment apps. But Cash App also has a loan feature called Borrow, which is a money feature that offers small, short-term loans for select users. 

Some basics of Cash App Borrow:

  • Borrowing: Eligible users can borrow anywhere between $20 and $200.
  • Loan Use: The loan is intended for personal or household purposes, not postsecondary educational expenses.
  • Interest and Repayment: The amount borrowed, plus 5% interest rate, is to be paid back to the app within four weeks..
  • Defaulting: If you fail to make your payment by then, you’ll be charged an additional 1.25% per week late fee until the loan amount is repaid.

Cash App is available for download in the Apple App Store or Android’s Google Play.

How to Use Cash App Borrow

Cash App’s Borrow feature is easy to use for those with access to the loan feature.

  1. Open Cash App.
  2. Click on either your bank account value, if you have money stored on the app, or the bank icon in the bottom-left corner.
  3. Select “Borrow up to…” Certain users do not qualify for this feature. If you don’t see this option in the menu, this feature is not available to you.
  4. Click “Unlock” to request a loan. The app will identify how much (between $20 and $200) you can borrow based on regular deposits you make through the app. 
  5. Request the amount you need.
  6. Read and accept the loan agreement.

How to Repay Money Borrowed from Cash App

Repaying your Cash App loan is easy and can be done in three simple ways:

  • Autopay: Set up automatic payments through the app. Users can set up recurring incremental payments over the course of the four-week repayment period, or do a single lump sum payment.
  • Manual: Make manual payments through the app before the due date. 
  • By Mail: Write a check and send it by mail to the address listed on your statement. The payment must be received by the company by 4 p.m. CT to be credited the same day.

If you default on your Cash App Borrow loan, the outstanding balance may be deducted from your Cash App balance or debit card. You may also continue to accumulate interest on your balance until it is paid off. Your access to Cash App may be suspended as well.

Does Cash App Borrow charge a prepayment penalty?

No, unlike most personal loans, Cash App does not charge a penalty for repaying your loan early. This means you can pay off the loan as soon as you have the funds, and will not have to worry about any prepayment penalties.

Is Cash App Borrow available to all users?

No, Cash App’s borrowing feature is currently only available to select customers. If you don’t deposit money often into Cash App to pay your monthly utility bills or transfer money between you and other users, you likely won’t have the ability to use the borrowing feature.

The more regularly you deposit money into the app, the more you’re likely to be eligible for the Borrow feature. In addition, the more money you deposit into the app per month determines how much you’re eligible to borrow when the need arises.

A person’s ability to use Cash App’s borrowing services is also determined based on the state they live in, if they have an activated cash card, user history, and credit history. 

When does it make sense to use Cash App Borrow?

cute dog in cone

Since Cash App Borrow is intended for short-term smaller loans, the feature is ideal for small expenses that can be repaid within a month. For example, if you need to pay for a low-cost, urgent expense that you can’t afford now, but will have the funds to repay it once your paycheck deposits into your bank account.

Cash App’s borrowing services can be helpful in a number of situations, including:

  • Emergency visit to urgent care
  • Unexpected vet visit
  • Sudden car repair
  • Household bills

However, taking out a loan is always going to cost you because you’re paying for interest. If you are able to borrow from a family member or friend, you likely won’t have to pay interest and may even have a more flexible repayment timeline. However, if you find yourself in a pinch, Cash App’s borrowing feature is a reasonable option for those who are eligible to use the service.

Is Cash App Borrow safe?

Cash App takes the safety of its users’ information very seriously. The company has many measures in place to keep your information and your money safe. 

  • Security locks â€” Cash App requires PIN entry, Touch ID, or Face ID to verify payments.
  • Encryption â€” All user data is encrypted for your protection.
  • Disable Anytime — You can disable your Cash App Card immediately if you lose it or it’s stolen.
  • Account Notifications â€” Receive notifications each time your account is used to ensure there’s no suspicious activity.
  • Fraud Protection â€” Cash App offers fraud protection to prevent unauthorized charges.

Should you borrow money from Cash App?

Cash App’s borrowing services can be helpful if you find yourself needing to pay for emergency financing needs — like car repairs, doctor’s visits, vet visits, etc. — or when you just need a small sum of money to make it through the week. It can be an easy and quick way to bridge your finances in the short-term if you’re simply waiting for your next paycheck to cover these costs. 

It’s important to note that you can’t just sign up for the app and expect to receive a short-term loan the same day. Cash App only provides loans to users within certain states, with good credit history, and who regularly deposit money into the app. 

Remember, it would be most cost-effective to borrow money from a family member or friend, as you’re more likely to get an interest-free loan from them and receive a more flexible payback period. But Cash App can be a viable backup plan if you run out of options. 


What happens if you don’t pay Cash App Borrow back?

According to the Borrow Loan Agreement, if you fail to repay your loan after the due date, the company may deduct funds from your Cash App balance or debit card through your enrollment in autopay until the debt is repaid. If your Cash App balance is in the negative, you will not be able to use your Cash Card or certain features on the app until your debt is repaid. You will also continue to accrue interest charges.

Your credit score may also take a hit if you fail to pay the loan, as the company may report information to the credit bureaus on missed or late payments.

How much can you borrow from Cash App?

You can borrow anywhere between $20 and $200 from Cash App’s Borrow services. The amount you can borrow depends on your user history on the mobile app. In order to qualify for the maximum $200 loan, you may need to consistently deposit high sums of money, such as $1,000, per month.

Does using Cash App Borrow affect your credit score?

Cash App may request credit reports from credit reporting agencies in order to authorize a loan, much like any other loan you apply for. If a credit report is run, it could affect your credit score temporarily.

While we work hard on our research, we do not always provide a complete listing of all available offers from credit-card companies and banks. And because offers can change, we cannot guarantee that our information will always be up to date, so we encourage you to verify all the terms and conditions of any financial product before you apply.

Slickdeals Staff
Slickdeals Staff
The Slickdeals Money editorial team is dedicated to helping readers navigate the personal finance space. Our team boasts decades of knowledge on credit cards, banking, travel points & miles, personal loans and more. We’re passionate about educating our readers on the very best financial tools & products on the market today.

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