Cash App is offering short-term loans ranging from $20 to $200.
“We are always testing new features in Cash App, and just started testing the ability to borrow money with around 1,000 Cash App customers,” a company representative stated in an August 2020 statement to TechCrunch. “We are excited to hear their comments and learn from this experiment.”
According to TechCrunch, as part of the test, Cash App offered loans ranging from $20 to $200 and asked customers to pay the money back within four weeks along with a 5% charge, or else be subject to 1.25 percent non-compounding interest each week. Quick Utilities, on the other hand, claimed in February 2021 that Cash App’s borrow money loan function was no longer accessible. A search for “Borrow” on the Cash App support site returns just the Borrow Loan Agreement.
This Is How You Borrow Money From Cash App — Assuming You Have Access To The Functon.
Again, Cash App’s Borrow loans are not accessible to every user—and may not be available to anybody at the moment—but Almvest explains how to find out whether you’re qualified.
- Open Cash App and tap on your balance in the bottom-left corner of the screen.
- Tap “Borrow” under the “Banking” heading (if you see that option).
- To find out how much you may borrow, tap “Unlock.”
- Read the user agreement and then decide whether you wish to take out the loan.
Lifehacker writes in a review of the Cash App Borrow loans that there aren’t many specifics regarding the function currently. “It may be a less expensive option to payday loans, but it may be more expensive than certain online lenders or payday alternative loans,” the site notes. “Applying via the app is a handy alternative, especially if you already have a Cash App account, but you should read the small print before applying.”
Cash App still provides other services even if its short-term loans are no longer accessible. According to the Cash App website, its Cash Card is a “free, customized debit card” that comes with “Boosts,” or immediate savings at certain merchants. Furthermore, Cash App allows users to invest in stocks and change their money to Bitcoin.
Cash App’s Borrow Function Alternatives
If you don’t have access to Cash App’s Borrow loans, Credit Karma recently suggested five alternative apps that do: Earnin, Dave, MoneyLion, Branch, and Brigit. Earnin was commended for its cheap costs, MoneyLion for its range of online services, and Brigit for its budgeting features by the site. It also selected Dave as the best loan app for modest loan amounts and Branch as the best one for banking service access.
Meanwhile, Bankrate included Earnin, Dave, Money Lion, and Brigit in its review of the top “early payday” apps, but it also included Current and Chime. Current and Chime both allow users to get their paychecks two days earlier than normal, and both applications provide free overdraft protection of up to $100.
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