Jacob Ammentorp Lund / Getty Images / iStockphoto
If there are times when you need an advance before you get your paycheck, the Cash App Loan Money could save your life. After all, sending and receiving money from peer-to-peer payment service is so easy. The good news is that there is now a borrowing feature of treasury apps. Here’s everything we know about it so far.
Does Cash App allow you to borrow money?
Yes, Cash App allows you to borrow money. However, it is still in the testing phase, not accessible to everyone and limited to loans of $ 20 to $ 200.
According to TechCrunch, loans finance themselves quickly and require you to pay them off in four weeks or less. But keeping a balance this long can add up – Cash App charges a flat fee of 5% to borrow, plus 1.25% per week after the grace period.
As long as you know that a Cash App Borrow Loan is the best for quick repayment, the new tool can come in handy when you are running low on cash.
How to borrow money from a Cash app
As mentioned, Cash App Borrow is not yet available to everyone. The only way to know if you can is to check it out. Follow these 10 simple steps to borrow money from Cash App:
- Open the Cash app.
- Tap on your Cash app balance located in the lower left corner.
- Go to the “Bank” header.
- Look for the word “Borrow.”
- If you see “Borrow”, you can take out a Cash App loan.
- Press “Borrow”.
- Press “Unlock”.
- Cash App will tell you how much you can borrow.
- Read the user agreement.
- Accept a Cash App Borrow loan.
Is the Cash application safe?
It is too early to analyze the security of a Cash App loan application, but the Cash App platform itself is secure. Cash App ensures that your money and personal information is protected in several ways:
- The app integrates with your smartphone’s screen lock, where entering PIN, touch ID, passcode or facial recognition add an extra layer of protection in the event of loss or theft from your phone.
- You can deactivate your Cash App card if you have misplaced it or for added security.
- You can set up email, text, or push notifications to help you monitor your activity and notify you of unusual account usage.
What other ways can you borrow money online?
Having access to quick cash can make all the difference when you need cash. Most people turn to emergency savings account funds, borrow from loved ones, or charge the expense to their credit card.
Fast cash loans have their drawbacks, such as incurring you in personal or credit card debt or charging high fees. As Square tests the functionality of the Cash App Loans, consider the following alternative loan options to quickly get the cash you need.
Opportunity provides an “affordable alternative to payday loans” and may be better suited to borrowers without a history of or bad credit. You can borrow between $ 300 and $ 10,000 for up to 48 months. Oportun recently started capping lending at up to 36% interest to support its claim of affordable lending.
You can borrow between $ 1,000 and $ 40,000 through LendingClub. Once you’ve established your track record with LendingClub, you may be able to borrow two loans at once, which could be a useful way to fund your deficits with different repayment periods and repayment amounts.
LendingClub charges an origination fee of 3% to 6% for each loan. You will have up to five years to fully repay the loan, but don’t delay too long: you’ll pay an annual percentage of 7.04% to 35.89%.
OppLoans is another loan company specializing in bad loans, offering no credit checks and amounts from $ 500 to $ 4,000. OppLoans has repayment terms of up to two years, which is ideal if you need more time to pay off the debt.
While having the option to repay the loan over a longer period of time relieves some of the pressure, caution should be exercised. OppLoans may charge an APR of up to 199% on the amount you borrow.
Keep in mind
As with all bad credit or no credit loans, it is important to monitor the APR. Otherwise, you could end up paying a lot more interest than the original amount you borrowed.
A Cash App Borrow Loan seems like a good option for a short term loan for a few dollars. When considering other online loan options, consider the cost of borrowing as well as the lender’s repayment terms.
Most online lenders claim that they will offer loans that are cheaper than a payday loan, but the loans are still quite expensive if you don’t pay off the balance quickly. Make sure you understand what you are signing up for and if you can really afford to borrow.
Prices and fees are subject to change.
This article has been updated with additional reports since its original publication.