With digital being the new way to handle personal finances, more people are looking for opportunities to simplify money handling, especially between other individuals. Cash App is one of the digital solutions that has taken the masses by storm. Need to get money to or from someone in a hurry? Need a simple way for your kids to learn how to handle money? Cash App is the go-to app for many and can be used by anyone 13 and over. If you’re among over 40 million users who use Cash App and have not been privy to the borrow feature, you’re in for an awakening. Cash App has upped its game and introduced a feature allowing you to borrow money. However, this feature may not be available to everyone.
What Is Cash App?
Cash App is a person-to-person payment app that allows individuals to send and receive money to and from one another easily. The app was launched in 2013 by Block, Inc. (formerly Square, Inc.) to compete with other payment apps like Venmo and PayPal and was initially called Square Cash.
How Does Cash App Work?
After starting an account with Cash App, you’ll see many options available to you as a user, including banking, debit card, payments, investing, and Bitcoin. Every Cash App user receives a $cashtag, so finding the person you need to send money is easy. However, if you don’t know their $cashtag, you can send money to them using their phone number or email. Here are some of the features found on the app:
Send and Receive Cash
Cash App is not a banking app, but it allows you to connect to your bank to send and receive cash from anyone, and it issues a debit card so you can easily use the funds directly from your Cash App account.
Shop
Cash App allows you to easily shop using its Cash App Pay feature or a Cash Card, which is a debit card associated with your Cash App account. You can also add your Cash Card to digital wallets like Apple Pay or Google Pay, and the card can be used at major ATMs just like your bank card. Some of the same fees apply for major ATM use when it comes to fees, and withdrawal limits apply. The Cash Card can get you discounts at your favorite places, and a quick tap or scan of the QR code allows you the opportunity to securely check out without having any type of hand exchanges.
Invest
Cash App also has an investing feature that allows you to invest in stocks for as little as $1 and introduces you to the world of bitcoin by allowing you to buy, sell, send, and receive bitcoin.
File Taxes
Cash App also allows users to file their taxes for free using their Cash App Taxes feature (formerly Credit Karma Tax).
Can I Borrow Money From Cash App?
Cash App Borrow is currently available, but not to everyone. This pilot program lets users borrow up to $200 for emergencies only. Since the Cash App Borrow feature is still in its testing stage, there is still so much to learn, but this is what we know about it. If you see the Borrow feature on your account, that means you’re part of the pilot program, and this option is available to you. Now, if you don’t see this feature on your account, any one of the reasons below could apply:
- The feature is not currently available to all U.S. residents, and every state may not be participating in the pilot program.
- Your credit score may not be in the range they want to qualify for during the testing stage.
- You may not be among its most active users.
- Those who make regular deposits may likely be among the first to test out this new feature.
How Can I Qualify To Borrow Money From Cash App?
Given that any of the points above could make you less eligible to qualify to be a part of the pilot program, it should stand to reason why you may not be among the pilot group. Some of these reasons may be beyond your control. At least two of these qualifiers are within your immediate control, and that’s using the app more frequently and making regular deposits. In fact, depositing at least $1,000 monthly into your Cash App account can get you closer to becoming eligible for the pilot program.
How Can I Borrow if It’s Available to Me?
You’ll know if you are already eligible to borrow from Cash App by finding the Borrow option in your account. To do that:
- Open your Cash App and select the Money icon (it looks like a bank).
- Look for the Borrow feature on this page. Some of the other options you should see include Paper Money, Recurring Deposits, Direct Deposits, and Bank Transfers.
- Select the Borrow option and follow the prompts to select how much you want to borrow and how you choose to repay.
- Accept the terms of use and repayment terms.
- Repay as determined by the terms of use. Cash App will give you three options to pay back your loan: repay with every deposit you make to the app, pay the entire balance at once, or pay every week for four weeks. Not making a payment when scheduled will result in Cash App automatically deducting money from your Cash App balance or the linked bank account.
- Once you agree to the repayment terms, Cash App will transfer the total loan amount to your Cash App balance, where you can instantly use the money you need.
How Do I Get Started on Cash App?
If you’re not among the millions of users currently using Cash App, it’s easy to get started. You can download the Cash App to your mobile phone using your mobile app store. You can also get started online. Getting started requires entering either a mobile number or an email address. Enter a debit card number or the bank information you want to link your money to, choose a name for your $cashtag, and you’re ready to use your Cash App.
The Bottom Line
Cash App is a convenient way to get money to the people who need it faster. It currently does everything you need a money app to do, and with the potential to borrow during emergencies, it’s capable of so much more. While Cash App Borrow is still in the testing phase, please note that some of the guidelines outlined in this article could easily change before it’s available to a larger audience.
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