by Aidan Kang, CFA
Senior Writer
UPDATED: October 13, 2022

There may be times when quick access to some extra cash before your next paycheck could be a lifesaver. If you find yourself in a financial pinch like this, Cash App’s new Borrow feature just might be the friend you need.

While the feature is still in its testing phase and is available only to a select few users, it’s good to know as much about it as you can before it comes out. Who knows, the feature might actually be available to you, and you’re missing out on it! 

In this article, we’ll run you through what Cash App is and how you can borrow from it. We went through Cash App’s statements and some news articles to learn everything there is to know about this feature. We’ll also give you a few alternatives in case you need the extra cash today. 

So without further ado, here’s everything you need to know about the new Cash App Borrow feature.

What Is Cash App?

Cash App is a mobile application developed by Square, Inc. (now Block, Inc.), a company co-founded by former Twitter CEO Jack Dorsey. 

Originally called Square Cash, the app was designed as a money transfer service, similar to Venmo or Paypal. Unlike the two, however, Cash App also offers other functions. 

  • Real-time money transfers – The app allows you to send and receive money instantly and with no transaction fees.
  • “Cash Boosts” – Cash App gives you access to discounts that you can apply to certain vendors.
  • Cash bonuses – Recommending Cash App to your friends and family will give you a $5 bonus for every person who signs up with your referral code.
  • Optional “Cash Card” – Like a traditional debit card, it is linked specifically to your Cash App account, allowing you to withdraw funds and execute transactions seamlessly.
  • Free withdrawals – If you opt to set up direct deposits, then Cash App will waive the $2 fee for every ATM withdrawal using your Cash card. 
  • Stock investing – The app allows you to buy stocks for a minimum amount of only $1. 
  • Bitcoin investing – If you’re into cryptocurrency trading, the app also allows you to buy Bitcoins or sell them.

The only downside is that your in-app balance is not insured by the FDIC. This means that if something goes wrong, there’s no guarantee that you will get your money back. 

What Is The Cash App Loan?

The Cash App Loan or Cash App Borrow is a new feature that Cash App is testing. It functions similar to a typical loan till payday, allowing users to loan money from the platform.

The company introduced the feature in mid-August 2020. They made it available to a select 1,000 Cash App customers only. These users were able to borrow as much as $200 from the app.

The Cash App Loan was designed specifically as a short-term stopgap measure. Borrowers would have to repay the loan within four weeks if they want to avoid extra charges. It is perfect for emergency needs that need addressing before your next payday.

If you need more money for a longer period of time, then a traditional personal loan might still be the better option.

How Much Does a Cash App Loan Cost?

Square’s Cash App Loan has a four-week term and a 5% interest rate. Failing to pay this amount within the specified period means the user has to pay an additional 1.25% non-compounding interest every week.

If you, for example, borrowed $100, then the amount that you would need to repay in the next four weeks is $105. This is equivalent to the principal amount plus the interest rate. For every week that you fail to pay this amount, the app will charge you an extra $1.25 for the non-compounding interest

The Cash App Loan is better than a typical payday or title loan in terms of costs and fees. Unlike the latter, however, the amount you can borrow is limited to only $200. The app will also prevent you from getting a second loan if you still have an existing one. 

Compared with other cash advance apps, the Cash App Loan is also cheaper as it doesn’t require a monthly membership fee. 

How Do You Borrow Money From Cash App Borrow?

With all that said, here are the requirements, the step-by-step process, and the waiting times that you need to take note of before getting money from the app.


As we mentioned earlier, the Cash App Borrow feature is still under its testing phase. As such, it was only made available to a thousand select customers.

The criteria for determining eligibility were not made clear at the time. Like other cash advance apps, however, an eligibility check will most likely include the user’s creditworthiness, balance, spending activity, and other similar factors. 


If you are one of those eligible for a Cash App Loan, or if you want to check for your eligibility, then you can follow the steps below. 

Step 1: Open the Cash App on your phone.

Step 2: Go to the Balance tab on the bottom-left side of the screen.

Step 3: Click on the “Banking” section from the App Menu. 

Step 4: Look for the “Borrow” tab and select it. If you cannot find this tab, then you do not have access to the app’s Borrow feature.

Step 5: The app will show you the amount of cash you are eligible for. It will say, “Borrow up to…” and indicate the amount. 

Step 6: Indicate how much you want to borrow and confirm your selection. This should take you to the Borrow Loan Agreement.

Step 7: Carefully read the Borrow Loan Agreement and confirm if you agree. 

Step 8: Get your cash once it’s available.

After accepting the terms and conditions stated in the Borrow Loan Agreement, you will have to wait for about 5-10 minutes to receive the SMS or email confirmation. After that, your cash should be available to you within the next 5 minutes.

Does The Cash App Borrow Loan Affect Your Credit Score?

The short answer is yes, the Cash App Borrow Loan can affect your credit score. Accepting the Borrow Loan Agreement means that you are allowing the company to “report information about your account to credit bureaus.”

This means that late or missed payments, as well as defaults on the account, may all be reflected in your credit score. The Loan Agreement also authorizes the app to “obtain credit reports from one or more credit reporting agencies for any purpose permitted by applicable law.”

Is the Borrow Loan Feature and the App Itself Safe?

Yes, the feature is safe. Cash App has a number of features designed to protect you from the most common digital security threats out there. These features include:

  • Security locks such as Touch ID, Face ID, and the more traditional PIN entry
  • The disable-anytime feature that lets you block your card off if you lose it
  • PCI-DSS Level 1 certified encryption
  • Account notifications that inform you of transactions via text and email
  • Fraud protection that protects you from scams and other unauthorized transactions
  • Offline coin storage for your bitcoins

Despite these measures, you should still do your best to safeguard your account. As much as possible, do not share your password or login credentials with anyone else unless absolutely necessary. 

What Are Some Cash App Alternatives You Can Look Into?

If you were not one of the selected 1,000 users eligible for this feature, there are still a lot of other short-term financing options available for you. These alternatives may include:

  • Banks – Your local banking institutions also provide quick lending options. While these may have higher transaction costs and slower processing time, bank loans are more secure than app-based lending
  • Credit cards – Credit cards also usually offer instant credit-to-cash features. Just make sure to take note of the related fees and other charges before swiping your card. 
  • Peer-to-peer lending – Recently, P2P lending has risen in popularity for its ability to connect lenders with borrowers quickly. If you want to become a lender, it’s also a great way to earn money online.
  • Crypto lending – For those who own cryptocurrencies, crypto lending can also be a lucrative venture for borrowers. Crypto lending allows users to use their cryptocurrencies as collateral for their next loan.


There you have it, folks! Everything you need to know about borrowing money from Cash App. 

While the function is still limited today, it’s a good idea to learn about it if you’re planning on using the feature in the future. If you have more immediate needs, however, you may want to check out the other alternatives we’ve listed above.