Cash App offers a small-dollar loan feature called Borrow that lets eligible users take out between $20 and a few hundred dollars directly within the app. Not everyone sees the option, though. Borrow only appears if Cash App has determined your account qualifies, and there’s no way to manually apply or unlock it. Here’s how the feature works, what it costs, and what happens if you don’t pay it back.
How to Check If You’re Eligible
Cash App doesn’t publish a specific checklist of eligibility requirements. The Borrow feature either shows up in your account or it doesn’t. Eligibility is tied to factors like how long you’ve had the account, how frequently you use it, and whether you receive direct deposits. There’s no credit score minimum listed, and no application form to fill out.
To check whether you have access, open Cash App and tap the Money tab on the home screen. If you’re eligible, you’ll see a “Borrow” option with your available loan amount displayed at the top of the screen. If it’s not there, you don’t currently qualify, and Cash App doesn’t offer a waitlist or a way to request access.
Steps to Borrow Money
If the Borrow feature is available to you, the process takes about a minute:
- Tap the Money tab on your Cash App home screen.
- Select Borrow, where you’ll see your available borrowing limit.
- Choose a preset amount or tap the option to enter a custom amount (the minimum is $20).
- Pick your repayment schedule from the options provided.
- Review the loan terms, including the fee and due date, then confirm.
The borrowed amount is added to your Cash App balance immediately. From there, you can spend it with your Cash App Card, send it to someone, or transfer it to your bank account.
What It Costs
Cash App charges a flat finance charge, calculated as a percentage of the amount you borrow. The exact fee is shown before you accept the loan, so you’ll know the total cost upfront. There’s no variable interest rate during the normal repayment period. If you borrow $100 and the flat fee is $6, for example, you’d owe $106 by your due date.
The cost changes significantly if you miss your due date. Starting seven days after the due date, Cash App applies overdue interest of 1.25% per week on the unpaid borrowed amount. That rate is non-compounding, meaning it’s calculated on the original loan balance rather than on the growing total. On a $100 loan, that works out to $1.25 per week in added interest for every week you’re late.
There’s also a potential $5 outstanding balance fee. This applies if you selected a repayment schedule different from what Cash App originally recommended and then failed to pay within four days of the due date. It’s a one-time charge, not a recurring penalty.
How Repayment Works
You get three options for paying back the loan:
- Pay as you receive cash. When money comes into your Cash App balance, a portion goes toward your loan automatically.
- Weekly installments. You make smaller payments each week until the balance is paid off.
- One lump sum. You pay the full balance at once on or before the due date.
If you still have an outstanding balance on your final due date, Cash App will automatically debit your Cash App balance or your linked debit card to cover it. You can also pay the loan off early at any time without a prepayment penalty.
What Happens If You Don’t Pay
Missing your payment triggers a chain of consequences. First, the 1.25% weekly overdue interest starts accruing after a one-week grace period past the due date. Cash App may also attempt to debit your stored balance or linked debit card for the amount owed.
Beyond the financial penalties, your access to Cash App features may be suspended until you pay in full. You won’t be able to take out another loan while a balance is outstanding, and a past-due balance blocks future borrowing entirely until it’s resolved.
Cash App can also report late or missed payments to credit bureaus. While there’s no indication that on-time payments help build your credit, falling behind could hurt your credit report. If you believe inaccurate information has been reported, Cash App’s loan agreement outlines a dispute process where you can submit a written notification with your account details and supporting documentation.
Free Overdraft Coverage as an Alternative
If you don’t qualify for Borrow, or you just need a small cushion rather than a formal loan, Cash App offers free overdraft coverage to some users. This lets you spend slightly more than your Cash App balance when using your Cash App Card, with no fees or interest charged on the overdraft amount.
Coverage limits go up to $200, though most accounts receive less, and the amount can change over time. To qualify, you need an activated Cash App Card and eligibility for Cash App Green benefits, which are tied to receiving direct deposits. Teen accounts don’t qualify.
There are limits on what the overdraft covers. ATM withdrawals and ACH transfers (like bank transfers) aren’t eligible. It only applies to purchases made with your Cash App Card. Think of it as a small safety net for everyday spending rather than a way to access cash you can move elsewhere.
Borrowing Limits and Availability
Cash App Borrow is designed for small, short-term needs. Most users report available amounts ranging from $20 to a few hundred dollars. Your limit is based on Cash App’s internal assessment of your account activity, and it may increase over time as you use the app and repay previous loans on schedule.
You can only have one active loan at a time. Once you’ve repaid your current loan in full, a new borrowing option may become available. If you need a larger amount, Cash App Borrow isn’t built for that. Traditional personal loans, credit union loans, or credit cards would be more appropriate for borrowing over $200 or $300.