If you are a lucky user, you might be able to borrow money from the Cash app! This is another way to get quick cash is becoming easier than ever. Let’s take a look at how it works and see if you can still access it.
Before explaining this new feature, let’s quickly go over what the Cash app is. Next, we will talk about how the new functionality of this app works. We will also offer you alternatives if you cannot borrow money from the Cash app.
In an emergency, quick access to extra cash can save your life. That’s why it’s good to hear that Square has started testing the ability to borrow money from the Cash app. Find out how this program and others are revolutionizing finance.
What is the Cash application?
You may not know it, but the app has been running since 2013. It was originally called Square Cash, in reference to its parent company, Square Inc.
This was co-founded by Jack Dorsey, current CEO of Twitter. If you are familiar with Venmo or PayPal, you will feel right at home with the Cash app.
In 2020, the Cash app grossed around $ 385 million. This represents a massive 212% increase in profits year over year. If you look at recent banking trends, this growth is not surprising.
By 2022, approximately 65% of Americans are likely to engage in online banking. If you are planning to download this tool for smartphone, you should know more about the features of this app.
What can you do with the Cash app?
- Instant money transfers – The Cash app allows you to send and receive money anytime. Similar to other money transfer apps like Zelle, you don’t have to pay any transaction fees.
- “Cash Card” optional – It allows you to execute transactions and withdraw funds from your Cash application balance. Sutton Bank issues this card, and it is unique to a Cash App user’s account, and is not linked to any other debit card or personal bank account.
- “Cash boost” – This is just the term of the Cash app for discounts. You can select which ones apply to specific providers, such as DoorDash. You can only activate one at a time, and yet you can redeem Cash Boosts multiple times.
- Free ATM withdrawals – This is only available if you set up direct deposits. Otherwise, you will have to pay $ 2.00 each time you use an ATM with your charge card.
- Cash bonus – Send referral codes to your friends, so they can use them to sign up for the Cash app. You will receive $ 5.00 for each person who signs up using your code.
- Invest in stocks – The Cash app allows you to buy shares of certain companies for a minimum of $ 1.00. It will spend your app balance for each action. If your account runs out of funds, it will withdraw the remaining amount from your linked bank account.
- Invest in Bitcoin – You can buy and sell bitcoins, but you will have to pay two kinds of fees. First of all, The Cash app will charge a service fee for each transaction. Second, you will have to pay additional fees depending on the price volatility on the US stock exchanges.
How to borrow funds from the Cash application?
The app is currently testing new features. One of them is the ability to borrow money from within the app, and unfortunately you don’t have access to it.
Only 1,000 customers of the Cash application were lucky enough to benefit from the functionality. It was first announced on TechCrunch August 13, 2020.
These lucky users were allowed to borrow up to $ 200 in short term loans. They must repay the amount within four weeks, along with the 5% interest rate.
Failure to repay on time will result in uncompound interest of 1.25% each week. To illustrate how this works, let’s say you’ve borrowed $ 100 from the app.
Your total refund will be $ 105. This is your principal of $ 100 plus the $ 5 of the 5% interest rate. Each week that you don’t repay, you’ll pay $ 1.25 based on the uncompound rate of 1.25%.
Are you now eager to try borrowing money on the Cash app? Unfortunately, the feature was not available in February 2021 and its support site does not display any related information.
Search for “borrow money on the Cash app, and results will only point to the app Loan agreement. Of course, you are always free to try its other features!
Read more: How to make money online
Are there other ways to borrow money online?
There are many alternatives to this temporary functionality of the Cash app. After all, the internet is full of countless websites offering loans. Here are some suggestions:
- Banks – Traditional banking institutions also offer quick loan options. However, alternatives like the Cash app seem more appealing to some people, and they have faster processing times and lower transaction costs. However, banks tend to be more secure than these new options.
- Credit card – You can also borrow funds from your plastic squeegee. However, beware of its fixed fees and other charges.
- Peer-to-peer loan – P2P lending platforms connect ordinary people who want to serve as borrowers and lenders. If you’re ready to be the latter, this could be a way to earn money on the internet.
- Crypto loan – If you have cryptocurrencies, you can use them as collateral for your next loan. Crypto lending could also be a lucrative business for a borrower, depending on market conditions.
You might be tempted to take out a personal loan on the Internet. However, this may not be an ideal option. The average interest rate for payday loans in the United States is 391%!
Some people were able to borrow money from the Cash app last year. Maybe it will come back in the future. Until then, you still have several alternatives on the Internet.
Of course, the best option is good personal finances. Good management of your money will reduce the likelihood that you will need to borrow in the first place.
Plus, you have to be careful about accumulating debt, and too much can interfere with your daily life. If you are having trouble repaying, click here for debt reduction strategies.
Learn more about how to borrow money from the Cash app.
Can you borrow money on the Cash app?
A thousand lucky customers have had the opportunity to borrow on the app. Unfortunately, this feature has been unavailable since February 2021. You can search the internet for various alternatives, from banks to P2P loans. However, read their terms and conditions carefully before withdrawing funds.
Why can’t I borrow money on the Cash App?
The ability to borrow money from the Cash App was only available to 1,000 Cash App customers last year. As of February 2021, you cannot request this functionality. If you search the internet, the results will only point to the app’s loan agreement, and you might want to check out other loan options online instead.
Is the Cash app safe?
The app has various features to protect its clients and their funds. Here is a list of these security features:
- Security locks – Entering the PIN code, Touch ID and Face ID.
- Encryption – PCI-DSS level 1 certification
- Parts storage – The Cash application stores your bitcoins in its offline system.
- Disable anytime – Pause your card functions in case you left it somewhere.
- Account notifications – The app will notify you by email and SMS.
- Fraud protection – The Cash application protects against unauthorized charges.
However, you need to take good care of your account. These strong safeguards don’t mean you can be careless. Make sure you’re the only one with access to your Cash app.