Cash App is owned by Square and is their peer-to-peer payment service that is designed to make sending and receiving money simple. Now, however, it is turning into a full-fledged financial tool. On top of transferring money, you can now receive your paycheck via the direct deposit feature they offer, set up bill pay, and use the Cash Card to pay for goods wherever Visa is accepted.
Soon, you will even be able to get a loan. Square is currently testing out this feature on Cash App by offering short-term loans to a small cross section of users. If there were ever times you needed an advance before you get your paycheck, Cash App’s loan money could be useful, continue reading to learn more!
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Does Cash App Let You Borrow Money?
Cash App makes sending and receiving money a complete breeze. All you need is your unique $cashtag, or you can use the QR code through the app. Having access to a Cash App loan can make your life easier if you need cash in a pinch.
If you need a fast loan, can Cash App send $2,500? Not yet. The concept is still under testing and is limited to loans of $20 to $200.
Apparently, loans fund quickly and will require you to pay them back in four weeks or less. However, carrying a balance so long can add up. As of recently, Cash App charged a flat 5% fee to just borrow, plus another 1.25% per week after the grace period.
How Do I Get a Cash App Loan?
As of right now, the Cash App loan application process hasn’t been revealed yet, but it is very likely that you will be able to access the feature through your mobile app with ease.
Is Cash App Safe?
Currently, it is too early to tell how safe the Cash App loan application is, but the Cash App platform as a whole is secure. Cash App ensure your money and personal information are secured in a couple of ways:
- The app integrates with your smartphone’s screen lock, where PIN entry, Touch ID, passcode or facial recognition add an extra layer of protection if your phone is lost or stolen.
- You can disable your Cash App card if you’ve misplaced it or for extra security.
- You can set up email, text or push notifications to help you monitor your activity and warn you of unusual account usage.
What Other Ways Can You Borrow Money Online?
Until the Cash App loan feature comes out of testing and get approved, there are a couple of other places that will allow you to borrow money. Keep in mind that these fast-cash loans have their drawbacks, such as getting you into personal and credit card debt or charging high fees. While Square tests the functionality of Cash App loans, consider the following alternative lending options to get the money you need quickly.
Oportun
Oportun offers an “affordable alternative to payday loans” and may be best suited for borrowers with no credit history or bad credit. Customers can borrow anywhere between $300 and $10,000 for up to 46 months. They recently started capping loans to a maximum of 36% interest.
Customers can borrow between $1,000 and $40,000 through LendingClub. Once you establish a relationship with LendingClub, you will be able to borrow up to two loans at a time, which can help you out during payback period and repayment amounts.
LendingClub charges a 2%-6% origination fee for each loan. You’ll have up to five years to repay the loan in full, but don’t take too long because you’ll pay an annual percentage rate of 10.68% to 35.89%.
Another loan company that also specializes in bad credit loans, OppLoans offers no credit checks and amounts anywhere between $500 to $4,000. Their terms goes up to two years for repayment, making this a great option for those who need more time to pay down their debt.
Keep in mind that even though they give you two years to pay off your loan, OppLoans can charge up to 199% in APR on the amount you borrow.
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Bottom Line
When deciding on an online lending option, make sure you take into account the cost of borrowing the money as well as the lender’s terms of repayment.
Most online lenders claim they will provide a cheaper loan than a payday loan, but the loans can start to add up if you don’t pay the balance off quickly enough. Understand the full terms and conditions before you sign.
Compare Cash App’s loan feature with the best personal loan lenders.
(Visit Cash App to learn more)
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