How to Take a Loan from Cash App? An Explanatory Guide
Cash App, the renowned mobile payment service has launched a feature that enables its users to borrow money. This particular feature is known as “Borrow”. With borrow, users can apply for loans of up to $200 through an easy and fast process. In this piece, we shall take you through how to take a loan from cash app, eligibility requirements, charges and precautions.
Eligibility:
There are certain eligibility requirements that must be met before one can borrow money from Cash App. These are:
– Must be at least 18 years old.
– Must have a valid social security number.
– Should have a good standing CashApp account.
– Must meet cashapps creditworthiness criteria.
CashApps credit worthiness criteria includes:
– Having stable income.
– Possessing a good credit score.
– Demonstrating timely payment track record.
– Maintaining low debt-to-income ratio.
How To Borrow Money From Cash App:
1. Launch your mobile application for cash and go-to the borrowing part.
2. Specify the amount of money you need which should not exceed $200.
3. Choose the repayment plan that suits you best. You can either repay it back in one month or break it into four installments payable over two weeks
4. Read all terms and conditions attached with this loan including interest rate charged and fees levied upon defaulting payments etcetera..
5. Submit your application by tapping ‘confirm’ then wait until funds are credited on your account within seconds!
Repayment:
To pay off what has been borrowed do this;
1) Open cashapp again and click on “Borrow” this time.
2) Choose your preferred method of settling the debt.
3) Watch out for confirmation prompts that show transaction details before clicking ‘confirm’ which deducts money owed straight from app balance held.
Costs & Interest:
Cash App charges a flat rate fee of 5% to 15% depending on how much was borrowed relative to creditworthiness. They also have an annual percentage rate (APR) that ranges between 15%-30%.
Here is how fees and interest rates work:
–5% fee applies for those who have excellent payment histories
–10% if you’ve always made every payment on time without ever defaulting once
–15% fee is levied against someone with fair rating while good score individuals attract charges at the same level but their rates remain constant during any given year unlike poor scorers whose pricing policy may vary with seasons.
Tips & Precautions:
• Only borrow what you need and can easily refund.
• Ensure repayments are made promptly to avoid extra charges or penalties that may lower your credit score negatively.
• Always read through terms/conditions before signing up especially anything related to money because there could be hidden costs here too; if in doubt seek advice from professionals like financial planners who will advise accordingly based on personal circumstances e.g., saving instead using credit card etcetera..
• Consider other options first before deciding on whether this specific loan feature would be suitable for you or not; maybe save more money somewhere else apart from cashapp?
If there’s an unexpected bill or emergency expense that needs paying immediately, borrowing money via cash app can provide quickness as well as convenience. However, one should know all about it: the terms and charges; the percentage charged as interest; when must it be repaid so none of them backfires. You can safely borrow money from Cash App if you follow these steps given here. Just be careful while borrowing and think of other alternatives before settling on any.
