Cash apps have become increasingly popular for their convenience in peer-to-peer transactions, and some platforms now offer the option to borrow money. While this feature can be a quick solution to short-term financial needs, it’s essential to approach borrowing through cash apps with caution and understanding. In this guide, we’ll explore what you need to know when using a cash app to borrow money.

How cash apps borrowing works

Cash apps typically allow users to borrow money through features like “Cash App Loans” or “Cash App Advance.” This service provides users with a short-term loan directly through the app, with the borrowed amount deducted from future deposits. Brigit’s Instant Cash1 is an example of a simple and fast loan that’s repaid on your next payday (you can even get extensions with no late fees).

1. Loan limits and eligibility

Cash apps often set limits on the amount you can borrow based on your transaction history, income, and other factors. While these limits can be relatively low compared to traditional loans, they can still provide immediate assistance for urgent needs.

Before attempting to borrow, check the app’s terms and conditions to understand the eligibility criteria and any restrictions on borrowing. Keep in mind that approval for a cash app loan is not guaranteed, and your borrowing capacity may change over time based on your usage patterns.

2. Interest rates and fees

Cash app loans typically come with fees or interest rates, and these can vary among different platforms. While the fees may seem small, they can add up, especially if the loan is not repaid promptly. Understand the terms of the loan, including any associated costs, before proceeding.

Unlike traditional loans that may have fixed interest rates, cash app loans often charge a flat fee or a percentage of the borrowed amount. Be aware of the total repayment amount and factor it into your budget to ensure you can comfortably repay the loan on time.

3. Repayment terms

Cash app loans are usually short-term, with repayment expected within a few weeks. It’s crucial to review the repayment terms and understand when the amount will be automatically deducted from your account. Failure to repay on time can result in additional fees and negatively impact your financial standing.

To avoid unexpected withdrawals, plan your budget accordingly and ensure that the necessary funds will be available in your account on the repayment date. Some cash apps may offer flexibility in repayment terms, so explore your options and communicate with the platform if you anticipate challenges in meeting the deadline.

4. Impact on credit score

One notable advantage of cash app loans is that they generally do not impact your credit score. These loans are not reported to credit bureaus, making them a discreet option for short-term financial needs. However, this lack of reporting also means that timely repayment won’t contribute to building or improving your credit history.

If maintaining or improving your credit score is a priority, consider alternative credit-building options that report your payment history to credit bureaus.

5. Consider alternatives

Before opting for a cash app loan, explore alternative borrowing options. Traditional personal loans from banks or credit unions may offer lower interest rates and more favorable terms. Additionally, consider reaching out to friends or family for financial assistance, as this may be a more cost-effective and supportive solution.

Evaluate your financial situation and assess whether borrowing is truly necessary. If the need is immediate, compare the costs and terms of cash app loans with other available options to make an informed decision.

6. Security measures

Ensure that your cash app account is secured with strong authentication measures, such as two-factor authentication, to protect your financial information. Be cautious about sharing account details or engaging with unsolicited offers, as scams and phishing attempts are prevalent in the digital financial space.

Regularly review your transaction history within the app to identify any unauthorized activities. If you notice any discrepancies or suspicious transactions, report them to the cash app’s customer support immediately.

The bottom line: using a cash app

Using a cash app to borrow money can provide a quick and convenient solution for short-term financial needs. However, it’s crucial to approach this option with a clear understanding of the terms, fees, and repayment expectations. Carefully review the platform’s policies, assess your financial capacity, and consider alternatives to ensure that borrowing through a cash app aligns with your overall financial goals.


1Not all members will qualify for advances; Depending on eligibility, advances range from $50 – $250. Subject to Brigit’s approval and policies. Brigit monthly subscription required. Instant Cash is available in all states.