Cash App, one of the many money management and instant payment apps available on Android and Apple devices, may soon let you borrow money from it.
The feature has yet to make it out of beta testing, but if you beta test for Cash App, you have the opportunity to obtain a quick, relatively low-interest loan.
Some Beta Testers Can Apply for Loans
Besides having already qualified as a beta tester, you need to have deposited $1,000 in the app. You also need to make regular deposits in the account rather than putting all $1,000 in it at once.
If you have any amount less than $1,000, you won’t see the button in the app to apply for the loan. You also won’t see the button to apply for the loan if you have the standard version of the app.
You must agree to the loan terms. You will pay a fixed interest rate of five percent on the borrowed amount.
You will have one month to pay back the money. You will also find that the loans provide a grace period of one week.
Increasing the Loan Amount
Once you have successfully borrowed and repaid this loan amount, you will become eligible for an increased loan amount. It takes a 12 month waiting period, but after that time, Cash App may increase the eligible loan amount by up 60 percent.
About Future Loans
If you have not yet paid back the money you borrowed, you cannot take out another loan. You must repay the loan you have out before you can take out another loan. This protects you and Cash App.
It protects you from taking out too many loans or too large of a loan, creating debts for yourself that you can’t manage. Cash App also protects itself from the risk of loaning too much money.
When Does the Feature Roll Out?
Most people cannot currently apply for this type of loan. Cash App has yet to roll it out to the public. It may not make it a widely released feature.
Not every feature that gets beta-tested goes public. If the app determines that it would cost too much or cause the company behind it too much risk financially, it won’t roll out the feature to the public.
You can find out the status of the potential app features by consistently visiting the Cash App website. You can also fill out the application to become a beta tester with the company.
Acceptance as a beta tester does not mean you will automatically get to test this feature. You will need to meet all of the other criteria first. Cash App has selectively chosen the people from the larger group of its beta testers.
Methods of Cash Deposit
Reaching the $1,000 minimum doesn’t require a transfer from your bank. For example, you could get to the $1,000 mark by using Cash App for work payments.
If you do odd jobs or mow lawns, you can use Cash App to accept payment for these.
You let the money accrue in your Cash App until you reach the $1,000 minimum.
Are These Loans Safe?
The American financial service Square. Inc owns Cash App. All of its transactions are backed by a major corporation.
The risk factors belong to the company for loaning money without requiring the same level of paperwork as a bank.
You also run a risk if you do not know how to manage money. If you want to borrow the money to build credit and already have the money to pay it back, you can feel safe doing so.
If you’re borrowing money because you need it, you may find yourself in a risky situation. If you need a loan, you probably ought to wait to save up the money. Even short-term loans are best used by those who don’t need them.