Can You Overdraft Cash App (Plus Better Alternatives)

can you overdraft cash app

There are rumors going around that Cash App lets you go into overdraft. However, it’s like a unicorn. People talk about it but no one has actually seen one in person. 

So, can you overdraft your Cash App account? Here’s the short answer.

You can go into negative balance unintentionally if you don’t have enough funds at a gas station for example. However, some Cash App users can borrow up to $200 if they have a direct deposit set up. 

Keep on reading to find out more about Cash App’s Borrow feature and what your alternatives to Cash App overdraft are.

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Can You Overdraft Cash App

Some Cash App users have reported a negative balance in their Cash App accounts. Most of them aren’t even sure how that exactly happened if we know that a purchase won’t go through when we don’t have enough money in our Cash App balance.

The most common way of going into overdraft (intentional or unintentional) is at the gas station terminal. You see, when you’re paying at the pump, the system will check for funds in your account, however, it doesn’t know how much money there is.

Because of that, you can often pay for fuel by going into a negative balance. You will have to pay that balance back, however. In fact, the next time you get funds into your Cash App account, it will naturally cover the negative balance. 

overdraft cash app

The other way of going into overdraft is when someone sends money into your Cash App account by mistake. Maybe they put down the wrong $Cashtag or phone number. 

Now, although transfers like that are generally irreversible and rely on good will of the recipient of the money, sometimes, Cash App will go ahead and refund the money to the sender.

That will put money on hold on your account and if you’ve already spent it, make you go into overdraft. Although it isn’t ideal, it can happen at times. 

READ NEXT: 4 Ways How to Get Free Money on Cash App (That Still Work)

Cash App Borrow

Now, we’re getting to the good stuff. The above-mentioned ways of overdrafting were generally unintentional. However, Cash App started rolling out its Borrow feature to 1,000 customers back in August 2020. 

This gave the lucky users a chance to take out a short-term loan of up to $200. The minimum was $20. 

To borrow a full $200 amount would cost you 5%, or $10. Not exactly cheap. If you multiply this over a year, it’s a whopping 60% APR.

Nevertheless, if you find yourself in a pinch, knowing that you can take out $200 could give you peace of mind, even if it will cost you.

Even if you don’t pay up in four weeks as you agreed, you’ll get a week of a grace period. After that, Cash App will start charging 1.25% (non-compounding) interest each week.

The other catch is, that you won’t be eligible for any future loans after that. However, if you have direct deposits of $300 or more, you might not pay any overdraft fee at all.

How to go Into Overdraft With Cash App

Cash App initially rolled out its borrow feature to only 1,000 people to test it out in the real world. It’s not known at what stage the borrowing feature is at this point. 

The company hasn’t come out and said that it expanded it to more people or if they scrapped it altogether. Nevertheless, if you want to find out for yourself if you’re eligible for an overdraft, do the following:

  1. Open your Cash App
  2. Tap on the Cash App balance (lower left corner)
  3. Find the “Borrow up to $200” option
  4. Tap “Unlock”
  5. Tap “Scroll to Continue”
  6. Tap “Continue”
  7. Select an amount
  8. Read the user agreement
  9. Accept the loan

READ ALSO: Is Cash App Accepted Everywhere? (A Quick Guide)

Who Can Get The Cash App Loan?

Cash App’s loan or overdraft is reserved only for people that are getting regular direct deposits into their Cash App accounts. 

To unlock the maximum $200 borrow amount, you’ll have to deposit at least $1,000. Even then, Cash App might decide that you aren’t the right material to get a loan. If your Cash App account history is short or messy, don’t be surprised there’s no loan option for you.

Also, worth noting is that if you deposit $300 or more monthly, there are no fees to borrow!

Cash App Overdraft Alternatives

If you aren’t eligible for Cash App’s overdraft, you’ll be happy to know that there are plenty of other alternatives on the market. However, you’ll need to have direct deposit set up for most of them as well. 

Axos Bank

axos bank

Axos Bank was founded more than 20 years ago and is one of the first challenger banks in the country. It offers five different checking accounts (Essential Checking, Rewards Checking, Cashback Checking, First Checking, and Golden Checking), so there’s an account for everyone.

To get a free overdraft, you’ll have to opt for the Essential, Rewards, or Cashback checking account.

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There are also no monthly account fees but all the perks of online banking, including unlimited domestic ATM fee rebates, are present.

If you want all the features of big banks but don’t want to pay all the fees that come with that privilege, Axos Bank should be your top choice. It’s a full-blown bank that doesn’t have physical branches but also doesn’t have outrageous fees.

One Finance

one finance

One Finance is a fintech based in San Francisco, California. Although it has been founded only a couple of years ago there are many useful features that can help you save and even build a credit line.

With the so-called “Savings Pockets”, you can access overdraft on the “Spend Pocket”. In the case your spending account doesn’t have money to cover payments, the payment will come from a savings account.

Thus, the overdraft is repaid with deposits into your Spend Pocket. If you don’t repay the overdraft in the current month, you’ll get charged 1% interest a month at 12% APR. 

The max overdraft limit is $200. To get any overdraft, you have to deposit at least $20.

One Finance also has much better interest rates than what traditional banks are offering and the best thing is that you can access your savings account money at any time as it isn’t tied up for months or years.

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chime bank

Chime was established in 2013 and is one of the most popular digital banks in the country. This neobank has one of the best checking accounts with no fees.

With Chime, you can also get overdrafts at no extra cost via their SpotMe feature. If you need to spend a bit more than you have in your account, Chime will spot you up to $200 on your cash withdrawals and debit card purchases.

You have to be a US citizen older than 18 and need to have a single deposit of $200 or more in your account in a month. 

You can start your overdraft with $20. Chime will gradually increase your limit up to $200 based on your:

  • Direct deposit amounts 
  • Account history 
  • Spending activity 
  • Frequency

The overdraft limit will be displayed in the Chime app, and you will get notifications when your limit changes.

The feature also doesn’t cover:

  • non-debit card transactions such as ACH transfers or checkbook transactions


current banking logo

Current is a neobank that can also give you some needed extra cash when you don’t have any. 

You see, Overdrive (Current’s name for overdraft) can give you an overdraft of up to $200 if you sign up for their premium account and receive a deposit of at least $500 per month. 

The overdraft limit starts at $25 and gets regularly reviewed and hopefully increased to the max of $200. 

With your Current Visa debit card, you can swipe worry-free knowing that you won’t pay a hefty fee that still most traditional banks charge for overdrafts (up to $35!)

Current makes it extremely easy to open a checking account with just your smartphone. All you need is your US Social Security Number (SSN), US residential address (no P.O. boxes), and a smartphone.

Those of you that have gas guzzlers and find yourself frequenting the gas station regularly, you’ll find this option a life saver. Namely, Current instantly refunds those irritating holds on your account and makes all your funds fully available without any waiting period.

–>> Open Current Account in less than 2 minutes


You can go into Cash App overdraft by accident or intentionally by borrowing up to $200. The borrowing feature isn’t available to anyone though and is still somewhat in an experimental phase.

There are many bank accounts with overdrafts that don’t charge any fees, however, to qualify for them, you’ll have to either deposit money regularly or have a direct deposit set up.

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As a Current mobile banking app affiliate, I earn from qualifying purchases.
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Current: The Future of Banking

As a Current mobile banking app affiliate, I earn from qualifying purchases.