How To Borrow Money From Venmo And What If I Miss The Payment?

The app has become popular for instant Venmo transactions and other unique features. Now, adding to the list of perks, users can learn to borrow money from Venmo to avail instant advance without any credit check! 

What Will We Talk About Here?
  • You can obtain a loan of $5,000 with a verified Venmo account and $50 for an unverified account.
  • Interest rates between 14.99% to 23.99% are applicable.
  • Venmo provides instant loans and does not run a credit check at the time of loan application.

…and Much More!

How To Borrow Money From Venmo Online – Guide

Most of us are habitual in obtaining loans through banks like Chime or other financial institutions. Therefore, most of the accountholders need to be made aware that Venmo also offers loans of up to $5,000!

Nonetheless, Venmo provides instant loan services like other competitive apps, for example, Cash App loans. So, if you face an emergency and need a pinch of help, you know where to find out! 

Here’s how you can get Venmo cash advance online.

  1. Get your Venmo account verified.
  2. Open the Venmo app and click on the Borrow button to proceed.
Attention! There is a small interest that would be deducted from your cash balance every month until the loan is cleared. We will talk more about this so keep reading! 

Venmo Cash Advance Limit

How much you can borrow through a Venmo account depends on whether you own a verified or unverified one. 

  • Unverified accounts can apply for and receive up to $50 only, but the limit for verified accounts is increased to $5000. 

It is important to note that verifying your account on Venmo is completely free. Since it greatly boosts how much you can obtain in a loan, here’s a quick overview of how you can verify your Venmo account. 

  1. Open your Venmo account and click on 3 horizontal bars on the top of the screen.
  2. Then click on Settings and find the Security option. Click to process. 
  3. Choose Identity Verification. 
  4. Then select One-Time Security Check. Tap on Next to proceed. 
  5. Provide your full name, contact address, and last 4 digits of your social security number. Click Next.

Applicants without a social security number should click “I don’t have an SSN” and follow on-screen instructions to finish the process.

Also, Venmo reserves the right to determine whether your shared information is enough for account verification. Sometimes, the company may mail you to share certain data, such as a driver’s license, to complete the procedure. 

Note! Users are allowed to avail the loan for 24 times in a year or up to $120,000 in 12 months. However, a new loan request is only entertained once the previous amount has been returned completely. 

Can I Get a Cash Advance on my Venmo Debit Card

You can use a Venmo debit card to withdraw at ATMs and win cash back on purchases. Moreover, the debit card can get a cash advance at any ATM that accepts Visa credit cards.

  1. Insert the debit card into the ATM.
  2. Then, enter your PIN and choose to get a cash advance.

Venmo Loan Interest Rates and Charges 

Yes, you heard that right! Venmo loans are not free of cost. You may be charged an annual percentage rate of anywhere between 14.99% to 23.99%. However, Venmo offers different types of accounts, and the interest you pay depends on your account. 

  • Typically, the interest is highest and lowest for Account Type 3 and Account Type 1, respectively. 

Extra Reading

Venmo Loan Requirements and Eligibility Criteria

Luckily, Venmo has no strict criteria to approve you for a loan. However, there are a few things you need to watch out for.

  • All applicants must be above 18 to have a Venmo account and get the loan.
  • Venmo loan is given to US residents or citizens only.
  • You must have an active cell phone number and the latest version of the Venmo app installed on it.

Penalties In Case of Missed Payment After Borrowing Money From Venmo 

Venmo is not forgiving, unlike over-drafting a Cash App account, which carries no penalty in the long run. It has a few tricks to get back the money if you need to be punctual with the payments. 

  • The company will deduct money from your account without prior warning or notice. 
  •  Venmo is partnered with PayPal, so, as per the user agreement, you can deduct funds from your PayPal account to make up for the money you owe. 
  •  Lastly, Venmo may also report to the debt collection agency for intervention. In the worst-case scenario, the collector may sue you if you fail to pay. 

Is a Venmo Loan Better Than a Bank Loan?

This is a tricky question; therefore, it doesn’t have a straightforward answer. Bank loans are considered to be more reliable. That is why obtaining loans through Discover or getting money via platforms like Fiona Loans is beneficial. Moreover, there are a variety of loans for different purposes like business endeavours and personal needs

However, these may involve a lengthy scrutiny process. Banks also run a credit check before they approve or reject any application. 

  • Venmo, on the other hand, needs to do a check on your credit report. 

Users find it tempting to obtain instant loans from Venmo because they are sure their credit score does not matter. This drastically reduces the chances of an application being denied. 

Different Types of Venmo Loans

Venmo offers two types of loans: Venmo instant loan and Ledge Loan. The instant loan is as simple as getting a cash advance. It is sent to the applicant within 24 hours of approval, although a small fee is associated with it.

On the other hand, the Ledge loan depends on peer-to-peer transactions. Users who want to lend money to others can launch a campaign on the app and reach out to verified accounts needing funding. The borrower can then repay the loan over time.

The Bottom Line 

Venmo loan is an impeccable service that lets you access sufficient funds instantly if you need to deal with an emergency. Compared to other loan options in the market, the interest rates are also quite reasonable. 

However, you have to be keen about returning the money timely. Otherwise, Venmo may take extraordinary steps that can harm your credit standing in the future. 

Frequently Asked Questions 

What apps let you borrow money instantly? 

Multiple apps allow users to apply for instant loans and obtain them within minutes. Some common names include EarninDave, Brigit, Current, and MoneyLion

Can I use Venmo at Walmart? 

Yes, you can pay using Venmo. Open the Venmo app and scan the QR code at the self-checkout counter. Tap on Confirm payment to complete the transaction. 

What will happen to my Venmo account if I need more funds? 

In case of insufficient funds, your account may be temporarily held. However, you can easily fix this problem and unfreeze your Venmo account by transferring enough money to cover the debt. This method will not work if your account has been sealed due to other activities. 

How can I get a cash advance on Venmo? 

The simplest way to get a cash advance on Venmo is to call their customer support team. You can also visit a nearby ATM and insert your debit card with PIN to cash out an advance.