The app has become quite popular for instant Venmo transactions and other unique features. Now adding to the list of perks, users can learn how to borrow money from Venmo to avail instant loans without any credit check!
- 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
Most of us are habitual of obtaining loans through banks like Chime or other financial institutions. Therefore, majority of the accountholders are not aware that Venmo offers loan of up to $5,000 as well!
Nonetheless, Venmo provides instant loan service like other competitive apps, for example, Cash App loan. So, if you face an emergency and need a pinch of help, you know where to find out!
Limit On Borrowing Money From Venmo
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 here that getting your account verified on Venmo is completely free of cost. Since it gives a huge boost to how much you can obtain in loan, here’s a quick overview of how you can verify your Venmo account.
- Open your Venmo account and click on 3 horizontal bars on the top of the screen.
- Then click on Settings and find the Security option. Click to process.
- Choose Identity Verification.
- Then select One-Time Security Check. Tap on Next to proceed.
- Provide your full name, contact address, and last 4 digits of social security number. Click Next.
Applicants without the social security number should click on “I don’t have an SSN” and then follow on-screen instructions to finish the process.
Also, Venmo reserves the right to determine whether the information you have shared is enough for account verification or not. In some cases, the company may mail you to share certain data such as driver’s license in order to complete the procedure.
Venmo Loan Interest Rates and Charges
Yes, you heard that right! Venmo loans are not free of cost. In fact, 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 that you pay depends on the account you have.
- Typically the interest is highest and lowest for Account Type 3 and Account Type 1, respectively.
Penalties In Case of Missed Payment After Borrowing Money From Venmo
Unlike overdrafting a Cash App account which does not carry any penalty in the long run, Venmo is not very forgiving. It has a few tricks up its sleeves to get back the money if you are not punctual with the payments.
- The company will deduct money from your account balance without prior warning or notice.
- Venmo is partnered with PayPal so, as per the user agreement, it is allowed to deduct funds from your PayPal account to make up for the money that 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 and, therefore, it doesn’t really have a straightforward answer. Bank loans are obviously 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 endeavors 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, does not 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.
The Bottom Line
Venmo loan is an impeccable service that lets you access a sufficient amount of funds instantly if you need to deal with an emergency. As compared to other loan options in the market, the interest rates are quite reasonable as well.
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?
Can I use Venmo at Walmart?
Yes, you can pay using Venmo. Simply 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 have insufficient funds?
In case of insufficient funds, your account may be put on temporary hold. 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. Other than that, you can also visit a nearby ATM and insert your debit card with PIN to cash out an advance.