Venmo does not offer cash advances the way Cash App does
Venmo is a peer-to-peer payment app designed to split bills and send money to friends. It does not have a built-in cash advance feature like Cash App's Cash Advance product, which lets you borrow money against your next paycheck and repay it when you get paid.
If you need to borrow money quickly, Venmo itself will not provide it. However, Venmo does connect to PayPal, which owns the app, and PayPal does offer a short-term loan product called PayPal Credit. That is a different tool with different terms and a different application process than what you would use on Venmo directly.
Key Takeaways
- Venmo has no cash advance feature; it is built only for sending money between people you know.
- PayPal Credit, owned by the same parent company, offers short-term borrowing but requires a separate application and credit check.
- Cash App's cash advance is faster and does not require a credit check, making it simpler if you already use that app.
- Other apps like Earnin and Dave offer advances on your paycheck without credit checks, and they work with any bank account or payment app.
Why Venmo does not have a borrowing feature
Venmo's business model is built around moving money between people, not lending it. The app takes a small cut when you use instant transfer to move money to your bank account, and it makes money from merchant transactions when you use the Venmo debit card. Lending money to users would require Venmo to become a lender, which means underwriting loans, managing default risk, and complying with lending regulations in all 50 states.
Cash App took on that complexity because Square (now Block) decided lending was worth the regulatory burden. Venmo's parent company, PayPal, chose a different path: PayPal offers lending through PayPal Credit, but keeps it separate from Venmo itself. This separation lets Venmo stay focused on peer-to-peer payments.
PayPal Credit as an alternative if you have a PayPal account
If your Venmo account is linked to PayPal, you may be able to use PayPal Credit to borrow money. PayPal Credit is a line of credit that works like a store card — you get approved for a credit limit, and you can borrow up to that amount. You repay it over time with interest, or you can use promotional 0% financing periods if you pay back the full amount within the promotional window (usually 6 months).
The catch is that PayPal Credit requires a credit check and a credit history. If you have no credit or poor credit, you may not be approved, or you may get a very low credit limit. The application process is separate from Venmo — you apply through PayPal's website or app, not through Venmo itself.
PayPal Credit also charges interest if you do not pay back the full balance during a promotional period. The interest rate varies based on your creditworthiness. This makes it more expensive than Cash App's cash advance, which charges a flat fee (usually 1.25% to 2.5% of the amount borrowed) rather than interest.
Cash App cash advance compared to what Venmo offers
Cash App's cash advance is simpler and faster than PayPal Credit. You do not need a credit check — Cash App looks at your account history and deposits instead. You can borrow between $20 and $200 (the limit varies by account), and you repay it automatically when your next paycheck hits your Cash App account. The fee is a flat percentage, so you know exactly what you will pay upfront.
If you already use Cash App and have direct deposit set up, a cash advance takes minutes to request and approve. If you use Venmo instead, you would have to switch apps or go through PayPal Credit's longer application process. For most people who need quick money, Cash App is the faster route.
Paycheck advance apps that work with any payment app
If you do not use Cash App and do not want to set it up, other apps offer paycheck advances without requiring you to switch your main payment app. Apps like Earnin, Dave, and Brigit let you borrow against your next paycheck through their own apps, and they deposit the money to whatever bank account or payment app you choose — including Venmo.
These apps work differently than Cash App. Instead of a flat fee, some charge a voluntary tip (you choose how much to pay), while others charge a subscription fee for access to the feature. Earnin, for example, charges no mandatory fee but asks for a tip; Dave charges a $1 to $2 monthly subscription. None of them require a credit check.
The trade-off is that these apps may take longer to fund than Cash App — sometimes 1 to 3 business days instead of minutes. They also typically have lower borrowing limits ($100 to $500 depending on the app and your account history). But if you want to stay in Venmo and still borrow money, routing a paycheck advance from one of these apps to your Venmo account is a working option.
How to decide between your borrowing options
Start by asking yourself what you need the money for and how fast you need it. If you need it within hours and you are willing to download Cash App, a cash advance is the fastest route. If you already have a PayPal account and do not mind a credit check, PayPal Credit gives you a larger borrowing limit and more flexibility in repayment timing.
If you want to stay in Venmo and do not need the money urgently, a paycheck advance app is a reasonable middle ground. You will wait a few days for funding, but you avoid switching apps and you do not need a credit check. If you do not have a regular paycheck or cannot wait even a few days, you may need to look at personal loans from a bank or credit union, which take longer to process but offer larger amounts.
What to watch out for with any borrowing option
Borrowing money, even in small amounts, costs you money. A $100 cash advance with a 2% fee costs you $2. A $100 advance from Earnin with a $2 tip costs you $2. Over time, if you keep borrowing, those fees add up. Before you borrow, ask yourself whether you can cut an expense instead or whether you can wait until payday.
Also be careful about overdraft fees. If you borrow money and then spend it before your paycheck arrives, you might overdraft your account and get hit with a bank fee on top of the borrowing fee. Some apps, like Earnin, are designed to prevent this by timing the repayment to your paycheck, but you still need to track your balance.
Frequently Asked Questions
Can I use Venmo to borrow money from friends instead of using an app?
Yes. Venmo is designed for this — you can message a friend and ask to borrow money, and they can send it to you through the app. The advantage is that there is no fee and no interest. The disadvantage is that you depend on a friend having the money available and being willing to lend it. For larger amounts or when you need money fast, borrowing from an app is more reliable.
Does PayPal Credit show up on my credit report?
Yes. PayPal Credit is a line of credit, so the application triggers a hard inquiry on your credit report, and the account itself appears on your credit history. This can lower your credit score slightly in the short term. Cash App and paycheck advance apps do not report to credit bureaus, so they do not affect your credit score.
What happens if I cannot repay a cash advance on time?
With Cash App, if your paycheck does not arrive or is smaller than expected, the repayment may fail. Cash App will typically retry the withdrawal a few times, and if it fails, you will owe the money. Some users have reported that Cash App then restricts their account until the debt is repaid. With paycheck advance apps, the repayment is usually tied directly to your paycheck deposit, so it pulls the money automatically when the deposit hits.
Can I borrow money from Venmo if I have bad credit?
Venmo itself does not lend money, so credit does not matter. If you want to use PayPal Credit, bad credit will either disqualify you or result in a very low credit limit. Paycheck advance apps and Cash App do not require a credit check, so bad credit does not prevent you from using them.
Is it cheaper to borrow from Cash App or a paycheck advance app?
It depends on the amount and the app. Cash App charges a flat percentage fee (usually 1.25% to 2.5%), so a $100 advance costs $1.25 to $2.50. Earnin charges a voluntary tip, which could be $0 to $15 depending on what you choose to pay. Dave charges a $1 to $2 monthly subscription. For small amounts, the difference is small; for larger amounts, a paycheck advance app with a voluntary tip may be cheaper.