# Does Cash App Borrow Build Credit?
Cash App, a popular peer-to-peer money transfer app, recently launched a new feature called Cash App Borrow. The feature allows users to borrow money from the app and pay it back with interest. This feature has raised the question of whether Cash App Borrow can help users build their credit.
## How Does Cash App Borrow Work?
Cash App Borrow allows users to borrow money in increments of $20, $50, $100, or $200. The amount that can be borrowed depends on the user’s account history, transaction activity, and credit score. Users can choose to pay back the loan over 4 weeks or 8 weeks, with interest rates ranging from 0% to 5%.
## Does Cash App Borrow Report to Credit Bureaus?
One of the main factors that determine whether borrowing money can help build credit is whether the lender reports to credit bureaus. This means that the lender reports the borrower’s payment history to credit bureaus, which is then reflected in the borrower’s credit report. Unfortunately, Cash App Borrow does not currently report to credit bureaus, which means that using the feature will not help users build their credit.
## Alternatives for Building Credit
If you are looking to build your credit, there are several alternatives to Cash App Borrow that you may want to consider:
– secured credit cards: these require a deposit that serves as collateral and can help users build credit through responsible use.
– credit builder loans: these are specifically designed to help users build credit by making small payments over a period of time.
– authorized user on someone else’s credit card: this allows users to piggyback on someone else’s credit history and build credit without taking on any debt.
## Conclusion
While Cash App Borrow is a convenient way to borrow money, it unfortunately does not report to credit bureaus and therefore does not help users build their credit. If you are looking to build your credit, explore other options such as secured credit cards, credit builder loans, or becoming an authorized user on someone else’s credit card.