Infotipsnews.com – How to Borrow Money from Venmo that You Should Know. As a mobile payment service, Venmo also offers a loan service because it aims to provide the best services for customers. This way, you do not have to worry when there is an urgent need for money. Yet, many Venmo users do not know how to borrow money from Venmo.
Yes, this subsidiary of PayPal also provides a loan for many different purposes. You can take a loan for starting a business or personal. This way you will have a good record of both your business and personal finance.
Why Borrow from Venmo?
Before knowing how to borrow money from Venmo, you should know the reason why people opt for getting loans from this app instead of the bank. As you guess, the main reason for borrowing money from Venmo is because this app does not conduct credit checks.
Unlike applying for a loan in the bank, Venmo does not require your credit history. Therefore, the probability of getting a loan will be higher. Because even though you have a slightly yellow credit record, you can still apply for the loan.
Not to mention, the process will be extra fast compared to a banking loan. Thus, if you happen to be in dire need of money, you can take a loan from Venmo.
How to Borrow Money from Venmo?
There are many reasons for you to borrow money. Despite what your reason for needing the money is, you can trust Venmo to give it to you. Here are two different ways how to borrow money from Venmo that you can consider:
1. Use the Traditional Way
To borrow money from Venmo, you can use the traditional way where you apply for a loan through the app. For this intention, here are what you have to do:
- You should have a verified account by activating it through the Setting menu. Then, click on Security and tap on Identify Verification, and select One-Time Security Check. Further, you should input your personal information and follow the instructions.
- Apply for Venmo’s loan and wait for the verification.
- Once Venmo’s team verified your loan application, you will get the money under your account balance.
Several things that you have to note to borrow money from Venmo. Firstly, you should be at least 18 years old and have NSN (National Security Number) as a US resident. This way, you can easily verify your Venmo account without any difficulty.
Further, you should also be aware that there are account types in Venmo. Thus, although the maximum loan you can apply for is $5k, the interest may differ based on your account type. The highest interest is type 3 with 20.99% interest per year.
Also, even though theoretically you can apply up to $120k for the whole year in total, you only can apply for a loan at a time. Thus, you should pay up your current loan before applying for another one.
2. Apply for Venmo Credit Card
The second way is by applying for a Venmo Credit Card. Aside from the Debit Card feature, Venmo also has a Credit Card feature that you can utilize for many different purposes. Not to mention, this Venmo Credit Card is a Visa card that you can also use abroad.
This credit card acts like the conventional credit card you get from the bank. Thus, you can also use the physical card to pay for your purchase in more than 200 countries from around the world.
But different from the conventional Venmo loan, you should have a good credit record to apply for the credit card. Yet the bonus for applying this card is that there will be no interest but you will still get a bonus reward.
To apply for this credit card, you can do it directly from your Venmo app. Also, make sure that you have the latest app updated in your mobile phone for your convenience. Then, just click onto the section in the app and follow the instructions to apply.
Furthermore, the card will be 100% synchronized to your Venmo app. Thus, you can track all your transaction history through the app. Hence, this way you will get a better grip to manage your purchase even if you are using a credit card.
The Payment Method
Knowing how to borrow money from Venmo means you should also know how to pay back your loan. Actually, paying money back to Venmo is pretty simple. All you should do is to have enough balance in your account.
Then, Venmo will automatically deduct the payment from your balance. Further, you do not have to record your loan and payment history, because Venmo will do all the work for you. Thus, once you pay up your loan, Venmo will automatically stop the deduction.
But if you do not have enough balance, the next step that Venmo will do is to deduct the payment from your PayPal account. Because as you know, Venmo is a subsidiary of PayPal and a part of the user agreement that you signed, you agree to that.
Then, the last resort is to report you to the debt collector agency. This will only happen if you failed to meet the payment deed you agreed before and you do not have enough balance on both of your Venmo and PayPal balance.
Final Word
No one is willing to have any debt under their name. Thus, signing your name for a loan agreement – even from Venmo, means that you are badly in need of the money. Therefore, make sure to use the money accordingly as you need.
Further, you should diligently meet the loan payback schedule that you agreed during your appliance for the loan. If you have difficulty in the payment method, just make sure that you have enough balance to deduct for the payment in your Venmo account.
Also, one thing to remember for knowing how to borrow money from Venmo, that you should hold a US citizenship. Because this payment service needs an NSN that you only can meet if you are a US citizen.
