Moneylion Loan Services: What You Need To Know

MoneyLion is a financial services company that offers a membership program that includes online banking services, cash back rewards, credit-builder loans, and more. MoneyLion offers members credit-builder loans of up to $1,000 without a credit check, but borrowers have to pay a monthly membership fee. The company's Credit Builder Plus loan can help build and improve credit profiles, but monthly fees and interest charges can make these loans expensive. MoneyLion also offers Instacash, a no-interest cash advance feature with no APR or late fees.

MoneyLion's Credit Builder Plus loan

MoneyLion is a financial services company that offers a membership program that includes online banking services, cash back rewards, credit-builder loans, and more. MoneyLion's Credit Builder Plus loan can help build and improve your credit profile.

The Credit Builder Plus membership costs $19.99 per month and offers access to a credit-builder loan, a zero-fee checking account, and an investment account. The credit-builder loan can help you build credit with on-time payments since MoneyLion reports to all three major credit bureaus. MoneyLion offers credit-builder loans of up to $1,000. The company will review your finances and a linked checking account to determine how much money you are approved for. MoneyLion does not perform hard credit pulls, so there is no impact on your credit score for applying.

Interest rates for the Credit Builder Plus loan can range from 5.99% APR on the low end to 29.99% on the high end. The interest rate you receive is determined by factors such as your income. The loan also comes with a monthly membership fee of $19.99, which can make the total cost of borrowing very high. For example, a $1,000 loan at 29.99% APR for 12 months would cost $1,169.79 to repay. However, if you include 12 months of membership fees, the total cost increases to $1,409.67, which equates to about 68.7% APR.

Monthly membership fees

MoneyLion offers a membership program that includes online banking services, cash-back rewards, credit-builder loans, and more. The Credit Builder Plus loan can help build and improve your credit profile, but monthly fees and interest charges can make these loans expensive.

MoneyLion does not require stellar credit scores to apply for a Credit Builder Plus membership to get access to the credit-builder loan. Instead, MoneyLion reviews your primary checking account, which must meet certain criteria to qualify for the loan. After reviewing your finances, MoneyLion will deposit the amount it agrees to give you immediate access to.

Any funds not received upfront are put into a reserve account until the loan is paid off. You could get access to the upfront funds right away if you choose to get money sent to your MoneyLion debit card or MoneyLion checking account. However, it can take up to three business days to get funds deposited into a third-party checking account.

MoneyLion does not perform hard credit checks on applicants, but you must still meet specific criteria to be approved for a loan. For example, if you have a negative balance or your bank account is less than 60 days old, you probably won't qualify for a loan. It can take up to three business days for MoneyLion to fund a Credit Builder Plus loan.

With a MoneyLion membership account, you can access a 0% APR cash advance of up to $500, though there is a fee to receive funds instantly. MoneyLion Instacash does not charge any mandatory fees. However, an optional $1-per-month RoarMoney membership increases your maximum cash advance to $1,000.

No credit checks

MoneyLion does not perform hard credit checks on applicants, which means there won't be any impact on your credit score for applying. However, to be approved for a loan, you'll still need to meet specific criteria. For example, if you have a negative balance or your bank account is less than 60 days old, you probably won't qualify for a loan.

MoneyLion's Credit Builder Plus loan can help build and improve your credit profile. MoneyLion reports your payments to all three major credit bureaus and offers credit monitoring services that allow you to track your progress.

MoneyLion's no-credit-check policy is enticing, especially if you have a thin credit history or poor credit. However, it's important to note that the Credit Builder Plus loan comes with more costs than just annual percentage rates (APRs). There are interest and fees, and customers will also have to pay a $19.99 monthly membership fee.

MoneyLion is a mobile banking platform that offers a variety of financial services and products, including its 'Instacash' cash advance feature, which allows you to borrow up to 30% of your recurring cash direct deposit per pay cycle with no credit check.

No prepayment penalty

MoneyLion is an online lender and mobile banking app that offers various financial products and services, including cash advance loans. MoneyLion differs from traditional personal loan lenders because it requires borrowers to pay a monthly membership fee to borrow money.

MoneyLion's Credit Builder Plus loan can help build and improve your credit profile. However, monthly fees and interest charges can make these loans expensive. The cost of borrowing from MoneyLion may be too high due to the monthly fees, even though the company offers a low starting APR.

While MoneyLion does not perform hard credit pulls, you must meet specific criteria to be approved for a loan. For example, if you have a negative bank account balance or your account is less than 60 days old, you probably won't qualify for a loan. It can take up to three business days to receive funds after accepting a MoneyLion Credit Builder loan.

MoneyLion has been sued by the Consumer Financial Protection Bureau (CFPB) for imposing illegal and excessive charges on servicemembers and their dependents, in violation of the Military Lending Act. The CFPB alleges that MoneyLion charged more than the legally allowable 36% rate cap on loans to servicemembers and their dependents through a combination of interest rates and monthly membership fees.

A prepayment penalty, also known as an early payoff fee, is a fee charged by some lenders if you pay off your loan early. The prepayment penalty can cost a few hundred to a few thousand dollars, depending on the loan amount and how the fee is charged. Although paying off a loan early can save you money on interest, it may trigger a prepayment fee. It is important to read the loan agreement carefully to understand all the associated fees and how they will be charged.

Some lenders, like LightStream and Discover, do not charge prepayment penalties, allowing borrowers to pay off their loans early without incurring additional fees.

Interest rates and fees

MoneyLion has been criticized for its high fees and interest rates. The company has also been accused of overcharging customers for loans and refusing to cancel memberships. In 2022, the Consumer Financial Protection Bureau sued MoneyLion for violating the Military Lending Act by charging interest rates above 36% APY on loans to servicemembers.

MoneyLion's Credit Builder Plus loan can help build and improve your credit profile. However, monthly fees and interest charges can make these loans expensive. The Credit Builder Plus product provides loans ranging from $500 to $1,000, with an interest rate ranging from 5.99% to 29.99%. There is also a $20 or $29 monthly fee, depending on the source. The InstaCash service is advertised as interest-free but comes with automatic fees that are equivalent to a high-interest payday loan.

MoneyLion's membership account offers a 0% APR cash advance of up to $500, but there is a fee for receiving funds instantly. MoneyLion Plus, a subscription-based membership, withdraws $79 from a consumer's account monthly, depositing $50 into their investment accounts and taking $29 as a monthly fee. Users can avoid this fee by logging into the app every day.

MoneyLion does not perform hard credit pulls, so applying for a loan will not impact your credit score. However, to be approved for a loan, you must meet certain criteria. For example, if you have a negative bank account balance or your account is less than 60 days old, you probably won't qualify for a loan.

Frequently asked questions