About lender
MoneyLion is a financial technology company and mobile banking platform that provides online banking services, cash back rewards, credit-builder loans, cash advances, auto investing, banking for early paycheck deposits and no minimum balance, managed investment accounts, financial tracking, and education.
MoneyLion was established in 2013 and is currently based in New York.
Pros and cons
Pros
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MoneyLion doesn't have a hard credit inquiry when customers apply for its Plus membership. So, it can be a great option for clients building their credit or having trouble getting approved for a loan with traditional banking services.
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On-time payments toward the MoneyLion can help customers build a good payment history. Customers can also consider paying off the loan early to minimize interest charges.
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Customers can create a MoneyLion account for free, which gives access to a free checking account and an investment account. With it, clients may be eligible for 0% APR(annual percentage rate) for cash advances of up to $250.
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Has no prepayment penalty. Customers can pay off the MoneyLion credit builder loan early, and there will be no early payoff penalty fee.
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Provides deferment. If customers need to postpone a payment, MoneyLion allows them to defer payment if they apply for deferment.
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Provides free credit monitoring. That means customers will get a full credit report and can review it for any errors or fraudulent activities.
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The no-fee MoneyLion checking account that's available with your account lets customers earn cash back when they make purchases from participating brands.
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Many financial institutions and budgeting apps partnering with MoneyLion give clients free access to their credit score, which updates monthly.
Cons
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Charges monthly membership fee
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Only offer small loan amounts.
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Loan funds can be in a reserve account until customers Filly pay back the loan.
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The upgraded Credit Builder Plus membership costs $19.99 per month, which is rather costly compared to other financial companies.
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Unlike many other financial companies and lenders, MoneyLion requires customers a bank account access to qualify for its services, which means not every client will be able to qualify for its services.
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MoneyLion may provide funds for up to five days for some users, which is quite long and may not be appropriate for some customers looking for instant financing.
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The company has no physical branches. So, customers want to be able to reach out to MoneyLion in person if they have to resolve some urgent issue or ask a question.
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Currently, MoneyLion checking accounts are insured like other US banks. However, the company is not yet Member FDIC insured and has no bank guarantee.
Terms and conditions
MoneyLion has several products you can opt for:
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Roarmoney allows you to get paid up to two days earlier. It is a mobile banking, coming with features of cash back, refunds, round ups, and cash advances.
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Investment accounts advertise you can turn $20 a week into $1,000 in a year. The monthly fee is from $1 to $5.
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Instacash Advance. The maximum advance that the company offers is $250. Remember that MoneyLion gives users a borrowing limit after connecting to their bank account. The lender typically makes advances in increments of $5 or $50.
Note that in any case, MoneyLion bank account holders can add, for instance, direct deposit to get higher advance amounts.
Funding a loan
Usually, it takes from 12 to 48 hours for cash advance funds to be deposited into a MoneyLion RoarMoney account and from 3 to 5 business days to be sent to the checking account.
