Improve your finances and borrow a $500 loan at 5.99% APR.
It recently started offering a membership program that helps you improve your finances, invest and get access to personal loans with competitive rates. While it might be inexpensive, it’s much more involved than your typical short-term loan.
|Product Name||MoneyLion Personal Loan|
|Min Loan Amount||$500|
|Interest Rate Type||Fixed|
|Minimum Loan Term||1 year|
|Requirements||Must be a MoneyLion Plus member, have a job that pays with direct deposit, a checking account with a positive balance, a verifiable identity, proof of ability to repay and live in an eligible state.|
- Must have a credit score of 640 or higher
- Must live in a state where MoneyLion operates
- Must be 18 or older
- Must have a steady source of sufficient income
Do I qualify?
To get a MoneyLion Plus loan, you must be a MoneyLion Plus member. To join, you must:
- Have a job that pays with direct deposit.
- Have a checking account with a positive balance.
- Make enough money to repay your loan.
- Have a verifiable identity.
- Live in an eligible state.
MoneyLion doesn’t consider your credit score when applying for Plus membership.
What makes MoneyLion Plus loans unique?
MoneyLion Plus loans are only one part of becoming a MoneyLion Plus member. Membership comes with access to a wide range of other financial services, including a personalized investment portfolio, credit score updates and 0% APR cash advances.
Plus membership costs $29 a month, in addition to a mimimim monthly deposit of $50 into your investment account. But you can earn your membership fee back — MoneyLion offers to deposit $1 into your investment account each day you log into its app.
What is a MoneyLion Plus loan?
A MoneyLion Plus loan is a credit builder loan. Credit builder loans are a type of low-interest, small-dollar personal loan that you can spend on anything. However, they’re primarily meant to improve your credit rating by establishing a history of on-time repayments.
It works the same way for all borrowers: Request a loan through the MoneyLion app and receive $500 at 5.99% APR with a year to pay it back. There are no prepayment penalties, so if you repay your loan within a month, you’d only pay $1.15 in interest and fees.
What are the benefits of MoneyLion Plus loans?
- Funding in seconds. There’s no need to fill out an application when you’re already a member. And MoneyLion can deposit your loan directly into your checking account.
- No credit check. This means two things: You don’t need good credit to qualify and it won’t temporarily hurt your credit rating.
- No application after membership. You never have to apply for a MoneyLion Plus loan after you become a member.
- Chance to improve your credit. These low-cost, small-dollar loans are meant to help you increase your credit score. MoneyLion claims that more than two-thirds of members improved their credit score by 20 points after 30 days.
- Competitive rates. All members in good standing get the same 5.99% APR.
Other services that come with a MoneyLion Plus membership
- Personalized investment portfolio
- Free managed investment account
- Free checking account
- 0% APR cash advances
- Free credit monitoring and weekly credit score updates
- $1 deposited into investment account for each day you log in
- $25 rewards for healthy financial behavior
- $5 to $2,000 bonuses for referring friends
- Access to 5,500 free ATMs across the country
- Access to the Plus Facebook community
What to watch out for
- Monthly membership costs. MoneyLion charges a $29 monthly membership fee and makes a $50 deposit into your investment portfolio.
- Loans might not be immediately available. If you don’t pass MoneyLion’s bank verification process, you won’t be able to take out a loan for the first 30 days.
- No refinancing. Currently, MoneyLion doesn’t allow members to refinance its Plus loans.
- Not for large expenses. While you might be able to access higher loan limits if you establish a history of paying off your loans on time, you generally can only borrow $500.
Compare more personal loan options
What do customers say about MoneyLion Plus?
Since MoneyLion Plus is a new service, there isn’t a lot out there in terms of customer reviews. But the company itself has a mixed online reputation as of December 2018.
It earns a B- from the Better Business Bureau based on the fact that it has over 85 customer complaints filed against it. However, customers give it an average of 4 out of 5 stars based on 33 reviews. And Trustpilot reviewers give it an average of 8.8 out of 10 — slightly lower than other lenders.
Some customers had trouble using the MoneyLion app, while others claimed they actually ended up in more debt after taking out a loan. But many said MoneyLion had really helped them save.
MoneyLion settles lawsuit with Virginia's attorney general
In February 2018, MoneyLion settled a lawsuit with Virginia’s attorney general. The attorney general argued that MoneyLion falsely claimed it was licensed to lend in Virginia and charged interest rates higher than the state cap of 12%.
As part of the settlement, MoneyLion refunded over $2.35 million in interest charges to over 2,600 customers in addition to other refunds and fines.
Am I eligible for a MoneyLion Plus loan?
To be eligible for a MoneyLion Plus loan, you must be a Plus member in good standing. Here’s what you need to join:
- A job with direct deposit. Your employer must deposit your income directly into your checking account.
- A checking account with a positive balance. You can’t become a member if your account is currently in overdraft.
- The proven ability to repay. MoneyLion considers how much money you have available each month to make sure you’re able to afford monthly repayments.
- Verifiable identity. You need to provide your Social Security number or taxpayer ID to become a member.
- Residence in an eligible state. MoneyLion Plus loans aren’t available in seven states.
MoneyLion Plus isn’t available to residents of:
How do I apply?
Before you can get a MoneyLion Plus loan, you must first become a Plus member. Follow these steps to sign up.
Steps to apply with application screenshots
Once you’ve set up your account and MoneyLion verifies your bank information, you can apply for a MoneyLion Plus loan through the app. The money can be deposited in your MoneyLion checking account in a matter of seconds.
I got a MoneyLion Plus loan. Now what?
Once you have your MoneyLion Plus loan, you have up to a year to pay it back. But since MoneyLion doesn’t charge prepayment penalties, you might want to consider paying it back early to save on interest.
If you have any questions about repaying your loan, you can reach out to customer service by filling out an online form or calling 888-659-8244.
A MoneyLion Plus loan is ideal if you’re interested in improving your financial health and think you might need a fast short-term loan in the future. But it’s not the best option if you’re just looking for a quick small-dollar loan — becoming a member involves a lot more than just filling out an application.
To learn more about how personal loans work and compare lenders, check out our guide.