Friday, 29 May 2020

MoneyLion Personal Loan Review

MoneyLion Personal Loan Review
10 Aug
11:12

MoneyLion
APR

5.99%
To
99.00%

Credit Req.

Varies

Minimum Credit Score

Terms

6 to 36

months

MoneyLion personal loan details
 

Fees and penalties

  • Terms: 6 to 36 months
  • APR Range: 5.99% – 99.00% APR
  • Loan amounts: $300 to $35,000
  • Time for Funding: Up to one business day
  • Hard pull/soft pull: MoneyLion and BetterCash loans do a soft pull to check rates and a hard pull to complete the application. The MoneyLion Plus does a soft pull for the membership application and no additional inquiry for the loan.
  • Origination fee: None
  • Prepayment fee: None
  • Late payment fee: $25 to $37.50

MoneyLion product details

Personal loans are just one aspect of MoneyLion. Collectively, MoneyLion is a personal finance platform with several products many of which are free after you sign up for an account. MoneyLion partners with TransUnion for free credit monitoring. Credit monitoring for users comes with a credit score simulator and scores updated each month.

MoneyLion also offers financial tracking for users where you can view your assets and debts all in one platform. Users can connect bank accounts, investment accounts, and credit card accounts to the financial tracking dashboard to review their overall financial standing.

There’s a rewards program that gives points for using different MoneyLion features, and these points can be redeemed for restaurant and retail gift cards. Downloading the app and signing up for an account gets you 100 rewards points right off the bat. You can also receive points for taking out a MoneyLion loan, enrolling in credit monitoring, making on-time loan payments, and more.

Again, each of the benefits above are free, but there’s an additional paid product called MoneyLion Plus that comes with a few extra perks.

MoneyLion Plus

The MoneyLion Plus membership costs $79 per month, made up of two payments.

One payment of $29 is the membership fee. The remaining $50 is a payment that goes into an investment account for you managed by MoneyLion.

Here are the features you get with MoneyLion Plus:

  • MoneyLion invests your $50 into an investment fund.
  • Loans of $500 at 5.99% APR, even if you have fair credit
  • $1 cashback into your investment account whenever you log into MoneyLion; log into your account daily each month and you could earn enough to cover the $29 monthly fee
  • Other bonus cashback rewards

Eligibility requirements

  • Minimum credit score: Varies
  • Minimum credit history: Less-than-stellar credit is acceptable for the BetterCash loan. Fair credit or better is required for the MoneyLion loan product.
  • Maximum debt-to-income ratio: Varies

There are a few loan products to review here with slightly different terms and eligibility requirements. The payment schedule for MoneyLion loans match your employer paycheck. If you get paid bi-weekly, your loan payment will also be bi-weekly.

For each loan, you have to sign up to become a user of MoneyLion first.

  • MoneyLion: Allows people with fair to good credit to borrow $1,000 to $35,000. The MoneyLion loan is marketed as an installment loan solution for planned purchases or major emergencies.
  • BetterCash: Those with less-than-stellar credit may borrow between $300 and $10,000 for 6 to 24 months. The BetterCash loan is for unexpected small expenses that pop up and need a quick payment. To be blunt, this product is comparable to a payday loan. Payday loans are meant to keep you afloat from one paycheck to another. Be careful with this type of loan — it can turn into a debt trap because you’re constantly relying on debt to put out financial fires.
  • MoneyLion Plus – As we mentioned above, you may borrow $500 for 5.99% APR, but it’s only available if you sign up for the $79 per month MoneyLion Plus account.

Think twice about signing up for the MoneyLion Plus account for the sole purpose of getting access to these $500 emergency loans. It may not be constructive to pay $79 per month, even if $50 is going into an investment account. That $79 would probably serve you better deposited into a liquid emergency fund savings account you can use when emergencies arise. It can take up to seven business days to withdraw cash from the investment account when you need it.

Eligibility requirements

MoneyLion and BetterCash loans are available in the following states: Alabama, California, Delaware, Georgia, Hawaii, Idaho, Illinois, Mississippi, Missouri, New Mexico, North Dakota, Ohio, Rhode Island, South Carolina, Texas, Utah, and Wisconsin. MoneyLion Plus is available in all states, except Indiana, Iowa, Montana, Nebraska, Nevada, Vermont and Washington.

You also need to meet these conditions:

  • Be of legal age in your state
  • Pass an identity check
  • Have verifiable income and employment
  • Provide a valid checking account with at least 45 days of history
  • Have income direct deposited into the checking account

Applying for a personal loan from MoneyLion

Here’s how to apply for a MoneyLion loan product:

Join MoneyLion. You have to sign up for MoneyLion at no initial charge if you’re not already a member to apply for a loan. Returning members can go into the MoneyLion dashboard and click “new loan.”

Complete the application. You can complete the application online. You will need a Social Security number, email address, home address, phone number, date of birth, and verifiable bank information to apply.

Loan decision. The decision on whether or not to fund your loan can happen within 24 hours. More information may be requested from underwriting before you’re approved.

Funding. If approved, funding can happen within one business day. The money is deposited directly into your bank account.

Pros and cons of a MoneyLion personal loan

Pros:

Cons:

  • Quick loans. MoneyLion can get you approved for a loan within 24 hours and can fund your loan within 24 hours of the approval.
  • Products for both good and bad credit. You can qualify for the MoneyLion loan with fair or good credit, and qualify for the BetterCash loan with less-than-perfect credit.
  • Soft pulls. You can prequalify for a loan with just a soft inquiry that won’t affect your credit score.
  • Free credit scores. Of all the extra MoneyLion perks, the free credit score monitoring may be the best feature. It’s free and you get monthly updates. Having this tool can help you build credit and prevent fraud.
  • Expensive loans. An APR of 30% to 99.00% is astronomical, and MoneyLion products may even surpass this rate range into the triple digits. You could find yourself in a never-ending cycle of debt if you use this loan to pay bills. The MoneyLion Plus product with 5.99% APR is touted as the affordable loan. But to get access to this loan, you’ll need to pay $79 monthly for MoneyLion Plus membership — $29 for membership costs and $50 in required investment contributions. If you’re already strapped for cash, $79 monthly could be cumbersome. You can search for other affordable loan products in our roundup here that don’t require a membership.
  • Limited availability. MoneyLion products aren’t available in all states. Refer to the list of states above before applying.
  • Beware of MoneyLion Plus. Only consider the MoneyLion Plus product if you’ll be logging into the account daily, and if you won’t need the cash you’re investing for emergencies. You earn $1 in cashback to your investment account for each day you log in, so this could cancel out the $29 monthly fee. Otherwise, $29 per month ($348 annually) is an extremely high price to pay for membership access to a $500 installment loan and investment product. You can invest with other companies that could manage your account for cheaper. We have a list of robo-advisors in our roundup here.

Who’s the best fit for a MoneyLion personal loan?

Cost is the biggest disadvantage of this loan. The interest rate range can go from 30% to 99.00% APR or even higher depending on the product (unless you invest in MoneyLion Plus). Sure, you can qualify for a BetterCash loan with less-than-perfect credit, but you could be paying on it for quite some time if you get a three-digit interest rate.

The MoneyLion products may be ones to consider when you’ve exhausted all other options. The best way to use a MoneyLion loan is to borrow fast when you need a quick buck and make early payments to pay it off; there are no prepayment fees. Repaying your loan fast before the entire term can help you avoid paying a mountain of interest.

High-interest loans like this can lead to a debt cycle where you borrow money, another emergency comes along, and you struggle to keep up. Building up an emergency fund can help you avoid having to fall back on this type of last-minute debt vehicle.

Having bad credit doesn’t mean you have to fall victim to obscenely high-interest rates. Check out our list of other personal loans for various credit profiles.

Alternative personal loan options

Upgrade
APR

6.87%
To
35.97%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% – 6.00%

Loans made through Upgrade feature APRs of 6.87%-35.97%. All loans have a 1% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay. For example, a $10,000 loan with a 36 month term and a 17.97% APR (which includes a 5% origination fee) has a required monthly payment of $343.28. Upgrade is available in all states except: Connecticut, Colorado, Iowa, Massachusetts, Vermont, West Virginia.

Upgrade lets you borrow between $1,000 to $50,000. You can check rates with a soft inquiry. After you’re approved for a loan, you can get access to funding within a day. There are no prepayment penalty fees, but there is an origination fee to consider. This loan is another one for borrowers with less-than-stellar credit that may be more affordable than MoneyLion.

SoFi
APR

6.57%
To
16.25%

Credit Req.

680

Minimum Credit Score

Terms

36 to 84

months

Fees

No origination fee

SoFi offers some of the best rates and terms on the market. Read More


Fixed rates from 6.57% APR to 16.25% APR (with AutoPay). Variable rates from 5.81% APR to 13.61% APR (with AutoPay). SoFi rate ranges are current as of August 1, 2018 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.81% APR assumes current 1-month LIBOR rate of 2.07% plus 4.175% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Terms and Conditions Apply.

Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.

SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

SoFi has loans from $5,000 to $100,000 — if you need to borrow a large sum, this is one of the lenders that offers the most money, and there are also long loan terms that give you a decent amount of time to repay debt. SoFi doesn’t have a credit score minimum, but there are no fees and competitive interest rates (especially when using autopay), which is a sign that the loan is geared toward people with decent credit.

Marcus by Goldman Sachs®

Marcus by Goldman Sachs®
APR

6.99%
To
24.99%

Credit Req.

Varies

Minimum Credit Score

Terms

36 to 72

months

Fees

No origination fee

Marcus by Goldman Sachs® offers personal loans for up to $40,000 for debt consolidation and credit consolidation. Read More

Marcus by Goldman Sachs® is a personal loan that also has no origination fees, and does not require a hard inquiry to check rates. You can borrow up to $40,000 with longer loan terms than what MoneyLion has available. Marcus is another loan that doesn’t have a minimum credit score requirement, but would likely be best for borrowers with good credit or better because of the favorable terms. With that said, this is probably going to be a much more affordable option than MoneyLion. If your credit is in the high 600’s or better, consider this loan. More than 80% of borrowers last year had a credit score of at least 660, according to Goldman Sachs’ most recent annual report.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Taylor Gordon

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Source: https://www.magnifymoney.com/blog/personal-loans/moneylion-personal-loan-review/

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