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MoneyLion is a revolutionary new fintech company that offers credit-builder loans, financial, advisory, and investment services to customers. Based in New York, MoneyLion supports over 4 million users and has originated over 250,000 loans. The company was founded to help people manage their money, build savings, and establish or repair their credit.
MoneyLion uses a proprietary machine-learning data-driven platform to provide personalized financial products unique to each user. With its unique system of rewards, points, and incentives, MoneyLion encourages good personal finance habits and better economic outcomes for its users.
Generally, MoneyLion has a strong reputation within the fintech industry with overwhelmingly positive reviews from users all over the internet. Whenever an issue was brought up, MoneyLion addressed the problem quickly and promptly delivered a solution.
An interesting proposition MoneyLion offers customers is the ability to obtain loans without a credit check. This feature is beneficial to customers who wouldn’t otherwise qualify for a loan because of low or no credit scores. MoneyLion offers loans at a lower interest rate. However, you’d have to pay a membership fee.
You can create a MoneyLion account for free. The basic MoneyLion account will give you access to a zero-fee checking account and an investment account. However, if you can also upgrade to the $19.99 per month Credit Builder plus membership account, you’ll get access to the credit-builder loan.
What Is The Credit Builder Loan?
Just like the name sounds, the Credit Builder Loan is a loan that helps members build credit. Here’s how it works:
You request a loan, but rather than disbursing the money to you, MoneyLion will hold it in a high-yield savings account or a certificate of deposit. You will then make monthly payments on your loan, and MoneyLion will report those payments to the three major credit bureaus. This process will help you build or establish credit. After you finish paying off the loan, MoneyLion will release the funds to you. This type of loan is also called a self-lender loan.
Services MoneyLion Offers
Since the company was founded in 2013, MoneyLion has grown its portfolio of products and services. Some of the services which we will discuss in detail are MoneyLion’s mobile banking, no-interest cash advances, credit-builder loans, automatic investing, and MoneyLion Plus.
Roar Money: Mobile Banking
Roar Money by MoneyLion is a comprehensive mobile banking solution. One of the unique features behind Roar Money is accelerated payment– the ability to get paid up to two days early. For many, this is a lifesaver, especially if they have bills coming due before receiving their paycheck.
Another great benefit of using Roar Money Mobile Banking is the zero minimum and zero fees. Many traditional banking institutions earn a profit by charging a variety of fees to their customers. Mobile banking allows MoneyLion to avoid the need for brick and motor locations. The savings generated are then passed onto customers in the form of zero fees or minimums.
For example, MoneyLion does not charge ATM fees at any of its 55,000 plus Allpoint locations. There’s zero minimum balance fees, zero foreign transaction fees, zero standard mobile check deposit fees, zero stop payment fees, zero stolen card fees, and zero debit card replacement fee.
Many shoppers find MoneyLion’s price protection feature to be very useful. Here’s how it works: If you find a lower price within 90 days of making an eligible purchase, you can get a refund for the difference–up to $250 per claim, four times a year. This feature is especially useful for holidays shopping. If you bought something and it goes on sale during Black Friday, no problem, MoneyLion’s Roar Money has you covered.
Debit Card Rewards — Roar Money Mobile Banking
Debit Card Rewards is a feature that allows you to earn cashback on your purchases. You can easily earn rewards on your daily expenditures. This feature is usually reserved for credit cards, but with the Roar Money debit card, you can have it as well.
The MoneyLion app makes it easy to earn rewards from top online merchants.
Another cool way to earn with MoneyLion is to use the Shake “N” Bank feature. All you have to do is shake your phone after purchases of $10 or more and earn additional rewards!
Built-in Security Controls.
Over the past few years, online banking has been relatively secure. That fact is even truer with MoneyLion. With MoneyLion Roar Money, customers have access to safe and fast banking. MoneyLion uses cutting-edge technology like multi-factor authentication to protect its customers.
MoneyLion also has a robust protection system against unauthorized purchases if your card is lost or stolen. For example, a customer can instantly lock their card right from the app if it is missing.
Spend Tracker Built-in Feature
Roar Money provides the ability for users to track their spending. The built-in spend tracker feature helps users to master budgets and expenditures. MoneyLion’s host of smart tools help you monitor your total financial health in one place. Members also get weekly reports to help them manage their spending habits.
No Interest Cash Advances
MoneyLion offers an incredible product called Instacash. This feature gives members access to interest-free cash advances. Members can get up to $250 anytime with no interest, no credit check, and no monthly fee.
Most traditional banks offer cash advances with fees as high as 5% of the cash advance. Plus, you are also likely to pay several dollars in ATM fees when you take out your cash advance via the ATM.
Most people pay a higher interest rate on cash advances than they pay on their purchases. MoneyLion has revolutionized cash advances by eliminating the fees associated with it.
How To Set Up Instacash
Setting up Instacash is easy. Start by downloading the MoneyLion app and using your email address to create an account. Next, link an active checking account to qualify for 0% APR cash advances in minutes with no credit check. Request an interest-free cash advance in the app and get your cash in a matter of seconds.
The only requirement for getting these Instacash cash advances is that you should receive your direct deposit paycheck through your MoneyLion bank account.
Think about it. It is very unlikely that your regular brick and mortar bank will give you an interest-free cash advance. If you’re looking for just one reason to join MoneyLion, Instacash should be the reason.
Credit Builder Loans
MoneyLion offers credit builder loans up to $1,000 for users. Reporting is sent directly to all three credit bureaus, and members receive weekly credit score updates. To start a credit builder loan with MoneyLion, you need to have a Credit Builder Plus membership account.
Automatic Investing
With MoneyLion, investing does not have to be complicated. Auto investing is a great feature that helps members to invest automatically.
MoneyLion helps investors hit their investment goals faster by presenting them with five different, fully managed portfolio options.
Each portfolio is structured based on one of five different risk tolerance levels:
Conservative portfolio: This portfolio consists mainly of fixed income, stocks, bonds, and Exchange Traded Funds EFTs.
Moderately conservative portfolio: This portfolio consists mainly of fixed income ETFs and equity ETFs.
Moderate portfolio: This portfolio consists evenly of fixed income ETFs and equity ETFs, albeit with a slight tilt toward equities.
Moderately aggressive portfolio: This portfolio takes on more risk by investing heavily in equity ETFs. However, it also invests in some fixed-income ETFs to help cushion against volatility.
Aggressive portfolio: This portfolio takes on the highest levels of risk in an attempt to maximize returns. This portfolio comprises equity ETFs, with small (typically 20% or less) fixed-income ETFs, and may be highly volatile.
The best part is, no management fees or minimums.
The MoneyLion investing platform is a one stop solution for investors. You can invest any amount instantly while having the ability to add or withdraw funds based on your needs.
With automatic investing, you can choose your comfort zone and receive one of five personalized portfolio that aligns with your goals. You can also adjust your portfolio anytime. Choose a variety of different options based on your needs. If you need steady income, theres an option for that. If you are looking to be more aggressive and seek out growth stocks, there are a variety of levels available for you to pick as well.
Something different you probably haven’t seen before is the ability to invest based on your interests and passions. You can overlay your portfolio with thematic based ETFs that are aligned to specific topics. Examples include technology innovation, social responsibility, greater good, and much more.
MoneyLion Plus Membership
In order to qualify for a loan from MoneyLion, you must be a MoneyLion Plus member. A membership fee will costs $19.99 plus your loan payment. This membership is specifically tied to the Credit Builder Loan product. Membership payment and any loan payments will be withdrawn on your pay dates to make payments easier.
An interesting perk available to MoneyLion Plus members is the ability to earn a Lion Share payout of $19.99 at month end by logging in everyday and using the MoneyLion Debit Mastercard for 20 or more purchases of $10 or higher in a calendar month. By doing so, you can earn back your $19.99 membership fee!
Who Should Use Money Lion?
MoneyLion offers great products and solutions for anyone looking to build up their credit score. The company does not perform any hard credit checks and allows users to have access to loan products that help establish credit. If you are planning to work on your credit or cannot get approved for another loan, then MoneyLion is for.
The one point to understand is not too rely on MoneyLion to cover your emergencys. The money that you receive when using the credit builder loan is a small amount and a majority of it is placed in a reserve account.
On time payments made towards the loan will help you build a record of positive payment history. This will help many with the ability to build up their credit scores and qualify for other financial products. If you want to build credit and are attracted to MoneyLion’s portfolio of products and solutions, then this company is a good fit for you.
Money Lion Fees
A strong reason to consider using MoneyLion is the lack of fees that are charged to customers. There are no hidden fees and no minimum balances. The only membership fee you will have to pay for is for MoneyLion Plus in order to gain access to the credit builder loan. However, even this is avoidable by using the MoneyLion Debit Mastercard for 20 or more purchases of $10 or higher in a calendar month. By doing so, you will effectively gain back the fee that you paid making the overall membership free!
Pros & Cons of MoneyLion
MoneyLion offers a variety of strong products and services that will benefit many that work with the company. Best suited for those that need assistance building up their credit score, the pro of using MoneyLion is that with the builder loan product, your payments are reported directly to all three credit bureaus. Another pro is the ability to secure loans without the need for a hard credit inquiry.
On the other hand, only small loans are offered to customers. Very little can be done in the long run with these loans. Primarily great for paying small bills or making small purchases. Also, you do not get the full loan amount upfront. Rather a portion goes into a reserve account until you pay back the loan.
Conclusion
For the right type of customer, MoneyLion will offer tremendous value and allow millions of users to get on the right path towards building a strong financial base. With a variety of products and solutions available, MoneyLion is a disrupter in the fintech industry. For those looking to repair or build their credit MoneyLion will be a great option. Additionally, anyone that needs help with tracking their spending or seeks a powerful automatic investing tool, then MoneyLion is a great choice as well.
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