MoneyLion Personal Loan Review

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.

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What is MoneyLion?

MoneyLion is an online personal finance management platform, including a website and app. Since its launch in 2013, it’s issued 200,000 loans to consumers. According to the website, MoneyLion has about 3 million members.

There are two levels of membership: Core, which is free and comes with checking and debit, cashback rewards and free cash advances, among other things. There’s also Plus, which costs $29 a month (besides requiring a monthly transfer of $50 into the member’s investment account) and comes with additional perks, like access to the credit-builder loan. MoneyLion members can also access BetterCash loans, which are intended for users with “less-than-stellar” credit and can be used for emergency situations or expenses that have to be paid off quickly. This review will focus on those two personal loan products.

MoneyLion personal loan highlights

  • Relatively low APR for the credit-builder loan: Compared to a credit card, the credit-builder loan comes with a low rate — 5.99%. But for those with excellent credit, better personal loan APRs can be found elsewhere, often with more generous borrowing amounts. That said, the APR for BetterCash loans is over 36.00%, which is extremely high, even when compared to that of a credit card.
  • Fast funding: Once approved for the loan, funds for both types of loans can be deposited as soon as the next business day. And Plus members who take out a BetterCash loan could access the new Turbo feature, which can provide funding within minutes.
  • Low maximum borrowing limit for credit-builder loans: When you first join Plus, the most you can borrow through the credit-builder loan is $500, though members who stick with the platform for the long term should be able to access larger loan amounts. But that original amount is still quite low for a personal loan, and may not be enough to cover the amount required by the average consumer. The BetterCash loan, on the other hand, ranges from $500 to $5,000, making it more viable for larger expenses.
  • Minimum credit requirement: Not specified
  • Term: 12 or 18 months (both options available for BetterCash loan; just 12 months for the credit-builder loan)
  • Origination fees: None for the credit-builder loan; not specified for the BetterCash loan
MoneyLion Personal Loan Details
Terms
Fees and Penalties
  • Term lengths: 12 or 18 months (both options available for BetterCash loan; just 12 months for the credit-builder loan)
  • APRs: 5.99% for the credit-builder loan; over 36% for the BetterCash loan
  • Loan amounts: $500 to $5,000 for the BetterCash loan; up to $500 for the credit-builder loan
  • Time to funding: As soon as the next business day for both types of loans
  • Credit check: A Soft Pull to join MoneyLion Plus, and a hard pull to take out a BetterCash loan; for credit-builder loans, MoneyLion reports late, missed and on-time payments to the credit bureaus, which can impact your score
  • Origination fee: None for the credit-builder loan; not specified for the BetterCash loan
  • Prepayment fee: None for either type of loan
  • Late payment fee: Not specified
  • Other fees: Not specified

MoneyLion product details

With a MoneyLion Plus credit-builder loan, the borrowing limit would increase over time, and members don’t need to re-apply for loans. As noted above, the Plus membership does come with a $29 monthly fee. For those who swipe through their investment account’s financial cards every day, that amount is canceled out in the form of cash back, which pays out $1 a day.

However, Plus also requires members to save $50 a month in their MoneyLion Plus investment account. It’s important to note that while your credit score is not considered during the membership application process, acceptance is not guaranteed either. Along with membership (including the free version) comes another perk: Free cash advances, which provide up to $250 of “Instacash” at 0% APR. That can be useful when you’re waiting for a direct deposit to clear and you have a bill coming up.

BetterCash loan applications, on the other hand, are subject to risk assessment and underwriting. For those loans, interest isn’t compounded or rolled over if you miss a payment.

BetterCash also comes with the option to defer a payment, which you would pay at the end of the term. And for those who can provide evidence of financial hardship, BetterCash says it will work with customers “as best we can” to ensure that you stay up to date on payments. That could translate to additional deferments or rescheduled payments. It’s also important to know that your credit history, ability to pay, existing debt, employment and residence history are considered when calculating loan amount and rate offers.

Eligibility requirements

  • Minimum credit score: Varies
  • Minimum credit history: Varies
  • Maximum debt-to-income ratio: Not specified

MoneyLion Plus is available in all states, except Indiana, Iowa, Montana, Nebraska, Nevada and Vermont. According to the website, 85% of people who meet the following guidelines qualify for a Plus credit builder personal loan:

  • Verified identity
  • Employed with income
  • Pass ability-to-pay criteria
  • Checking account with a positive balance and direct deposit paychecks

To be eligible, your membership payments must also be in good standing, and you can’t have another active loan on your account. You also have to be at least 18, and while good credit is not a requirement, a soft credit pull is done when you apply.

BetterCash is available in most states, except Colorado, New York, New Jersey, Connecticut and Vermont. Applicants must be at least 18 (or 19 in Alabama or Nebraska), pass an identity check, have verifiable income, provide a valid checking account that is at least 45 days old and have income direct deposited into a checking account.

Applying for a personal loan from MoneyLion

To apply for a MoneyLion credit-builder loan, you’ll have to create a new account through the website or app. You’ll have to provide personal information like your name, address, phone number and income. You’ll also be prompted to create a password for your account, select a pay date and link a bank account. Then you’ll need to review the payment schedule and loan agreement before e-signing the agreement. Funds would then be available through your MoneyLion checking account or your debit card.

For the BetterCash loan, applicants must be able to provide:

  • Social Security number
  • Email address
  • Home address
  • Mobile number
  • Date of birth
  • Bank information

Some may also have to go through bank verification, which includes employment verification. The application can be filled out online. The company says it aims to have all completed applications reviewed and approved or denied within 24 hours of submission.

Pros and Cons of a MoneyLion Personal Loan
Pros
Cons
  • Credit score isn’t a necessarily a consideration factor: It’s not factored into the MoneyLion credit-builder loan application, which can be helpful to those with a low score
  • MoneyLion app: Borrowers can easily and conveniently access their account through the app (or online)
  • No prepayment fees: You can pay off either loan early without penalty
  • Quick and easy access to funds: Fast approval and depositing for both loans makes it a good option for those in need of fast cash
  • Membership requirement: The credit-builder loan can only be accessed by those who join Plus, which costs at least $50 per month itself
  • High APR for BetterCash loan: Since the base APR is over 36.00%, the overall cost of the loan is quite high, even when compared to the average credit card
  • Low maximum borrowing limit: The credit-building loan is quite limited with its $500 cap.

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

If you have a low credit score, a steady income and need a few hundred dollars to get by, MoneyLion’s credit-builder loan may be up to the task. It could also provide something of a security net since Plus members are guaranteed access to those loans as long as their account is in good standing and they don’t have another credit-builder loan open.

But if you’re thinking of getting the membership just to access the loan, that may not be the right move since the total cost of membership is at least $50 a month. If you can swing it, however, that would amount to $600 invested per year, plus or minus any earnings or losses. You would withdraw those funds through the app and pay a 25-cent withdrawal fee.

The BetterCash loan, on the other hand, would be best suited to those who need more than $500 and are willing to shell out money later in exchange for quick cash. The fact that it does provide a deferment and says it’s willing to work with those who experience financial hardship could be a comfort to potential borrowers. However, the extremely high APR is not to be overlooked if you want healthy finances in the long term, especially since there may be better options out there if you shop around online.

Alternative personal loan options

Peerform

  • APR range: 5.99% – 29.99%
  • Credit requirements: 600 minimum FICO score
  • Terms: 36 or 60 months
  • Origination fee: 1.00% - 5.00% depending on the “grade”

Peerform is a marketplace lending platform offering personal loans to those with credit scores at or higher than 600. If you need more cash than either MoneyLion or BetterCash can offer, want a longer term to pay it back and have a couple of weeks to spare, Peerform may be right for you since it offers rates that are comparable to both loans. As long as you don’t pay by check (which comes with a $15 fee per payment), it’s a good alternative.

LendingClub

  • APR range: 6.95% – 35.89%
  • Credit requirements: 600 minimum credit score
  • Terms: 36 or 60 months
  • Origination fee: 1.00% - 6.00%

LendingClub is an online peer-to-peer lender that gives qualified applicants a range of personal loan offers. While the rates are slightly higher than MoneyLion or BetterCash, it does provide an option for those who need to stretch out their repayment and meet the credit requirement or can get a co-borrower. The origination fee is deducted from the disbursed amount, however, so you’ll need to consider that when figuring out how much to request.

Interested in a personal loan?

Here are the top personal loan lenders of 2019!
LenderAPR RangeLoan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.990% APR to 16.990% APR (with AutoPay). Variable rates from 5.74% APR to 14.70% APR (with AutoPay). SoFi rate ranges are current as of March 18, 2019 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 5.72% APR assumes current 1-month LIBOR rate of 2.49% plus 4.28% 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.
  2. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
    See Consumer Licenses.
  3. 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.
  4. 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.
  5. Terms and Conditions Apply: 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)

2 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.

3 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 5.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 5.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available.

4 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate DisclosureFixed interest rates from 6.79% – 20.89% (6.79% – 20.89% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.

5 Important Disclosures for LendingPoint.

LendingPoint Disclosures

  • Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary based upon LendingPoint’s proprietary scoring and underwriting system’s review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon LendingPoint’s final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. LendingPoint makes loan offers from $2,000 to $25,000, at rates ranging from a low of 9.99% APR to a high of 35.99% APR, with terms from 24 to 48 months. The loan offer(s) shown reflect a 28 day payment cycle which is being offered as a courtesy as many of our customers are paid on a biweekly schedule and thus this may better align the loan payment dates with your actual income receipt schedule.

6 Important Disclosures for LendingClub.

LendingClub Disclosures

All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.

†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com

**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.


7 Important Disclosures for Earnest.

Earnest Disclosures

  1. Earnest does not lend in Alabama, Delaware, Kentucky, Nevada, or Rhode Island.

8 Important Disclosures for Avant.

Avant Disclosures

* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.

** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33


* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

* Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from you bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. All loans made by WebBank, member FDIC. Please refer to Upgrade’s Terms of Use and Borrower Agreement for all terms, conditions and requirements.

** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.

5.74% – 16.99%1$5,000 - $100,000

Visit SoFi

7.54% – 35.99%$1,000 - $50,000

Visit Upstart

7.99% – 35.89%*$1,000 - $50,000

Visit Upgrade

5.99% – 24.99%2$5,000 - $35,000

Visit Payoff

5.99% – 29.99%3$7,500 - $40,000

Visit FreedomPlus

6.79% – 20.89%4$5,000 - $50,000

Visit Citizens

9.99% – 35.99%5$2,000 - $25,000

Visit LendingPoint

6.95% – 35.89%6$1,000 - $40,000

Visit LendingClub

6.99% – 18.24%7$5,000 - $75,000

Visit Earnest

9.95% – 35.99%8$2,000 - $35,000

Visit Avant

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.

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