MoneyLion is a financial tech company that was founded in 2013 with the belief that “we all get ahead when nobody gets left behind.” They are changing the way traditional banking is done in order to help the millions of Americans who’ve been both “ignored” and even taken advantage of by the traditional banking system.
MoneyLion uses a proprietary machine-learning and data-driven software to provide personalized financial products that are 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.
They consider themselves to be a financial toolkit where you get to choose what tool you need and when you need it.
One of the great tools is their credit builder loan that allows members access to up to a $1000 loan with no hard credit check.
So what is the MoneyLion Finance App and how does it work to build credit?
While they have many tools in their financial toolkit, the MoneyLion Credit Builder Plus personal loan is a great tool to help you build your credit.
To qualify, you must be a member by applying and agreeing to pay a $19 a month fee. Once you are a member you will need to apply for the MoneyLion Credit Builder Plus loan and depending on how you qualify you can get access to all or part of your $1000 loan.
This differs from other credit builder loans like Self who require you to complete all the payments of your loan for the full term of 12-24 months before you can access any of your loan money.
With MoneyLion, you can get access right away to all or at least a portion of your loan money.
How MoneyLion credit builder loans actually help you build credit is that when you make your monthly payments on time each month, MoneyLion will report that positive payment history to all three credit bureaus which results in a positive boost to your credit rating.
Of course, there are never any guarantees of how much of a boost will happen as positive payment history is just one of the many factors that make up your credit score.
MoneyLion Credit Builder Plus Terms
| Product: MoneyLion Credit Builder Plus personal loans |
| Max. Loan Amount: $1,000APR5.99% to 29.99% |
| Interest Rate Type: Fixed |
| Min. Credit Score: All credit scores accepted |
| Loan Term: From 1 year |
Why MoneyLion Stands Out From Other Credit Builder Loans
If your credit needs work and you also need money immediately for an emergency, a loan through MoneyLion’s “Credit Builder Plus membership” might be a great option — if it’s available in your state.
MoneyLion is different from our other picks because it offers the potential for faster access to cash, unlike typical credit-builder lenders where you must wait until all payments are complete.
Another added benefit for those with little to no credit or bad credit is that MoneyLion doesn’t check your credit when deciding whether to approve you or how much immediate cash access you get.
Instead, MoneyLion assesses your checking account, which must meet certain eligibility requirements.
Additional Products Offered By MoneyLion
| Financial Heartbeat®: This “financial fitness tracker” shows you your cash flow, spending and more to give you more insights into your finances. |
| Cashback debit card: The MoneyLion Debit Mastercard® pairs with the MoneyLion app to gamify your spending. After you make a purchase of $10 or more, you can shake your phone for a chance to earn up to 100% of your purchase back. Be careful you’re not tempted to spend more with this feature, thou |
| MoneyLion Instacash: Interest-free cash advance loans of up to $250 |
| Automated Investing: Choose from five core portfolios to invest in with automatic payments, for no monthly fee. |
| RoarMoney: A cash management account that functions in the same way as a checking account. |
Who Should Use MoneyLion?
MoneyLion offers a variety of useful products and services for its members. Of particular note is the fact that MoneyLion is great for people needing assistance in building credit.
Another huge benefit of using MoneyLion is the ability to secure loans without the need for a hard credit inquiry.
Another point to consider is that they only offer small loans that can typically do very little in the long run. However, they are no doubt good for paying small bills or making small purchases.
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 in need of a powerful automatic investing tool, MoneyLion is a great choice as well.
