MoneyLion Credit Builder Plus 2024 Review
Flexible terms and affordable rates make the MoneyLion Credit Builder Plus membership a strong option for building your credit.
MoneyLion has a mission of rewiring the American banking system to reward the efforts of hard working Americans. In addition to other financial products, it offers a Credit Builder Plus membership that offers a unique approach to credit building.
We like the different approach to credit building through a subscription-style model that makes it more approachable. In this review, we will cover everything you need to know about credit builder loans, how they can help, and what makes MoneyLion stand out from the competition.
MoneyLion: What You Need to Know
MoneyLion was founded in 2013 with the intention of empowering Americans to lead more secure financial lives. The company started with user-friendly bank products and built into other financial spaces, such as credit monitoring and building. Today, we are going to focus on the credit building opportunities provided by MoneyLion.
If you are trapped in the cycle of bad credit, then you know that it is a brutal cycle. Once you are trapped in the cycle, it can be difficult to get out. That’s where MoneyLion comes in. It can help you repair your credit in a painless process over time.
What MoneyLion Has to Offer
MoneyLion offers traditional credit builder loans with a twist. You’ll need a Credit Builder Plus membership in order to take out a credit builder loan.
With this membership, you will also receive access to a few other perks including:
- Zero-fee checking. Say good-bye to any fees associated with your checking account. MoneyLion offers a completely fee free checking account.
- Managed investing. MoneyLion will invest your money for you but with minimal fees. You will not be forced to pay any management fees to grow your nest egg.
- 0% APR Instacash advances. If you have Direct Deposit set up to your MoneyLion account, then you can receive cash advances of up to $250 per pay period. Or up to $50 per pay period if you don’t have direct deposit set up.
- Credit monitoring. As you build your credit, you’ll be able to see a weekly update of your score.
In addition to all of these perks, the Credit Builder Plus allows you to build credit comfortably.
How Does Credit Building with MoneyLion Work?
MoneyLion is offering a different solution to credit building. Instead of simply taking out a credit builder loan and waiting until the end of the loan term to unlock your money, you will receive a portion of your loan upfront. In fact, you can receive up to $500 upfront when you take out a credit builder loan through this membership.
First, you will have to sign up for a Credit Builder Plus membership at a cost of $19.99 per month. After that, you will have access to credit builder loans with 5.99% APR. When you take out the loan, some portion of the loan amount will be deposited directly into your checking account. The remainder of the loan will be deposited into a Credit Reserve Account to build interest until you pay down the loan completely.
Once you take out the credit builder loan, you will make on-time payments to boost your score. The goal is to make all of your payments on time and in full throughout the course of the credit builder loan. If you run into problems making the payments along the way, you can lean on the Instacash options to make it through.
If the Instacash is not enough to make ends meet, MoneyLion offers another option. If there is enough money in your Credit Reserve Account, you can use the money held in that account to pay off the loan in full. At that point, you’ll be able to take out a new Credit Builder Plus loan and receive an upfront cash deposit. Over time, the upfront deposit that you are able to receive will grow based on your continued creditworthiness. You may even qualify to receive up to the full $500 upfront at some point!
This model offers a truly flexible way to build your credit without fears of overextending your resources. If you get into financial trouble, MoneyLion offers an easy way to smoothly continue building credit along the way. You’ll be able to watch your credit build over time as you establish a solid payment history.
Where is MoneyLion Available?
MoneyLion is currently available in all states except Indiana, Iowa, Montana, Nebraska, Nevada, and Vermont.
How to Get Started with MoneyLion
If you are interested in working with MoneyLion, then here’s how to get started.
What are the Eligibility Requirements?
First, you’ll need to ensure that you meet the eligibility requirements. You must have a checking account in good standing that has been open for at least 60 days with a detectable stream of income. You must be at least 18. You must pass an identity check to avoid any fraud.
MoneyLion Application process
If you are interested in building your credit with MoneyLion, here is what you will need to do.
- Go to MoneyLion website or download their app.
- Sign up for a membership.
- Select ‘borrow.”
- Fill out the application.
Once you are approved for your loan, some of the money will be deposited directly into your account. The other portion of the loan will be tucked into a Credit Reserve Account which is not FDIC insured. As you make on time payments, you can watch your score grow.
How to Contact MoneyLion
Address: P.O. Box 1547 Sandy, UT 84091 Customer service: 1-888-704-6970 Website: www.moneylion.com Email support: Head to their Help Center for support. YouTube: www.youtube.com/moneylion Facebook: www.facebook.com/moneylion Twitter: twitter.com/moneylion
Is MoneyLion Right for Me?
MoneyLion is a good option for anyone looking for a flexible way to build credit. You’ll have different ways to make ends meet throughout the process to ensure you are able to keep your credit rebuilding on track. The Instacash and payoff options allow for peace of mind as you undergo the process of rebuilding your credit.
If you have had trouble getting approved for other loans, you shouldn’t have that problem with MoneyLion. That’s because they don’t run a credit check before your approval.
MoneyLion can be a great step towards building credit if you can commit to on-time payments for 12 months.
- No hard credit check to take out the credit builder loan.
- Reports to all three credit bureaus.
- Low interest rate.
- You can receive some of the funds upfront.
- No fee checking account comes with your membership.
- Relatively small loan amounts.
- Monthly membership fee required.
Before you can take out a loan through MoneyLion, you’ll need to sign up for the Credit Builder Plus membership. You’ll pay $19.99 each month to maintain your membership. However, you can earn a Lion’s Share payout each month to offset this cost. If you log in every day and use your MoneyLion Visa Debit Card to make 20 purchases of $10 or more, then you can receive a payout of $19.99. So, you can completely offset this fee by carefully planning your purchases.
In addition to the membership cost, you will need to make a loan payment and an interest payment. This payment should be $47.66 each month for the course of the loan. However, it could vary based on your specific loan terms so make sure to confirm that before signing on the dotted line.
What is the Cost of a MoneyLion Loan?
MoneyLion offers $500 credit builder loans for terms of 1 year. In total, you will make payments of $67.65 per month. That includes the loan payment, interest, and membership fees. Based on that, the total cost of the loan will be $811.8.
However, you will have the opportunity to lower the total cost through the Lion Share program. If you make an effort to receive the full $19.99 per month to offset the membership fee, then the total cost of the loan would be $571.92.
The Bottom Line
A higher credit score can lead to better financing terms for large purchases. If you are considering buying your first home or financing a car within the next few years, then building your credit score is essential.
MoneyLion offers a unique way to build your credit score with flexible terms for a successful outcome. Consider taking steps today with MoneyLion to build a better financial future.
Frequently Asked Questions
What is a credit builder loan?
Most credit builder loans work by holding the amount you borrow in a bank account until you fully repay the loan. MoneyLion offers a different take on the traditional credit builder loan. You will receive a portion of your loan upfront while the rest is stored in a bank account for the duration of your loan.
How long does it take to get a loan from MoneyLion?
MoneyLion can help you get approved for a loan within 24 hours and fund it within 24 hours. Their $500 Plus loan has a "Turbo" feature that allows you to access your funds within 30 minutes.
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