MoneyLion Credit Builder Loan Review
NMLS#1136
Read more about how we rated MoneyLion.MoneyLion offers credit builder loans specifically designed to help you boost your credit score. You can borrow $500 to $1,000 with the Credit Builder Plus loan, but you’ll pay a monthly membership fee of $19.99.
- No credit checks: MoneyLion offers no-credit-check loans, so if you have bad credit or no credit history at all, you can still qualify.
- Expensive fees: If you take into account MoneyLion’s monthly fee, the total cost of borrowing is very high. This is especially true for borrowers who only qualify for MoneyLion’s highest rates. Loans that come with high fees and short repayment periods are often considered to be examples of predatory lending.
- Credit monitoring services: A MoneyLion membership comes with credit monitoring services. You’ll get updates on your credit score as well as information on any credit events that impact it.
- Helps build credit: MoneyLion reports your payments to all three credit bureaus. This will be recorded on your credit reports and can help improve your credit score.
- Slow funding: After you sign your loan paperwork, it can take up to three business days to receive your loan funds.
- MoneyLion Instacash: MoneyLion also offers interest-free cash advances of up to $500 with MoneyLion Instacash. You can get your advance on the same day by paying a fee, or you can skip fees altogether by waiting up to five business days to receive your funds.
- Best for borrowers with no credit: MoneyLion Credit Builder Plus loans specifically cater to consumers who want to build credit. If you’re new to the world of credit, this may be a good way to beef up your credit profile, especially since MoneyLion reports to all three credit bureaus.
MoneyLion Credit Builder pros and cons
MoneyLion’s Credit Builder Plus loans come with benefits and drawbacks that you should consider before signing on the dotted line.
| Pros | Cons |
|---|---|
No credit check Reports to all three credit bureaus Offers credit monitoring services | $19.99 monthly membership fee on top of interest payments Not available in all states |
MoneyLion’s no-credit-check policy may sound enticing, especially if you have a thin credit history or credit that could use some work. To help improve your credit score, MoneyLion reports your payments to all three major credit bureaus and offers credit monitoring services that allow you to track your progress.
Unfortunately, MoneyLion’s Credit Builder Plus loan comes with more costs than just annual percentage rates (APRs) — the interest and fees you’ll pay on your loan. Customers will also have to pay a $19.99 monthly membership fee.
Let’s say you borrow $1,000 from MoneyLion for 12 months at 29.99% APR: You’ll end up repaying $1,169.79. However, if you include 12 months of membership fees, it comes out to $1,409.67, which equates to about 68.7% APR. (In contrast, APRs under 36% are what financial experts generally consider to be affordable.)
MoneyLion’s Credit Builder Plus loans are not available in Colorado, Indiana, Iowa, Maryland, Montana, Nebraska, Nevada and Vermont.
MoneyLion requirements
To get a MoneyLion loan, you’ll need to become a member and meet the following requirements.
| Minimum credit score | None |
| Membership requirements |
|
If MoneyLion’s loan options won’t work for your borrowing needs, be sure to shop around for a lender that helps you meet your financial goals and can offer you the best-fitting rates, terms and amounts.
How to get a MoneyLion Credit Builder Plus loan
Since MoneyLion is not a traditional personal loan lender, the application process works a bit differently.
Become a member
Before you can access MoneyLion’s Credit Builder Plus loan, you’ll need to apply to become a member. To begin the process, link your checking account to your MoneyLion account. Next, MoneyLion will scan it for the following:
- Recurring deposits made to your account
- The account’s opening date (must be at least 60 days old)
- An active history of transactions
Request a loan
If you’re approved for membership, you can request a Credit Builder Plus loan. During this part of the process, you may have to supply documentation to verify your income and employment. Since MoneyLion doesn’t perform hard credit pulls, there won’t be any impact to your credit score for applying.
Accept your loan
If you decide to follow through with a MoneyLion Credit Builder loan, you’ll need to sign a loan agreement. Be sure to read the fine print of the contract before signing and understand the fees you’ll be charged. After you’ve signed, it can take up to three business days to receive loan funds.
If MoneyLion declines your loan application, it may be time to improve your chances of getting approved for a personal loan. You can do this by checking your credit reports for errors that may be bringing your score down, paying down your current debts and making sure you’re making on-time payments.
How MoneyLion compares to personal loan companies
Even if you believe MoneyLion’s Credit Builder Plus loans align with what you’re looking for, it’s important to shop around and compare other lenders. Here’s how MoneyLion stacks up against competitors.
| MoneyLion | Upgrade | Upstart | |
|---|---|---|---|
| LendingTree’s rating | 3.6/5 | 4.6/5 | 4.5/5 |
| Minimum credit score | None | 580 | 300 |
| APRs | 5.99%-29.99% | 9.99%-35.99% (with discounts) | 7.40%-35.99% |
| Loan amounts | $500-$1,000 | $1,000-$50,000 | $1,000-$50,000 |
| Repayment terms | 12 months | 24 to 84 months | 36 or 60 months |
| Origination fee | No origination fees | 1.85% - 9.99% | 0.00% - 12.00% |
| Funding timeline | Receive funds in three business days | Receive funds in one business day | Receive funds as soon as the next business day |
| Bottom line | While MoneyLion doesn’t charge an origination fee, it does charge a $19.99 monthly membership fee. This lender also has much smaller loan amounts and shorter repayment terms than what traditional lenders offer. | Upgrade offers far larger and more flexible loan amounts and repayment terms than MoneyLion. Customers can access funds within one business day — however, they will also have to factor in an origination fee. | A consumer at just about any stage of their credit journey may qualify for an Upstart personal loan. But while Upstart does offer larger and quicker loans than MoneyLion, it may charge a steep origination fee. |
How we rated MoneyLion
To come up with our star rating for personal loan companies, LendingTree considered 22 data points across three categories:
- Accessibility: We paid attention to whether lenders offered loans to nontraditional borrowers, as well as those without excellent credit scores. We also checked if lenders offered soft credit pulls, and whether they were transparent about eligibility criteria other than credit scores.
- Rates and terms: We wanted to know if lender rates, terms, amounts and fees were not only transparent, but also competitive.
- Repayment experience: We based this category on lenders’ reputations, customer support availability and unique benefits.
The data points reflect every step of the process to shop and apply for, borrow and repay personal loans. A five-star lender, for instance, has flexible eligibility requirements, offers you the chance to prequalify without commitment and supports you in zeroing your balance.
The 22 data points, culled from the lenders themselves, determine the overall rating. We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around.
LendingTree isn’t paid for conducting these reviews, and lenders don’t have control over their content. With our reviews and ratings, we aim to give our users the objective and exhaustive information they need to make the best possible decisions.
Frequently asked questions
MoneyLion offers credit builder loans, which are a type of installment loan.
MoneyLion differs from traditional personal loan lenders because it requires borrowers to pay a monthly membership fee in order to borrow money. While MoneyLion offers a low starting APR, monthly fees may make the cost of borrowing too expensive.
While MoneyLion doesn’t run credit checks on applicants, you’ll still need to meet certain criteria to be approved for a loan. For instance, if you have a negative balance or your bank account is less than 60 days old, you probably won’t qualify for a loan.
It can take up to three business days for MoneyLion to fund a Credit Builder Plus loan. However, with a MoneyLion membership account, you can access a 0% APR cash advance of up to $500, though there is a fee to receive funds instantly.