MoneyLion is a popular mobile banking app that offers various financial products. If you need a fast direct deposit in your bank account, you can apply for a Cash advance or personal loan. These two loan options can provide financial relief quickly, but is MoneyLion the best lender for your financial needs? Keep reading to learn everything you need to know about MoneyLion and how it compares to other loan options.
Finding the Right Personal Loan
A personal loan may be one of the best financing options for borrowers that need emergency cash in their checking account. Unlike payday loans, borrowers can pay off the money they borrow through multiple monthly payments. The loan amount a borrower can get with a personal loan depends on the lender, their credit history, and their state regulations. However, many borrowers are able to secure up to several thousand dollars.
Personal loans usually do not have strict spending limits, so borrowers can use their money for all types of emergency expenses. Some of the best reasons to get a personal loan include the following:
- Car repairs or maintenance.
- Debt consolidation of high-interest debt.
- Medical bills resulting from treatment.
- Travel due to a medical emergency.
- Unexpected funeral expenses.
While some borrowers use personal loans for non-emergency reasons, such as to finance a vacation, it may be best not to. Using loans for personal expenses can result in unnecessary interest charges.
To find the right personal loan, you must first determine how much you need and can afford to pay. Personal loans can last for short or long periods; both options have pros and cons. A short repayment length can help you save money on interest fees, although your monthly payments will be higher. In contrast, monthly payments may be lower with an extended repayment length while the total cost will increase. Consider whether you want to pay more now or later. And remember that some financial institutions allow early repayment, so you can save money by paying off the loan before your final due date.
It’s critical to make personal loan comparisons before you settle. When comparing personal loan offers, pay attention to the interest rates, fees, and repayment terms. Remember that the annual percentage rate (APR) differs from the interest rate. Knowing the differences is essential before accepting a loan offer from a lender.
- Annual Percentage Rate: An annual percentage rate (APR) is the total cost of credit. This total includes interest fees and additional finance charges. An origination fee is one example of a potential finance charge.
- Interest Rate: An interest rate is an amount a lender charges for borrowing money. The interest is a percentage of the principal balance.
You know a personal loan offer is unsuitable if it has unreasonable loan terms that may cause financial issues later. If you are able to get a decent rate that helps you make continuous on-time payments, you could improve your credit over time. Suppose the lender you work with reports payments to the major credit bureaus. In that case, you could positively affect your payment history and increase your credit score by avoiding late payments.
Loans like MoneyLion: What You Need To Know
MoneyLion is a mobile banking app that offers different financial products and services. Many people refer to MoneyLion as a cash advance app since cash advances are offered. However, cash advance apps only provide one form of loan, while MoneyLion offers more.
MoneyLion’s mission is to offer Americans an alternative to traditional bank accounts. MoneyLion is a financial technology company that partners with Pathway. Consumers can open RoarMoney accounts (checking accounts) that are FDIC insured. RoarMoney deposit accounts do not have ATM fees, stop payment fees or minimum balance fees. RoarMoney account holders could receive direct deposits up to two days early and cash-back rewards for daily spending.
RoarMoney accounts do not have hidden fees. However, account holders must pay monthly administration fees and other traditional bank fees. Before signing up for a deposit account, ask about the cost of late fees and overdraft fees.
Consumers can also open separate investment accounts and get personalized portfolios. There are no management fees and no minimum requirements. Investors have the power to invest any amount at any time. However, MoneyLion customers that use investment accounts are subject to monthly fees. The cost of the monthly fee depends on the balance held in an investment account.
Remember that no matter how quickly you need money, MoneyLion is not the only cash advance app available. Consider all your options before submitting a loan application for instant cash.
How Do They Work?
MoneyLion is a financial technology company that offers multiple loan options for consumers that want an alternative to traditional banks. Here are some of their loans listed below.
Credit Builder Plus
MoneyLion offers Credit Builder Plus, which is a credit-building program. Credit builder loans can help consumers build a higher credit score while repaying a loan. A high credit score can significantly improve someone’s life. Achieving a perfect credit score is possible and can help you get higher loan amounts, more housing options, and lower rates on insurance plans and loans.
Borrowers can receive a portion of their loan funds upfront with MoneyLion because there are no waiting periods. You can use your loan money to cover emergency expenses such as rent or car repairs. Credit Builder Plus allows customers to monitor their credit scores and monthly progress. Credit-building insights and tips are sent via email periodically to help borrowers stay on track.
While this financing option seems perfect for low-credit borrowers, it’s vital to know about the fees you will have to pay. Credit Builder Plus loans require a $19.99 monthly membership. This additional expense is included in the total monthly loan payment cost.
Instacash
Eligible borrowers can apply for cash advances up to $500 with MoneyLion—called Instacash. However, the actual amount you can borrow depends on the total of your recurring deposits. The minimum loan amount for Instacash is $25. Account holders that switch direct deposits to RoarMoney can borrow up to $1,000.
One of the main perks of Instacash is that there are no interest fees, monthly fees, or credit checks. While this deal seems too good to be true, it is legitimate because the money comes directly from your linked checking or savings account.
The money you borrow through Instacash is deducted from your bank account on the due date, which depends on your recurring deposit cycle. Suppose you borrow $300 through Instacash to cover the cost of a new pair of glasses. In that case, your next paycheck will be $300 short. Borrowing from yourself can help you save on interest charges, but consider whether you can afford a decreased paycheck.
Personal Loans
MoneyLion is an indirect lender, which means it cannot offer loans directly to customers. Instead, MoneyLion offers a free matchmaking service to connect eligible borrowers with personal loan offers from providers.
If an applicant qualifies to borrow money through a personal loan, they can see the potential offers and make comparisons. Suppose you find a loan offer that you want to take advantage of. In that case, you will work directly with the financial institution that made the offer. MoneyLion will not be involved during the repayment process of the loan.
How Will the Application Process Work?
The online application process to get a personal loan with the help of MoneyLion is unique. Typically, consumers that want to borrow money apply directly with a lender and get an approval decision. But MoneyLion is not a direct lender and does not offer loans.
MoneyLion offers a service that matches eligible borrowers with personal loan providers. This service does not cost any money and does not affect credit scores. Qualified borrowers can borrow between $100 to $50,000.
There are three steps you must follow to potentially get matched with personal loan offers:
1) Complete the Application Form —The first step is to fill out an application form with basic personal information, such as your name, email address, and phone number. You will need to decide how much money you want to borrow and specify the intended purpose of the loan. It would be best if you gave an approximate credit score estimate. Knowing your current credit score for an accurate loan offer is essential. If you accidentally guess you have a higher credit score, your potential personal loan offers will not be valid.
2) Get Lender Matches — Loan offers are based on the information you provide on the application form. If you pre-qualify to get a personal loan with a lender, then you can view potential offers that match your financial needs.
3) Pick a Personal Loan Offer — During this final step, you can view the different interest rates, fees, and repayment plans for personal loan offers. Suppose you see an offer that you like. In that case, you can submit an official application to the direct lender website.
What Can I Expect if I Get One?
If you accept a loan offer through apps like MoneyLion, you will work with a third-party lender. MoneyLion does not offer loans but instead gets compensation for advertising-specific lenders. Your repayment terms will depend on the offer you accept and the direct lender you work with. The time it will take to complete the approval process and get your money is unknown.
Keep in mind that your personal loan offer may change once you officially submit a loan application. Personal loan offers on the MoneyLion website are estimates based on the information you provided initially. But once the financial institution runs a credit check, they may alter loan terms to lower the lending risk.
You can sign the loan agreement if you approve of your final interest rate and repayment terms. You can expect to get your money through an electronic deposit into a checking account. The lender will expect monthly payments, but the payment methods available depend on the financial institution you work with.
CreditNinja: How Does It Compare?
MoneyLion is a popular financing option for consumers that need to borrow money quickly. However, MoneyLion is not a direct lender. Working with a direct lender may help you get better loan terms and fewer fees. Consider working with CreditNinja if you need money in your bank account for bills or unexpected expenses.
CreditNinja is a superior online lender that offers competitive and convenient personal installment loans. CreditNinja has been providing convenient personal loans since 2018. Interested borrowers can apply for fast funding through a streamlined application form. The entire process is online and can be done on a smartphone, tablet, or computer. The quality of customer service is hard to beat, and help is available from start to finish.
How Does CreditNinja Stand Out?
Borrowers have multiple options available to them when they want to take out an online loan. However, CreditNinja stands out by offering unique benefits. Keep reading to learn the advantages of borrowing money with a CreditNinja loan.
Online Experience
CreditNinja offers an entirely online experience for customers. You do not have to travel or wait in line at a brick-and-mortar store to apply for a fast personal loan. Online loans follow the same approval process as traditional loans, but borrowers can get their money quicker.
Instead of handing your documents in person to a lender, you can submit photos for verification. All you have to do is upload the images to your secure online account. The sooner you upload your paperwork, the sooner you can get your money. Once your information gets verified, and you are approved, the funds can be deposited to your bank account.
Quick and Easy Application
The application process is simple and easy when you work with CreditNinja. Individuals that submit a loan application could get a same-day approval decision. You do not have to wait days or weeks to know if you qualify for emergency relief.
The application process only takes a few minutes and requires basic personal information. To see if you qualify for a personal loan, you must provide your name, mobile number, email address, Social Security number (SSN), and more. You will need to specify how much money you want to borrow. It’s important to avoid borrowing more than you need. Borrowing thousands of dollars when you only need a few hundred can result in unnecessary financial stress.
Decent Interest Rates
Despite bad credit, you may be able to get competitive interest rates when you apply for a personal loan with CreditNinja. Most lenders base interest rates on your credit score, so low-credit borrowers may find it challenging to get a loan.
But our requirements are flexible and interest rates stay competitive for borrowers with different financial backgrounds. When a borrower secures a competitive interest rate, they can keep more money in their pocket for other bills and expenses.
Credit Score Requirement Flexibility
At CreditNinja, we consider more than just a three-digit number when making a qualifying decision. We look at alternative factors such as repayment ability, financial history, etc. Your credit score can go up and down, but you may still be a reliable borrower.
Many financial institutions have a minimum credit score requirement. Strict requirements limit who can get the money during a financial emergency. But CreditNinja works with people from different income brackets and credit score ranges. Despite a bad credit score, you may still be eligible to get a personal loan.
Fast Funding
Qualified borrowers can get same day money when they work with CreditNinja.* You can use the money right when you need it to pay for rent, house repairs, car maintenance, etc. Other loan options, such as home equity loans, may take longer than a month to grant approval. But personal loans provide a lump sum to start spending super quickly.
Applicants must have an active bank account because the money is sent directly to a checking account. You will need to provide your bank name, routing number, and account number. If you do not have a bank account, know it takes little to no time to open a checking account. You can apply online and start making deposits with most banks or credit unions on the same day.
Flexible Repayment Terms
CreditNinja offers very flexible repayment terms. The repayment length can last months or years, depending on the amount you borrow. A short repayment length could help you reduce the total cost of borrowing money. In contrast, an extended length can help you get more affordable monthly payments. Consider your existing budget and what you can afford to pay each month.
Borrowers are able to repay their personal loans early. Unlike other lenders, CreditNinja does not charge prepayment penalty fees. You can pay off your personal loan early to save money on interest fees without worrying about paying a costly penalty fee.
How Will the Loan Process Work?
The application process is streamlined when you apply with CreditNinja. There are three steps to complete the approval process:
- Apply Online — Complete the online application form with basic personal information. You will need to include your name, Social Security number (SSN), bank account details, contact information, and more.
- Find Out if You Qualify — You will receive an approval decision after submitting the required information. Applicants that qualify for a personal loan will receive a personalized loan amount, interest rate, and repayment length.
- Get Your Money — You will receive a loan agreement with repayment details. Sign your name after reading the contract to verify you understand your financial obligation. You can expect to receive your money shortly after signing!*
CreditNinja is one of the top online lenders due to quality customer service and convenient repayment terms. Interested borrowers can apply online at any time to see if they qualify with no obligations.
*Applications approved before 10:30 a.m. CT Monday-Friday are generally funded the same business day. Applications approved after this time are generally funded the next business day. Some applications may require additional verification, in which case the loan, if approved, will be funded the business day after such additional verification is completed.
References:
RoarMoney Fees│MoneyLion
Credit Builder Plus│MoneyLion
InstaCash│MoneyLion