MoneyLion claims to improve your financial health with the free MoneyLion App. You get a better way to borrow, save, and invest with Moneylion Plus. There have been mixed reviews on this program and taking a closer look it seems the negative reviews come from people who just don’t understand MoneyLion Plus. My hope is to help my readers understand what MoneyLion is and how valuable it is to get the free app.
MoneyLion is a direct lender based in New York, NY. Founded in 2013, MoneyLion offers access to personal loans in 45 states (and Washington, DC). MoneyLion offers personal loans with fixed APRs starting at 5.99% and up to 200% with loan amounts starting at $500 and up to $35,000. MoneyLion offers personal loans with terms ranging from 1 to 36 months. Having the option of longer terms allows borrowers to take on larger loan amounts while keeping monthly payments more affordable. However, the longer the term of your loan, the more interest you will pay.
Applicants with a credit score of at least 560 can apply for a loan via MoneyLion. The minimum age to apply for a loan is 18 or the state minimum, whichever is higher. To qualify for a MoneyLion loan, applicants need a minimum annual income of $36,000 or higher. Active duty service members and their covered dependents are eligible to apply for a loan via MoneyLion. Their rates fall within the limits of The Military Lending Act. Only U.S. citizens and permanent residents can apply for a loan.
To qualify, applicants may need to provide the following documentation:
- Driver’s license
- Applicants must have an active and valid checking account
- Proof of citizenship or residence permit
- Recent pay stubs
- Proof of income
MoneyLion will typically approve (or deny) a loan application within 24 hours and fund personal loans within 3 business days of approval.
How does the MoneyLion Plus membership work?
Here is where you must pay close attention to take advantage on the value of becoming a MoneyLion Plus member. Their are mixed reviews on this membership and all the negative reviews are from people who want to make money fast and get out. MoneyLion Plus members get a huge benefit when they think of it as a long term investment. I will show you what I mean in just a moment, but first I want to explain why the majority of the people with negative reviews believe being a MoneyLion Plus member is a scam or ripoff.
Do not judge a book by it’s cover. There are what seems to be like pros and cons. Here is a list of features that might be misunderstood in being a cons, however if you seek understanding, you will discover how valuable this service is for you. In order to be eligible to apply for a loan, one must become a MoneyLion Plus member. The “Good News” and “Bad News”. The “Bad News” is that the membership cost is $80 per month. The price is split up evenly when you get paid from your job. If you get paid every two weeks, then $40 will be deducted from your income. The “Good News” is that your membership is free. What? You thought I said $80 right?
Here is the brilliant kicker!
You must understand and believe that MoneyLion wants you to have good financial health. That is why they exist. That is their mission. That is their passion. MoneyLion wants you to save money! They force you to save by taking $50 out of your $80 membership fee and deposit it into your MoneyLion Plus Investment Account. The $30 left over you earn back by logging into your app daily and each day you login you earn $1 that automatically gets deposited into your MoneyLion Plus Investment Account. This is a long term program and the more money you save, the more interest you will make. In addition to building compound interest, MoneyLion awards its Plus Members with gift cards to your favorite shoping places and restaurants.
MoneyLion for me works very well for my needs. I’m really happy to have it. I understand the long term value of this financial product and if you have any questions or comments both negative and possitive, I would love to read them and respond to them below.