Successfully paying off a MoneyLion Credit Builder loan is designed to help you improve your credit score, which could help you secure lower interest rates in the future. We’ll share information about how the Credit Builder loan works.
What Is a MoneyLion Credit Builder Loan?
The MoneyLion Credit Builder loan is designed to help members rebuild their credit history or establish credit for the first time. The maximum loan amount is $1,000, and you will receive some of the funds soon after you are approved for the loan. The remaining funds get stored in a Credit Reserve Account. MoneyLion users must become Credit Builder Plus members to obtain this loan. The membership costs $19.99/month, with opportunities to claim rewards that will allow you to recoup the monthly fee. (1)
Why Apply for a MoneyLion Credit Builder Loan?
- Help increase your credit score: Payment history makes up 35% of your credit score, a crucial number that impacts your ability to get a mortgage or auto loan. If you qualify for those loans, your credit score will still impact your interest rate, so the higher, the better. Making on-time payments may lead to a higher score. Everyone can benefit — even if you have a score of 750.
- Get Financing Without a Hard Credit Check: Some loans come with a hard credit check, which will hurt your credit score. MoneyLion only does a soft pull on your credit — which doesn’t affect your score. (5)
- Competitive APR on the Loan: The APR for a Credit builder loan ranges from 5.99% to 29.99%. When you apply, you will be able to review your loan amount and rate, as well as your loan Agreement, before deciding whether to accept the loan offer.
- 0% APR Cash Advances: As a Credit Builder Plus member, you also may qualify for up to $700 in 0% APR cash advances via Instacash. That’s a better alternative than payday loans and credit card cash advances.
How Credit Builder Loan Programs Work
Credit builder programs can help people build credit over several months. These loans offer small amounts, typically between $500 to $1,000, to be paid off over relatively short terms. Borrowers receive a portion of the loan amount after being approved for the loan. The other portion (which is often the larger amount) is deposited into a Credit Reserve Account where it may earn interest. The borrower gains access to the remaining proceeds sitting in the Credit Reserve account after the entire loan is paid off. Some lenders stash the entire principal in a short-term CD, but MoneyLion gives you a portion of the loan’s amount. Credit builder programs help you take steps to increase your credit score and may help you qualify for credit cards, mortgages, and other opportunities.
Key Features Offered by MoneyLion
Monitor Your Credit
Credit affects so many areas of your life — from loans to insurance to housing — so establishing a good score is essential. You can monitor your credit score and key credit factors like your credit utilization through Credit Builder Plus, and your information is updated weekly. MoneyLion monitors your payment history, credit utilization, credit age, and credit inquiries, the four top credit scoring factors.
Track Your Progress
With a MoneyLion feature called Financial Heartbeat, you can monitor your personal finances. It’s not just for credit building. You can keep your checking accounts and other information in a central hub to improve your overall financial health and achieve new goals.
0% APR Cash Advances
MoneyLion offers 0% APR cash advances through Instacash, and qualified Credit Builder Plus members can get a larger advance. Receive up to $700 to cover emergency expenses or other costs. It’s a good option that beats getting a payday loan, credit card cash advance, or a high APR loan from a financial institution or credit union. If you use MoneyLion but are not a Credit Builder Plus member, you can qualify for up to a $500 interest-free cash advance that will get sent to your checking account within 12-48 hours if you have a RoarMoney account. It can take 3-5 days for the funds to arrive if you use an external checking account. You cannot use a savings account for Instacash, and activity in that account will not increase your Instacash limit.
Lion’s Share Loyalty Program
With the Lion’s Share Loyalty Program, the more you use your membership, the more you can get back. To be eligible, you must be a Credit Builder Plus member and have an active RoarMoney℠ account and MoneyLion Investment Account. The program has four tiers — Bronze, Silver, Gold, and Platinum. Your program tier is determined at the end of each month based on the following:
- How many days you have logged into the MoneyLion app that month
- How many qualified purchases of $10 or more you made that month with your MoneyLion Debit Mastercard® and/or RoarMoney virtual card
The program has four tiers:
- Bronze: Get $2 back
- Silver: Get $5 back
- Gold: Get $10 back
- Platinum: Get $19.99 back
Each tier has two requirements:
- Bronze: 1-4 purchases and 5-9 days of logins
- Silver: 5-9 purchases and 10-14 days of logins
- Gold: 10-19 purchases and 15-19 days of logins
- Platinum: 20+ purchases and 20+ days of logins
You must fulfill both requirements to qualify for the tier. For example, if you log in more than 20 times this month but only make seven purchases, you will qualify for the Silver tier. Lion’s Share Loyalty rewards will be deposited into a MoneyLion Investment Account, which requires additional qualifications. By consistently reaching the Platinum Tier, you can get reimbursed for monthly payments and then transfer funds to your bank account if you need to cover expenses.
MoneyLion Credit Builder Plus FAQs
We’ll answer some common questions about MoneyLion’s Credit Builder Plus membership.
How Do You Qualify for Credit Builder Plus?
MoneyLion has the following prerequisites for loan applicants. Applicants must:
- Be 18 years or older with a social security number
- Be a U.S. citizen or permanent resident
- Have a checking or spending account
- A checking or spending account in good standing (at MoneyLion’s discretion) with a detectable income stream (i.e., it’s where you deposit your paychecks/salary/benefits checks).
- The account has been open for at least 60 days.
- The account demonstrates an acceptable balance and active transaction history (at MoneyLion’s discretion).
MoneyLion will do a soft pull on your credit (5) if you fulfill those requirements. You don’t need a credit history to apply, and if you have bad credit, that’s okay too. The financial services company quickly lets customers know about their application statuses. If you get approved, you will receive funds soon after.
How Much Does Credit Builder Plus Cost?
The Credit Builder Plus Program costs $19.99/month. However, you can earn back the monthly fee with the Lion’s Share Loyalty Program based on how many qualifying purchases and the number of login days you have each month. The MoneyLion loan has an APR ranging from 5.99% to 29.99%, depending on several factors. However, it’s still lower than a credit card cash advance or payday loan, and you can compensate with the increased Instacash limit.
What Is the Lion’s Share Loyalty Program?
The Lion’s Share Loyalty Program offers rewards to members based on their logins and purchases. With the Lion’s Share℠ Loyalty Program, the more you use your membership, the more you can get back. To be eligible, you must be a Credit Builder Plus member and have an active RoarMoney℠ account and a MoneyLion Investment account.
How To Explore MoneyLion Credit Builder Plus
You can download the MoneyLion mobile app on your favorite device and create a MoneyLion account today. Members get access to a suite of financial products and services that can strengthen their personal finances. In addition to being able to apply for a MoneyLion loan to improve your credit, Credit Builder Plus offers many more features:
- Credit monitoring tools in the app to track your credit score and key credit factors. You will also receive credit score updates directly to your email each month.
- No-hassle lending for members in good standing — once you pay off your Credit Builder loan, you can apply for another installment loan of up to $1,000. All you have to do is log on, apply for the loan, and sign your new loan agreement if you are approved, and you’ll typically receive your funds within 3 business days!
- Higher limits for 0% APR Instacash advances.
- Monthly Lion’s Share Loyalty Program payouts of up to $19.99 / month to reimburse the monthly payments.
- Get the MoneyLion debit card which has the Shake’ N’ Bank rewards program and no ATM fees at over 55,000 Allpoint ATMs.
- If you’re a Credit Builder Plus member in good standing, MoneyLion will waive the $1/month administrative fee for access to a RoarMoney account or a MoneyLion Investment Account (or both), as applicable (1)
- Access to PerkSpot — a one-stop shop for personalized online discounts at your favorite brands. Use it to find must-have deals in over 25 categories like restaurants, entertainment, fitness, and more. Plus, you can browse thousands of discounts 24/7 on the device of your choice, enjoy new discounts updated daily, find local deals with an easy-to-navigate map, and request customized discounts if you can’t find the category you want.
