MoneyLion is a direct online lender that offers loans ranging from $1,000 to $35,000. As well as loans, MoneyLion provides a suite of financial products, such as credit reporting and money management tools. The company was founded in 2013 by Chee Mun Foong, Adam Green, Diwakar Choubey, and Pratyush Tiwari.
MoneyLion is based in New York City, but it also has offices in San Francisco and Kuala Lumpur. Since it was launched, it has originated more than 150,000 loans. It has also served over 1 million customers and tracked more than 500,000 bank accounts through its credit reporting and money management app.
What Are MoneyLion's Interest Rates and Fees?
MoneyLion offers two loan products: MoneyLion Loans and LionLoans. Interest rates for MoneyLion Loans start at 7% and are capped at 30% APR. These rates include an origination fee of 2% to 6%. Take into account origination fee when deciding on a loan amount. Origination fees are deducted from the loan amount your request. For instance, if you’re approved for a $10,000 loan, and you have a 5% origination fee, you will receive $9,500 in your account.
If you don’t qualify for MoneyLion’s prime loans, you may be directed to LionLoans, which have interest rates of up to 200% APR. Make sure you know which product you are being offered and its terms before accepting a loan offer.
MoneyLion charges borrowers who are late on their payments a $25 late fee. However, there are no prepayment fees, so paying early will always save you money in interest.
What is MoneyLion's Application Process Like?
MoneyLion allows you to check your rate and see if you qualify for a loan without impacting your credit score. The application form asks for personal information to confirm your identity and check your credit report. You will need to provide your full name, address, email, and Social Security Number, employment status, and bank account information.
What is MoneyLion's Eligibility Criteria?
To qualify for a MoneyLion loan (the loan with 7% to 30% APR), you need a credit score of at least 640 and an annual income of at least $36,000. You must also be a U.S. citizen or permanent resident. However, borrowers who don’t meet these requirements may qualify for a LionLoans loan.
How is MoneyLion Different from a Traditional Lender?
MoneyLion is not just an online lender. The goal of MoneyLion is to provide customers with data-driven financial advice on a wide selection of products. For instance, it has partnered with TransUnion, Betterment, and Wealthfront to offer credit monitoring and access to wealth management services.
Its loans are available for borrowers with poor to excellent credit. However, the rates offered to borrowers vary from 7% to 200% APR depending on your creditworthiness.
Borrowers get free access to a money management app and their TransUnion credit score. The goal is to help members develop good financial habits and obtain valuable information on their financial situation.