MoneyLion is a lending company which additionally provides unpaid credit checking, and funds controlling systems. It also offers points and a reward scheme exists too.
They offer unsecured personal loans of as low as 1,000 dollars and as high as 35,000 dollars.
While most lenders often consider people whose credit score is high, MoneyLion provides loans to anyone no matter their credit score. It includes:
- MoneyLion loans: People with an excellent credit history are the ones who get this loan at a low interest rate.
- LionLoans: This loan is ideal for people whose credit score is below 580 or wants to control their finances with a starter loan. This loan, however, has a high interest rate.
Anyone interested in any of the above two loans can see the rates and get prequalification within five minutes. This does not affect the credit rating of a person. When a person chooses to apply, he or she will pull a credit inquiry.
Once one’s application is approved, he/she can sign an agreement electronically. Borrowed money will then be sent into the person’s account the following day.
The rate of interest for loans
For all MoneyLion loans, the interest rate begins from 7 percent up to 29.99 percent. The loans whose APR is over 29.99 percent are created by subsidiaries which are authorized by the state.
And like many similar lending companies, a person’s APR is based on the credit score, work, and income. Additional fees do not exist. It is only the above interest and a two to six percent origination fee. Customers can pay off whenever they are ready without getting a penalty.
MoneyLion rewarding scheme
Whenever a person displays his financial responsibility and gets an endorsement on his/her account, he/she will receive a reward. The reward can be a gift card to a distinguished store like Amazon and Starbucks. A person can also get credits when he/she gets endorsements that go up to fifteen percent discount on the APR of their loan.
What financial responsibility means:
It entails 5 elements
- Connecting with MoneyLion: This is the stage where a person verifies his/her identity. It entails connecting to social networks and confirming contact details.
- The habit of borrowing: Paying off the loan within the specified time.
- Money habits: This how people do things: it includes things like linking bank accounts and credit cards, improving one’s savings by five percent, analyzing one’s net worth, avoiding late charges and so on.
- Credit habits: This entails enrolling in a free credit controlling service, improving one’s credit score, ensuring the credit utilization is below ten percent and so forth.
- Assisting MoneyLion community: This entails writing reviews.
People who know you for instance colleagues and relatives may endorse your account. After that, every five endorsements give a person 2.5 percent APR cut that will cap out at fifteen percent.
The endorsement will not, however, have legal ramifications like co-signing for the borrower of the money. It is just that those people are assisting you to enhance your money habits. Note that the above reduction rates are percentages off APR and not discounts of APR. For instance, if a person qualifies for a twenty percent APR and has thirty or additional endorsements for a fifteen percent discount, the APR will become seventeen percent.
Money controlling tools
The Android and iPhone loan apps will assist people in:
- Getting personalized guidelines as per one’s credit score. The spending habits also assist people in managing their credit and saving money.
- Checking transactions on any account.
- Identifying the categories of spending, tracking expenses and staying on the budget.
- Tracking their savings and net worth throughout.
- Getting alerts in case something unusual happened on their accounts or if the balance drops so much.
What the above means is that the apps can help people manage their savings and spending from wherever they are.
And in case one wants a standalone money management app, he or she can consider options such as LearnVest, GuideVine, and others.
TransUnion Credit Monitoring
The credit monitoring service for MoneyLion is available for free via TransUnion. To register, people are only required to give some basic details and confirm their identity.
MoneyLion then sends one’s credit score within seconds and it also sends detailed analysis of crucial factors that concern the credit. Besides all that, customers are able to monitor their credit and can understand how various undertakings affect it, for instance, taking a loan or transferring money to a different card. Additionally, customers will be able to get instant alerts any moment their account is updated.
MoneyLion also has a new feature whereby various financial simulations are run on a customer’s behalf. The feature also offers tips for monitoring credit.
The summary of MoneyLion
To know borrowers’ money requirements and offer good rates, MoneyLion utilizes machine learning based algorithms alongside big data analytics.
But when you research you will find many other lenders trying to implement that algorithm in order to streamline the procedure of applying and approving and giving borrowers the funds quickly.
Many at times, they can pass existing labour fees on the borrowers in form of low interests. Some of such lenders are LenKev and Rocket Mortgage.
MoneyLion focuses on assisting borrowers to have excellent credit and come up with smart decisions concerning their money. The rewarding scheme also assists customers to get low interest rates on upcoming loans. These are actually some of the features that make MoneyLion standout. And these things can make them achieve their objective of forming an experience that is holistic and this can enable borrowers to attain their money goals.
With these and the overall issues regarding available loans and lack of reviews from customers, MoneyLion loan can be the perfect option. But before applying for this loan, ensure you meet all the requirements specified in the lending agreement and be sure you will pay the money off within the specified time.