Loans Like MoneyLion

Posted on April 18, 2024 by Terryl Payne

MoneyLion is a fintech service designed to help people access interest-free small loans. The company also offers credit-builder options and can connect you with direct loan providers for larger loan amounts. Let’s take a closer look at the service’s products and find out what lenders and apps offer payday and installment loans like MoneyLion.

Types of Short-Term Loans Offered on the Market
What Is MoneyLion?
How Does MoneyLion Work?
How to Get Approved for a MoneyLion Loan
What Is the Process of Getting a Loan from MoneyLion?
Quick Overview of Loans and Loan Apps Like MoneyLion
How Does 15M Finance Compare to MoneyLion?
How Does 15M Finance Differ?
Application Steps for 15M Finance Loans
Bottom Line – Why Do People Search for Loans Similar to MoneyLion?
FAQ

Types of Short-Term Loans Offered on the Market

If you’re looking for short-term assistance, here are a few options to consider:

Loan Types	Overview	Loan Amount	Repayment Terms	APR	Collateral	Credit Checks	Consideration
Payday loans	Payday loans are small, short-term loans for emergencies that come with high APRs	$100 to $1,000, state limitations may be applied	By your next paycheck, usually in 2 to 4 weeks	Often exceeds 400%	No	Most lenders perform a soft credit check only. Bad credit is OK	High APRs and short repayment terms can cause a debt trap. Your credit score may drop, and extra fees may be applied if you pay late
Payday Alternative Loans	Credit union loans with longer repayment terms and lower APRs compared to regular payday loans	$100 to $2,000	2 to 12 months	Up to 28%	No	A hard credit check will be performed	You need to be a CU member to apply. It may also hurt your credit score due to a hard credit check performed
Cash advances via apps	Cash advance apps allow you to get your already earned money upfront, often with no interest applied. Membership fees may be charged	$50 to $500	By your next paycheck, usually in 2 to 4 weeks	Some apps are interest-free, while others may charge APRs of over 400%	No	Most lenders perform a soft credit check only. Bad credit is OK.	Some options may have hefty interest rates. Short repayment terms also make them difficult to handle.
Installment loans	An Installment loan offers longer repayment terms and higher loan amounts. Although it is easier to handle, the overpayment may be significant	$500 to $5,000	2 to 24 months	16% to 100%	No	Most lenders perform a soft credit check only. Bad credit is OK.	APRs are still quite high. You will pay more interest over the loan life due to longer terms. Your late payments may affect your credit score
Car title loans	These short-term loans use your vehicle as collateral. You can get a portion of its cost and still use it while repaying the loan	Up to 50% of your car’s title	Up to 30 days	About 300%	Yes	Most lenders perform a soft credit check only. Bad credit is OK.	You can lose your car if you fail to pay on time.
Pawn shop loans	Pawn shop loans are secured loans that allow you to get cash on hand by pledging some of your valuable asset	25% to 60% of your collateral’s value	30 to 60 days	Around 200%	Yes	None. Bad credit is OK.	A pawnbroker will put your asset up for sale if you don’t repay the loan on time

What Is MoneyLion?

MoneyLion is a well-known fintech company that specializes in short-term loans and credit builder loans. The service performs no hard credit checks via major credit bureaus, making its options available to borrowers with bad and poor credit. One of the best things about MoneyLion is that you can get an up to $500 loan for personal needs without being charged any interest. The repayment term is usually short, with the due date tied to your next paycheck.

The service can also connect you with direct personal loan lenders that offer amounts of up to $50,000. Additionally, it has budgeting and investment tools, banking options, and several perks for its members and RoarMoney account holders.

However, there are also several fees you may have to pay. An express fee may be charged if you want to get your money instantly. Additionally, MoneyLion’s credit-builder loans are not interest-free.

How Does MoneyLion Work?

MoneyLion loans can be obtained via the company’s website or cash advance app. Here’s a closer look at the products you can access via the platform.

Instacash

Instacash is a service that offers small loans of up to $500 without conducting hard credit inquiries or charging any interest. RoarMoney account holders can increase their borrowing limits to $1,000, depending on their income. The repayment is made on a borrower’s next paycheck. The service automatically debits the amount from the linked bank account. Once you have repaid the loan, you’re welcome to borrow money again.

Credit Builder Loans

MoneyLion’s credit-builder loans can help borrowers establish credit by demonstrating responsible financial behavior. The maximum loan amount available is $1,000, and the repayment period stretches to 12 months. Hard credit checks are not performed.

As with any other credit-builder loan, you don’t receive the money on hand. Instead, you make monthly payments upfront and can access the funds only after the repayment term ends. This loan option comes with APRs from 5.99% to 29.99% and a mandatory monthly fee of $19.99.

Personal Loans

Personal loans are not issued directly by MoneyLion. The service plays the role of a third party that shares your application details with a network of partners. Each lender from the company’s database has its own unique terms and requirements. Interest rates typically range from 5.99% to 35.99%, but there are also more expensive options. Loan amounts are usually between $1,000 and $50,000, and the repayment terms can be up to 60 months.

After submitting your application form, you will be able to access various loan offers you can potentially get approved for based on a preliminary soft check. Then, you choose a lender with the best terms offered and complete the final application. This stage may come with a hard credit check.

How to Get Approved for a MoneyLion Loan

MoneyLion sets several basic eligibility requirements a borrower needs to meet to qualify. They include:

Reach the age of 18; Be a US legal citizen; Have a valid ID (you may also be asked to provide a selfie while holding it); Have an active bank account open for at least two months; Have a history of recurring deposits; Have a steady source of verifiable income; Be in good standing with the service.

What Is the Process of Getting a Loan from MoneyLion?

The application process takes place online, so you can complete it from any place 24/7. Here are a few steps to take:

Create a profile. Visit the MoneyLion website or download its app and click the “Sign Up” button.
Add your checking account details. Enter your bank’s login credentials and link your account to the profile. Pay attention to the specific requirements applied for external bank accounts to make sure yours is valid. Additional account and identity verification may also be needed.
Check your loan limit. The limit will be displayed after you add your account details. It will be calculated based on your deposit history.
Request a small loan. Click on the “Get Instacash now” button to get started. Read the company’s terms and conditions and accept them if they suit you.
Receive the money. The funding process typically takes from 2 to 5 business days. Borrowers with RoarMoney accounts usually get the funds in 1 to 3 working days. You can also pay an express fee of up to $8.99 to get a direct deposit instantly.

MoneyLion keeps in touch with its customers and sends reminders so that you don’t miss the due date. As the repayment is made automatically, you only need to ensure there’s enough money in your balance to cover the amount you’ve borrowed.

Quick Overview of Loans and Loan Apps Like MoneyLion

As MoneyLion offers several types of products, it’s worth considering similar options based on a certain loan type. Here’s a look at the best alternatives.

Payday Loans Like MoneyLion

When it comes to payday loans, 15M Finance can be considered a smart alternative to MoneyLion. The company is a connecting service that partners with trusted loan providers throughout the US. Although interest is charged, the amount you can get can be up to $1,000, depending on your state and income. There are no fees for application or membership. The company is also known for its fast funding times. You can get the money in as little as 24 business hours.

You can also consider a payday loan alternative from federal credit unions. These nonprofits are often focused on helping vulnerable members with bad credit. Some of them offer payday alternative loans (PALs), which are featured by lower interest rates (up to 28% APR), longer repayment terms (up to 12 months), and loan amounts from $100 to $2,000.

Credit-Builder Loans Like MoneyLion

Cheese, Chime, CreditStrong, and Self are trusted services that allow borrowers to build or improve their credit. They report your on-time payments to each of the three major credit bureaus and offer more extended repayment terms ranging from 24 to 48 months. While Cheese and Chime don’t charge any administration fee, Self comes with the one of $9. CreditStrong also charges a $15 fee.

Instant Cash Advance Apps Like MoneyLion

When looking for a cash advance app like MoneyLion, Dave is the first option that comes to mind. This tool offers interest-free loans of up to $500. However, the service charges a mandatory $1 monthly subscription fee. Also, you will have to pay between $3 and $25 if you want to receive the money quickly.

There are also payday loan apps offering higher amounts. For example, Avant allows you to get up to $35,000 but charges an APR of 29.24% to 35.99%, along with an origination fee of up to 4.75%. A few other cash advance apps provide access to the amount you already earned but haven’t received yet. EarnIn and Branch are just several examples

Installment Loans Like MoneyLion

MoneyLion doesn’t issue installment loans and can only connect you with a direct lender offering them. One of the best connecting platforms that offers installment loans like MoneyLion is 15M Finance. The service allows you to borrow up to $5,000 without undergoing a hard credit check. By filling out just one loan request form, you will be able to access multiple loan offers from trusted service providers across the US.

How Does 15M Finance Compare to MoneyLion?

MoneyLion can be a smart solution for borrowers who need just a small amount and don’t want to pay any interest or mandatory fee. However, it may not suit those who need a larger sum quickly without paying an express fee.

15M Finance offers a wider range of loan options from direct lenders, allowing customers to borrow up to $5,000. The money can be used as you see fit, from making debit card purchases to covering bill payments. You can also extend your loan for a longer period and reduce the financial burden caused by a lump-sum repayment over a short period. Additionally, the company’s partners usually make direct deposits within one business day without charging any express fee.

How Does 15M Finance Differ?

15M Finance doesn’t issue loans. It’s more similar to a loan marketplace with multiple offers from reliable loan providers. By using it, you can increase your approval chances, as your application data will be available to a wide range of lenders. At the same time, 15M Finance is completely safe. Here’s how the company stands out:

Repayment terms of up to 24 months for installment loan options; Money funding within one business day; Convenient online application – you don’t need to create a profile or link your bank account to it; Quick approval in as little as one hour; Security – encryption technologies and no third parties involved in the process; No minimum credit score requirements.

Application Steps for 15M Finance Loans

15M Finance has a convenient online application process. The steps are as follows:

Fill out an online application form on the website. It’s only a 5-minute matter that requires your basic personal and financial information.
Get an approval decision. One of the lenders from our database will review your data and send you a response via email.
Accept the offer. If approved, read your loan contract thoroughly and e-sign it if the terms are fine.
Access the money in your account. Most direct deposits reach borrowers’ bank accounts as soon as the next business day. However, some lenders may offer same-day funding to applicants approved before 10 AM.

Bottom Line – Why Do People Search for Loans Similar to MoneyLion?

MoneyLion loans are quite convenient due to their accessibility and no mandatory fees for Instacash options. However, they also come with limited loan amounts and have relatively long funding times, provided that you don’t want to pay a fee for an instant deposit. Therefore, borrowers are looking for alternative options that may better meet their needs.

15M Finance can be a great MoneyLion alternative for people who need money faster or want to access a higher loan amount.

FAQ

Is MoneyLion Safe?

MoneyLion is a trusted company for interest-free small loans and credit-builder loans. The service has 4.5 and 4.7 stars across more than 100,000 reviews on Google Play and the Apple Store, respectively. However, some negative reviews mention the company’s slower-than-promised money transfers, problems with the handling of promotions, and poor customer service.

How Much Do MoneyLion Loans Cost?

MoneyLion loans via Instacash are interest free and have no extra mandatory fees. You may only have to pay up to $8.99 for an instant deposit. The company’s credit-builder loans come with APRs between 5.99% to 29.99% and a mandatory monthly membership fee of $19.99.

If I Pay off My MoneyLion Loan, Can I Get Another One?

Sure, you’re welcome! Borrowers in good standing who repaid their previous loan can borrow money again, provided that they still meet the eligibility requirements.

What If I Can’t Repay a MoneyLion Loan on Time?

The company allows you to update the repayment date by up to two weeks by filling out a form on the website or via the app. Keep in mind that it can take up to 2 business days, so you need to send the request in advance. If your balance remains unpaid, you won’t be able to get another cash advance. Missed payments on credit-builder loans will be reported to major credit bureaus, hurting your score.

Do MoneyLion Loans Cause Any Overdraft Fees?

MoneyLion says it does everything possible to avoid causing overdraft fees, even if your bank account balance is not enough to cover your loan on the due date. The service checks your balance before making an automatic withdrawal. Thus, if you don’t have the needed amount in it, the company can make partial debit or withdrawal attempts in the future.

Learning resources:

15M Finance is aimed at educating individuals and helping them manage their hard-earned money more efficiently. Explore a few article that may help you make more informed financial choices:

https://bootcamp.cvn.columbia.edu/blog/what-is-fintech/ – Read a beginner’s guide on fintech services. https://rates.fm/credits/cash-advance-apps-a-guide-to-choosing-the-right-one-for-you/ – Explore how to choose a cash advance app that matches your needs. https://www.experian.com/blogs/ask-experian/what-is-a-credit-builder-loan/ – Learn more about how credit-builder loans work.