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MoneyLion Review 2024: Fees, Offers & Features
Swen Keller
- URL: https://www.moneylion.com/
- Year Founded: 2013
- Headquarters: New York, USA
- Monthly/Yearly fees: Up to $19.99 monthly
- Account types: Roar Money, Instacash, MoneyLion Investment account, and Credit Builder Plus
- Physical Card: Yes
- Platform App: Mobile, Web
- No. of Cryptocurrencies: Bitcoin, Bitcoin Cash, Litecoin, and Ether
- Fiat Available: USD
- Deposit Methods: Direct deposit, linked bank account transfer, external bank account, mobile check capture, add cash at Green Dot Reload@theRegisterTM locations
MoneyLion Review: Our Opinion
MoneyLion is a multipurpose financial technology service provider that focuses on offering credit builder loans.
The dashboard is a bit clunky with a lot of information being thrown at the user upon entry.
That said, it allows users to earn money on the platform beyond its financial management services, offers cash advances, and also supports cryptocurrency although only 4 coins.
When compared to other similar neobanks, MoneyLion offers a basic service beyond its Credit Builder feature via the Credit Builder Plus account.
What is MoneyLion?
MoneyLion is a credit builder and personal finance technology service app.
It offers a large suite of financial products that enable users to build and manage their finances per their personal goals.
In their own words, MoneyLion isn’t a bank, rather it is a financial technology company.
To offer its banking services on RoarMoney accounts (FDIC-insured deposit accounts), MoneyLion is partnered with Pathward, a federally chartered bank.
An Overview Of MoneyLion
MoneyLion was founded in 2013 and is headquartered in New York, the United States.
It is a financial technology company, not a bank, and offers its RoarMoney demand deposit account and MoneyLion Debit MasterCard via a partnership with Pathward, a traditional bank that holds a membership with the FDIC.
The company generates income via its credit builder loans via the Credit Builder Plus account, monthly subscription to its premium packages, and lead generation from users on its website.
MoneyLion was developed by a team of team specialists and financial investors who created the firm’s machine learning technology and analytics to offer tailored advice to customers based on their spending patterns.
Currently, it is headed by CEO and co-founder Diwakar Choubey, who previously worked on Wall Street where he had managerial positions at firms such as Goldman Sachs, Citadel, and Barclays Capital.
Other executive members and co-founders include Chief Information Officer Pratyush Tiwari and Chief Technology Officer Chee Mun Foong.
Pros
- Third-party partner bank is FDIC-insured
- Offers credit builder services
- Offers cash advances up to $500
- Offers cashback rewards through the Lion's Share Loyalty Program
Cons
- Limited cryptocurrencies available
- Few features available
MoneyLion Review: Unique Features
Credit Builder Plus
Credit Builder Plus is a credit-building membership designed to help members repair or build their credit, establish financial literacy, and track their financial health.
Credit Builder Plus members have access to several benefits including the following:
- Higher Instacash limits
- Access to a RoarMoney account
- Eligibility to apply for the installment loan
- A free credit monitoring tool
- Ability to earn cashback rewards through the Lion’s Share Loyalty Program by using the RoarMoney account and MoneyLion app for purchases
- Paycheck cash advances
- Access to a MoneyLion Investment account
- MoneyLion’s Financial Heartbeat is composed of a Financial tracker and financial literacy materials
- Online merchant discounts and so much more.
The Credit Builder Plus membership costs $19.99 per month. MoneyLion waives the $1/ month administrative fee required for access to MoneyLion Investment accounts or RoarMoney accounts if you are a Credit Builder Plus member.
As already stated, a Credit Builder Plus membership unlocks access to credit builder loans.
Becoming a member is easy. To apply, you must:
- Be a US citizen or a permanent resident of the United States
- Be at least 18 years
- Have a MoneyLion Spending or MoneyLion Checking account
- Have a Social Security number
Once your application is submitted, the MoneyLion team will conduct a soft credit pull
You can still apply for the membership if you do not have a credit history.
Your finances will be scanned through the linked MoneyLion spending or MoneyLion Checking account to see if you qualify.
The linked spending or Checking account must meet, at a minimum, the following criteria
- The linked Spending or Checking account has to be open for at least 60 days
- The account must be in good standing with a delectable income stream
MoneyLion does not accept Savings and Money Market accounts.
To access the service, it’s essential that your identity and ownership of the account can be confirmed. Additionally, your account should show a history of active transactions and maintain a satisfactory balance.
The details for your registered bank account must match the details received from your linked checking account or spending account.
If your application is rejected, you can try again when your account has been open for longer and/or has more consistent deposits and a positive balance.
Credit Builder Loan
The Credit Builder Loan is a loan included in Credit Builder Plus that helps you establish 12 months of payment history with all three major credit bureaus.
Credit Builder loans have an annual percentage rate (APR) ranging from 5.99% APR to 29.99% APR.
MoneyLion Credit Builder loans are made by either exempt or state-licensed subsidiaries of MoneyLion Inc.
MoneyLion conducts a soft credit pull which has no impact on your credit score before giving you the loan.
Credit Builder loans are issued at lenders’ discretion.
A portion of the Credit Builder loan proceeds is to be deposited into a reserve account maintained by MoneyLion Wealth LLC and held by DriveWealth LLC, member SIPC, and FINRA.
The funds in the account are placed into cash sweep vehicles and/or money markets and may generate interest at prevailing market rates.
Until you pay off your Credit Builder loan, and your Credit Builder membership payments are up to date, you will not be able to access the portion of your Credit Builder Loan proceeds held in the credit reserve account.
If you default on your Credit Builder Loan, the lender can liquidate your credit reserve account to partially or fully satisfy your outstanding indebtedness.
You can cancel your Credit Builder Plus membership when you repay your Credit Builder Loan in full.
Since Credit Builder loans are tied to Credit Builder Plus membership, once you cancel your membership you will no longer have access to Credit Builder loans.
Users are advised to keep the membership running even after repaying their Credit Builder Loans as this will retain access to other amazing features like weekly free credit monitoring, shared payouts, etc.
Here is how Credit Builder Loans work and how Credit Builder Loans can help you build credit and savings.
When you apply for a loan (up to $1,000) with no hard credit check.
You receive a portion of your funds upfront. The rest of the Credit Builder loan is saved for you in a Credit Reserve Account.
Credit Builder loans are to be paid off over 12 months.
You can set automatic loan repayments. The repayments will be timed to your pay cycle for easy payments.
Once you repay your loans, your on-time payments are reported to all 3 credit bureaus each month. This helps to boost your credit score.
Once you have repaid the loan and your credit history is built, you can access the funds in your Credit Reserve accounts.
How to Buy Crypto with MoneyLion?
To buy crypto with MoneyLion, open the MoneyLion app.
Next, ensure you have opened a RoarMoney account.
Tap crypto to see your wallet.
Once there, select your preferred digital currency and hit buy.
Enter the amount you want to buy and make sure it isn’t more than your RoarMoney account balance or investment.
Tap Next and then click Confirm.
That’s all!
How is Crypto Stored?
MoneyLion offers an on-platform hot wallet. This means that, unlike regular crypto wallets, you cannot send your cryptocurrency out of MoneyLion. You’ll need to sell it for fiat currency.
Cryptocurrencies Available on MoneyLion
Currently, MoneyLion users can buy, sell, and hold 4 cryptocurrencies- Bitcoin, Bitcoin Cash, Ether, and Litecoin.
MoneyLion Review: Fees
Managed Investment Accounts Fees
- $1 for accounts valued up to $5,000
- $3 for accounts valued over $5,000 and up to $25,000
- $3 for accounts valued over $25,000
- Asset-based portfolio management fee: $0
- Periodic rebalancing fee: $0
- Trading fees: $0
RoarMoney Banking Fees
- ATM withdrawal fee (55,000 in-network ATMs): $0
- ATM withdrawal fee (out of network): $2.50
- Funding via external debit card fee: 2.5%
- Foreign transaction fee: 3%
- International ATM withdrawal: $2.50
- Expedited shipping for replacement physical card fee (2-3 business days): $25
- Bill pay fee (Electronic): $0
- Bill pay fee (Paper Check): $2.50
Instacash Cash Advances Fees
- Monthly administrative fee: $0
- APR: 0%
- Regular funds delivery fee (1 to 2 business days) to your RoarMoneySM account: $0
- Regular funds delivery fee (2 to 5 business days) to your external checking account: $0
Credit Builder Plus
- Monthly membership fee: $19.99
- Loan principal + APR payment: Principal varies: $500 to $1,000 and APR varies: 5.99% to 29.99% APR
- Credit monitoring fee: $0
- RoarMoney administrative fee ($1 per month): $0 (fee is refunded for Credit Builder Plus members)
- Investment account administrative fee ($ 1 per month): $0 (fee is refunded for Credit Builder Plus members)
Security: Is MoneyLion Safe?
MoneyLion is a regulated financial technology company. It is not a bank.
The online banking platform has several security measures in place to protect users’ funds and personal information. MoneyLion Checking account holders are covered by FDIC insurance, up to $250,000.
Users’ accounts are protected with security features such as two-factor authentication and verification.
Information on the MoneyLion website shows that MoneyLion gives priority to the security of users’ personal information and no MoneyLion employee can retrieve or change users’ personal information once it is stored.
Staking Rewards and Cashbacks
MoneyLion does not offer staking rewards on supported cryptocurrency, however, it offers a cash-back rewards program for all users.
To join the program, you just need to tap on the Rewards tab in your MoneyLion app. Next, click the Settings icon in the upper right to connect your credit card and debit card to the platform.
To start earning rewards pay with your connected credit card and debit card at eligible merchants.
The percentage of cashback you receive depends on the merchant you spend on and rewards are sent automatically.
You can also earn cashback at local merchants by checking eligible local offers within the app using the keyword of the product you want to purchase.
You will get cashback rewards for every dollar spent that is redeemable on platforms like Amazon, GameStop, Target, AMC, Olive Garden, Walmart, Bass Pro Shops, etc.
Supported Countries
The MoneyLion platform and its Services are only available to legal residents of the 50 States in the US or the District of Columbia.
MoneyLion Licences
ML Wealth LLC, a subsidiary of MoneyLion responsible for users’ investments is an SEC-registered investment advisor. It is regulated by the Financial Industry Regulatory Authority and the Securities and Exchange Commission.
Opening a MoneyLion Account
To open a MoneyLion account go to https://www.moneylion.com.
Next, tap on the Get Started button at the center of the page.
On the screen that opens, enter your first and last name as well as your email address and password.
Tap on Create Account.
By clicking on Create Account you’ll agree to their Terms of Use and Privacy Policy.
Tap skip to remove the Referral Code screen.
Choose to download the mobile app or Continue by tapping their relevant buttons.
On the next page choose one of the following or tap the Decide Later button: Buy Crypto Now, Get Urgent Cash, Improve Credit, Start Investing, Build Savings, or Discover Personal Loans.
You’ll be redirected to the login page. Enter your email address and password to log in.
That’s it! You’ve created your MoneyLion credit builder loan and investment account.
MoneyLion Debit Mastercard
The MoneyLion debit Mastercard lets you spend directly from your MoneyLion account.
The card can be used anywhere Mastercard is accepted, including outside the United States.
The MoneyLion Debit Mastercard is issued by, Pathward, National Association, Member FDIC.
The Mastercard can be activated on the MoneyLion app or by calling the MoneyLion automated activation line.
MoneyLion offers both a virtual and physical card.
The virtual card can be found in the “Accounts” tab on your MoneyLion app.
You can also order the physical card as long as you have enough funds in your MoneyLion app.
It takes about 7 to 10 business days from the day you order your card until it arrives.
MoneyLion Mobile App
The MoneyLion mobile app gives you access to all of MoneyLion’s features including Credit Builder Plus, RoarMoney, Round-Ups, personal loan offers on the MoneyLion marketplace, Cash Advance, etc.
You can manage the MoneyLion Mastercard from the mobile app.
It also allows you to make direct deposits, track your card spending, and lock your virtual and physical card whenever you wish.
MoneyLion Deposit and Withdrawal Methods
MoneyLion supports the following deposit and methods: Direct deposit, linked checking account transfers, external bank accounts, mobile check capture, and adding cash at Green Dot Reload@theRegisterTM locations.
Withdrawals, on the other hand, are sent to your connected checking account.
MoneyLion Review: Customer Service
MoneyLion offers customer support via phone, email, and Live Chat.
Customers can chat with the customer support team by clicking the conversation button at the top right corner of the mobile app.
Information on the MoneyLion website shows that the support team offers instant response via chat while response to calls is within a few minutes.
Emails are responded to within a day.
MoneyLion Compared with its Main 2 Competitors
MoneyLion’s 2 main competitors include Dave and the PockBox app. Dave allows users to borrow credit builder loans of up to $500 and doesn’t charge interest or run credit checks. However, it requires automatic withdrawals for repayments and charges express fees to get your money fast.
PockBox allows you to borrow a comparatively higher amount than MoneyLion. However, you must have a regular income to qualify, and receiving loan funds isn’t instant but takes 1 business day.
What is a NeoBank?
A Neobank is an online-only bank that does not have physical banking halls like traditional banks. Neobanks typically partner with traditional banks to offer banking services like a debit card.
How to Choose the Right NeoBank for Your Needs?
To choose the right neobank you’ll need to consider the following:
- Transaction fees
- Payment methods available
- Ease of Use
- Deposit insurance
- Supported countries
- Maximum Credit builder loan amount offered
- Cashback rewards offered
- All offers, services and potential restrictions
Conclusion
MoneyLion is primarily a personal finance app and credit builder loan service. It targets low-income spenders in the United States.
That said, it doesn’t offer multi-currency features or a large selection of crypto coins.
If you’re seeking platforms that address some of MoneyLion’s perceived shortcomings and offer a broader range of tools, our N26 breakdown offers a comprehensive alternative, detailing its advantages over other NeoBanks.
FAQ
Most frequent questions and answers
MoneyLion has been in operation since 2013 and offers FDIC-insured banking services.
The credit builder loan takes up to 3 business days after signing loan documents.
Yes, there are several suits against MoneyLion from individuals, companies, and the CFPB (Consumer Financial Protection Bureau).
Yes, MoneyLion is a good place to get a personal loan and cash advances. It is used by over 3.3 million users for its loan services.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
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