Last Updated on January 20, 2025 by Amrita Das
If you’re thinking about using MoneyLion for your financial needs, one of the most common questions that may come to mind is, “Is MoneyLion legit?” With numerous positive customer reviews and industry recognition for its security measures, it’s clear that MoneyLion goes above and beyond to earn the trust of its users.
In this guide, we’ll look closer at what makes MoneyLion a trustworthy and reliable platform for managing your finances. Here, you’ll discover all you need to know to confidently answer the question, “Is MoneyLion legit?” So, let’s dive in and explore the world of MoneyLion.
Introduction to MoneyLion
MoneyLion is a financial technology company that provides a wide range of services to its customers, including lending, financial advisory, and investment opportunities.
Since its founding in 2013, MoneyLion has built a strong customer base of over 17 million middle-class Americans who have used their services for more than 23 million products.
With a mission to “rewire the financial system” and empower individuals to make informed financial decisions, MoneyLion has become a popular choice among consumers looking for convenient and innovative ways to manage their money.
One of the key aspects that sets MoneyLion apart from traditional finance companies is its use of advanced technology such as analytics and machine learning.
This allows them to provide personalized advice and services to their customers based on their unique spending patterns. This not only helps individuals make better financial decisions but also creates a more seamless and efficient experience for users.
In addition to its financial advisory and investment services, MoneyLion also offers customers access to small loans. These loans are specifically designed for individuals who may have fluctuating income and expenses, helping them better manage their finances without the worry of large interest rates or hidden fees.
Furthermore, through their reward program, MoneyLion incentivizes responsible financial behavior by providing points for activities like connecting a bank account or maintaining a low credit utilization rate.
MoneyLion’s success can also be attributed to its team of tech specialists and financiers who share a common goal of revolutionizing the financial industry.
Based in New York City, the company has been able to attract top talent and build a cutting-edge platform that caters to the evolving needs of its customers. With a focus on accessibility, convenience, and transparency, MoneyLion is making waves in an industry that has traditionally been dominated by large financial institutions.
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Requirement to Use MoneyLion
New users must meet certain requirements to fully take advantage of all the features that MoneyLion has to offer. One of the primary requirements for using MoneyLion is having a bank account.
By linking your bank account to the MoneyLion app, you can easily make direct deposits and transfer funds, making it seamless to use their financial services.
While having a good credit score is not mandatory for using all of MoneyLion’s services, it can greatly benefit you as a user. For instance, if you have a healthy credit score, you are more likely to get approved for loans and may even receive higher borrowing limits.
This can be particularly beneficial when using Instacash, a service allowing you to access cash advances without fees or interest.
In addition to having a bank account and a good credit score, setting up direct deposit to your MoneyLion RoarMoney account or linked bank account can also be advantageous.
This not only shows that you have a stable income, but it also demonstrates your financial stability. These factors can play a crucial role in determining your loan eligibility and the amount you can borrow from MoneyLion.
How to Setup your MoneyLion account?
To begin the process of setting up your MoneyLion account, you will first need to download the MoneyLion app from either the Apple App Store or Google Play Store.
Depending on your mobile device, you can easily find and download the app within a matter of seconds. Once downloaded, simply open the app to begin creating your account.
The first step in creating your MoneyLion account is to provide an email address and create a secure password. This will be used as your login information for future access to your account. Make sure to choose a strong and unique password that will keep your personal information safe.
Next, you will be prompted to provide some basic personal information. This includes your name, date of birth, and Social Security number.
It is important to accurately enter this information, as it will be used to verify your identity. Rest assured that MoneyLion takes the protection of your personal information extremely seriously.
Once you have completed these steps, your account will be created and you can begin using the MoneyLion app.
Is MoneyLion Legit?
MoneyLion is a legitimate financial platform that offers a range of services to help users manage their money and improve their financial health. With the rise of online financial platforms, it’s natural for people to question the legitimacy and safety of these services.
However, MoneyLion has taken multiple measures to ensure the security and protection of its users’ personal and financial information.
One way in which MoneyLion showcases its trustworthiness is by complying with regulatory guidelines set by institutions such as the Consumer Financial Protection Bureau (CFPB). This ensures that the company follows fair business practices and protects consumers from any fraudulent or deceptive activities.
Additionally, MoneyLion uses strong security measures, including standard encryption techniques, to safeguard user data from unauthorized access.
Moreover, MoneyLion has received recognition and positive reviews from its customers for its easy-to-use platform, transparent fee structure, and helpful financial tools. This further adds to the legitimacy of the company and instills trust in potential users.
It is also worth noting that MoneyLion is powered by Pathward, N.A., a member of the FDIC (Federal Deposit Insurance Corporation). This means that all deposits made through the platform are insured by the U.S. government up to a certain amount, providing an additional layer of protection for users’ funds.
How to Reach MoneyLion’s Customer Support Team
MoneyLion understands the importance of being able to communicate with their customers easily. That’s why they offer a variety of ways for customers to get in touch with their support team. Here are some ways you can reach out for assistance:
- Chat: One convenient way to contact MoneyLion is through their mobile app’s chat feature. This allows for quick and direct communication with a customer support representative.
- Email: If you prefer email, you can also send your inquiries or concerns to MoneyLion’s customer support team. They strive to respond promptly and efficiently to all emails.
- Phone: For urgent matters or if you prefer a more personal approach, MoneyLion’s support team is available 24/7 at 844-224-0087.
MoneyLion values their customers and wants to ensure that they have multiple options for communication. Don’t hesitate to reach out for any assistance or questions you may have, their dedicated team is always ready to assist you.
MoneyLion’s Core Services
MoneyLion offers a variety of core services that are tailored to help its users with their financial needs. One of the most popular services is Instacash, which provides qualified users with up to $500 with no credit inquiry.
This service can be extremely beneficial for individuals who encounter unexpected expenses or need extra funds between paychecks. With Instacash, MoneyLion aims to provide a convenient and hassle-free borrowing experience for its users.
Moreover, MoneyLion also offers a credit builder loan, specifically designed to help individuals build or improve their credit history. Through this service, users can borrow a small amount and make regular payments, which are then reported to credit bureaus.
This not only helps in creating a positive credit history but also allows individuals to establish responsible financial habits.
In addition to these services, MoneyLion also provides the RoarMoney account, a checking account with various benefits. This account offers early paycheck deposits, cashback rewards facilities, and no overdraft fees, making it an attractive option for managing one’s finances.
Moreover, the RoarMoney account works seamlessly with other MoneyLion services, providing users with a comprehensive and convenient financial management solution.
Overall, MoneyLion’s core services are designed to cater to the varying needs of its users and provide them with tools and resources for better financial stability.
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MoneyLion Platforms Competitors
MoneyLion is not the only fintech platform in the market catering to consumers. In fact, there has been a significant rise in digital finance companies in recent years, all competing for a share of the market. Some of MoneyLion’s major competitors include LearnVest, Betterment, and Intuit.
LearnVest is a financial planning company that offers personalized advice and tools to help individuals manage their money. Its services range from budgeting assistance to investment recommendations, which directly compete with MoneyLion’s offerings.
Betterment is another popular fintech platform that provides automated investment services. Similar to MoneyLion’s focus on making investing accessible and affordable for everyone, Betterment also aims to simplify the investment process for its users.
Intuit, on the other hand, is a well-established player in the financial industry with its popular products like QuickBooks and TurboTax.
With the emergence of fintech startups disrupting traditional banking, Intuit has also entered the game by acquiring Mint, a personal finance management tool that competes directly with MoneyLion’s core service.
While these newer fintech companies are gaining traction in the market, older players in the financial industry are not sitting idle either. In 2020, Cash App, a digital payment platform began offering short-term loans of up to $200 to its users.
The following year, Cash App’s parent company (Block Inc.) acquired Afterpay, which specializes in “buy now pay later” financing options, allowing shoppers to pay for their purchases in installments.
With competition heating up in the fintech industry, it is evident that MoneyLion will need to innovate and evolve to stay ahead of its competitors constantly.
As new players enter the market and established companies make moves to disrupt traditional banking, MoneyLion must continue offering unique and valuable services to stand out from the crowd.
Criticism of MoneyLion Platform
Despite its rapid growth, MoneyLion has not been without criticism. As of 2024, the platform holds a 4.3-star rating on Trustpilot. While many users have had positive experiences with the platform’s financial services and tools, there are also negative reviews that highlight various issues.
One recurring complaint is the handling of promotions. Some users have reported difficulties in redeeming promotional offers or receiving promised rewards. Others have criticized the customer service for being unresponsive or unhelpful when addressing such issues.
Another common problem mentioned in negative reviews is slower-than-promised fund transfers. This can be frustrating for users who rely on timely access to their funds for various financial needs.
Despite these criticisms, MoneyLion has maintained its rapid growth and popularity among users. The company needs to address these complaints and continuously work towards improving its services to retain customer trust and satisfaction.
MoneyLion Benefits
No hidden fees
With MoneyLion, you won’t have to worry about any surprise monthly charges or late payment fees when using its Instacash feature.
Flexible payments
If you find yourself in a financial bind and can’t make your Instacash payment by the due date, MoneyLion offers the option to defer it for up to two weeks.
Boost your limit
The app’s peer boost feature allows users to send and receive boosts from friends and family who are also using the app. Each boost increases their Instacash limit by $5, with a maximum of five boosts per calendar month.
MoneyLion Drawbacks
Turbo Fees
One of the main drawbacks of using MoneyLion is its high express funding fees, also known as Turbo fees. This feature allows users to access their funds within minutes instead of days, which can be convenient for those in urgent need of cash.
However, these fees can be quite steep, at $8.99 for each $90 to $100 withdrawal. This means that if you withdraw the maximum amount of $500, you could end up paying this fee multiple times, making it an expensive option.
Delayed Instacash Limit Increases
Another issue with MoneyLion’s Instacash feature is that the limit increases for this service can take a while to process. When you first create an Instacash account, you are given access to a reduced amount until the app decides your recurring deposit frequency and amounts.
This means that if you need more than the initial limit, you may have to wait longer than expected before being able to access it. For those in urgent need of cash, this delay can be frustrating and inconvenient.
Requirement of Membership for Higher Advance Limits
MoneyLion offers its users standard cash advances limit of $500, which may not be sufficient for everyone. If you need access to a higher limit, you will have to sign up for either a RoarMoney account or a Credit Builder Plus membership.
Although this is not mandatory, it can be seen as an inconvenience for those who only want to use the Instacash feature.
How to Use MoneyLion Effectively?
Linking Your Bank Account for Secure Transactions
One of the first and most important steps to using MoneyLion effectively is linking your bank account. This allows you to access features such as direct deposit, InstaCash, and credit builder loans.
The process of linking your account is simple and secure. In the “Accounts” section of the app, select “Add Account” and choose your bank from the list. Then, enter your online banking details which will be encrypted and not stored on MoneyLion’s servers for added privacy.
Understanding and Utilizing MoneyLion’s Features
After linking your bank account, it’s crucial to understand how each of MoneyLion’s features works in order to fully take advantage of them. InstaCash is a valuable tool for quickly obtaining cash advances up to your approved limit, helping bridge any financial gaps or unexpected expenses.
The credit builder loan is also beneficial for those looking to improve their credit score by building a positive credit history through responsible use and timely payments. Additionally, the app offers educational resources to further improve financial knowledge.
Making Smart Financial Decisions with MoneyLion’s Tools
Aside from its main features, MoneyLion provides users with various tools to help manage their financial health. These include credit monitoring tools that allow you to track your credit score and find ways to boost it, ultimately leading to better loan terms and interest rates.
The app also offers budgeting and financial planning tools to assist in creating a realistic budget, tracking spending, and setting achievable financial goals.
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FAQs: Is MoneyLion Legit?
Can I trust MoneyLion to securely link my bank account?
MoneyLion takes the security of your personal information very seriously. They use advanced encryption methods, similar to those used by banks, to protect your data. In addition, they have strict protocols in place to ensure the safety of your bank account and personal details.
How soon can I receive money from MoneyLion?
Upon qualifying for an Instacash advance, you can access the funds by navigating to the “Finances” section of your MoneyLion app. From there, click on “Instacash” and choose between receiving the funds within minutes for a fee or opting for standard delivery in 1-5 business without charge.
Who is eligible for MoneyLion’s credit builder loan program?
MoneyLion’s credit builder loan program is open to anyone who meets the age, identity, and financial requirements. While not everyone may qualify, there is a good chance of approval for those who meet these criteria.
What are the benefits of using Instant Cash Advance Apps?
Instant cash advance apps provide a convenient solution for individuals who need to borrow money quickly and easily. These apps allow users to get access to funds until their next payday, which can be used to cover expenses and bills without any delays or missed deadlines.
One major advantage of using these apps is that they offer fast cash with manageable interest rates, making it accessible for those with lower credit scores or financial constraints.
What Are Some Alternatives to Moneylion’s Instant Cash Advance App?
Here are a few alternatives to consider:
- Brigit
- Dave
- Earnin
- Chime
- Empower Finance
- Possible Finance
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Is MoneyLion Legit? Conclusion
So, Is MoneyLion Legit? There is ample evidence to support the legitimacy of MoneyLion as a reputable financial services provider.
Its strict adherence to regulatory guidelines, strong security measures, positive customer reviews, and backing from the FDIC all contribute to making it a trustworthy platform for managing personal finances.
However, as with any financial service, it is always advisable to do thorough research and due diligence before using the platform to ensure it meets your needs and preferences.
So if you’re considering using MoneyLion or comparing it with other cash advance apps, be sure to conduct your research and make an informed decision about its legitimacy and safety for yourself.
