MoneyLion Credit Builder Loan Review

MoneyLion has a credit builder loan specifically designed to help you boost your credit score.

For $19.99 a month, MoneyLion lets you borrow $500 – $1,000. Part or all of the funds may be held in a reserve account, which you unlock once the loan (plus interest) is repaid — typically within 12 months. Your payments are reported to all three major credit bureaus, helping build your credit if you pay on time.

MoneyLion also works as a personal loan search engine. You can use this to compare loan offers from multiple lenders with no impact to your credit score. MoneyLion doesn’t disclose much about the loans you can find on its marketplace, so this review is only about MoneyLion’s Credit Builder Plus loan. 

• Might not work if you need money now: MoneyLion’s Credit Builder Plus is more of a tool to build credit than it is a way to get money. You might get $500 – $1,000 up front, but there’s no guarantee.
• No hard credit checks: MoneyLion uses a soft credit inquiry along with other basic financials to determine your eligibility. This loan is designed to help build credit.
• Offers cash advances: MoneyLion also offers interest-free cash advances, called MoneyLion Instacash, of up to $700 (for Credit Builder Plus members). Instead of interest, MoneyLion charges fees (up to $8.99) if you want your money faster than two to five business days.
• Requires $19.99 monthly membership fee: You have to become a member and pay a monthly fee to access MoneyLion’s credit builder loan. But membership also comes with other perks, like bigger Instacash cash advances.
• Best for people who want to build credit and don’t mind fees: Most other companies’ credit builder loans don’t require a monthly fee on top of interest. But if you want to build credit and gain access to cash advances and other MoneyLion services, the $19.99 membership fee could be worth it.

MoneyLion Credit Builder Plus pros and cons

MoneyLion says that its Credit Builder Plus members can improve their credit scores by 25 points in 60 days. Whether that’s worth it depends on the pros and cons. As is the case with any credit builder loan, there’s no guarantee that it will actually improve your credit score.

MoneyLion’s Credit Builder Plus loan can help you beef up your score, but loan eligibility starts with a steep monthly fee ($19.99). This is on top of your annual percentage rate (APR).

Let’s say you get a $1,000 credit builder loan from MoneyLion. You have a 12-month loan term and a 29.99% rate: You’ll end up repaying $1,169.79.

However, if you include 12 months of membership fees, you actually paid $1,409.67. This equates to about 75% APR. Most financial experts agree that loans with APRs above 36% can be considered predatory.

Banks, credit unions and other financial institutions don’t typically charge monthly fees for credit builder loans. But MoneyLion is a fintech company, not a lender.

Membership does come with perks, like credit monitoring and bigger cash advances. The latter could be risky for someone who is improving their credit or new to borrowing.

MoneyLion Credit Builder Plus is not available in Colorado, Indiana, Iowa, Maryland, Montana, Nebraska, Nevada and Vermont.

MoneyLion regulatory action

The Consumer Protection Financial Bureau (CFPB) is suing MoneyLion.

The CFPB says MoneyLion broke the Military Lending Act (MLA) by overcharging servicemembers on loans. MoneyLion requested the case — originally filed in 2022 — be dismissed, but the CFPB said in early 2025 it won’t drop the suit, which is still pending.

MoneyLion Credit Builder Plus requirements

To get a MoneyLion credit builder loan, you’ll have to become a member and meet the following requirements.

MoneyLion’s Credit Builder Plus loan won’t work if you need a traditional loan, because you aren’t guaranteed your funds up front.

Credit builder loans are specifically designed to help low- and no-credit borrowers build credit, and MoneyLion’s version of a credit builder loan requires a monthly membership.

If you’re looking for a more traditional personal loan, you’ve got plenty of options below.

How to get a MoneyLion Credit Builder Plus loan

MoneyLion’s application process works a little differently since it’s not a traditional personal loan lender.

1. Become a member

You’ll need to create a MoneyLion account before you can access its Credit Builder Plus loan. You can do this online or through MoneyLion’s mobile app. Just follow the prompts.

2. Apply for the loan

Once you’re in your MoneyLion account, click the Credit Builder Plus option. During the application process, you will link your checking account to your MoneyLion account. Next, MoneyLion will scan it for the information below, and run a soft credit check.

• Recurring deposits made to your account
• The account’s opening date (must be at least 60 days old)
• An active history of transactions

If you’re approved, you’ll choose your loan options and start paying membership fees. You’re required to sign up for autopay for your loan payments, but can cancel autopay at any time.

3. Accept your loan and start repayment

Depending on what MoneyLion finds when reviewing your soft credit report and bank account, you might get some money up front. When applicable, you’ll usually get these funds within three business days after you sign your loan agreement.

Otherwise, your loan will be locked in what MoneyLion calls your “Credit Reserve Account.” MoneyLion will unlock this account and give you access to the funds after you’ve made all payments, plus interest and monthly membership fees. It can take MoneyLion 10 to 14 days to send you your reserved funds after you pay off your loan.

How MoneyLion compares to other personal loan companies

Even if you believe MoneyLion aligns with what you’re looking for in a credit builder loan, it never hurts to shop around and compare other lenders. Here’s how MoneyLion stacks up against similar personal loan lenders.