There is an actual cost to having bad credit
Yup, that’s right. Having bad credit actually costs consumers thousands of dollars in additional interest payments and higher insurance premiums each year. According to CBS News, a 30-year-old person with poor credit is likely to pay a quarter-million dollars more in interest over his or her lifetime compared to a similar person with excellent credit. That’s why we created MoneyLion Credit Builder Plus to help people improve their credit while saving and borrowing for less.
Bad credit costs even more than you think
The amount consumers pay for having bad credit becomes even more significant when considering that paying those high interest rates prevents them from saving or investing those earnings instead. Let’s look at some hypothetical numbers:
Let’s say that by having a great credit score, you pay $200 less in monthly interest payments than your cousin who has the exact same loan amount as you but horrible credit pays. You decide to invest that additional $200 into a managed investment account over the course of 30 years (the normal length of a mortgage loan), and you are able to earn 5% interest on it. At the end of the 30 years, you would have accumulated $167,345.28. That sounds like a great nest egg for retirement. On the other hand, your cousin has $0 dollars invested at the end of the 30 years, because all that money was paid toward high-interest rate lending products. Bummer for your cousin.
Start building credit now with Credit Builder Plus
At MoneyLion, we help members build credit by reporting their loan payments to all three credit bureaus. This strategy has helped many members succeed, with 70% of members increasing their credit score by an average of 30 points in their first 60 days. We also offer credit tracking tools within the MoneyLion app. Get a front row seat to watch your credit climb.
MoneyLion helps you build your credit
Credit Builder Plus help members build credit with anytime access to low APR loans. All that money saved on interest by improving your credit score and borrowing for less can be easily deposited into your MoneyLion investment account. Then you can watch your money grow through the power of compound interest. The sooner you start, the more you’ll earn over time. Learn more about Credit Builder Plus here.
What MoneyLion members are saying
You don’t have to take our word for it. Listen to what members are saying:
One MoneyLion Plus member stated back in March, “My credit score is up 47 points since January. I hope to meet my financial goal of purchasing a house by the end of next year. Thanks, MoneyLion.”*
In February, another member said, “My credit score has gone up 66 points since January with the help of this app.”*
Need help building your credit? Join Credit Builder Plus today and start building your credit while borrowing for less.
MoneyLion Checking Account provided by, and MoneyLion Visa® Debit Card issued by, Lincoln Savings Bank, Member FDIC. Terms and conditions apply.
Investment advisory services provided by ML Wealth, LLC. Investment Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Investment Account, see Investment Account FAQs and FORM ADV. Broker-Dealer may charge a $0.25 withdrawal fee, among other fees. Funded accounts are subject to administrative fee of $1 per quarter.
Current Credit Builder Plus membership required for Credit Builder Plus loan eligibility; the $19.99 monthly fee will be withdrawn from your linked bank account. All loans are made by either exempt or state-licensed subsidiaries of MoneyLion Inc. The Credit Builder Plus loan may, at lender’s discretion, require a portion of the loan proceeds to be deposited into a reserve account managed by ML Wealth, LLC and held by Drivewealth LLC, member SIPC and FINRA. The funds in this account will be placed into a money market cash management or FDIC bank sweep vehicle, and may generate interest at prevailing market rates. You will not be able to access the portion of your loan proceeds held in the credit reserve account until you have paid off your loan, and so long as your Credit Builder Plus membership payments are current. If you default on your loan, your credit reserve account may be liquidated by the lender to partially or fully satisfy your outstanding indebtedness. May not be available in all states.Credit Reserve Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Credit Reserve Account, see Investment Account FAQs and FORM ADV.
A Credit Builder Plus loan may or may not improve your credit score. Credit scores are the result of your personal credit practices.
Cash advance requires current membership in Credit Builder Plus ($19.99 monthly fee) or Instacash with Banking ($9.99 monthly fee) membership programs. Instacash with Banking monthly fee is waived for members who connect and maintain recurring eligible direct deposits into their MoneyLion Checking Accounts. All Credit Builder Plus and Instacash with Banking members are automatically eligible to access either $25 or $50 of cash advance, depending on creditworthiness. Members can increase their cash advance limit to up to $250 by connecting and maintaining recurring eligible direct deposits into their MoneyLion Checking Accounts and after up to three consecutive direct deposits have cleared, or at MoneyLion’s discretion. See Membership Agreement and Cash Advance FAQs for more information.
MoneyLion rewards points are subject to terms and conditions, see here.