Payday loans have some of the highest interest rates on the market. Some payday loan lenders charge rates as high as 600% APR. Choose MoneyLion in order to break away from staggering payday loan interest rates and opt for low APR Credit Builder Plus loans and 0% APR Instacash advances.
What is a Payday Loan?
What is a payday loan, anyway? The conventional description is simple, though it might not be that easy to understand with just one quick glance. A payday loan takes your current income into consideration and disburses an amount of money based on what you could potentially pay back.
Payday loans are often used as a safety net for individuals who could incur more expenses if their bills aren’t paid. Unfortunately, payday loans keep these individuals in a constant cycle of payday loan borrowing — often with no end in sight.
It’s important to consider your options before taking any sort of loan, whether it’s a payday loan or a personal loan.
How Loans Can Affect Your Credit
Payday loans aren’t all the same. Depending on the loan provider you opt for, your loan repayment might not actually be reported to the credit agencies that ultimately affect your credit score.
Offering a smart alternative to payday loans, MoneyLion offers credit builder loans with no starting credit requirement that are proven to boost your credit — More than half our members raised their score by up to 27 points in the first 60 days. If you join Credit Builder Plus or one of MoneyLion’s other memberships, you can also gain access to 0% APR Instacash advances in seconds.
Don’t Use a Payday Loan
Follow these tips to get started with MoneyLion — which offers much safer alternatives to a predatory payday loan.
Tip 1: Create a MoneyLion Account
The MoneyLion app provides more than just a payday loan alternative. The app’s suite of tools offers a complete solution to manage your money effectively.
MoneyLion is a banking, investing, credit tracking, and lending app all built into one single solution, so it’s easy for you to see all of your spending habits and money moves at once. MoneyLion’s goal is to help you succeed and achieve financial wellness.
Tip 2: Explore Instacash Options
Instacash is a cash advance that gives you up to $250 at 0% APR interest. Funds route to your account instantly and can be used right away. Instacash is a great way to cover expenses quickly without paying high interest rates from other providers, particularly if you need a cash float in a timely manner.
Tip 3: Use Instacash When You Need It
If you need extra cash today, you can receive it in minutes. Instacash isn’t just reserved for emergencies. You don’t have to worry about what you borrowed reporting to your credit or even paying fees. Your work payment schedule doesn’t always line up with your life, and now you don’t have to stress about it. Easily get money to your account use it for whatever you need now. Your Instacash use will be covered by your next check deposit.
Tip 4: Use A Credit Builder Loan
If your end goal is to build credit, try using our Credit Builder Loan. With MoneyLion’s Credit Builder Plus membership, you can apply for a small loan even if you have bad or no credit. You can use this type of loan on anything you need. Remember, the main point of this loan is to build credit. Making on-time payments make up 35% of your credit score so plan accordingly!
Tip 5: Plan to Repay on Time
What else can have major consequences on your credit? That’s right — not making payments or being late on your payments. If you choose to use a Credit Builder Loan, making those on-time payments is a must. And 70% of loan takers improve their credit by over 30 points in the first 60 days by paying on time!
Luckily, Instacash will not affect your credit even if you borrow frequently. If you need a little bit of money to get through the week, get it today with 0% APR. Just open an Instacash with Banking membership in the app.
Next Steps
MoneyLion provides Instacash options that can be paid back with 0% interest and can become instantly available in your account. They’re helpful if you need to get ahead during an emergency, have pressing expenses or bills that threaten to go unpaid.
MoneyLion can also provide you with the tools to be successful with money management.
Learn more by getting started for free and sign up for a MoneyLion account today. The smart use of Instacash can really help when you are in a pinch and don’t affect your credit. If you’re looking to raise credit, check out MoneyLion’s Credit Builder Loans. Just make sure you use your credit appropriately and pay your loan back in a timely manner.
