MoneyLion Instacash Review 2022

When unplanned expenses arise, access to instant cash can seem ideal, but it often comes at a price. As a result, many are turning to taking out a cash advance, which means borrowing money against a credit card’s line of credit.

While this is convenient, it’s a costly step given the high interest rate you’ll have to pay on top of the cash advance fee, which is typically 3% or 5% of the total amount of any cash advance you request.

Fintech company and mobile app MoneyLion® offers a way to circumvent this Instacash℠ Feature that allows users to quickly get cash with cash advances up to $250 at a time with no interest obligations.

Below, Select breaks down how Instacash advances work, as well as the types of fees you can expect.

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This is how Instacash advances work

Instacash Access is via the MoneyLion apartment Users should see an “Instacash” button when they open the app’s home screen, which they can click and “request” the amount of cash they want, as well as how quickly they want the money sent to them.

Note that you must link a checking account to qualify for interest-free cash advances. The key is that one’s checking account must also be technically “qualified,” which essentially means have any type of income or recurring deposits. It must also have been open for at least two months, with a history of consistent income deposits and a positive account balance, and be active.

First, users can get a cash advance of at least $25 — if MoneyLion can spot recurring deposits on the linked checking account, they can be as low as $50 and as high as $250. Those who choose to link MoneyLion checking account RoarMoney℠ or choose to become a MoneyLion Credit Builder Plus Member can receive up to $300.

However, claiming the maximum Instacash amount can take three to eight weeks. A user’s Instacash advance will never exceed 50% of their expected recurring direct deposit amount per deposit period. Users can access higher cash advances when their direct deposit amounts are higher and more consistent.

There is no credit deduction or credit check when applying for an Instacash advance, so your credit will not be affected.

Repayment of an Instacash advance

To repay the Instacash advance, the money you borrow will be automatically debited (without interest) from your RoarMoney or external checking account on the due date determined by your recurring direct deposit cycle, which is typically in about two weeks.

If there isn’t enough cash in your checking account to cover your debt, Instacash will only deduct a partial repayment and try again when you have a balance or when the next direct deposit comes. Users can also pay back their cash advance manually in the MoneyLion app.

Once you have paid off your last cash advance, you can receive another one as long as you still meet the eligibility requirements.

fees

Aside from the fact that there is no interest, there is also no monthly fee required to access Instacash advances – although you could end up paying a fee if you need your money super fast.

Regular Standard Delivery takes 12 to 48 hours for cash advances to appear in a MoneyLion RoarMoney account and three to five business days to appear in an external checking account. Otherwise, to get your money almost instantly via MoneyLion’s “Turbo Delivery” there is a fee of between $0.99 and $7.99, depending on the withdrawal amount and whether the money goes into a RoarMoney checking account or an external checking account .

Alternatives to cash advance

While cash advances can be a useful way to access money quickly, you may need more than the $250 MoneyLion is offering. If you need a larger amount of money, consider a personal loan, some of which can be funded as early as the next day. You can also repay the loan over a longer period of time.

Select the rank best personal loan providers and Luminous flux and Avant Personal Loans are among the best next day financing offering loan amounts up to $100,000.

LightStream Personal Loan

  • Annual Percentage Rate (APR)

    4.99% to 19.99%* when you sign up for Autopay

  • loan purpose

    Debt Consolidation, Home Improvement, Auto Financing, Medical Expense, Wedding and others

  • loan amounts

  • conditions

  • credit needed

  • incorporation fee

  • Penalty for Early Payout

  • late fee

Avant Personal Loans

  • Annual Percentage Rate (APR)

  • loan purpose

    Debt consolidation, big expenses, emergency expenses, home improvement

  • loan amounts

  • conditions

  • credit needed

  • incorporation fee

  • Penalty for Early Payout

  • late fee

    Up to $25 per late payment after the 10-day grace period

However, keep in mind that you will have to pay interest when you take out a personal loan, and some may even charge processing fees and late payment fees. Keep this in mind when considering how much money to borrow.

bottom line

MoneyLions Instacash This feature offers a fairly quick way to secure funds for unexpected expenses without worrying about interest. However, the product will only best serve those who have recurring cash deposits because it qualifies you to do so — and because cash advance repayments are typically made within two weeks of borrowing. It’s a good option if you’re in a bind but expect cash to come in soon.

If you need cash quickly but have a longer term, you should alternatively think about a personal loan. While you pay interest on a personal loan, you can borrow more money than with Instacash and you have a longer timeframe to pay it back.

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Editorial note: Any opinion, analysis, review, or recommendation expressed in this article is solely that of Select’s editors and has not been reviewed, approved, or otherwise endorsed by any third party.

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