MoneyLion vs Earnin: Evaluating the Leading Cash Advance Apps

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MoneyLion and Earnin have become popular options in the world of cash advance apps, providing users with convenient access to their earned pay before payday. When comparing MoneyLion and Earnin, it’s essential to consider factors such as fees, referral programs, and security measures. MoneyLion charges a monthly membership fee and additional fees for certain transactions, while Earnin operates on a donation and tipping basis. Both apps offer referral programs, providing opportunities for users to earn rewards by inviting others to join. In terms of security, both MoneyLion and Earnin employ industry-standard measures to safeguard user information.

By examining the similarities and differences between MoneyLion and Earnin, you can make the best decision based on your financial needs and preferences. Whether you value a broader range of financial services or prefer a specialized cash advance experience, both apps aim to provide solutions for your short-term financial needs. Let’s explore both apps below!

Overview of MoneyLion

MoneyLion is a prominent financial services company that offers a wide range of features and tools to help individuals effectively manage their finances. With a focus on mobile banking, cash advances, credit builder loans, automated investing, and personal finance tracking, MoneyLion aims to provide a comprehensive solution for users’ financial needs.

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What is MoneyLion

Features

One of the key features of MoneyLion is its cash advance offering. Users can access cash advances of up to $250 with 0% interest. By linking their checking accounts, users can verify their income and repay the loan when they receive their paycheck. This feature provides a convenient solution for short-term financial needs without impacting users’ credit scores.

In addition to cash advances, MoneyLion also offers a credit builder loan program. This unique offering allows users to establish a positive credit history by reporting their payments to all three credit bureaus. Unlike traditional credit builder loans, MoneyLion provides users with the option to receive a cash advance for some of their loan funds at 0% APR.

Automated investing is another noteworthy feature offered by MoneyLion. Users can set up recurring deposits and choose their desired risk level to receive a personalized investment portfolio. With no management fees or minimums, MoneyLion makes investing accessible to a broader range of users.

MoneyLion also provides tools for personal finance tracking, such as the Financial Heartbeat score. Users can monitor their savings, spending, and personal budget, while also organizing their insurance needs within the app. This holistic approach to personal finance management helps users stay on top of their financial health.

With a focus on user empowerment and financial well-being, MoneyLion aims to provide a comprehensive suite of services to help individuals achieve their financial goals. Whether it’s accessing cash advances, building credit, investing, or tracking personal finances, MoneyLion strives to make financial management simpler and more accessible for its users.

Overview of Earnin

Earnin is a popular cash advance app that allows users to access their earned pay before their scheduled payday. With a focus on providing convenient and flexible financial solutions, Earnin aims to help individuals bridge the gap between paychecks and manage their cash flow effectively.

What is Earnin

Features

The primary feature of Earnin is its cash advance offering. Users can borrow up to $100 per day or up to $500 per pay period at 0% interest. This allows users to access the money they have already earned but haven’t received yet. Unlike traditional payday loans, Earnin does not charge any fees or interest on these advances, making it an attractive alternative for individuals seeking short-term financial support.

In addition to cash advances, Earnin offers several helpful tools and features. One such feature is “Tip Yourself,” which allows users to create a virtual tip jar for saving money. Users can reward themselves for various accomplishments, big or small, by depositing money into their tip jar. This encourages a savings mindset and helps users build a financial safety net.

Earnin’s “Balance Shield” feature is another notable aspect of the app. It sends notifications to users when their bank account balance is low, helping them avoid overdraft fees. Users can also set up automatic early-payday cash outs to prevent their balance from falling too low. This feature provides peace of mind and helps users manage their finances more effectively.

Another unique offering from Earnin is the “Health Aid” feature. This feature allows users to submit their medical bills to Earnin, which then negotiates with healthcare providers on their behalf to help set up affordable payment plans. This service can be particularly valuable for individuals facing medical debt or struggling to manage their medical expenses.

One of the key advantages of Earnin is its fee structure. The app operates on a donation and tipping system, meaning there are no fees or charges to use the basic features. Users have the option to tip an amount they are comfortable with when they cash out, which goes towards supporting the service and helping other users cover their tips.

Overall, Earnin provides users with a convenient and flexible solution for accessing their earned pay early. With cash advances, savings tools like “Tip Yourself,” balance notifications, and assistance with medical bills, Earnin aims to empower individuals to take control of their financial well-being. By offering these innovative features, Earnin strives to alleviate short-term financial stress and support users in achieving their financial goals.

Pros and Cons of MoneyLion

Pros:

  1. Comprehensive Suite of Services: MoneyLion offers a wide range of financial services, including cash advances, credit builder loans, mobile banking, automated investing, and personal finance tracking. This comprehensive suite of services allows users to manage various aspects of their finances within a single platform.
  2. Cash Advances with 0% Interest: MoneyLion provides cash advances of up to $250 at 0% interest. This feature offers a convenient and affordable solution for users facing short-term financial needs without incurring high-interest charges or impacting their credit scores.
  3. Credit Builder Loan: MoneyLion’s credit builder loan helps users establish a positive credit history by reporting payments to all three credit bureaus. This feature is beneficial for individuals looking to improve their credit scores and gain access to better borrowing opportunities in the future.
  4. Automated Investing: MoneyLion simplifies the investment process by offering automated investing services. Users can set up recurring deposits and receive personalized investment portfolios without incurring management fees or facing high minimum investment requirements.
  5. Personal Finance Tracking: MoneyLion provides tools for personal finance tracking, allowing users to monitor their financial health, track savings, and spending, and manage their personal budgets. This feature enables users to stay on top of their financial goals and make informed financial decisions.
  6. Rewards and Benefits: MoneyLion offers cashback rewards on everyday purchases and exclusive discounts from partner merchants. These rewards and benefits can help users maximize their savings and make their financial journey more rewarding.

Cons:

  1. Monthly Membership Fee: MoneyLion charges a monthly membership fee, which may deter some users who are looking for a completely fee-free financial app. Users should consider the cost of the membership fee when evaluating the overall value of MoneyLion’s services.
  2. Additional Fees for Certain Transactions: While basic features may be included in the membership fee, MoneyLion charges additional fees for certain transactions, such as using out-of-network ATMs or receiving cash advances sooner than the standard timeframe. Users should carefully review these fees to understand the potential costs associated with specific services.

Pros and Cons of Earnin

Pros:

  1. Convenient Cash Advances: Earnin allows users to access their earned pay before payday, providing a convenient solution for short-term financial needs. Users can borrow up to $100 per day or $500 per pay period at 0% interest.
  2. Optional Tips: Earnin operates on a tipping system, allowing users to choose an amount they are comfortable with when they cash out. This flexibility gives users the opportunity to support the app and its community-driven model.
  3. Balance Shield Feature: Earnin’s Balance Shield feature sends notifications to users when their bank account balance is low, helping them avoid overdraft fees. Users can also set up automatic early-payday cash outs to prevent their balance from falling too low.
  4. Health Aid for Medical Bills: Earnin’s Health Aid feature assists users in negotiating and setting up affordable payment plans for medical bills. This can be particularly helpful for individuals facing medical debt or struggling to manage their healthcare expenses.

Cons:

  1. Limitations Based on Employment and Pay Structure: Earnin’s services may have limitations depending on the user’s employment and pay structure. The availability of cash advances and other features may vary based on factors such as employer partnerships and the method of wage verification.
  2. Lower Cash Advance Amounts: Compared to other cash advance apps, Earnin offers relatively lower cash advance amounts. This may not be sufficient for users with significant financial needs or unexpected expenses.
  3. Dependency on User Discipline: Earnin’s model relies on users accurately reporting their working hours and earnings. Users must be disciplined and responsible in accurately documenting their work hours to ensure accurate cash advances.
  4. Limited Range of Services: Unlike MoneyLion, which offers a comprehensive suite of financial services, Earnin primarily focuses on cash advances and a few additional features like Tip Yourself and Balance Shield. Users looking for a more diverse range of financial services may find the options provided by Earnin to be limited.

It’s important to consider these pros and cons when evaluating MoneyLion and Earnin to determine which app aligns best with your specific financial needs, preferences, and priorities.

Pricing and Fee Structure of MoneyLion

MoneyLion utilizes a membership-based pricing model with different tiers of service. Here are the key aspects of MoneyLion’s pricing:

  1. Basic Membership: MoneyLion offers a free basic membership that provides access to essential features such as mobile banking, cash advances, credit tracking, and personal finance tools. This option allows users to enjoy core functionalities without incurring any monthly fees.
  2. Premium Membership (Credit Builder Plus): MoneyLion also offers a premium membership called Credit Builder Plus. This membership comes with a monthly fee of $19.99 and provides additional benefits such as enhanced rewards, credit monitoring, and financial advisory services. Users opting for Credit Builder Plus can access advanced features to further support their financial goals.
  3. Transaction Fees: While the membership covers many of the app’s services, MoneyLion charges fees for certain transactions. For example, using an out-of-network ATM incurs a fee of $2.50. If users need to receive their cash advance funds sooner than the standard timeframe, there is an additional fee ranging from $3.99 to $4.99, depending on whether the transfer is made to a MoneyLion RoarMoney account or an external checking account.

Pricing and Fee Structure of Earnin

Earnin operates on a different fee structure compared to MoneyLion. Here’s an overview of Earnin’s pricing:

  1. No Membership or Monthly Fees: Earnin does not charge any membership or monthly fees to access its basic features. Users can enjoy the core functionalities of the app without incurring any recurring costs.
  2. Optional Tips: Earnin operates on a voluntary tipping system. While there are no required fees, users have the option to tip an amount they are comfortable with when they use certain features like cash advances or Health Aid. These tips contribute to supporting the app’s services and community-driven model.
  3. Pay-What-You-Can Model: Earnin encourages users to contribute to the community by offering a “pay-what-you-can” model. Users can choose to pay forward a tip to help cover another user’s tip or even choose to pay it forward by tipping more than their own transactions.

Referral Programs of MoneyLion and Earnin

MoneyLion Referral Program

MoneyLion offers a referral program that allows users to earn rewards by inviting others to join the app. Here are the key aspects of MoneyLion’s referral program:

  1. Referral Bonuses: When a user refers a friend to MoneyLion and their friend signs up using the MoneyLion referral link or code, both the referrer and the referred friend can earn referral bonuses.

Where to find your MoneyLion referral code

  1. Referral Bonus Amount: The referral bonus amount can vary, but typically, users can earn up to $10 for each successful referral. Additionally, there may be other bonuses available for specific actions, such as a $50 direct deposit bonus or a $10 crypto welcome bonus.
  2. Cash Advance Rewards: MoneyLion also provides the opportunity to earn additional cash advance rewards for successful referrals. Users can earn up to $60 for each referral who opens and funds an account, providing an incentive for both the referrer and the referred friend.

Earnin Referral Program:

Earnin also has a referral program that rewards users for inviting others to join the app. Here are the key aspects of Earnin’s referral program:

  1. Referral Bonuses: When a user refers a friend to Earnin and their friend signs up using the referral link or code, both the referrer and the referred friend have the potential to earn referral bonuses.
  2. Referral Bonus Amount: The referral bonus amount for Earnin can vary, but typically, users can earn a referral bonus when their referred friend cashes out for the first time. The specific bonus amount may depend on the promotions running at the time.
  3. Community Pay It Forward: Earnin emphasizes its community-driven model, and users have the option to pay it forward by covering another user’s tip. This concept extends to the referral program, allowing users to share their referral bonuses with other community members.

Final Thoughts on MoneyLion vs Earnin

In conclusion, both MoneyLion and Earnin offer unique features and benefits that can assist individuals in managing their finances and addressing short-term cash flow needs. MoneyLion stands out with its comprehensive suite of services, including cash advances, credit builder loans, automated investing, and personal finance tracking. On the other hand, Earnin provides a simple and convenient solution for accessing earned pay before payday, along with features like Tip Yourself and Balance Shield.

When choosing between MoneyLion and Earnin, it is crucial to consider your specific financial needs, preferences, and priorities. MoneyLion’s diverse range of services and membership-based pricing may be suitable for those seeking a holistic financial management solution. Earnin, with its no-fee structure, can be a favorable option for individuals primarily interested in cash advances and convenient tools like Balance Shield.

Ultimately, the choice between MoneyLion and Earnin depends on factors such as the desired range of services, fee structures, and personal financial circumstances. Assessing these factors and considering the pros and cons of each app will help you make an informed decision that aligns with your financial goals and requirements. If you’re also curious how MoneyLion compares with other platforms, it’s great to check out MoneyLion vs Chime and MoneyLion vs Dave. 

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