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 Plus (online ❘ mobile) 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 MoneyLion Plus
At MoneyLion, we help Plus members build credit by reporting their loan payments to the credit bureaus. This strategy has helped many members succeed, with nearly 70% of members increasing their credit score by an average of 30 points.* We also offer free credit monitoring tools for ALL within the MoneyLion app. Get a front row seat to watch your credit climb, and earn points while it does.
MoneyLion Plus helps you save and invest
Not only does MoneyLion Plus help members build credit, it also offers members anytime access to 5.99% APR loans and $1/day cashback. All that extra money saved by improving your credit score and borrowing for less can be easily deposited into a MoneyLion Plus managed 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 (online ❘ mobile).
What MoneyLion Plus 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, and I have $200 in my investment account since December. 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 MoneyLion Plus today and start saving more while borrowing for less.
* Results not guaranteed. Your experience and circumstances may be different. Data was sourced from more than 11,000 MoneyLion Plus members who have signed up for MoneyLion credit monitoring, taken out a MoneyLion Plus loan, and made on-time MoneyLion Plus loan payments.
MoneyLion Plus membership required. View full terms and conditions here.
Not FDIC Insured or Bank Guaranteed | May Lose Value. The managed investment account is subject to risks, including but not limited to the loss of principal. Not bank or FDIC insured. This advertisement should not be construed as a recommendation regarding the suitability of purchasing a particular security or securities in general.