MoneyKey personal loan review

MoneyKey is an online lender that provides short-term installment loans and lines of credit to borrowers who may have difficulty obtaining credit elsewhere. While their products are accessible to those with less than perfect credit, it's crucial to understand the costs and potential risks involved. MoneyKey offers personal loans ranging from $200 to $2,500. These loans are unsecured, meaning that you don't need to put up collateral to qualify. This can be appealing for borrowers who don't own a home or have any other valuable assets with which to secure a loan. However, the interest rates on MoneyKey's loans are extremely high. Their APRs range from 295% to 401%. If you are borrowing only $200 for a month, a 400% APR may only cost you around $65 in interest expense. But if you're borrowing $1,000 over the course of two years, a 295% APR would cost you nearly $5,000 in interest. With high APRs, the length of the term is crucial to understanding the total cost of borrowing. One positive aspect of MoneyKey's loans is that they don't charge an origination fee. Many lenders charge this upfront fee, which is usually a percentage of the loan amount and can eat into the money that you receive. MoneyKey also doesn't charge any late fees, which is unusual for a short-term lender. However, the absence of these fees doesn't make up for the extraordinarily high interest rates. Borrowers should be cautious about the total cost of the loan and their ability to repay it on time or preferably early in order to save on that exorbitant interest expense. MoneyKey markets its loans to borrowers with no credit or low credit scores. While this can provide access to credit for those who might not qualify elsewhere, it also means that MoneyKey is likely to attract borrowers who are already in financial distress. The application process is online and MoneyKey states that decisions are instant and funding can happen as soon as the next business day. However, they provide very little information about their specific underwriting criteria or how they determine the rates and determine what terms to offer each borrower. Considering the extremely high APRs and the limited information provided about their lending criteria, we would advise extreme caution when considering a MoneyKey personal loan. These loans are likely to be very expensive and could potentially trap borrowers in a cycle of debt. We would not advise a MoneyKey loan that lasts more than seven or eight months. Otherwise, the interest rate makes paying off the loan extremely challenging. Before deciding on a MoneyKey loan, it is crucial to explore other options. Even with bad credit, you may qualify for lower cost loans from credit unions, families, or friends, or maybe even a different online lender. If you do choose to decide to take out a personal loan, be sure to shop around and compare offers from multiple lenders. At the UConn Project, we try to make shopping around easy. If you go to our Marketplace page, you can apply to one of our premium lenders. Behind the scenes, we will check your rate with up to 40 other lenders and applying will not hurt your credit score. You will be able to see what offers you can get and pick the one that's right for you. If you do decide to move forward with MoneyKey or a similar high-cost lender, make sure you have a clear plan on how you will repay the loan on time or preferably early. Consider the total cost of the loan, not just the monthly payment, and don't borrow more than you absolutely need. MoneyKey's personal loans may provide a quick access to cash for those with limited options, but the costs are extremely high. As with any financial decision, it's important to fully understand the terms you're agreeing to and to consider all your alternatives before you sign on the dotted line. If you're struggling to make ends meet, consider seeking advice from a non-profit credit counselor who can help you explore other options and develop a plan to improve your financial life. If you found this video useful, please consider liking it and subscribing to our channel. Thanks for watching.