top of page
  • Writer's pictureDonnelle Brooks

Everything You Need to Know About MoneyMe

In the ever-expanding world of fintech, MoneyMe has gained attention as a prominent player offering a range of financial products and services. However, despite its popularity, it is essential to take a critical look at MoneyMe to understand both its advantages and potential drawbacks. In this in-depth review, we will explore the pros and cons of MoneyMe, shedding light on its strengths and weaknesses in the competitive financial services landscape.


Overview


What is MoneyMe?

MoneyMe is an Australian-based financial technology (FinTech) company that offers a variety of innovative lending and credit products to consumers. MoneyMe's primary focus is on providing fast and accessible financial solutions through its online platform. The company aims to simplify the borrowing process and make credit more accessible to customers by utilizing advanced technology and digital capabilities. One of the key offerings is the MoneyMe Freestyle Credit Card, which is a unique offering that allows customers to access a line of credit for purchases both online and in-store. It functions like a credit card but operates through a digital wallet, making it easy to use for day-to-day expenses.


The Advantages of MoneyMe

How does MoneyMe stack up against other loan providers


Quick and Easy Application Process

One of the significant advantages touted by MoneyMe is its streamlined and convenient application process. Users can apply for personal loans and credit accounts online, eliminating the need for extensive paperwork and in-person visits to a physical branch. The digital application process promises a faster response, with many applicants receiving instant approval and funds disbursed within hours, which can be beneficial for urgent financial needs. Beware though, fast application usually means you will pay more for your loan with higher fees and interest rates.



Flexible Credit Options

MoneyMe's Freestyle virtual credit account offers users flexibility in borrowing. With a revolving line of credit, customers can borrow funds up to their approved credit limit and repay as needed. This flexibility allows users to access funds when required, providing a financial safety net for emergencies or planned expenses.


Transparent Fee Structure

MoneyMe's commitment to transparency is evident in its fee structure, with no hidden costs or surprise charges. Customers can make informed decisions about their financial commitments, knowing the precise costs associated with their loans or credit accounts. This isn't a huge brag though, as lenders are required to be transparent about their fees by law.


MoneyMe Perks Rewards Program

The MoneyMe Perks rewards program provides customers with the opportunity to earn cashback on purchases. They say up to 40% cashback, but some are as low as 2.1% back - which isn't really much but could add up if you are using their platform a lot. This is how loyalty programs work though, they want to incentivise you to use their platform a lot. The question is, do you really want to use fast credit a lot? I don't want you to!


The Downside of MoneyMe

As with any service that promises fast cash, you pay for it in other ways. Let's go over a few not-so-nices.


Higher Interest Rates

One of the most significant criticisms of MoneyMe is the relatively higher interest rates on its personal loans and credit accounts compared to traditional financial institutions. While the convenience and quick access to funds may be appealing, the higher interest rates can lead to higher overall costs for borrowers, potentially making it less suitable for those seeking the most affordable financing options.


Limited Credit Limit Increases

MoneyMe's Freestyle virtual credit account does offer flexibility, but some users have reported limitations in credit limit increases. The platform's algorithm determines credit limits, and while some customers may be eligible for higher limits over time, others may find it challenging to obtain significant increases, despite a strong repayment history.



Potential Impact on Credit Scores

Applying for credit with MoneyMe, or any financial institution for that matter, involves a credit check, which can affect the applicant's credit score. Multiple credit inquiries within a short period can negatively impact credit ratings, which might be a concern for individuals trying to build or maintain a strong credit history.


Limited Customer Support Options

Despite offering a digital platform, some users have reported challenges in accessing adequate customer support. While MoneyMe does provide email, phone, and live chat support, response times and issue resolutions might vary, leaving some customers dissatisfied.


MoneyMe Data Privacy and Security Concerns

As with any online financial service provider, data privacy and security are crucial considerations. MoneyMe's digital platform collects and stores sensitive personal and financial information, raising concerns about the safety of user data. While MoneyMe claims to employ robust security measures, it is essential for users to exercise caution and stay informed about the platform's data protection protocols. We have seen enough data leaks recently to be cautious about these kinds of things. Lenders also retain the right to sell your info to collectors should be become "bad debt".


Potential Impact on Debt Accumulation

The ease and speed of borrowing through MoneyMe could inadvertently encourage some users to accumulate more debt than they can comfortably manage. The revolving line of credit and quick loan approvals might lead to impulsive borrowing decisions, ultimately putting individuals at risk of falling into a cycle of debt.


Limited Educational Resources

While MoneyMe offers a user-friendly platform, it lacks comprehensive educational resources to empower users with financial knowledge and responsible borrowing practices. Providing financial literacy resources could benefit customers by helping them make informed financial decisions and avoid potential pitfalls. Fast credit is so enticing, and that's how they make their money! Delay that gratification if you want a better future.



MoneyME fees

MoneyMe Annual fee

This depends on your credit limit. Amounts are listed below.

Up to $3,000 - $0 $3,001 to $5,000 - $49 $5,001 to $20,000 - $149


MoneyMe Monthly fee

Is calculated on your owing balance Balance under $20 - $0 Balance over $20 - $5


So, if you have a limit of $20000 and you have a balance monthly, you will pay $209 just in card fees! That's not to mention any interest you accrue


Other Fees

Cash advance fee 1.5%


MoneyMe Interest rate

MoneyMe interest rate varies from 18.74% p.a. to 23.74% p.a. (based on your credit score)


MoneyMe Credit Limit

MoneyMe offer a credit limit up to $20000


Do MoneyMe do a credit check?

Yes, they are required to do a credit check before lending you money. Having a poor credit score may just mean you pay a higher interest rate, or are approved for a smaller line of credit. They also have an online credit checker in their app, which is pretty cheeky. They say it is to benefit customers, but they get to have your information for nothing! Most companies have to pay for access to your credit file when lending to you.


Can I get cash out with MoneyMe?

Yes, but you will pay a flat rate of 1.5%, as well as the standard 18.74 - 23.74% interest


The Bottom Line

MoneyMe is just an expensive ass credit card made to look like a new product. It has high fees, high interest and doesn't really do much that a lower rate credit card can do. Just get a credit card!


The advantages of its streamlined application process, flexible credit options, transparency, and rewards program have attracted a considerable user base. However, its higher interest rates, limited credit limit increases, potential impact on credit scores, and data privacy concerns warrant critical consideration.


As with any financial service, it is essential for users to carefully assess their financial needs and compare different options before making borrowing decisions. Being aware of the potential drawbacks of any financial platform, including MoneyMe, can empower users to make informed choices and achieve better financial outcomes in the long run.

Recent Posts

See All

Comments


bottom of page