In a Nutshell
Moneytree offers personal loans in small amounts with no prepayment penalties. But its loans are only available in four states, and they can come with interest rates well into the triple digits.Pros
- No prepayment penalty
- Small loans available
Cons
- May have to apply in person at a branch
- Very high interest rates
- Personal loans (installment loans) only available in four states
What you need to know about a Moneytree loan
Moneytree is a direct lender that offers installment personal loans in four states. The company says it aims to “provide real options to help solve life’s problems.” Moneytree also offers payday loans, title loans and business loans and sells prepaid debit cards.
Personal loan amounts vary based on your state. Here are some other things to keep in mind before you apply for a Moneytree loan.
You may have to apply in person at a branch
You can’t apply online for Moneytree personal loans, which it refers to as installment loans, in all five states it serves — only in Idaho, Nevada and Colorado. If you live in Washington, you’ll have to apply at a branch. And in California Moneytree doesn’t offer installment loans — it only offers payday loans.
Small loan amounts available
If you don’t want to borrow thousands or even hundreds of dollars, Moneytree offers small personal loans. In Nevada, for example, you can apply to borrow between $50 and $5,000.
You can choose to receive your loan funds deposited on to a prepaid debit card or as cash at a branch.
Very high interest rates
Moneytree loans come with APRs in the triple digits. (Exact rate ranges vary based on where you live.) These rates are high compared to some other online lenders.
It’s always a good idea to shop around to see if you can qualify for a lower rate elsewhere. For reference, the National Consumer Law Center has long advocated for a 36% APR cap on lending — the limit for what many consumer advocates believe is financially healthy.
A closer look at a Moneytree personal loan
If you’re thinking about applying for a loan from Moneytree, here’s what else you should know.
- Credit check — Moneytree says it will check your credit reports when it evaluates your application. A hard credit inquiry may have a small negative effect on your credit scores.
- Eligibility requirements — Moneytree says you’ll typically need to show that you have a source of income and an open checking account when you apply.
- Fees — Depending on where you live, you may be on the hook for a fee such as an acquisition fee or origination fee. That can add to your total amount owed.
- Repayment schedule — You won’t necessarily have monthly payments. Moneytree says you’ll follow a repayment schedule based on your payday, so if you’re paid biweekly or semi-monthly, you’ll have to follow that schedule.
- Online or phone repayments — You can repay your loan in full online, over the phone or in person at a local branch.
Should I get a Moneytree loan?
Since the interest rates on Moneytree personal loans are very high, you should explore other options before you apply for one. If you have a medical bill you need to cover, find out if the doctor’s office can work with you to set up a payment plan you can afford. If you have a car repair to pay for, you may be able to save money by putting it on an existing credit card with a lower interest rate.
You may also want to consider a payday alternative loan, which certain federal credit unions offer to members. Several apps — including Earnin and Dave — also target people who need to borrow small amounts of money and offer more-affordable financing terms than Moneytree.
Think of a Moneytree loan as a last resort. It only makes sense if you’ve exhausted all other options to fund an emergency expense.
How to apply with Moneytree
If you live in Colorado, Idaho or Nevada, you can apply online for a Moneytree personal loan online.
Make sure you have the following info on hand:
- ID
- Address and contact number
- Proof of income
- Checking account information
Before you agree to a Moneytree loan, make sure you review any fees and are confident you can pay it back. If you can’t, look elsewhere.
Not sure if a Moneytree loan is right for you? Consider these alternatives.
- OneMain Financial: If you’d like to apply to prequalify for a loan and check your potential rate, a OneMain Financial personal loan may be a better option. Its highest rates are much lower than Moneytree’s.
- Prosper: A Prosper personal loan also comes with lower rates than Moneytree’s. It may be a good choice if you want to borrow more money since it offers loan amounts up to $50,000.