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In this review, we’ll take an in-depth look at MoneyKey’s personal loan offerings. 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.

Loan Details

MoneyKey offers personal loans ranging from $200 to $2,500. These loans are unsecured, meaning you don’t need to provide collateral to qualify. This can be appealing for borrowers who don’t own a home or have other valuable assets to secure a loan.

However, the interest rates on MoneyKey’s loans are extremely high. Their APRs (Annual Percentage Rates) range from 295% to 401.20%. If you are borrowing only $200 for a month, a 400% APR may only cost you only $65. But, if you are borrowing $1,000 over the course of two years, a 295% APR would cost you nearly $5,000 in interest. With high APRs, term length is crucial to the total cost of borrowing.

It’s important to note that the specific APR you’re offered will depend on the state you live in. MoneyKey is only available in certain states, and each state has its own regulations and rate structures. This means that not everyone will qualify for the same rates, and some borrowers may face even higher costs than others.

Fees and Charges

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 you receive. MoneyKey also doesn’t charge 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.

Qualification and Application Process

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 terms offered to each borrower.

Relationship with Capital Community Bank

On their website, MoneyKey mentions that their loans are offered in partnership with Capital Community Bank, a Utah chartered bank. This kind of partnership between a non-bank lender and a bank is common in online lending.

However, MoneyKey provides no further details about this relationship or how it impacts the terms and servicing of the loans. This lack of transparency is concerning, as borrowers have a right to understand who they are actually borrowing from and what laws and regulations apply to their loan.

Is a MoneyKey Personal Loan Right for You?

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 7 or 8 months. Otherwise the interest rate makes paying off the loan extremely challenging.

Before deciding on a MoneyKey loan, it’s crucial to explore other options. Even with bad credit, you may qualify for lower-cost loans from credit unions, family, or friends. If you do decide to take out a personal loan, be sure to shop around and compare offers from multiple lenders.

At The Yukon 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 is 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 for how you will repay the loan on time. Consider the total cost of the loan, not just the monthly payment, and don’t borrow more than you absolutely need.

Final Thoughts

MoneyKey’s personal loans may provide 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 signing 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 your options and develop a plan to improve your financial health.

Picture of Jonathan Walker

Jonathan Walker