In a Nutshell: With about 40% of Americans unable to cover an emergency expense of $400, many turn to short-term and payday lenders for help. But trusting the wrong lender can be risky and can end up costing borrowers far more than expected. MoneyKey is an online lender that’s committed to transparency and responsible lending practices. The company offers short-term loans, installment loans, lines of credit, and other products, and is currently licensed to conduct business in 15 states. MoneyKey’s highly trained customer service staff strive to explain loan products thoroughly and to answer any questions a borrower may have. The company also provides a range of online resources and articles designed to educate and inform consumers about financial tools and products that may be available to them.
It’s no secret that many Americans are living paycheck to paycheck. But a growing number of us don’t even have the personal savings or resources to cover an emergency expense without taking out a loan or borrowing money from friends or family. This is something I know all too well from both research and personal experience.
Most of us are aware that talking about financial problems in our culture is incredibly difficult. We live in a society that values success and achievement. Anything that can be interpreted as financial failure is a taboo subject.
A few years ago, my sister-in-law called me out of the blue. After some small talk, she got to the point — she and my brother needed to borrow some money. It seems the truck my brother used for his business was in the shop, and they needed $800 to get it out.
I asked why they didn’t try for a loan through the bank, but she told me their credit wasn’t good enough. I knew they had been tight on money recently, but my brother had never really talked about the state of his business or their finances. I reluctantly agreed to the loan.
They made the first payment to me when it was due, but when the time came for the next one, I heard nothing. To make a long story short, the loan that was supposed to be paid back in three months took more than a year. I was upset, but I could see that it did far more damage to my brother’s pride than to my own financial standing.
Unexpected expenses can wreak havoc on a household budget, and a large segment of the US population is not financially prepared to cover them. Many who find themselves in this position turn to payday lenders or other short-term solutions — but they can get in over their heads if they choose the wrong company. While a short-term loan can be a lifeline, it’s important to do your research.
MoneyKey is a responsible online lender that is currently licensed to do business in 15 states. The company offers short-term loans, installment loans, and lines of credit to consumers and are committed to providing transparent rates and terms.
“We’ve been in business since 2011 with the intent to provide consumers with access to short-term credit and loans when they may find it difficult to receive one through a traditional bank or lender,” said an executive at MoneyKey.
While it’s best to try building up some savings to help absorb the financial hits that can unexpectedly come along in life, MoneyKey can offer a short-term solution if the need becomes too urgent to ignore.
Fostering a Culture of Responsible Lending
One of the most significant problems faced by borrowers with less-than-stellar credit is the affordability of short-term loans. And many lenders aren’t transparent, choosing not to tell borrowers about all of the fees they might incur.
MoneyKey is committed to responsible lending and ensuring that borrowers have the necessary resources to pay back any loan they take out. The lender discloses all fees upfront in the loan agreement, and there are no pre-payment penalties or late fees.
“We don’t want to put our customers in a position where they’re unable to afford the product and end up missing payments,” said the executive at MoneyKey. “Before we lend, we do a thorough review and affordability assessment of the applicant to help ensure that they can afford the loan product being offered.”
Borrowers with poor credit may have limited choices and choose short-term lenders as a last resort. Lenders are aware of this fact so many are willing to offer loans regardless of the borrower’s ability to repay it in a timely manner — knowing that more payments mean more interest and profit.
MoneyKey, on the other hand, uses algorithms to help ensure a customer doesn’t borrow more than he or she can afford to repay. From the standpoint of a consumer considering one of these loans, it’s important to keep a few things in mind.
First, short-term loan products should be used only in true financial emergencies. Next, make sure that even after taking into account your other financial obligations, you are still able to afford the payments required. And, finally, you should ensure that you carefully review and understand all of the terms and conditions of any loan you’re considering.
Loan products from MoneyKey are not offered in every state, so visit the website to see if you live in a state where the company is licensed to do business.
Knowledgeable Associates are Focused on Customer Service
As anyone who has ever researched a short-term loan or line of credit is aware, the marketplace is filled with options. The problem is finding an online lender that can answer your questions and that’s available to discuss your options. Most providers rely almost exclusively on technology to service their customers, with limited — if any — customer support.
This is another area in which MoneyKey differentiates itself. With a well-trained customer support team, MoneyKey representatives are available to answer customers’ questions seven days a week.
“The number one reason our customers are so happy with us is our people,” the MoneyKey executive said. “We have a very strong customer service and support team that is here to answer any questions our customers may have, and make sure they understand the products, the terms, the repayment schedule, everything.”
MoneyKey’s commitment to customer service is reflected in its high Trustpilot rating. With more than 1,500 Trustpilot reviews, MoneyKey maintains a solid Trustpilot TrustScore rating. Customer reviews include praise such as: “an excellent experience,” “process was easy,” “very professional,” and “highly recommended.”
MoneyKey representatives can be reached by phone, email, online chat, or by using the feedback form on the company’s website.
Resources Help Borrowers Make Better Financial Decisions
My brother and his wife experienced the awkwardness that comes from borrowing from a family member. But borrowing from an unscrupulous payday lender that wasn’t transparent about rates and upfront about fees would have been worse considering the risks and long-term impacts a loan like that could have in their financial situation.
MoneyKey believes in the value of educating its customers and offers informational resources on its website, including blog posts on saving money, coping with financial stress, how to deal with unexpected expenses, and more. The site also has articles ranging from the basics of a line of credit to strategies for budgeting and saving money.
If you’re struggling to understand some of the terms used in the lending industry, there’s also a glossary that clearly defines some of the most commonly used phrases and acronyms you may encounter.
“Informed consumers will make better choices when it comes to borrowing money,” the MoneyKey executive said.
An emergency expense can happen at any time, and, if you’re not prepared, it can lead to a potentially devastating debt spiral. Getting an emergency loan to see you through can be a good solution, but the decision to do so should be made with care.
Consider all of your options before choosing a short-term loan, and do your research on the lender keeping in mind that you should never take on more debt than you can manage. MoneyKey is there to help you borrow responsibly and can see you through until things turn around.